HomeMy WebLinkAbout2022/03/15 Post-Meeting Agenda Package
SPECIAL MEETING OF THE HOUSING AUTHORITY
MEETING JOINTLY WITH THE CITY COUNCIL OF THE CITY OF CHULA VISTA
**POST-MEETING AGENDA**
Date:March 15, 2022, 5:00 p.m.
Location:Council Chambers, 276 Fourth Avenue, Chula Vista, CA
Notice is hereby given that the Mayor of the City of Chula Vista has called and will convene a Special Meeting
of the Housing Authority meeting jointly with the City Council on Tuesday, March 15, 2022, at 5:00 p.m. in the
Council Chambers, located at 276 Fourth Avenue, Building A, Chula Vista, California.
View the Meeting Live in English & Spanish: chulavistaca.gov/councilmeetings
AT&T U-verse ch. 99 (San Diego County) Cox ch. 24 (Chula Vista) in English only
Welcome to your City Council/Housing Authority Meeting
PUBLIC COMMENTS: Public comments may be submitted to the Council/Authority in the following ways:
In-Person. The Community is welcome to make public comments at this City Council/Housing
Authority meeting. Masks or face coverings are required, regardless of vaccination status.
Comments via eComment (instructions below) are encouraged.
•
Submit an eComment: Visit www.chulavistaca.gov/councilmeetings, locate the meeting and click the
comment bubble icon. Select the item and click "Leave Comment." eComments can be submitted
until the conclusion of public comments for the item and are viewable online upon submittal. If you
have difficulty submitting eComments, email comments to: cityclerk@chulavistaca.gov
•
HOW TO WATCH: Live stream is available at www.chulavistaca.gov/councilmeetings. To switch the video to
Spanish, please click on "ES" in the bottom right-hand corner. Meetings are available anytime on the City's
website (English and Spanish).
ACCESSIBILITY: Individuals with disabilities or special needs are invited to request modifications or
accommodations to access and/or participate in a City meeting by contacting the City Clerk’s Office at
cityclerk@chulavistaca.gov or (619) 691-5041 (California Relay Service is available for the hearing impaired
by dialing 711) at least forty-eight hours in advance of the meeting.
SPEAKER TIME LIMITS: The time allotted for speakers may be adjusted by the Mayor.
- Five minutes* for specific items listed on the agenda
- Three minutes* for items NOT on the agenda (called to speak during Public Comments)
- A group of individuals may select a spokesperson to speak on their behalf on an agenda item, waiving
their option to speak individually on the same item. Generally, five minutes are allotted per person, up to
a limit of 30 minutes, although the limits may be adjusted. Members of the group must be present.
*Individuals who use a translator will be allotted twice the amount of time.
GETTING TO KNOW YOUR AGENDA
Agenda Sections:
CONSENT CALENDAR items are routine items that are not expected to prompt discussion. All items are
considered for approval at the same time with one vote. Councilmembers and staff may request items be
removed and members of the public may submit a speaker slip if they wish to comment on an item. Items
removed from the Consent Calendar are discussed after the vote on the remaining Consent Calendar items.
PUBLIC COMMENT provides the public with an opportunity to address the Council on any matter not listed on
the agenda that is within the jurisdiction of the Council. In compliance with the Brown Act, the Council cannot
take action on matters not listed on the agenda.
PUBLIC HEARINGS are held on matters specifically required by law. The Mayor opens the public hearing and
asks for presentations from staff and from the proponent or applicant involved (if applicable) in the matter
under discussion. Following questions from the Councilmembers, the Mayor opens the public hearing and
asks for public comments. The hearing is closed, and the City Council may discuss and take action.
ACTION ITEMS are items that are expected to cause discussion and/or action by the Council but do not
legally require a Public Hearing. Staff may make a presentation and Councilmembers may ask questions of
staff and the involved parties before the Mayor invites the public to provide input.
CLOSED SESSION may only be attended by members of the Council, support staff, and/or legal counsel. The
most common purpose of a Closed Session is to avoid revealing confidential information that may prejudice
the legal or negotiating position of the City or compromise the privacy interests of employees. Closed
sessions may be held only as specifically authorized by law.
Council Actions:
RESOLUTIONS are formal expressions of opinion or intention of the Council and are usually effective
immediately.
ORDINANCES are laws adopted by the Council. Ordinances usually amend, repeal or supplement the
Municipal Code; provide zoning specifications; or appropriate money for specific purposes. Most ordinances
require two hearings: an introductory hearing, generally followed by a second hearing at the next regular
meeting. Most ordinances go into effect 30 days after the final approval.
PROCLAMATIONS are issued by the City to honor significant achievements by community members,
highlight an event, promote awareness of community issues, and recognize City employees.
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Pages
1.CALL TO ORDER
2.ROLL CALL
3.PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE
4.SPECIAL ORDERS OF THE DAY
4.1.Oath of Office
Monica Montano - Healthy Chula Vista Advisory Commission
5.CONSENT CALENDAR (Items 5.1 through 5.7)
All items listed under the Consent Calendar are considered and acted upon by one
motion. Anyone may request an item be removed for separate consideration.
RECOMMENDED ACTION:
Council approve the recommended action on the below consent calendar items.
5.1.Approval of Minutes 8
RECOMMENDED ACTION:
Approve the minutes dated: July 27, and August 10, 2021.
5.2.Waive Reading of Text of Resolutions and Ordinances
RECOMMENDED ACTION:
Approve a motion to read only the title and waive the reading of the text of all
resolutions and ordinances at this meeting.
5.3.Consideration of Request for Excused Absences
RECOMMENDED ACTION:
Consider requests for excused absences as appropriate.
5.4.Medical Transport Supply: Approving an Increase in the Annual Supply Ordering
Threshold for the Ambulance Transport System to $1,000,000 Annually, not to
Exceed $5,000,000 for the Term of the Contract
28
Report Number: 22-0074
Location: No specific geographic location
Department: Fire
Environmental Notice: The activity is not a “Project” as defined under Section
15378 of the California Environmental Quality Act State Guidelines; therefore,
pursuant to State Guidelines Section 15060(c)(3) no environmental review is
required.
RECOMMENDED ACTION:
Adopt a resolution approving an increase in the annual medical supply
purchasing threshold to $1,000,000, not to exceed $5,000,000 for the term of the
contract.
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5.5.Housing Reports: Acceptance of the Housing Element 2021 Annual Progress
Report & Housing Successor Annual Report for Fiscal Year 2020-2021
33
Report Number: 22-0082
Location: No specific geographic location.
Department: Development Services
Environmental Notice: The activity is not a “Project” as defined under Section
15378 of the California Environmental Quality Act State Guidelines; therefore,
pursuant to State Guidelines Section 15060(c)(3) no environmental review is
required.
RECOMMENDED ACTION:
Accept the report.
5.6.Housing Service Agreement: Waiver of Bidding Requirement and Approval of an
Agreement With Compliance Services, LLC for Affordable Housing Monitoring
Software, Including Authorization for Up to Four Additional One-Year Options to
Extend
95
Report Number: 22-0087
Location: No specific geographical location
Department: Development Services
Environmental Notice: The activity is not a "Project" as defined under Section
15378 of the California Environmental Quality Act State Guidelines; therefore,
pursuant to State Guidelines Section 15060(c)(3) no environmental review is
required.
RECOMMENDED ACTION:
City Council and Housing Authority adopt a resolution (A) waiving the competitive
bidding requirements pursuant to Chula Vista Municipal Code Section
2.56.070(b)(3); (B) approving an Agreement with Compliance Services, LLC for
affordable housing monitoring software; and (C) authorizing the City Manager or
designee to execute the agreement, including authorizing the City Manager or
designee to also execute up to four additional one-year options to extend, for a
total contract period of five years.
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5.7.Housing Service Agreement: Approval of an Agreement with RSG, Inc. for
Affordable Housing Monitoring and Reporting Services, Including Authorization
for Up to Four Additional One-Year Options to Extend
101
Report Number: 22-0088
Location: No specific geographical location
Department: Development Services
Environmental Notice: The activity is not a "Project" as defined under Section
15378 of the California Environmental Quality Act State Guidelines; therefore,
pursuant to State Guidelines Section 15060(c)(3) no environmental review is
required.
RECOMMENDED ACTION:
City Council and Housing Authority adopt a resolution approving an agreement
with RSG, Inc. (“RSG”) for affordable housing monitoring and reporting services
and authorizing the City Manager/Housing Authority Director (for the Successor
Housing Entity pursuant to Government Code section 34176(a)), or their
designees, to enter into an initial agreement with RSG for affordable housing
monitoring and reporting services with four additional one-year options to extend,
for a total contract period of up to five years.
6.PUBLIC COMMENTS 106
The public may address the Council on any matter within the jurisdiction of the Council
but not on the agenda.
7.ACTION ITEMS
The following item(s) will be considered individually and are expected to elicit discussion
and deliberation.
7.1.Community Facilities District (CFD) Annexations: Initiate Annexation of Otay
Ranch Village 3 Neighborhood R-20 into CFD 97-2 and CFD 18M
113
Report Number: 22-0063
Location: Located generally near the intersection of Main Street and Heritage
Road, as shown more particularly on the annexation maps
Department: Development Services
Environmental Notice: The activity is not a “Project” as defined under Section
15378 of the California Environmental Quality Act (“CEQA”) State Guidelines;
therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental
review is required.
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RECOMMENDED ACTION:
Adopt resolutions A) setting forth the boundaries of the proposed Annexation No.
12 to CFD 97-2, Improvement Area “C”; B) declaring the intention of the City
Council to authorize the proposed Annexation No. 12 to Improvement Area “C” of
CFD 97-2, levy a Special Tax and set a time and place for the public hearing; C)
setting forth the boundaries of the proposed Annexation No. 1 to CFD 18M; and
D) declaring the intention of the City Council to authorize the proposed
Annexation No. 1 to CFD 18M, levy a Special Tax and set a time and place for
the public hearing.
*7.2.Workforce Housing: Consideration of Proposals to Convert “The Residences at
Escaya” and “CasaLago Eastlake” Rental Communities into Moderate Income
Rental Opportunities
154
Report Number: 22-0035
Location: The Residences at Escaya – 1925 Avenida Escaya (91913) and
CasaLago Eastlake - 2816 Cielo Circulo (91915)
Department: Development Services
Environmental Notice: The activity is not a “Project” as defined under Section
15378 of the California Environmental Quality Act State Guidelines; therefore,
pursuant to State Guidelines Section 15060(c)(3) no environmental review is
required.
RECOMMENDED ACTION:
Consider adopting resolutions: Authorizing (1) Execution of a Joint Exercise of
Powers Agreement Related to the California Municipal Financial Authority
(“CMFA”) Special Finance Agency Approving the Issuance of Revenue Bonds by
said Agency for the Purposes of Financing the Acquisition of The Residences at
Escaya Project Conditioned Upon Approval and Execution by the City Manager of
a Public Benefit Agreement (“PBA”) with CMFA; and Authorizing the City
Manager to Negotiate the PBA with CMFA With Terms Acceptable to the City
Manager and City Attorney’s Office and Consistent With Policy No. 453-03,
Including Determining Whether to Accept and Execute the PBA or to Reject the
PBA and not Execute the PBA (Ending Negotiations) and/or (2) Authorizing
Execution of a Joint Exercise of Powers Agreement Related to the California
Statewide Communities Development Authority (“CSCDA”) Special Finance
Agency Approving the Issuance Of Revenue Bonds by Said Agency for the
Purposes of Financing the Acquisition of Casalago Eastlake Project Conditioned
Upon Approval and Execution by the City Manager of a PBA With CSCDA and
Authorizing the City Manager to Negotiate the PBA With CSCDA With Terms
Acceptable to the City Manager and City Attorney’s Office and consistent With
Policy No. 453-03, Including Determining Whether to Accept and Execute the
PBA or to Reject the PBA and not Execute the PBA (Ending Negotiations).
8.CITY MANAGER’S REPORTS
9.MAYOR’S REPORTS
10.COUNCILMEMBERS’ COMMENTS
11.CITY ATTORNEY'S REPORTS
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12.CLOSED SESSION
Announcements of actions taken in Closed Sessions shall be made available by noon on
the next business day following the Council meeting at the City Attorney's office in
accordance with the Ralph M. Brown Act (Government Code 54957.7)
12.1.Conference with Labor Negotiators Pursuant to Government Code Section
54957.6
Agency designated representatives: Maria Kachadoorian, Glen Googins,
Courtney Chase, Kelley Bacon, Simon Silva, Sarah Schoen, Tanya Tomlinson,
Ed Prendell and Steve Berliner
Employee organizations: IAFF
12.2.Conference with Legal Counsel Regarding Existing Litigation Pursuant to
Government Code Section 54956.9(d)(1)
A) Name of case: City of Imperial Beach, et al. v. The international Boundary &
Water Commission-United States Section, United States District Court, Case No.
18-cv-0457 JM JLB
Item A was continued from the 3/1/2022 meeting.
B) Name of case: Junar Fernandez v. City of Chula Vista, San Diego Superior
Court, Case No. 37-2021-00004391-CU-PA-CTL.
13.ADJOURNMENT
in memory of Francine Antoinette Maigue, October 30, 1980 - February 22, 2022
to the regular City Council meeting on March 22, 2022 in the Council Chambers.
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REGULAR MEETING OF THE CITY COUNCIL
Meeting Minutes
July 27, 2021, 5:00 p.m.
Council Chambers, 276 Fourth Avenue, Chula Vista, CA
Present: Councilmember Cardenas, Councilmember Galvez, Deputy
Mayor McCann, Mayor Casillas Salas
Absent: Councilmember Padilla
Also Present: City Manager Kachadoorian, City Attorney Googins, City Clerk
Bigelow, Assistant City Clerk Turner
The City Council minutes are prepared and ordered to correspond to the City Council
Agenda. Agenda items may be taken out of order during the meeting.
The agenda items were considered in the order presented
_____________________________________________________________________
1. CALL TO ORDER
A regular meeting of the City Council of the City of Chula Vista was called to
order at 5:03 p.m. via teleconference and in the Council Chambers, located in
City Hall, 276 Fourth Avenue, Chula Vista, California.
2. ROLL CALL
City Clerk Bigelow called the roll.
3. PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE
Councilmember McCann led the Pledge of Allegiance.
4. SPECIAL ORDERS OF THE DAY
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4.1 Presentation by Chula Vista Redistricting Commission Chair Gloria
Hurtado Regarding the Launch of the First Round of Community
Workshops to Receive Public Input
Commission Chair Hurtado gave a presentation on the item.
5. CONSENT CALENDAR (Items 5.1 through 5.11)
Mayor Casillas Salas stated she would abstain from voting on Item 5.4 due to a
potential property-related conflict of interest and that Councilmember Galvez had
a conflict with an exception that did not require she abstain on Item 5.8.
Moved by Mayor Casillas Salas
Seconded by Councilmember McCann
To approve the recommended action appearing below Consent Calendar Items
5.1 through 5.3 and 5.5 through 5.11. The headings below were read, text
waived. The motion carried by the following vote:
Yes (4): Councilmember Cardenas, Councilmember Galvez, Councilmember
McCann, and Mayor Casillas Salas
Result, Carried (4 to 0)
Moved by Mayor Casillas Salas
Seconded by Councilmember McCann
To approve the recommended action appearing below consent calendar Item
5.4. The heading below was read, text waived. The motion carried by the
following vote:
Yes (3): Councilmember Cardenas, Councilmember Galvez, and Councilmember
McCann
Abstain (1): Mayor Casillas Salas
Result, Carried (3 to 0)
5.1 Written Communications
Memorandum from Deputy Mayor McCann Requesting an Excused
Absence from the June 15, 2021 City Council Meeting.
Excuse the absence.
5.2 Waive Reading of Text of Resolutions and Ordinances
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Approve a motion to read only the title and waive the reading of the text of
all resolutions and ordinances at this meeting.
5.3 Solid Waste and Recycling: Amend the Chula Vista Municipal Code
Regarding the Definition of Organic Waste, Enforcement Procedure
to Prevent Disposal of Organic Waste, and Modification to the
Processing of Delinquent Collection Payments
Adopt an ordinance amending various sections of Chula Vista Municipal
Code Chapters 8.24 and 8.25 to update the definition of organic waste,
authorize the City Manager to develop an enforcement procedure to
prevent the landfill disposal of organic waste, and modify the processing of
delinquent waste collection payments
ORDINANCE NO. 3507 OF THE CITY OF CHULA VISTA AMENDING
VARIOUS SECTIONS OF CHULA VISTA MUNICIPAL CODE
CHAPTERS 8.24, “SOLID WASTE AND LITTER,” AND 8.25,
“RECYCLING,” TO UPDATE THE DEFINITION OF ORGANIC WASTE,
AUTHORIZE THE CITY MANAGER TO DEVELOP AN ENFORCEMENT
PROCEDURE TO PREVENT THE LANDFILL DISPOSAL OF ORGANIC
WASTE, AND MODIFY THE PROCESSING OF DELINQUENT WASTE
COLLECTION PAYMENTS (SECOND READING AND ADOPTION)
5.4 Third Avenue Curb Cafes and Sidewalk Cafes: Approve a
Reimbursement Grant Program for Curb Cafes and Sidewalk Cafes
on Third Avenue and Streamline the City's Permit Processes for
Certain Encroachments Within the Public Right-of-Way
Kevin Rhodes submitted comments regarding the item.
Robert Casey submitted comments in opposition to staff's
recommendations.
Adopt an ordinance amending Chula Vista Municipal Cod e chapter 12.28
"Encroachments," to streamline the City's permitting process for certain
encroachments within the public right-of-way and make certain updates
ORDINANCE NO. 3508 OF THE CITY OF CHULA VISTA AMENDING
CERTAIN SECTIONS OF CHAPTER 12.28 OF THE CHULA VISTA
MUNICIPAL CODE TO STREAMLINE THE CITY’S PERMIT
PROCESSES FOR CERTAIN ENCROACHMENTS WITHIN THE PUBLIC
RIGHT-OF-WAY (SECOND READING AND ADOPTION)
5.5 Bayfront Project Special Tax Financing District: Considering an
Ordinance Authorizing the Levy of a Special Tax
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Acting as the legislative body of the Bayfront Project Special Tax
Financing District: Adopt an ordinance amending Ordinance No. 3481 and
authorizing the levy of a special tax in such district pursuant to an
amended and restated rate and method of apportionment.
ORDINANCE NO. 3509 OF THE CITY OF CHULA VISTA ACTING AS
THE LEGISLATIVE BODY OF THE BAYFRONT PROJECT SPECIAL
TAX FINANCING DISTRICT, AMENDING ORDINANCE NO. 3481 AND
AUTHORIZING THE LEVY OF A SPECIAL TAX IN SUCH DISTRICT
PURSUANT TO AN AMENDED RATE AND METHOD OF
APPORTIONMENT THEREOF (SECOND READING AND ADOPTION)
5.6 Program Participation: Authorize Submittal of an Oil Payment
Program Application to CalRecycle as the Regional Lead Participant
for the South Bay/East County Used Oil Program
Adopt a resolution approving the submittal of a regional Oil Payment
Program application to CalRecycle as the regional lead participant for the
South Bay/East County Used Oil Program.
RESOLUTION NO. 2021-140 OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING SUBMITTAL OF AN OIL PAYMENT
PROGRAM APPLICATION AS THE REGIONAL LEAD PARTICIPANT
5.7 On-Call Agreements for Geotechnical, Materials Testing, and Special
Inspection Consultant Services: Approve Agreements with Four
Geotechnical Consultants to Provide On-Call Services
Adopt a resolution approving agreements with the consultant firms of Atlas
Technical Consultants, Ninyo & Moore Geotechnical and Environmental
Sciences Consultants, RMA Group Inc., and Wood Environment &
Infrastructure Solutions, Inc., to provide on-call geotechnical, materials
testing, and special inspection consultant services.
RESOLUTION NO. 2021-141 OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING CONSULTANT SERVICES AGREEMENTS
TO PROVIDE ON-CALL GEOTECHNICAL, MATERIALS TESTING, AND
SPECIAL INSPECTION SERVICES BETWEEN THE CITY AND (A)
ATLAS TECHNICAL CONSULTANTS, (B) NINYO & MOORE
GEOTECHNICAL AND ENVIRONMENTAL SCIENCES CONSULTANTS,
(C) RMA GROUP INC., AND (D) WOOD ENVIRONMENT &
INFRASTRUCTURE SOLUTIONS, INC.
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5.8 Roadway Resurfacing Program: Approval of a Service Agreement
with the County of San Diego for the County’s Roadway Resurfacing
Program 2021-2022
Frank Rivera submitted comments in support of staff's recommendation on
behalf of Chula Vista residents Gloria Tavarez and Mrs. Espino.
Adopt a resolution approving a service agreement with the County of San
Diego for Roadway Resurfacing.
RESOLUTION NO. 2021-142 OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A SERVICE AGREEMENT BY AND
BETWEEN THE CITY OF CHULA VISTA AND COUNTY OF SAN DIEGO
FOR THE COUNTY’S ROADWAY RESURFACING PROGRAM 2021-
2022
5.9 Sewer Maintenance Hole Inspection and Evaluation Contract: Award
of Contract to Redzone Robotics
Adopt a resolution awarding a contract to Redzone Robotics to provide
sewer maintenance hole inspection and evaluation services.
RESOLUTION NO. 2021-143 OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A CONTRACT AWARD TO REDZONE
ROBOTICS TO PROVIDE MAINTENANCE HOLE INSPECTION AND
EVALUATION SERVICES (SWR0287 AND SWR0315)
5.10 Speed Limit Adjustment: Moss Street
Place an ordinance on first reading decreasing the speed limit on Moss St.
between Broadway and Second Ave. from 35 mph to 30 mph and
between Second Ave. and the easterly cul-de-sac from 35 mph to 25 mph,
and amending schedule X of the register in the City Engineer’s office.
ORDINANCE OF THE CITY OF CHULA VISTA DECREASING THE
SPEED LIMIT ON MOSS STREET BETWEEN BROADWAY AND
SECOND AVENUE FROM 35 MPH TO 30 MPH AND BETWEEN
SECOND AVENUE AND THE EASTERLY CUL-DE-SAC FROM 35 MPH
TO 25 MPH, AND AMENDING SCHEDULE X OF THE REGISTER
MAINTAINED IN THE OFFICE OF THE CITY ENGINEER TO REFLECT
THE ESTABLISHED SPEED LIMITS (FIRST READING)
5.11 Contract Award: Accepting Bid and Awarding Agreement to Penske
Ford for Police Interceptor Utility Vehicles
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Adopt a resolution awarding an agreement to Penske Ford for 11 police
interceptor utility vehicles.
RESOLUTION NO. 2021-144 OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING BID AND AWARDING AGREEMENT WITH
PENSKE FORD FOR POLICE INTERCEPTOR UTILITY VEHICLES
6. PUBLIC COMMENTS
There were none.
7. BOARD AND COMMISSION REPORTS
7.1 Measure P Citizens’ Oversight Committee Presentation: Annual
Report Covering Reporting Period of July 01, 2019 Through June 30,
2020 and an Update of Measure P Projects
Measure P Citizens' Oversight Committee Chair Garcias gave a
presentation on the item.
8. ACTION ITEMS
8.1 Presentation of Emergency Order 008-2021 Updating and
Consolidating, where Appropriate, the Status of All Emergency
Orders Issued by the Chula Vista Director of Emergency Services
from April 2020 Through May 2021 as a Result of the Covid -19
Pandemic
Deputy City Attorney McClurg gave a presentation on the item and
Emergency Services Manager King provided an update on the status of
COVID-19.
Council discussion ensued.
Moved by Mayor Casillas Salas
Seconded by Councilmember Cardenas
To ratify and approve Emergency Order 008 -2021 to update and
consolidate the status of all Emergency Orders issued by the Chula Vista
Director of Emergency Services from April 2020 through May 2021 as a
result of the COVID-19 pandemic. The motion carried by the following
vote:
Yes (4): Councilmember Cardenas, Councilmember Galvez,
Councilmember McCann, and Mayor Casillas Salas
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Result, Carried (4 to 0)
8.2 Contract Amendment: Waiving Competitive Bidding Requirements
and Amending an Agreement with SBCS Corporation to Increase
Funding and Update Scope to Comply with AB 832 for the
Administration of the Emergency Rental and Utility Assistance
Program
Deputy Mayor McCann stated he would abstain from voting on Item 8.2
due to a potential property-related conflict of interest and he left the dais
during discussion and voting on the item.
Sr. Management Analyst Dorado gave a presentation on the item and
responded to questions of the Council.
Council discussion ensued.
Moved by Mayor Casillas Salas
Seconded by Councilmember Cardenas
To adopt Resolution No. 2021-145, heading was read, text waived: The
motion carried by the following vote:
Yes (3): Councilmember Cardenas, Councilmember Galvez, and Mayor
Casillas Salas
Abstain (1): Councilmember McCann
Result, Carried (3 to 0)
RESOLUTION NO. 2021-145 OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA WAIVING COMPETITIVE BIDDING REQUIREMENTS
PURSUANT TO CHULA VISTA MUNICIPAL CODE SECTION
2.56.070(B)(3) AND APPROVING A FIRST AMENDMENT TO THE
CONTRACTOR/SERVICE PROVIDER AGREEMENT WITH SBCS
CORPORATION TO PROVIDE AN EMERGENCY RENTAL AND UTILITY
ASSISTANCE PROGRAM FUNDED BY STATE AND FEDERAL
CONSOLIDATED APPROPRIATIONS ACT OF 2021 ALLOCATIONS
9. CITY MANAGER’S REPORTS
There were none.
10. MAYOR’S REPORTS
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Mayor Casillas Salas spoke regarding additional funds available for rental
assistance and the Small Business Grants. Mayor Casillas Salas encouraged
the community to continue wearing masks. She reported on her attendance at
the following recent events: California Latino Caucus Scholarship Award
reception; Equity California Proud Together lunch; ribbon-cutting ceremony for
the Airline Support building at the San Diego airport; meetings with Senate
President Pro Tem Toni Atkins, and Assemblymember Akilah Weber, regarding
the City's legislative priorities and pending legislation; and a tour of Otay La ndfill
and surrounding areas.
10.1 Consideration of Appointment of a Voting Delegate and Alternates
for the 2021 League of California Cities Annual Conference to be
Held in Sacramento, September 22 - 24
Moved by Councilmember McCann
Seconded by Councilmember Cardenas
To designate Mayor Casillas Salas as the voting delegate and
Councilmember Padilla as the alternate for the 2021 League of California
Cities Annual Conference to be held in Sacramento, September 22 -24.
The motion carried by the following vote:
Yes (4): Councilmember Cardenas, Councilmember Galvez,
Councilmember McCann, and Mayor Casillas Salas
Result, Carried (4 to 0)
10.2 Consideration of City Sponsorship of the 2021 Starlight Parade and
the Formation of an Ad-Hoc Subcommittee for the Event
Moved by Councilmember Galvez
Seconded by Councilmember Cardenas
To approve sponsorship of the 2021 Starlight Parade and designate
Mayor Casillas Salas and Councilmember Galvez to serve on an Ad -Hoc
Subcommittee for the event. The motion carried by the following vote:
Yes (4): Councilmember Cardenas, Councilmember Galvez,
Councilmember McCann, and Mayor Casillas Salas
Result, Carried (4 to 0)
10.3 Ratification of Appointment of Mopelola Olaoye to the Human
Relations Commission
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Moved by Councilmember Cardenas
Seconded by Councilmember Galvez
To ratify the above appointment. The motion carried by the following vote:
Yes (4): Councilmember Cardenas, Councilmember Galvez,
Councilmember McCann, and Mayor Casillas Salas
Result, Carried (4 to 0)
11. COUNCILMEMBERS’ COMMENTS
Councilmember Cardenas encouraged mask wearing, COVID-19 testing and
vaccinations. She reported that she recently participated on a panel hosted by
MANA San Diego discussing inequities for Latinas.
Deputy Mayor McCann recognized businesses for their endurance during the
pandemic and beyond and encouraged the community to shop locally. Deputy
Mayor McCann reported his attendance at the Third Avenue tree lighting. He
expressed gratitude for children being able to return to school.
Councilmember Galvez spoke regarding a tour of the IBWC Sewage Treatment
Plant, Chamber of Commerce installation event, and graffiti abatement project
she and Councilmember Cardenas would undertake. She also thanked Housing
staff for their assistance with residents on Smith Avenue.
12. CITY ATTORNEY'S REPORTS
There were none.
13. CLOSED SESSION
Pursuant to Resolution No. 13706 and Council Policy No. 346 -03, Official
Minutes and records of action taken during Closed Sessions are maintained by
the City Attorney.
City Attorney Googins announced that the Council would convene in closed
session to discuss the items listed below.
Mayor Casillas Salas recessed the meeting at 6:29 p.m. The Council convened
in Closed Session at 6:32 p.m., with all members present.
13.1 Conference with Legal Counsel Regarding Existing Litigation
Pursuant to Government Code Section 54956.9(d)(1)
Name of case: Lucy Ludwig-Melendrez, et al. v. City of Chula Vista, San
Diego Superior Court, Case No. 37-2019-00034737-CU-CI-CTL.
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Action: Pending Finalization of the Terms of Settlement
14. ADJOURNMENT
Mayor Casillas Salas adjourned the meeting in memory of Frank Wada.
The meeting was adjourned at 6:34 p.m.
Minutes prepared by: Tyshar Turner, Assistant City Clerk
_________________________
Kerry K. Bigelow, MMC, City Clerk
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REGULAR MEETING OF THE CITY COUNCIL
Meeting Minutes
August 10, 2021, 5:00 p.m.
Council Chambers, 276 Fourth Avenue, Chula Vista, CA
Present: Councilmember Cardenas, Councilmember Galvez, Deputy
Mayor McCann, Councilmember Padilla, Mayor Casillas Salas
Also Present: City Manager Kachadoorian, City Attorney Googins, City Clerk
Bigelow, Assistant City Clerk Turner
The City Council minutes are prepared and ordered to correspond to the City Council
Agenda. Agenda items may be taken out of order during the meeting.
The agenda items were considered in the order presented.
_____________________________________________________________________
1. CALL TO ORDER
A regular meeting of the City Council of the City of Chula Vista was called to
order at 5:09 p.m. via teleconference and in the Council Chambers, located in
City Hall, 276 Fourth Avenue, Chula Vista, California.
Mayor Casillas Salas announced that Item 7.2 had been withdrawn by the
applicant.
2. ROLL CALL
City Clerk Bigelow called the roll.
3. PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE
Councilmember Cardenas led the Pledge of Allegiance.
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4. SPECIAL ORDERS OF THE DAY
4.1 Oath of Office
-Mopelola Olaoye, Human Relations Commission
City Clerk Bigelow administered the oath of office to Commissioner
Olaoye, and Councilmember Cardenas presented her with a certificate of
appointment.
5. CONSENT CALENDAR (Items 5.1 through 5.6)
Item 5.6 was removed from the consent calendar at the request of staff.
Moved by Mayor Casillas Salas
Seconded by Councilmember McCann
To approve the recommended action appearing below consent calendar Items
5.1 through 5.5. The headings below were read, text waived. The motion carried
by the following vote:
Yes (5): Councilmember Cardenas, Councilmember Galvez, Councilmember
McCann, Councilmember Padilla, and Mayor Casillas Salas
Result, Carried (5 to 0)
5.1 Written Communications
Memorandum from Councilmember Padilla Requesting an Excused
Absence from the July 27, 2021 City Council Meeting.
Council excuse the absence.
5.2 Waive Reading of Text of Resolutions and Ordinances
Approve a motion to read only the title and waive the reading of the text of
all resolutions and ordinances at this meeting.
5.3 Speed Limit Adjustment: Moss Street
Adopt an ordinance decreasing the speed limit on Moss St. between
Broadway and Second Ave. from 35 mph to 30 mph and between Second
Ave. and the easterly cul-de-sac from 35 mph to 25 mph, and amending
schedule X of the register in the City Engineer’s office.
ORDINANCE NO. 3510 OF THE CITY OF CHULA VISTA DECREASING
THE SPEED LIMIT ON MOSS STREET BETWEEN BROADWAY AND
SECOND AVENUE FROM 35 MPH TO 30 MPH AND BETWEEN
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SECOND AVENUE AND THE EASTERLY CUL-DE-SAC FROM 35 MPH
TO 25 MPH, AND AMENDING SCHEDULE X OF THE REGISTER
MAINTAINED IN THE OFFICE OF THE CITY ENGINEER TO REFLECT
THE ESTABLISHED SPEED LIMITS (SECOND READING AND
ADOPTION)
5.4 Contract Award: Design-Build Agreement with EC Constructors, Inc.
for the Construction Phase of the Loma Verde Recreation Center
Segments 1 and 2
Adopt a Resolution awarding a Design-Build Agreement to EC
Constructors, Inc. for the construction Phase of the Loma Verde
Recreation Center Segments 1 and 2, for a maximum guaranteed price of
$12,812,639.
RESOLUTION NO. 2021-146 OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AWARDING A DESIGN-BUILD AGREEMENT TO EC
CONSTRUCTORS INC. FOR THE CONSTRUCTION PHASE OF THE
LOMA VERDE RECREATION CENTER, SEGMENTS 1 AND 2 (CIP NO.
GGV0247)
5.5 Electronic Claim Filing: Amend Chula Vista Municipal Code Chapter
1.34 to Allow Claims to be Filed Electronically in Accordance with SB
1473 (Local Government Omnibus Act of 2020)
Place an ordinance on first reading amending Chula Vista Municipal Code
chapter 1.34 to allow claims to be filed electronically and updating the
delegate for rejecting, approving, compromising or settling claims to the
City Manager or her designee.
ORDINANCE OF THE CITY OF CHULA VISTA AMENDING VARIOUS
SECTIONS OF CHULA VISA MUNICIPAL CODE CHAPTER 1.34,
“CLAIMS REQUIREMENTS AND PROCEDURES,” TO ALLOW FOR
ELECTRONIC CLAIMS FILINGS AND CHANGE THE DELEGATE FOR
CLAIMS HANDLING FROM RISK MANAGER TO CITY MANAGER OR
HER DESIGNEE (FIRST READING)
5.6 Legislative Advocacy: Approve an Agreement with Nielsen
Merksamer Parrinello Gross & Leoni, LLP to Perform State
Legislative Advocacy Services
Marketing and Communication Manager Steinberger and Michelle
Rubalcava, representing Nielsen Merksamer gave a presentation on the
item.
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Council discussion ensued.
Moved by Mayor Casillas Salas
Seconded by Councilmember Galvez
To adopt a Resolution No. 2021-147, heading was read, text waived. The
motion carried by the following vote:
Yes (5): Councilmember Cardenas, Councilmember Galvez,
Councilmember McCann, Councilmember Padilla, and Mayor Casillas
Salas
Result, Carried (5 to 0)
RESOLUTION NO. 2021-147 OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA: (1) APPROVING THE SELECTION OF NIELSEN
MERKSAMER PARRINELLO GROSS & LEONI, LLP, TO PROVIDE
PROFESSIONAL LEGISLATIVE ADVOCACY SERVICES; (2)
AUTHORIZING THE CITY MANAGER OR HER DESIGNEE TO
NEGOTIATE AND EXECUTE A PROFESSIONAL SERVICES
AGREEMENT FOR SAID SERVICES IN A FORM APPROVED BY THE
CITY ATTORNEY; AND (3) AUTHORIZING THE CITY MANAGER TO
APPROVE UP TO FOUR, ONE-YEAR EXTENSIONS
6. PUBLIC COMMENTS
Dr. Rueben Guerra, representing the Latin Business Association and other
contractors in the County, spoke regarding the Bayfront project.
7. PUBLIC HEARINGS
7.1 Community Facilities District Formation: Considering Use of
California Municipal Financing Authority’s Bond Opportunities for
Land Development (BOLD) Program and Considering Authorizing
Formation of CFD 2021-11 through the BOLD Program
Notice of the hearing was given in accordance with legal requirements,
and the hearing was held on the date and no earlier than the specified in
the notice.
Mayor Casillas Salas opened the public hearing.
There being no members of the public who wished to speak, Mayor
Casillas Salas closed the public hearing.
Moved by Councilmember McCann
Seconded by Councilmember Padilla
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To adopt Resolution No. 2021-148, heading was read, text waived. The
motion carried by the following vote:
Yes (5): Councilmember Cardenas, Councilmember Galvez,
Councilmember McCann, Councilmember Padilla, and Mayor Casillas
Salas
Result, Carried (5 to 0)
A) RESOLUTION NO. 2021-148 OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA, AUTHORIZING USE OF THE BOND
OPPORTUNITIES FOR LAND DEVELOPMENT (“BOLD”) PROGRAM
AND AUTHORIZING THE CALIFORNIA MUNICIPAL FINANCE
AUTHORITY TO ACCEPT APPLICATIONS FROM PROPERTY
OWNERS, CONDUCT PROCEEDINGS AND LEVY SPECIAL TAXES
WITHIN THE TERRITORY OF CITY OF CHULA VISTA PURSUANT TO
THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982, AS
AMENDED; AND AUTHORIZING RELATED ACTIONS
Moved by Councilmember McCann
Seconded by Councilmember Padilla
To adopt Resolution No. 2021-149, heading was read, text waived. The
motion carried by the following vote:
Yes (5): Councilmember Cardenas, Councilmember Galvez,
Councilmember McCann, Councilmember Padilla, and Mayor Casillas
Salas
Result, Carried (5 to 0)
B) RESOLUTION NO. 2021-149 OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA, AUTHORIZING FORMATION OF THE CALIFORNIA
MUNICIPAL FINANCE AUTHORITY COMMUNITY FACILITIES
DISTRICT NO. 2021-11 (CITY OF CHULA VISTA – OTAY RANCH
VILLAGE 8 WEST) THROUGH THE BOND OPPORTUNITIES FOR
LAND DEVELOPMENT (“BOLD”) PROGRAM PURSUANT TO THE
MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982, AS AMENDED;
APPROVING A JOINT COMMUNITY FACILITIES AGREEMENT AND
AUTHORIZING RELATED ACTIONS
7.2 Sunbow II: Amending the General Plan, Sunbow II General
Development Plan, and the Sunbow II Section Planning Area Plan to
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Modify Land Use of a Vacant Parcel from Industrial Use to
Residential Use
Mayor Casillas Salas announced that Item 7.2 had been withdraw at the
request of the applicant.
8. ACTION ITEMS
8.1 Amendment and Approval of Compensation Schedule; Amendments
to Employment Agreements for the City Manager and City Clerk;
Amendments to Position Counts; Longevity Pay for Police Captains;
Peace Officer Lateral Incentive; and Appropriate Funds therefor
Moved by Mayor Casillas Salas
Seconded by Councilmember McCann
To adopt Resolution Nos. 2021-150 through 2021-157, headings were
read, text waived. The motion carried by the following vote:
A) RESOLUTION NO. 2021-150 OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA AMENDING THE COMPENSATION SCHEDULE AND
CLASSIFICATION PLAN TO REFLECT THE ADDITION AND DELETION
OF VARIOUS POSITION TITLES AND AMENDING THE AUTHORIZED
POSITION COUNT IN VARIOUS DEPARTMENTS WITH INCREASE IN
AUTHORIZED STAFFING
B) RESOLUTION NO. 2021-151 OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA APPROVING A SALARY ADJUSTMENT FOR THE
CITY MANAGER AND AMENDING THE CITY MANAGER
EMPLOYMENT AGREEMENT
C) RESOLUTION NO. 2021-152 OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA APPROVING A SALARY ADJUSTMENT FOR THE
CITY CLERK
D) RESOLUTION NO. 2021-153 OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA APPROVING THE AMENDED COMPENSATION
SUMMARY FOR ALL UNREPRESENTED EMPLOYEES AND ELECTED
OFFICIALS, INCLUDING AUTHORIZATION FOR THE MAYOR TO
EXECUTE ANY NECESSARY CONTRACT AMENDMENTS TO
IMPLEMENT SAID AMENDED COMPENSATION SUMMARY
E) RESOLUTION NO. 2021-154 OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA APPROVING THE REVISED FISCAL YEAR 2021 -
2022 COMPENSATION SCHEDULE EFFECTIVE JULY 2. 2021, AS
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REQUIRED BY CALIFORNIA CODE OF REGULATIONS, TITLE 2,
SECTION 570.5
F) RESOLUTION NO. 2021-155 OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA APPROVING THE REVISED FISCAL YEAR 2021 -
2022 COMPENSATION SCHEDULE EFFECTIVE AUGUST 13. 2021, AS
REQUIRED BY CALIFORNIA CODE OF REGULATIONS, TITLE 2,
SECTION 570.5
G) RESOLUTION NO. 2021-156 OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA APPROVING ADDITIONAL LATERAL INCENTIVE
PAY FOR NEW LATERAL POLICE HIRES
H) RESOLUTION NO. 2021-157 OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA MAKING VARIOUS AMENDMENTS TO THE FISCAL
YEAR 2021/22 BUDGET FOR APPROPRIATING FUNDS THEREFOR
(4/5 VOTE REQUIRED)
9. CITY MANAGER’S REPORTS
9.1 Update on Rezoning of the Former Goodrich/Rohr Property
City Manager Kachadoorian gave an update on the item and she and
Development Services Director Allen responded to questions of the
Council.
Council discussion ensued.
9.2 Mobile Crisis Response Team (MCT) Update
Police Captain Phil Collum and Dr. Piedad Garcia, representing Live Well
San Diego gave an update on the item and responded to ques tions of the
Council.
9.3 Real Time Operations Center Update
Police Chief Kennedy gave an update on the item.
10. MAYOR’S REPORTS
Mayor Casillas Salas thanked the Alpha Project for their work in City Parks. She
encouraged the community to be vaccinated and thanked those who voluntarily
wear masks. Mayor Casillas Salas reported her attendance at the following
recent events: grand opening of Las Tres Catrinas at the Chula Vista Center;
Chula Vista Chamber 94th Instillation and Dance; Metropolitan Transit Systems
40th Anniversary; retirement walk-out for Police Dispatcher Marlen Bragg;
Escaya Park opening and the 12th Annual Farm to Bay celebration.
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At the request of Mayor Casillas Salas, there was consensus of the Council to
make a referral to staff to review and potentially make a recommendation to
Council regarding the composition of the Measure P Citizens Oversight
Committee to streamline and possibly reduce the size of the committee.
10.1 Boards & Commissions: Consideration of Annual Reappointments
A. REAPPOINTMENT TO FIRST TERMS (initial term less than two years)
-Harriet Baber, Human Relations Commission
-Paul Becotte, Measure A Citizens’ Oversight Committee
-Robert Cromer, Measure P Citizens’ Oversight Committee
-Nicole Enriquez, Measure P Citizens’ Oversight Committee
-Saad Ilyas, Measure P Citizens’ Oversight Committee
-Michael Inzunza, Charter Review Commission
-Christos Korgan, Sustainability Commission
-Elizabeth Moyer, Veterans Advisory Commission
-Barbara Orozco-Valdivia, Healthy Chula Vista Advisory Commission
-Silvia Saldivar, Measure P Citizens’ Oversight Committee
Moved by Councilmember Cardenas
Seconded by Councilmember McCann
To reappoint the individuals listed above to their first full term. The motion
carried by the following vote:
Yes (5): Councilmember Cardenas, Councilmember Galvez,
Councilmember McCann, Councilmember Padilla, and Mayor Casillas
Salas
Result, Carried (5 to 0)
B. REAPPOINTMENTS TO SECOND TERMS
-Theresa Acerro, Mobilehome Rent Review Commission
-Pedro Anaya, Measure A Citizens’ Oversight Committee
-Jan Buddingh, Charter Review Commission
-Krista Burroughs, Planning Commission
-Anna Cabral, Housing Advisory Commission
-Jennifer Carbuccia, Civil Service Commission
-Rodney Caudillo, Growth Management Oversight Commission
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-Mona Freels, Measure P Citizens’ Oversight Committee
-David Garcias, Measure P Citizens’ Oversight Committee
-Edgar Hopida, Charter Review Commission
-Michael T. Lengyel, Measure P Citizens’ Oversight Committee
-Greg Martinez, Measure P Citizens’ Oversight Committee
-Tina Matthias, Sustainability Commission
-James Merino, Housing Advisory Commission
-Christopher Redo, Measure P Citizens’ Oversight Committee
-Darrell Roberts, Measure A Citizens’ Oversight Committee
-Mayra Swanson, Board of Library Trustees
-John Zarem, Parks and Recreation Commission
Moved by Councilmember Cardenas
Seconded by Councilmember McCann
To reappoint the individuals listed above to their second term. The motion
carried by the following vote:
Yes (5): Councilmember Cardenas, Councilmember Galvez,
Councilmember McCann, Councilmember Padilla, and Mayor Casillas
Salas
Result, Carried (5 to 0)
C. REAPPOINTMENTS TO THIRD TERMS (YOUTH ACTION COUNCIL)
-Patricia Bessie, Youth Action Council
-Annika Daglish, Youth Action Council
-Celina Luisa Miranda, Youth Action Council
-Andrea Roji, Youth Action Council
-Alejandro Villalvazo, Youth Action Council
Moved by Councilmember McCann
Seconded by Councilmember Cardenas
To reappoint the individuals listed above to their third term with the Youth
Action Council. The motion carried by the following vote:
Yes (5): Councilmember Cardenas, Councilmember Galvez,
Councilmember McCann, Councilmember Padilla, and Mayor Casillas
Salas
Result, Carried (5 to 0)
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11. COUNCILMEMBERS’ COMMENTS
Councilmember Padilla spoke regarding climate change and the Escaya Park
opening. He reported that he and his aide had recently visited a new Himalayan
restaurant at the Chula Vista Mall. Councilmember Padilla encouraged the
community and City staff to be vaccinated.
Councilmember Cardenas encouraged the community and City staff to get
vaccinated. She reported that she had attended the Chula Vista Chamber 94th
Installation event and visited the Mingei Museum to discuss collaborating with
organizations in the City to bring more arts and culture opportunities to the City.
Deputy Mayor McCann thanked Eric Johnson, Todd Galarneau and Lisa Cohen
for their work with the Chamber of Commerce. He encouraged the community to
be vaccinated.
Councilmember Galvez spoke regarding the effects of COVID on small
businesses. She congratulated Lisa Cohen for her work with the Chamber of
Commerce. Councilmember Galvez reported her attendance at the following
recent events: Chula Vista Chamber 94th Installation event; grand opening of
Las Tres Catrinas; tour of TuStreams; tour at San Diego Futures Foundation;
Metropolitan Transit Systems 40th Anniversary; retirement walk-out for Police
Dispatcher Marlen Bragg; two briefings for the seniors at Community
Congregational Towers; Eastlake Chula Vista Rotary meeting; and Living Coast
Discovery Center Farm to Bay fundraiser.
12. CITY ATTORNEY'S REPORTS
City Attorney Googins reported he had attended the Chula Vista Chamber 94th
Installation event and thanked Lisa Cohen for her work with the Chamber.
13. ADJOURNMENT
The meeting was adjourned at 6:36 p.m.
Minutes prepared by: Tyshar Turner, Assistant City Clerk
_________________________
Kerry K. Bigelow, MMC, City Clerk
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March 15, 2022
ITEM TITLE
Medical Transport Supply: Approving an Increase in the Annual Supply Ordering Threshold for the
Ambulance Transport System to $1,000,000 Annually, not to Exceed $5,000,000 for the Term of the
Contract
Report Number: 22-0074
Location: No specific geographic location
Department: Fire
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California
Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no
environmental review is required.
Recommended Action
Adopt a resolution approving an increase in the annual medical supply purchasing threshold to $1,000,000,
not to exceed $5,000,000 for the term of the contract.
SUMMARY
On May 12, 2020 City Council approved Chula Vista Council resolution 20-102 approving a program for the
Chula Vista Fire Department to provide exclusive ambulance transport services within the City of Chula Vista,
The City of Imperial Beach and the Bonita Sunnyside Fire Protection District. On January 5th, 2021, the City
Council approved resolution 2021-007 approving supply purchases with Life-Assist and Bound Tree for
medical supplies necessary for carrying out ambulance transport services for these two vendors not to
exceed $500,000 annually and $2,500,000 over the maximum term of the agreements. The system is now
entering its eleventh month of service, and currently there is the need to increase the purchasing maximums
for the term of the agreements.
ENVIRONMENTAL REVIEW
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 is not a “Project” as defined under
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Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the
environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not
subject to CEQA. Thus, no environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not Applicable
DISCUSSION
On October 29, 2020, the City of Chula Vista released a Request for Bid (RFB) for Transport Medical Supplies
and conducted a competitive process to identify the most qualified and cost-effective medical supply
provider. Staff solicited proposals from qualified companies, notifying one hundred and sixty-two (162)
companies through PlanetBids. Seventeen (17) companies downloaded solicitations, and two (2) companies
submitted bids. Both bids were considered responsive. Bound Tree was low bidder on 147 of the 193
products identified, and Life-Assist was low bidder on 46 of the 193 products.
Staff decided to award to both suppliers. An award to both ensures the City is getting the best price for each
product. Both suppliers are amenable to splitting provision of the products. Additionally, Bound Tree
Medical and Life-Assist are well-known and well-respected for the products they provide to other agencies.
Both companies have supplied products to the City for more than 10 years and have been reliable providers
at competitive pricing.
On January 5, 2021 Council approved the resolution directing the City Manager or designee to process
purchase orders with Life-Assist and Bound Tree with an initial term of January through June 2021 and five
(5) one year options to renew tracking the July to June fiscal year, ending in 2026, for up to 5-year, 6-month
agreements with each provider. This approval was not to exceed $500,000 annually for both vendors
combined, or not to exceed $2,500,000 for the roughly 5-year term.
Staff is requesting an increase to the annual purchase amounts, as well as the overall purchasing maximum
for the period of the agreement. The Ambulance Transport System (ATS) is currently entering its 11th month
of operation and staff is able to develop trends based on actual data rather than projected and estimated data
that was provided by the previous contractor.
When the annual estimated medical supply costs were previously presented, the Fire Department was
utilizing limited information that was provided by our previous contractor to draft annual estimated costs.
Now that the system has been in operation for over ten months, the need has been identified to increase the
annual allowed medical supply purchase of $500,000, as well as the overall not to exceed amount for the
term of $2,500,000. Staff is requesting to increase the annual medical supply purchasing between Bound
Tree and Life-Assist to $1,000,000 annually, not to exceed $5,000,000 over the agreement period.
There are several items contributing to the need to increase this amount. The first item is the limited
estimated data that was provided by the previous contractor. After reviewing this information against our
actual expenses that have been incurred since the ATS program launched, the Fire Department has found
that the estimated medical supply costs were undervalued compared to actual supply ordering needs.
Additionally, the system has been averaging, on a monthly basis, an increase in call volume when compared
to what the system was originally budgeted for. The system was originally built estimating an average of 48
transports per day. Since the program start date of April 9, 2021, the system has averaged 53 transports per
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day, with some months averaging 57 transports per day, and no month falling below 50 transports per day
threshold. An increase in call and transport volume leads to an increase in supply usage while on calls for
service. The increase of the annual medical supply purchase maximum will allow the Fire Department
additional capacity to purchase medical supplies over the term of this agreement if we continue to see annual
increases in call volume and transports.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and
consequently, the real property holdings of the City Council members do not create a disqualifying real
property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware and has not been informed by any City Council member, of any other fact
that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There are no general fund costs associated with this contract for medical supplies. This agreement will be
funded by the Transport Enterprise fund (410728). The cost for the increased medical supply needs are
being absorbed by the existing fiscal year budget.
ONGOING FISCAL IMPACT
There are no general fund impacts from ongoing supply ordering. These purchases are paid for from the cost
recovery process for the emergency ambulance transport system. The annual cost will not exceed $1,000,000
and the roughly 5-year term will not exceed $5,000,000.
ATTACHMENTS
None.
Staff Contact: Emily Folker, Harry Muns, Raymond Smith
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RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA DIRECTING THE CITY MANAGER OR
DESIGNEE TO PROCESS PURCHASE ORDERS WITH LIFE
ASSIST AND BOUND TREE MEDICAL FOR MEDICAL
TRANSPORT SUPPLIES
WHEREAS, the Chula Vista Fire Department has implemented its own emergency medical
transport program, as authorized by the Chula Vista Council in January and May 2020 in
Resolutions 20-014 and 20-102, respectively; and
WHEREAS, in October 2020, pursuant to Chula Vista Municipal Code 2.56.080, contracts
for supplies, equipment and services exceeding $100,000, staff issued a Request for Bid for
Transport Medical Supplies and solicited proposals from qualified companies; and
WHEREAS, of the 162 companies that downloaded the solicitation from PlanetBids, two
companies, Life-Assist and Bound Tree Medical, both with long, satisfactory histories of providing
medical supplies at competitive prices to the City, submitted bids; and
WHEREAS, both bids were responsive, with Bound Tree providing the lowest bid on
147 of the 193 products and Life-Assist providing the lowest bid on 46 of the 193 products; and
WHEREAS, staff selected both companies, which ensures the City is getting the best price
for each item; and
WHEREAS, staff will process this procurement with purchase orders, with the City's
standard terms and conditions; and
WHEREAS, the initial term will be January through June 2021, with five (5) one-year
options to renew, tracking the July to June fiscal year and ending in 2026, for up to five-year,
six-months (5-year, 6-months) agreements with each provider; and
WHEREAS, the agreements will be funded by the ALS Fund (234360) and Transport
Enterprise Fund (410728), with cost-recovery from emergency medical transport and no general
fund impact; and
WHEREAS, in Resolution 2021-007 and the cost for the projected supply purchases from
these two vendors was approved to not exceed $500,000 annually, and not to exceed $2,500,000
over the maximum term for the agreements; and
WHEREAS, the updated supply purchases from these two vendors is $1,000,000 annually
not to exceed $5,000,000 over the maximum term of the agreements.
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it directs the City Manager or Designee to process purchase orders with Life-Assist and Bound
Tree Medical for medical transport supplies.
Presented by Approved as to form by
Harry Muns Glen R. Googins
Fire Chief City Attorney
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March 15, 2022
ITEM TITLE
Housing Reports: Acceptance of the Housing Element 2021 Annual Progress Report & Housing Successor
Annual Report for Fiscal Year 2020-2021
Report Number: 22-0082
Location: No specific geographic location.
Department: Development Services
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California
Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no
environmental review is required.
Recommended Action
Accept the report.
SUMMARY
Annually, the City of Chula Vista prepares a Housing Element Progress Report (the “HE Report”) on the
implementation of the City’s Housing Element, which also includes the Successor Housing Agency Report
required by Senate Bill 341 (“SB-341”) (the “SB-341 Report”) under Health and Safety Code (“HSC”) Section
34176.1(f). The HE Report provides detailed information regarding the housing activities of the City of Chula
Vista from January 1, 2021 to December 31, 2021. The SB-341 Report includes housing and financial
activities of the Housing Authority’s Low- and Moderate-Income Housing Fund (“LMIHAF “) of the former
Redevelopment Agency. The respective reports must be submitted to the State of California Department of
Housing and Community Development (“HCD”) by April 1.
ENVIRONMENTAL REVIEW
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 is not a “Project” as defined under
Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment;
therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to
CEQA. Thus, no environmental review is required.
2022/03/15 City Council Post Agenda Page 33 of 277
P a g e | 2
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
No action is required. The Housing Advisory Commission will be provided with a summary of the HE Report
at their next meeting.
DISCUSSION
Housing Element Progress Report
Adopted on July 13, 2021 and pending acceptance by HCD, the City of Chula Vista’s 2021-2029 Housing
Element addresses the housing needs and opportunities for present and future Chula Vista residents. Each
year, the City must submit to HCD a summary of its progress in implementing the policy and action programs
outlined within the Housing Element based on the specified goals and objectives. The 2021 HE Report,
included as Attachment 1 (Executive Summary) and Attachment 2 (Required Housing Element Reporting
Forms), provides detailed information regarding housing activities of the City of Chula Vista from January 1,
2021 through December 31, 2021. California Government Code Section 65400 requires the HE Report to
include the following: (1) progress in meeting the Regional Housing Needs; (2) the effectiveness of the
Housing Element in the attainment of the community’s housing goals and objectives; and (3) progress toward
mitigating governmental constraints identified in the Housing Element.
In 2021, building permits were issued for 1,756 new residential units, including 28 building permits issued
for lower income housing units generated by density bonus projects that were approved by the City Council
and Planning Commission, and 118 accessory dwelling unit (“ADU”) building permits.
Other notable programmatic accomplishments during the reporting period include the following:
Housing Assistance Related Programs
Program Name Number of Households
Tenant Based Rental Assistance 5
COVID-19 Emergency Rental Assistance 31
Rapid Re-Housing (Homeless) 2
Hotel/Motel Voucher 19
Code Enforcement Related Programs
Program Name Number of Inspections
Multifamily Housing Inspections 65
3 Mobile Home Inspection Program 65
New Reporting Items
Beginning with this reporting period, the required HCD reporting forms have been updated to demonstrate
compliance with recent housing legislation and include:
Mobilehome park preservation activities
Reporting on Surplus Lands
Reporting on the Local Early Action Planning Grant
2022/03/15 City Council Post Agenda Page 34 of 277
P a g e | 3
SB-341 Report
On January 1, 2014, SB-341 became effective, amending HSC Section 34176.1(f), requiring each housing
successor agency that assumed the housing functions of a former Redevelopment Agency to prepare financial
statements for the Redevelopment Housing Agency and post a separate report on its website containing
information regarding the housing and financial activities of the LMIHAF of the former Redevelopment
Agency for the previous year.
The Housing Successor Annual Report for Fiscal Year 2020-2021 is included as Attachment 3. As required
by HCD, this report will be included with the submittal of the Housing Element Annual Progress Report.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and
consequently, the real property holdings of the City Council member/Housing Authority Commissioner do
not create a disqualifying real property-related financial conflict of interest under the Political Reform Act
(Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware and has not been informed by any City Council member/Housing Authority
Commission Commissioner, of any other fact that may constitute a basis for a decision-maker conflict of
interest in this matter.
CURRENT YEAR FISCAL IMPACT
There is no current year fiscal impact to the General Fund as a result of this action. All staff time and costs to
prepare this report were included in the current fiscal year budget.
ONGOING FISCAL IMPACT
There are no ongoing fiscal impacts to the General Fund related to this item.
ATTACHMENTS
1. Housing Element 2021 Annual Report Executive Summary
2. Housing Element Reporting Forms (Calendar Year 2021)
3. Housing Successor Annual Report-SB-341 (Fiscal Year 2020-2021)
Staff Contact: Genevieve Hernandez, Senior Planner, Housing Division
Tiffany Allen, Director, Development Services
2022/03/15 City Council Post Agenda Page 35 of 277
2021 Housing Element Progress Report – Executive Summary
Page i of iii
HOUSING ELEMENT 2021 ANNUAL PROGRESS REPORT
EXECUTIVE SUMMARY
Some significant facts about affordable housing efforts during the 2021 calendar year (January 1,
2021 to December 31, 2021) include:
Rental Assistance
Five (5) households received HOME funded Tenant Based Rental Assistance (TBRA).
The target population for the TBRA program included those households who are literally
homeless or are at risk of being homeless. Thirty-one (31) households participated in the
HOME COVID-19 Program.
Two (2) households received Rapid Re-Housing rental and/or security deposit assistance
(for those who are literally homeless).
One (1) household was assisted through the City’s Low-Mod Homeless Prevention
Program.
In 2021, there were 12 applications received for the Community Housing Improvement
Program (CHIP). However, it was put on hold due to COVID-19 and issues with the
inspection process. Applicants are on the waitlist. Due to these constraints, there were no
increases in marketing and outreach efforts. All inspections and marketing resumed in
January of 2022.
Through the CDBG-funded Hotel Motel Voucher Program the City assisted nineteen (19)
homeless individuals with temporary bridge sheltering as they navigated towards a more
permanent housing solution.
First Time Homebuyer Assistance
No low-income households received down payment assistance through the First Time
Homebuyer program in Calendar Year 2021. The City is re-launching the FTHB program in
the Spring of 2022.
Code Enforcement Activities
In 2021 Code Enforcement conducted a total of 65 inspections for apartment communities
through the Multifamily Housing Inspection Program.
Through Title 25, Code Enforcement staff has completed 65-unit inspections throughout
various parks in 2021.
Code enforcement staff responded to 499 residential (e.g. apartments, duplexes,
condominiums, mobile homes and single-family homes) complaints during 2021. For
condos and single-family dwellings such activities included unpermitted construction, trash
junk and debris, and inoperable vehicles. Code Enforcement conducted a total of 49
apartment, 12 condominium and 4 duplex inspections.
2022/03/15 City Council Post Agenda Page 36 of 277
2021 Housing Element Progress Report – Executive Summary
Page ii of iii
Neighborhood Revitalization
Chula Vista voters approved Measure P – a temporary, ten-year, half-cent sales tax to fund
high priority infrastructure needs. Collection of the sales tax began April 1, 2017. Updates
on how Measure P Funds are used can be found at
https://www.chulavistaca.gov/departments/public-works/infrastructurement.
In 2021 Measure P funded major projects including repair and replacement of three fire
stations, 121,451 feet of street pavement rehabilitation, turf installation at public parks,
sidewalk replacement in 6,200 locations, traffic signal system-fiber network repair in 13
locations, and start of rehabilitation of the Loma Verde Recreation Center. A
comprehensive list of improvements can be found on the City’s website at
www.chulavistaca.gov/measurep.
Conservation and Energy Efficiency
San Diego Community Power (SDCP) is on track to provide 100% renewable electricity by
2035. Municipal and commercial accounts have been enrolled in phase 1 and 2 (97% of all
phase 1 and 2 customers enrolled with SDCP) and residential and solar accounts will begin
enrollment in May 2022.
The active transportation plan was approved on May 12, 2020 and notable projects completed
include the Bike lanes on Broadway, bike lanes added on Mane St, Sweetwater Bike Path.
The Chula Vista Action Challenge is active and has 314 users that have reduced 250 tons of
CO2.
Solar photovoltaic systems were required in single family homes starting in 2019 and starting
in 2023 single family homes will have to be all electric ready and multifamily and some
commercial properties are required to have solar and battery storage systems.
Currently 10% of parking spots in Multifamily and 6% of other nonresidential parking spots
are required to be EV capable.
The City completed a residential food waste collection pilot program in 2021 and is on track
to begin the new residential Food and Yard waste collection program in all single-family
residences and multi-family complex by the end of 2022.
Accessory Dwelling Unit Construction
A total of 118 accessory dwelling unit building permits were issued during 2021.
2022/03/15 City Council Post Agenda Page 37 of 277
2021 Housing Element Progress Report – Executive Summary
Page iii of iii
Chula Vista
6th Cycle 2021-2029
Table B
Regional Housing Needs Allocation Progress
Permitted Units Issued by Affordability
1 2 3 4
Income Level
RHNA
Allocation
by
Income
Level
2021 2022 2023 2024 2025 2026 2027 2028 2029
Total
Units
to
Date
(all
years)
Total
Remaining
RHNA by
Income
Level
Very Low
Deed
Restricted
2,750
12
-
-
-
-
-
-
-
-
28
2,722 Non-
Deed
Restricted
16
-
-
-
-
-
-
-
-
Low
Deed
Restricted
1,777
-
-
-
-
-
-
-
-
-
-
1,777 Non-
Deed
Restricted
-
-
-
-
-
-
-
-
-
Moderate
Deed
Restricted
1,911
-
-
-
-
-
-
-
-
-
-
1,911 Non-
Deed
Restricted
-
-
-
-
-
-
-
-
-
Above
Moderate
4,667
1,728
-
-
-
-
-
-
-
-
1,728
2,939
Total RHNA
11,105
Total Units
1,756
-
-
-
-
-
-
-
-
1,756
9,349
2022/03/15 City Council Post Agenda Page 38 of 277
Date Application Submitted23 4Prior APN+Current APN Street AddressProject Name+Local Jurisdiction Tracking ID+Unit Category(SFA,SFD,2 to 4,5+,ADU,MH)TenureR=RenterO=OwnerDate Application Submitted+(see instructions)Very Low-Income Deed RestrictedVery Low-Income Non Deed RestrictedLow-Income Deed RestrictedLow-Income Non Deed RestrictedModerate-Income Deed RestrictedModerate- Income Non Deed RestrictedSummary Row: Start Data Entry Below42 6 156 0 0 0644011060099999 Olympic ParkwaySunbow II Phase 3 - Neighborhood R-1DR21-00015+ O2/3/202164306061002055 Optima Street Columba Apartments DR21-00045+ R 2/7/2021 4215661917107001177 Third Efficiency Studios DR21-00065+ R 4/6/20216440110600 99999 Olympic ParkwaySunbow II Phase 3 - Neighborhood R-2DR21-0011 5+ O 6/30/20216440110600 99999 Olympic ParkwaySunbow II, Phase 3 - Neighborhood R-3DR21-0012 5+ O6/30/20216440110600 99999 Olympic ParkwaySunbow II, Phase 3 - Neighborhood R-4DR21-00135+O6/30/20216440110600 99999 Olympic ParkwaySunbow II, Phase 3 - Neighborhood R-5DR21-00145+O6/30/20216440110600 99999 Olympic ParkwaySunbow II, Phase 3 - Neighborhood R-6DR21-00155+O6/30/20216440720600 99999 La Media RoadORV8W Parcel V - Patria Model Home ComplexDR21-0026SFDO10/5/20215730900100 577 Fourth Avenue577 Fourth 8 Unit Residential Apartment ComplexDR21-00305+R11/17/20216440720300 99999 La Media RoadORV8W Parcel U - 127 Condominiums - Senior HousingDR21-00315+O11/30/20215671500600 524 Park Way524 Park Way Remodel and AdditionDR21-00332 to 4R12/9/20216443107000 Otay Ranch Village 2 R-10BOtay Ranch Village 2 R-10B MPA21-0025SFDO12/9/20216440611000999999 Corte Nueva - ORV3 - R-19Otay Ranch Village 3 - R-19 Multi-FamilyDR21-00375+R12/29/20216240710200 201 Third Ave 201 Third Ave MPA21-00195+R12/6/20216624-071-0200South of Otay River, East of Interstate 805, adjacent to Dennery RoadNakano MPA21-0017SFDO7/7/2021624-071-0200South of Otay River, East of Interstate 805, adjacent to Dennery RoadNakano MPA21-0017SFAO7/7/2021Table AHousing Development Applications Submitted51Project IdentifierUnit TypesProposed Units - Affordability by Household Incomes Table A Page 12022/03/15 City Council Post Agenda Page 39 of 277
Total Approved Units by ProjectTotal Disapproved Units by ProjectStreamliningApplication StatusNotes6 7 8 9 11 12AboveModerate-IncomeTotal PROPOSED Units by ProjectTotal APPROVED Units by projectTotal DISAPPROVED Units by ProjectWas APPLICATION SUBMITTED Pursuant to GC 65913.4(b)? (SB 35 Streamlining) Was a Density Bonus requested for this housing development?Was a Density Bonus approved for this housing development?Please indicate the status of the application.Notes+1402 1606 1332 0131131 131 No No N/A Pending2200 200 No No N/A Approved77 7 No No N/A Pending2323 23 No No N/A Pending108108 108 No No N/A Pending118118 118 No No N/A Pending104104 104 No No N/A Pending184184 184 No No N/A Pending9696 96 No No N/A Pending88 8 No No N/A Pending127127 127 No No N/A PendingSenior Housing 33 3 No No N/A Pending55 5 0 No No N/A PendingLinked to DR21-0034218218 218 0 No No N/A PendingLinked to MPA20-00174753 No No N/A PendingThe project was revised to increase the number of dwelling units. The project is proposing 53 units comprised of 48 apartments (16 studios, and 37 one-bedroom units, as well as 5 live/work lofts (in place of ground floor retail). The previously approved DR17-0039 consisted of 23 units (10 one bedroom, 12 two bedroom and 1 three-bedroom units).137137 No No N/A Pending8484 No No N/A PendingHousing Development Applications SubmittedProposed Units - Affordability by Household Incomes Density Bonus Applications10Table A Page 22022/03/15 City Council Post Agenda Page 40 of 277
JurisdictionChula VistaANNUAL ELEMENT PROGRESS REPORTReporting Year2021 (Jan. 1 - Dec. 31)Housing Element ImplementationCells in grey contain auto-calculation formulasPlanning Period6th Cycle04/15/2021 - 04/15/2029Table A2Annual Building Activity Report Summary - New Construction, Entitled, Permits and Completed UnitsStreamlining InfillHousing without Financial Assistance or Deed RestrictionsTerm of Affordability or Deed RestrictionNotes2 35 68 911 12 13 14 15 16 17 18 192021 22 23 24 25Prior APN+Current APN Street AddressProject Name+Local Jurisdiction Tracking ID+Unit Category (SFA,SFD,2 to 4,5+,ADU,MH)TenureR=RenterO=OwnerVery Low- Income Deed RestrictedVery Low- Income Non Deed RestrictedLow- Income Deed RestrictedLow- Income Non Deed RestrictedModerate- Income Deed RestrictedModerate- Income Non Deed RestrictedAboveModerate-IncomeEntitlementDate Approved# of Units issued EntitlementsVery Low- Income Deed RestrictedVery Low- Income Non Deed RestrictedLow- Income Deed RestrictedLow- Income Non Deed RestrictedModerate- Income Deed RestrictedModerate- Income Non Deed RestrictedAboveModerate-IncomeBuilding Permits Date Issued# of Units Issued Building Permits Very Low- Income Deed RestrictedVery Low- Income Non Deed RestrictedLow- Income Deed RestrictedLow- Income Non Deed RestrictedModerate- Income Deed RestrictedModerate- Income Non Deed RestrictedAboveModerate-IncomeCertificates of Occupancy or other forms of readiness (see instructions) Date Issued# of Units issued Certificates of Occupancy or other forms of readinessHow many of the units were Extremely Low Income?+Was Project APPROVED using GC 65913.4(b)? (SB 35 Streamlining) Y/NInfill Units?Y/N+Assistance Programs for Each Development(may select multiple - see instructions)Deed Restriction Type(may select multiple - see instructions)For units affordable without financial assistance or deed restrictions, explain how the locality determined the units were affordable(see instructions)Term of Affordability or Deed Restriction (years) (if affordable in perpetuity enter 1000)+ Number of Demolished/Destroyed UnitsDemolished or Destroyed UnitsDemolished/Destroyed Units Owner or RenterTotal Density Bonus Applied to the Project (Percentage Increase in Total Allowable Units or Total Maximum Allowable Residential Gross Floor Area)Number of Other Incentives, Concessions, Waivers, or Other Modifications Given to the Project (Excluding Parking Waivers or Parking Reductions)List the incentives, concessions, waivers, and modifications (Excluding Parking Waivers or Parking Modifications)Did the project receive a reduction or waiver of parking standards? (Y/N)Notes+Summary Row: Start Data Entry Below0 0 0 0 0 0 0 0 12 16 0 0 0 0 17281756 0 0 0 0 0 0 7657650 00 061913117001140 SECOND AV 1BR10-0250 R ADU11111 4/22/2021 1 N5652800900172 FOURTH AVBR14-0063R2-4222229/29/20212N6430212601 2054 LUZON LN 1 -SUWERTE (Attached)BR16-0672 O 5+88888 5/26/2021 8 N6430212609 2044 LUZON LN 1 -SUWERTE (Attached)BR16-0673 O 5+88888 6/16/2021 8 N6430212625 2024 LUZON LN 1 -SUWERTE (Attached)BR16-0678 O 5+88888 10/28/2021 8 N6430212633 2023 LUZON LN 1 -SUWERTE (Attached)BR16-0679 O 5+88888 10/28/2021 8 N6430212641 2014 LUZON LN 1 -SUWERTE (Attached)BR16-0680 O 5+88888 12/7/2021 8 N6430212649 2011 LUZON LN 1 -SUWERTE (Attached)BR16-0681 O 5+88888 12/9/2021 8 N6240555800276 PALM AVBR18-0003OSFD000000N64302114001480 BORACAY DRALAY (Attached) BR18-0075 O 2-4333333 N64302114001471 EL NIDO DRALAY (Attached)BR18-0078O2-4333333/16/20213N64302114001424 BORACAY DRALAY (Attached) BR18-0079 O 2-433333 7/15/2021 3 N64302114001417 BORACAY DRALAY (Attached) BR18-0080 O 2-433333 7/15/2021 3 N64302114001490 SUWERTE AVALAY (Attached) BR18-0081 O 2-433333 8/16/2021 3 N64302114001478 SUWERTE AVALAY (Attached) BR18-0082 O 2-433333 8/16/2021 3 N64302114001458 SUWERTE AVALAY (Attached) BR18-0083 O 2-433333 8/17/2021 3 N64302114001460 BORACAY DRALAY (Attached) BR18-0088 O 2-4444444 N64302114001450 EL NIDO DRALAY (Attached)BR18-0089O2-4444443/15/20214N64302114001470 EL NIDO DRALAY (Attached)BR18-0090O2-4444443/15/20214N64302114001451 EL NIDO DRALAY (Attached)BR18-0091O2-4444443/16/20214N64302114001440 BORACAY DRALAY (Attached) BR18-0092 O 2-444444 7/8/2021 4 N64302114001433 BORACAY DRALAY (Attached) BR18-0093 O 2-444444 7/13/2021 4 N64434172001711 LA CUMBRE AVEstancia BR18-0119 O SFD11111 1/27/2022 1 N64434173001715 LA CUMBRE AVEstancia BR18-0120 O SFD11111 1/27/2022 1 N61925019001280 FIRST AV 1 & 2BR18-0215 R 2-411111 5/4/2021 1 N59509617002854 GATE TEN PLBR18-0324 O SFD11111 5/13/2021 1 N62059049001336 NACION AVBR18-0326RADU111116/18/20211N5730711100215 SHASTA STBR18-0339RADU1111110/21/20211N5683340800288 CENTER STBR18-0342R5+43434343436/23/202143N5721910200735 ASH AVBR18-0356RADU111115/25/20211N6396906900571 E J STBR18-0360RADU111115/7/20211N64431053001629 SANTA VENETIA STMONTECITO APARTMENTSBR18-0373 R 5+5454545454 3/1/2021 54 N64431053001629 SANTA VENETIA STMONTECITO APARTMENTSBR18-0374 R 5+7878787878 3/1/2021 78 N64431057001629 SANTA VENETIA STMONTECITO APARTMENTSBR18-0376 R 5+8787878787 7/26/2021 87 N5730900200585 FOURTH AVBR18-0390R2-444410/5/2021444N6191421200 1140 FIRST AV BR18-0399 R ADU11111 2/2/2021 1 N6430651837 2032 BRAVO LP 1PINNACLE (Attached Condos)BR18-0407 O 5+66666 3/26/2021 6 N6430651843 2024 BRAVO LP 1PINNACLE (Attached Condos)BR18-0408 O 5+66666 3/5/2021 6 N6430653001 2021 BRAVO LP 1PINNACLE (Attached Condos)BR18-0409 O 5+66666 5/18/2021 6 N6430653007 2016 BRAVO LP 1PINNACLE (Attached Condos)BR18-0410 O 5+66666 6/16/2021 6 N6430653013 2013 BRAVO LP 1PINNACLE (Attached Condos)BR18-0411 O 5+66666 6/28/2021 6 N6430653019 3001 BRAVO LP 1PINNACLE (Attached Condos)BR18-0412 O 5+66666 8/19/2021 6 N6430653031 2095 BRAVO LP 1PINNACLE (Attached Condos)BR18-0414 O 5+66666 10/12/2021 6 N6430653037 2096 BRAVO LP 1PINNACLE (Attached Condos)BR18-0415 O 5+66666 11/8/2021 6 N6430653055 2071 BRAVO LP 1PINNACLE (Attached Condos)BR18-0418 O 5+666 3/26/2021 666 N6430653061 2065 BRAVO LP 1PINNACLE (Attached Condos)BR18-0419 O 5+666 3/26/2021 666 N6430653067 2064 BRAVO LP 1PINNACLE (Attached Condos)BR18-0420 O 5+666 3/26/2021 666 N5672502600 511 OTIS ST BR18-0422 R 2-411111 3/11/2021 1 N6180400900 921 BEECH AV BR18-0428 O SFD111111 N565032060049 OAKLAWN AV 2BR19-0011 R ADU111 3/18/2021 111 N5650320600 51 OAKLAWN AV BR19-0012 R 2-4333 3/18/2021 333 N6183032300 1274 FOURTH AV BR19-0015 R ADU111 2/4/2021 111 N5711210200 638 I ST BR19-0027 R ADU111 7/29/2021 11 12/22/2021 1 N5691711800 50 F ST BR19-0029 O SFD111111 N6182300200 1109 FIFTH AV BR19-0033 O SFD11111 3/2/2021 1 N5931903200960 SONGBIRD LNBR19-0036 R ADU11111 4/9/2021 1 N64302103001445 TOWN CENTER DR 1000APARTMENTS BR19-0044 R 5+239239239 1/7/2021 239239239 N6396411500353 E EMERSON STBR19-0046 R ADU111 4/28/2021 111 N5720803800574 I STBR19-0047RADU111112/26/20211N5685111400263 ALVARADO STBR19-0048 R 2-4222 5/19/2021 222 N6230823800178 CARVER STBR19-0062RADU1111110/12/20211N64019813001185 DE ANZA CTBR19-0064RADU1111110/25/20211N64306519061951 STRATA STLENNAR "VIBE"BR19-0070O2-4333333N64306519281956 INFINITY LNLENNAR "VIBE"BR19-0071O2-4333331/11/20213N64306519341849 MONTAGE AVLENNAR "VIBE" BR19-0073 O 2-433333 3/22/2021 3 N64306519751825 MONTAGE AVLENNAR "VIBE" BR19-0074 O 2-433333 10/14/2021 3 N64306519251855 POSH LNLENNAR "VIBE"BR19-0075O2-44444411/4/20214N6430651964 1826 ONYX LN LENNAR "VIBE" BR19-0076 O 2-444444 8/4/2021 4 N64306519461839 MONTAGE AVLENNAR "VIBE" BR19-0077 O 5+55555 3/23/2021 5 N6430651905 1943 Strata ST LENNAR "VIBE" BR19-0078 O 5+55555 10/14/2021 5 N64306519211863 MONTAGE AVLENNAR "VIBE" BR19-0079 O 5+55555 11/15/2021 5 N64306519921959 MINIMALIST LNLENNAR "VIBE" BR19-0080 O 5+55555 8/23/2021 5 N64306519871947 MINIMALIST LNLENNAR "VIBE" BR19-0081 O 5+55555 10/20/2021 5 N6430651941 1957 INFINITY LN LENNAR "VIBE" BR19-0082 O 5+77777 1/11/2021 7 N6430651953 1958 PAVILION LN LENNAR "VIBE" BR19-0083 O 5+77777 5/3/2021 7 N6430651960 1957 PAVILION LN LENNAR "VIBE" BR19-0084 O 5+77777 5/19/2021 7 N64306519821958 MINIMALIST LNLENNAR "VIBE" BR19-0085 O 5+77777 8/20/2021 7 N6430651972 1833 ONYX LN LENNAR "VIBE" BR19-0087 O 5+88888 6/16/2021 8 N5692520600 475 ELM AV BR19-0090 R ADU111 8/25/2021 111 N6430212621 2034 LUZON LNSUWERTE (Attached)BR19-0095 O 5+88888 7/22/2021 8 N6192310500187 OXFORD ST 1 & 2BR19-0102 R 2-4222 6/28/2021 222 N6192310500189 OXFORD ST 1 & 2BR19-0103 R 2-4222 6/28/2021 222 N6192310500191 OXFORD ST 1 & 2BR19-0104 R 2-4222 6/28/2021 222 N6192310500193 OXFORD ST 1 & 2BR19-0105 R 2-4222 6/28/2021 222 N5650510100694 CHULA VISTA STBR19-0107 R 2-4222222 N59509901002841 GATE TWO PLBR19-0108 O SFD11111 6/30/2021 1 N5652010200 488 D ST BR19-0109 R ADU11111 2/10/2021 1 N6181904600 412 NAPLES ST BR19-0122 O SFD111 2/3/2021 111 N6181904800 416 NAPLES ST BR19-0123 O SFD111 2/3/2021 111 N6181904700 414 NAPLES ST BR19-0124 O SFD111 2/3/2021 111 N64039249001324 E VAQUERO CTBR19-0126 R ADU11111 2/22/2021 1 N6393010300 281 INKOPAH ST BR19-0127 R ADU11111 5/18/2021 1 N6443433500 1706 COTA CT Estancia BR19-0132 O SFD11111 3/16/2021 1 N6443433100 1711 COTA CT Estancia BR19-0133 O SFD11111 3/16/2021 1 N6443433400 1712 COTA CT Estancia BR19-0134 O SFD11111 3/16/2021 1 N64434333001718 COTA CTEstanciaBR19-0135OSFD111113/16/20211N64434332001717 COTA CTEstanciaBR19-0136OSFD111113/16/20211N64434330001705 COTA CTEstanciaBR19-0137OSFD111113/16/20211N64434324001751 LA CUMBRE AVEstancia BR19-0138 O SFD11111 5/4/2021 1 N64434326001759 LA CUMBRE AVEstancia BR19-0139 O SFD11111 5/4/2021 1 N64434327001758 LA CUMBRE AVEstancia BR19-0140 O SFD11111 5/4/2021 1 N64434325001755 LA CUMBRE AVEstancia BR19-0141 O SFD11111 5/4/2021 1 N64434328001754 LA CUMBRE AVEstancia BR19-0142 O SFD11111 5/4/2021 1 N64434329001750 LA CUMBRE AVEstancia BR19-0143 O SFD11111 5/4/2021 1 N6190101400 354 MOSS ST B BR19-0144 O 2-4444444 N64434323001747 LA CUMBRE AVEstancia BR19-0149 O SFD111 4/22/2021 11 9/14/2021 1 N64434179001739 LA CUMBRE AVEstancia BR19-0150 O SFD111 4/22/2021 11 9/16/2021 1 N64434177001731 LA CUMBRE AVEstancia BR19-0151 O SFD111 4/22/2021 11 9/14/2021 1 N64434180001743 LA CUMBRE AVEstancia BR19-0152 O SFD111 4/22/2021 11 9/14/2021 1 N64434178001735 LA CUMBRE AVEstancia BR19-0153 O SFD111 4/22/2021 11 9/14/2021 1 N64434174001719 LA CUMBRE AVEstancia BR19-0154 O SFD111 4/22/2021 11 12/16/2021 1 N64434176001727 LA CUMBRE AVEstancia BR19-0155 O SFD111 4/22/2021 11 12/16/2021 1 N64434170001703 LA CUMBRE AVEstancia BR19-0156 O SFD111 4/22/2021 111 N64434175001723 LA CUMBRE AVEstancia BR19-0157 O SFD111 4/22/2021 11 12/16/2021 1 N6191320800 1131 SECOND AV BR19-0159 R ADU111111 N6430607100 1724 ORION AV RYAN EAST BR19-0185 R 5+494949 2/11/2021 494949 N6430607100 1774 ORION AV RYAN EAST BR19-0186 R 5+494949 2/11/2021 494949 N5701404800245 BONITA GLEN DRBonita Glen BR19-0194 R 5+ 95766957 3/24/2021 66 95766 N YDB550.0% 1Development Standards ModificationYes5701404800 130 BOOMER PL Bonita Glen BR19-0195 R 5+212121 3/24/2021 212121 N5701404800 140 BOOMER PL Bonita Glen BR19-0196 R 5+212121 3/24/2021 212121 N5701404800 160 BOOMER PL Bonita Glen BR19-0197 R 5+131313 3/24/2021 131313 N5701404800 170 BOOMER PL Bonita Glen BR19-0198 R 5+131313 3/24/2021 131313 N5701404800 190 BOOMER PL Bonita Glen BR19-0199 R 5+181818 2/8/2021 181818 N5701404800 180 BOOMER PL Bonita Glen BR19-0200 R 5+181818 2/8/2021 181818 N6206700600327 E PALOMAR STBR19-0204 R ADU11111 1/27/2021 1 N6181511000 571 MOSS ST BR19-0205 R 2-4222222 N5742816500 26 J ST BR19-0219 R ADU111 5/10/2021 111 N6220713600 770 DOROTHY ST BR19-0220 R ADU111 3/22/2021 11 6/8/2021 1 N5693300700 527 SECOND AV BR19-0230 R ADU111 2/22/2021 111 N6443413000 1380 ORTEGA ST AVENTINE BR19-0240 O SFD11111 3/19/2021 1 N6443413200 1392 ORTEGA ST AVENTINE BR19-0241 O SFD11111 3/19/2021 1 N6443412800 1368 ORTEGA ST AVENTINE BR19-0242 O SFD11111 3/19/2021 1 N6443413300 1398 ORTEGA ST AVENTINE BR19-0243 O SFD11111 3/19/2021 1 N6443413100 1386 ORTEGA ST AVENTINE BR19-0244 O SFD11111 3/19/2021 1 N6443412900 1374 ORTEGA ST AVENTINE BR19-0245 O SFD11111 3/19/2021 1 N64407109001585 VIA ESTANCIAThe Residences at Cota VeraBR19-0246 R 5+676767 3/1/2021 676767 N64407109002034 LA MEDIA PWThe Residences at Cota VeraBR19-0247 R 5+666666 3/1/2021 666666 N64407109001585 CAMINO ALTEZZAThe Residences at Cota VeraBR19-0248 R 5+636363 3/1/2021 636363 N64407013001510 PASEO ALEGRIAThe Residences at Cota VeraBR19-0249 R 5+777 7/6/2021 777 N64407013001520 PASEO ALEGRIAThe Residences at Cota VeraBR19-0250 R 5+777 7/6/2021 777 N64407013001530 PASEO ALEGRIAThe Residences at Cota VeraBR19-0251 R 5+101010 4/13/2021 101010 N64407013001540 PASEO ALEGRIAThe Residences at Cota VeraBR19-0252 R 5+101010 4/13/2021 101010 N64407013001550 PASEO ALEGRIAThe Residences at Cota VeraBR19-0253 R 5+101010 3/2/2021 101010 N64407013001560 PASEO ALEGRIAThe Residences at Cota VeraBR19-0254 R 5+101010 3/1/2021 101010 N64407013001570 CAMINO ALTEZZAThe Residences at Cota VeraBR19-0255 R 5+101010 3/2/2021 101010 N64407013001565 CAMINO ALTEZZAThe Residences at Cota VeraBR19-0256 R 5+101010 3/1/2021 101010 N64407013001545 PASEO ALEGRIAThe Residences at Cota VeraBR19-0257 R 5+101010 3/1/2021 101010 N6443900900 1240 SPIVEY RD BELLA SITIA R21-B BR19-0262 OSFD11111 2/16/2021 1 N6443901100 1248 SPIVEY RD BELLA SITIA R21-B BR19-0263 OSFD11111 2/11/2021 1 N6443901500 1264 SPIVEY RD BELLA SITIA R21-B BR19-0264 OSFD11111 2/11/2021 1 N6443901200 1252 SPIVEY RD BELLA SITIA R21-B BR19-0265 OSFD11111 2/11/2021 1 N6443901400 1260 SPIVEY RD BELLA SITIA R21-B BR19-0266 OSFD11111 2/19/2021 1 N6443901000 1244 SPIVEY RD BELLA SITIA R21-B BR19-0267 OSFD11111 2/16/2021 1 N6443901300 1256 SPIVEY RD BELLA SITIA R21-B BR19-0268 OSFD11111 3/3/2021 1 N6443900200 1212 SPIVEY RD BELLA SITIA R21-B BR19-0269 OSFD11111 5/19/2021 1 N6443900500 1224 SPIVEY RD BELLA SITIA R21-B BR19-0270 OSFD11111 5/19/2021 1 N6443900700 1232 SPIVEY RD BELLA SITIA R21-B BR19-0271 OSFD11111 5/12/2021 1 NNote: "+" indicates an optional fieldHousing with Financial Assistance and/or Deed RestrictionsDemolished/Destroyed UnitsProject Identifier(CCR Title 25 §6202)Density Bonus1Unit TypesAffordability by Household Incomes - Completed EntitlementAffordability by Household Incomes - Building PermitsAffordability by Household Incomes - Certificates of Occupancy4710Table A -2 Page 12022/03/15 City Council Post Agenda Page 41 of 277
JurisdictionChula VistaANNUAL ELEMENT PROGRESS REPORTReporting Year2021 (Jan. 1 - Dec. 31)Housing Element ImplementationCells in grey contain auto-calculation formulasPlanning Period6th Cycle04/15/2021 - 04/15/2029Note: "+" indicates an optional field(CCR Title 25 §6202)6443900400 1220 SPIVEY RD BELLA SITIA R21-B BR19-0272 OSFD11111 5/11/2021 1 N6443900600 1228 SPIVEY RD BELLA SITIA R21-B BR19-0273 OSFD11111 5/13/2021 1 N6443900100 1208 SPIVEY RD BELLA SITIA R21-B BR19-0274 OSFD11111 5/11/2021 1 N6443900300 1216 SPIVEY RD BELLA SITIA R21-B BR19-0275 OSFD11111 5/19/2021 1 N64439028001882 EL PASEO AVBELLA SITIA R21-B BR19-0277 O SFD11111 8/4/2021 1 N64439031001881 EL PASEO AVBELLA SITIA R21-B BR19-0278 O SFD11111 9/2/2021 1 N64439035001865 EL PASEO AVBELLA SITIA R21-B BR19-0279 O SFD11111 8/4/2021 1 N64439027001878 EL PASEO AVBELLA SITIA R21-B BR19-0280 O SFD11111 7/15/2021 1 N64439033001873 EL PASEO AVBELLA SITIA R21-B BR19-0281 O SFD11111 8/4/2021 1 N64439029001886 EL PASEO AVBELLA SITIA R21-B BR19-0282 O SFD11111 9/2/2021 1 N64439030001885 EL PASEO AVBELLA SITIA R21-B BR19-0283 O SFD11111 9/2/2021 1 N64439032001877 EL PASEO AVBELLA SITIA R21-B BR19-0284 O SFD11111 7/15/2021 1 N64439034001869 EL PASEO AVBELLA SITIA R21-B BR19-0285 O SFD11111 7/15/2021 1 N64434403001868 PATERNA DRBELLA SITIA R21-B BR19-0286 O SFD111 5/18/2021 11 12/15/2021 1 N64434405001856 PATERNA DRBELLA SITIA R21-B BR19-0287 O SFD111 5/18/2021 11 12/22/2021 1 N64434408001865 PATERNA DRBELLA SITIA R21-B BR19-0288 O SFD111 5/18/2021 11 1/13/2022 1 N64434401001880 PATERNA DRBELLA SITIA R21-B BR19-0289 O SFD111 5/18/2021 11 12/13/2021 1 N64434406001877 PATERNA DRBELLA SITIA R21-B BR19-0290 O SFD111 5/18/2021 11 1/13/2022 1 N64434410001853 PATERNA DRBELLA SITIA R21-B BR19-0291 O SFD111 5/18/2021 11 12/23/2021 1 N64434402001874 PATERNA DRBELLA SITIA R21-B BR19-0292 O SFD111 5/18/2021 111 N64434404001862 PATERNA DRBELLA SITIA R21-B BR19-0293 O SFD111 5/18/2021 11 1/13/2022 1 N64434407001871 PATERNA DRBELLA SITIA R21-B BR19-0294 O SFD111 5/18/2021 11 12/22/2021 1 N64434409001859 PATERNA DRBELLA SITIA R21-B BR19-0295 O SFD111 5/18/2021 11 12/22/2021 1 N64340066001814 MEEKS BAY DRBR19-0296 R ADU000000 N5690901900 276 HILLTOP DR BR19-0307 O SFD111 2/3/2021 111 N5734504100 310 K ST A BR19-0308 R 5+ 34346 343 1/11/2021 46 34346 N YDB550.0% 0 Other Yes64431392161238 BILTMORE PL 1PARC PLACE (Townhome)BR19-0310 O 2-433333 3/10/2021 3 N64431392191234 BILTMORE PL 1PARC PLACE (Townhome)BR19-0311 R 2-433333 3/10/2021 3 N64431392221230 BILTMORE PL 1PARC PLACE (Townhome)BR19-0312 R 2-433333 3/10/2021 3 N64431392251226 BILTMORE PL 1PARC PLACE (Townhome)BR19-0313 R 2-433333 3/11/2021 3 N64431392281222 BILTMORE PL 1PARC PLACE (Townhome)BR19-0314 R 2-433333 3/11/2021 3 N6393302800 1023 OSSA AV BR19-0315 R ADU111 7/14/2021 111 N64431392311218 BILTMORE PL 1BR19-0316 O 2-433333 7/8/2021 3 N64431392341214 BILTMORE PL 1PARC PLACE (Townhome)BR19-0317 O 2-433333 7/8/2021 3 N64431392371210 BILTMORE PL 1PARC PLACE (Townhome)BR19-0318 O 2-433333 7/8/2021 3 N64431392401206 BILTMORE PL 1PARC PLACE (Townhome)BR19-0319 O 2-433333 7/8/2021 3 N6443168800 1209 TERSTAL PL CANTAMAR BR19-0320 O SFD111111 N64431682001828 PASEO BACHARCANTAMAR BR19-0325 O SFD111111 N64431664001826 MATTERO AVCANTAMAR BR19-0330 O SFD11111 1/26/2021 1 N64431667001808 MATTERO AVCANTAMAR BR19-0331 O SFD11111 1/28/2021 1 N64431638001819 MATTERO AVCANTAMAR BR19-0332 O SFD11111 2/4/2021 1 N64431640001827 MATTERO AVCANTAMAR BR19-0333 O SFD11111 2/5/2021 1 N64431639001823 MATTERO AVCANTAMAR BR19-0334 O SFD11111 2/4/2021 1 N64431641001835 MATTERO AVCANTAMAR BR19-0335 O SFD11111 2/5/2021 1 N64431665001820 MATTERO AVCANTAMAR BR19-0336 O SFD11111 1/27/2021 1 N64431668001802 MATTERO AVCANTAMAR BR19-0337 O SFD11111 1/28/2021 1 N64431637001811 MATTERO AVCANTAMAR BR19-0338 O SFD11111 2/4/2021 1 N64431663001832 MATTERO AVCANTAMAR BR19-0339 O SFD11111 1/26/2021 1 N64431666001814 MATTERO AVCANTAMAR BR19-0340 O SFD11111 1/27/2021 1 N6443167900 1219 SPIVEY RD CANTAMAR BR19-0342 O SFD11111 7/28/2021 1 N64431661001844 MATTERO AVCANTAMAR BR19-0343 O SFD11111 8/4/2021 1 N64431662001838 MATTERO AVCANTAMAR BR19-0344 O SFD11111 7/28/2021 1 N64431676001833 PASEO BACHARCANTAMAR BR19-0345 O SFD11111 8/4/2021 1 N6443167700 1211 SPIVEY RD CANTAMAR BR19-0346 O SFD11111 7/28/2021 1 N6443168000 1223 SPIVEY RD CANTAMAR BR19-0347 O SFD11111 7/28/2021 1 N6443164200 1249 SPIVEY RD CANTAMAR BR19-0348 O SFD11111 7/28/2021 1 N64431675001829 PASEO BACHARCANTAMAR BR19-0349 O SFD11111 7/28/2021 1 N6443167800 1215 SPIVEY RD CANTAMAR BR19-0350 O SFD11111 7/28/2021 1 N6443168100 1227 SPIVEY RD CANTAMAR BR19-0351 O SFD11111 7/28/2021 1 N64431655001831 EL PASEO AVCANTAMAR BR19-0352 O SFD111 5/5/2021 11 12/6/2021 1 N64431658001847 EL PASEO AVCANTAMAR BR19-0353 O SFD111 5/5/2021 11 12/6/2021 1 N64431657001843 EL PASEO AVCANTAMAR BR19-0354 O SFD111 5/17/2021 11 12/6/2021 1 N64431659001851 EL PASEO AVCANTAMAR BR19-0355 O SFD111 5/5/2021 11 12/6/2021 1 N64431654001827 EL PASEO AVCANTAMAR BR19-0356 O SFD111 5/5/2021 11 12/6/2021 1 N64431656001835 EL PASEO AVCANTAMAR BR19-0357 O SFD111 5/5/2021 11 12/6/2021 1 N64431660001855 EL PASEO AVCANTAMAR BR19-0358 O SFD111 5/5/2021 11 12/6/2021 1 N64434550001322 STEARNS WHARF RDCANTAMAR BR19-0359 O SFD111 5/26/2021 11 12/14/2021 1 N64431646001814 EL PASEO AVCANTAMAR BR19-0360 O SFD111 2/16/2021 111 N64431652001819 EL PASEO AVCANTAMAR BR19-0361 O SFD111 2/16/2021 11 10/4/2021 1 N6443164500 1263 SPIVEY RD CANTAMAR BR19-0362 O SFD111 2/16/2021 11 9/24/2021 1 N64431647001810 EL PASEO AVCANTAMAR BR19-0363 O SFD111 2/16/2021 11 9/27/2021 1 N64431651001815 EL PASEO AVCANTAMAR BR19-0364 O SFD111 2/16/2021 11 10/1/2021 1 N64431653001823 EL PASEO AVCANTAMAR BR19-0365 O SFD111 2/16/2021 11 10/4/2021 1 N6443164400 1259 SPIVEY RD CANTAMAR BR19-0366 O SFD111 2/16/2021 11 9/24/2021 1 N64431648001806 EL PASEO AVCANTAMAR BR19-0367 O SFD111 2/16/2021 11 9/27/2021 1 N64431649001807 EL PASEO AVCANTAMAR BR19-0368 O SFD111 2/16/2021 11 10/1/2021 1 N64431650001811 EL PASEO AVCANTAMAR BR19-0369 O SFD111 2/16/2021 11 10/1/2021 1 N64117046001082 MISTY CREEK STBR19-0379 R ADU11111 4/8/2021 1 N64432143001337 PERSHING RDANACAPA II / MONTEVILLA (Detached Condos)BR19-0380 O SFD11111 2/22/2021 1 N64432154001414 CARPINTERIA STANACAPA II / MONTEVILLA (Detached Condos)BR19-0381 O SFD11111 2/22/2021 1 N64432142001333 PERSHING RDANACAPA II / MONTEVILLA (Detached Condos)BR19-0382 O SFD11111 2/22/2021 1 N64432153001418 CARPINTERIA STANACAPA II / MONTEVILLA (Detached Condos)BR19-0383 O SFD11111 2/22/2021 1 N64432156001406 CARPINTERIA STANACAPA II / MONTEVILLA (Detached Condos)BR19-0384 O SFD11111 2/22/2021 1 N64432141001329 PERSHING RDANACAPA II / MONTEVILLA (Detached Condos)BR19-0385 O SFD11111 2/22/2021 1 N64432144001341 PERSHING RDANACAPA II / MONTEVILLA (Detached Condos)BR19-0386 O SFD11111 2/22/2021 1 N64432155001410 CARPINTERIA STANACAPA II / MONTEVILLA (Detached Condos)BR19-0387 O SFD11111 2/22/2021 1 N64432147001353 PERSHING RDANACAPA II / MONTEVILLA (Detached Condos)BR19-0389 O SFD11111 4/27/2021 1 N64432151001426 CARPINTERIA STANACAPA II / MONTEVILLA (Detached Condos)BR19-0390 O SFD11111 4/28/2021 1 N64432140001345 PERSHING RDANACAPA II / MONTEVILLA (Detached Condos)BR19-0391 O SFD11111 4/28/2021 1 N64432150001430 CARPINTERIA STANACAPA II / MONTEVILLA (Detached Condos)BR19-0392 O SFD11111 5/3/2021 1 N64432146001349 PERSHING RDANACAPA II / MONTEVILLA (Detached Condos)BR19-0393 O SFD11111 4/27/2021 1 N64432148001357 PERSHING RDANACAPA II / MONTEVILLA (Detached Condos)BR19-0394 O SFD11111 4/27/2021 1 N64432152001422 CARPINTERIA STANACAPA II / MONTEVILLA (Detached Condos)BR19-0396 O SFD11111 4/28/2021 1 N6443707900 1569 BATH AVANACAPA II / MONTEVILLA (Detached Condos)BR19-0397 O SFD111 5/5/2021 11 12/22/2021 1 N6443708100 1581 BATH AVANACAPA II / MONTEVILLA (Detached Condos)BR19-0398 O SFD111 5/5/2021 11 12/23/2021 1 N6443708300 1593 BATH AVANACAPA II / MONTEVILLA (Detached Condos)BR19-0399 O SFD111 5/5/2021 11 12/23/2021 1 N6443708000 1575 BATH AVANACAPA II / MONTEVILLA (Detached Condos)BR19-0400 O SFD111 5/5/2021 11 12/22/2021 1 N6443708200 1587 BATH AVANACAPA II / MONTEVILLA (Detached Condos)BR19-0401 O SFD111 5/5/2021 11 12/22/2021 1 N6443707800 1563 BATH AVANACAPA II / MONTEVILLA (Detached Condos)BR19-0402 O SFD111 5/5/2021 11 12/22/2021 1 N6443708400 1599 BATH AVANACAPA II / MONTEVILLA (Detached Condos)BR19-0403 O SFD111 5/5/2021 11 12/23/2021 1 N64431812001763 SANTA CHRISTINA AVMONTE VILLA BR19-0404 O SFD111 5/5/2021 11 12/23/2021 1 N64431813001767 SANTA CHRISTINA AVMONTE VILLA BR19-0405 O SFD111 5/5/2021 11 12/23/2021 1 N61913233001139 SECOND AV 1BR19-0406 O SFD111 8/25/2021 111 N61913234001141 SECOND AV 1BR19-0408 O SFD111 8/25/2021 111 N61913234001141 SECOND AV 2BR19-0409 R ADU111 8/25/2021 111 N64216013001660 HARVARD STBR19-0414 R ADU11111 7/16/2021 1 N5710720600577 OAKLAWN AVBR19-0417 R ADU111 7/14/2021 111 N6240511400 3905 MAIN ST BR20-0002 R ADU111111 N5933612500 458 ACERO PL BR20-0003 R ADU111111 N5652020800130 BRIGHTWOOD AVBR20-0006 R ADU111 1/13/2021 11 4/7/2021 1 N6430652100 1977 EDISON CT LENNAR "CLEO" BR20-0012 O 2-444444 5/25/2021 4 N6430652100 1976 AFFINITY LN LENNAR "CLEO" BR20-0013 O 2-444444 7/19/2021 4 N6430652100 1864 LIQUID LN LENNAR "CLEO" BR20-0014 O 2-444444 5/3/2021 4 N6430652100 1993 LUCENT LN LENNAR "CLEO" BR20-0015 O 2-444444 12/21/2021 4 N6430652100 1973 STRATA ST LENNAR "CLEO" BR20-0016 O 5+55555 2/19/2021 5 N6430652100 1989 EDISON CT LENNAR "CLEO" BR20-0017 O 5+55555 11/10/2021 5 N6430652100 1990 AFFINITY LN LENNAR "CLEO" BR20-0018 O 5+55555 10/26/2021 5 N6430652100 1852 LIQUID LN LENNAR "CLEO" BR20-0019 O 5+55555 5/3/2021 5 N64306521001991 ELEVATE WYLENNAR "CLEO" BR20-0021 O 5+55555 10/14/2021 5 N6430652100 1987 STRATA ST LENNAR "CLEO" BR20-0022 O 5+66666 12/17/2021 6 N6430652100 1836 ORION AV LENNAR "CLEO" BR20-0023 O 5+66666 11/10/2021 6 N6430652100 1854 ORION AV LENNAR "CLEO" BR20-0024 O 5+66666 11/19/2021 6 N64306521001975 LUCENT LANE STLENNAR "CLEO" BR20-0026 O 5+66666 2/19/2021 6 N64306521001990 EDISON COURT STLENNAR "CLEO" BR20-0027 O 5+66666 3/17/2021 6 N6430652100 1986 EDISON CT LENNAR "CLEO" BR20-0028 O 5+66666 5/18/2021 6 N64306521001974 ELEVATE WYLENNAR "CLEO" BR20-0031 O 5+66666 8/18/2021 6 N64306521001988 ELEVATE WYLENNAR "CLEO" BR20-0032 O 5+66666 9/10/2021 6 N5742611100 693 ROBERT AV BR20-0035 R ADU111111 N5693810500 55 I ST BR20-0036 R ADU111 6/7/2021 111 N5690600900 87 BONITA RD BR20-0038 R ADU11111 3/2/2021 1 N6440710300 1910 ENCELIA CI Meta BR20-0039 R 5+494949494949 N64407103001990 ENCELIA CI 102Meta BR20-0040 R 5+828282 9/22/2021 828282 N6440710300 1950 ENCELIA CI Meta BR20-0041 R 5+444444444444 N64364154001591 GOLDEN GATE AVBR20-0043 O SFD111 3/15/2021 11 10/8/2021 1 N6240324600 155 WALNUT DR BR20-0045 R ADU11111 7/23/2021 1 N575031190065 SAN MIGUEL DRBR20-0046 R ADU11111 2/17/2021 1 NBR20-0051 R ADU111111 N5735111900 857 ELM AV BR20-0053 R ADU11111 7/1/2021 1 N5693510400 124 H ST BR20-0054 R ADU11111 3/18/2021 1 N5685120400236 ALVARADO ST ABR20-0055 R ADU111 5/18/2021 111 N6183500900 409 OXFORD ST BR20-0057 R ADU11111 12/28/2021 1 N59538031002265 ROLLING RIDGE RDBR20-0058 R ADU111 6/23/2021 111 NTable A -2 Page 22022/03/15 City Council Post Agenda Page 42 of 277
JurisdictionChula VistaANNUAL ELEMENT PROGRESS REPORTReporting Year2021 (Jan. 1 - Dec. 31)Housing Element ImplementationCells in grey contain auto-calculation formulasPlanning Period6th Cycle04/15/2021 - 04/15/2029Note: "+" indicates an optional field(CCR Title 25 §6202)5690100800 176 E ST BR20-0068 R ADU111111 N5741202400 82 MITSCHER ST BR20-0069 R ADU111 1/13/2021 11 10/21/2021 1 N6183421600 444 ORANGE AV BR20-0074 R ADU111 1/10/2022 111 N6183421600 444 ORANGE AV BR20-0075 R 2-4222222 N64119121001250 DAWSON DRBR20-0076 R ADU111 5/12/2021 111 N61841018001243 ORDVIEW CTBR20-0077 R ADU111 6/22/2021 111 N5680731300230 TWIN OAKS AVBR20-0078 R ADU111 3/26/2021 11 1/5/2022 1 N64024026001030 CORDOVA DRBR20-0079 R ADU111 4/19/2021 111 N5670431200555 DAVIDSON STBR20-0080 R ADU111 4/26/2021 11 1/4/2022 1 N5711110700640 OAKLAWN AVBR20-0081 R ADU11111 9/3/2021 1 N6180400900 921 BEECH AV BR20-0083 O SFD111111 N6411110200 761 DIAMOND DR BR20-0084 R ADU111 6/10/2021 111 N6241003800315 SANDSTONE CTBR20-0086 R ADU111 6/30/2021 111 N5754330900 1143 HILLTOP DR BR20-0087 R ADU111 2/25/2021 111 N62012209001384 MONSERATE AVBR20-0089 R ADU111 1/27/2022 111 N5721500200 681 BEECH AV BR20-0090 R ADU11111 3/3/2021 1 N6396413100 395 E OXFORD ST BR20-0092 R ADU111111 N5733411000 735 DEL MAR AV BR20-0093 R ADU111 1/28/2021 111 N6204802800 475 QUINCE ST BR20-0095 R ADU111 3/19/2021 11 9/8/2021 1 N62405239004084 OTAY VALLEY RDBR20-0097 R ADU111111 N6390740400 922 MYRA AV BR20-0100 R ADU111 12/7/2021 111 N5755201300 103 E OXFORD ST BR20-0101 R ADU111111 N5693630700 185 I ST BR20-0102 R ADU111 2/16/2021 111 N5693511300 129 SHASTA ST BR20-0103 R ADU111 4/28/2021 111 N5742401000 41 E J ST BR20-0105 R ADU11111 9/22/2021 1 N6203100500122 E QUINTARD STBR20-0106 R ADU111 1/12/2022 111 N5733712500 795 THIRD AV BR20-0107NSEN - New Senior Housing5+000 5/20/2021 000 N5732700900 155 MURRAY ST BR20-0108 R ADU111 1/28/2021 11 5/20/2021 1 N58522112003211 CORTE CARLAZZOBR20-0109 R ADU111111 N5755140800190 E EMERSON STBR20-0110 R ADU111 1/31/2022 111 N6243941500 1574 MAX AV BR20-0111 R ADU111 4/29/2021 111 N5735002700102 COUNTRY CLUB DRBR20-0112 R ADU111 10/25/2021 111 N62418005001668 MELROSE AVBR20-0114 R ADU111 2/9/2021 11 5/14/2021 1 N5680410900 244 GLOVER AV BR20-0115 R ADU111 9/21/2021 111 N5680410900 244 GLOVER AV BR20-0116 R ADU111 9/21/2021 111 N62004313001226 MONTEREY AVBR20-0117 R ADU111 4/28/2021 11 12/6/2021 1 N5742610900 683 ROBERT AV BR20-0118 R ADU111 3/1/2021 11 8/4/2021 1 N6192010800 1198 DIXON DR BR20-0120 R ADU111111 N5691630100 351 ALPINE AV BR20-0122 R ADU111 6/11/2021 111 N64407205002137 PASEO LEVANTENSavona BR20-0124 O SFD111 10/1/2021 111 N64407205002145 PASEO LEVANTENSavona BR20-0125 O SFD111 10/1/2021 111 N64407205002141 PASEO LEVANTENSavona BR20-0126 O SFD111 10/1/2021 111 N64407204002125 PASEO LEVANTENLucca BR20-0127 O SFD111 7/8/2021 111 N64407204002129 PASEO LEVANTENLucca BR20-0128 O SFD111 7/8/2021 111 N64407204002133 PASEO LEVANTENLucca BR20-0129 O SFD111 7/8/2021 111 N64431396001800 SANTA CAROLINA RD 10Future MF BR20-0131 O 5+555 11/23/2021 555 N64431352001800 SANTA CAROLINA RD 20Future MF BR20-0132 O 5+555 11/23/2021 555 N64431352001800 SANTA CAROLINA RD 30Future MF BR20-0133 O 5+555 11/23/2021 555 N64431352001800 SANTA CAROLINA RD 40Future MF BR20-0134 O 5+777 9/3/2021 777 N64431352001800 SANTA CAROLINA RD 50Future MF BR20-0135 O 5+777 9/3/2021 777 N64431352001800 SANTA CAROLINA RD 60Future MF BR20-0136 O 5+666 9/3/2021 666 N64431352001800 SANTA CAROLINA RD 70Future MF BR20-0137 O 5+666 9/3/2021 666 N5693010800 491 FIRST AV BR20-0146 R ADU111 1/7/2021 111 N6242901800 503 TIMBER ST BR20-0147 R ADU111 6/9/2021 111 N64422153001551 POINT HUENEME CTBR20-0148 R ADU222 3/25/2021 222 N5943611600526 TRAILRIDGE DRBR20-0149 R ADU111 5/12/2021 111 N6183310700 1336 ELDEN AV BR20-0150 O SFD111 5/4/2021 111 N6231614200 186 TREMONT ST BR20-0151 R ADU111 4/13/2021 111 N6401513800 902 LOMA VIEW BR20-0152 R ADU111 7/14/2021 11 1/31/2022 1 N63936405001075 OLEANDER AVBR20-0154 R ADU111 6/9/2021 111 N64407201002330 TREVI CIRCLETrevi BR20-0157 O 2-4333333 N64407201002316 TREVI CIRCLETrevi BR20-0158 O 2-4333333 N64407201002302 TREVI CIRCLETrevi BR20-0159 O 2-4333 11/18/2021 333 N64407201002008 VIA FONTANATrevi BR20-0160 O 2-4333333 N64407201002011 VIA FONTANATrevi BR20-0161 O 2-4333333 N64407201002022 VIA FONTANATrevi BR20-0162 O 2-4333333 N64407201002025 VIA FONTANATrevi BR20-0163 O 2-4333333 N64407201002288 TREVI CIRCLETrevi BR20-0164 O 2-4333 11/30/2021 333 N64407201002277 TREVI CIRCLETrevi BR20-0165 O 2-4333 11/30/2021 333 N64407201002274 TREVI CIRCLETrevi BR20-0166 O 2-4333 11/30/2021 333 N64407201002263 TREVI CIRCLETrevi BR20-0167 O 2-4333 11/30/2021 333 N6437700200 2180 BIRCH RDTHE LOFTS at THE MARKETPLACEBR20-0170 R 2-4444 10/8/2021 444 N6437700200 2170 BIRCH RDTHE LOFTS at THE MARKETPLACEBR20-0171 R 5+888 7/20/2021 888 N64377002001710 DISCOVERY FALLS DRTHE LOFTS at THE MARKETPLACEBR20-0172 R 5+888 10/8/2021 888 N64377002001716 DISCOVERY FALLS DRTHE LOFTS at THE MARKETPLACEBR20-0173 R 5+888 7/20/2021 888 N64377002001728 DISCOVERY FALLS DRTHE LOFTS at THE MARKETPLACEBR20-0174 R 5+777 10/8/2021 777 N64377002001734 DISCOVERY FALLS DRTHE LOFTS at THE MARKETPLACEBR20-0175 R 5+888 10/8/2021 888 N5731401500 624 GLOVER PL BR20-0176 R ADU111 2/1/2021 111 N64407202001606 WHITMORE LPWhitmore BR20-0179 O SFD111 6/2/2021 111 N64407202001604 WHITMORE LPWhitmore BR20-0180 O SFD111 6/2/2021 111 N64407202001608 WHITMORE LPWhitmore BR20-0181 O SFD111 6/2/2021 111 N5733601300 105 KEARNEY ST BR20-0182 R ADU111111 N5651311200 497 D ST BR20-0183 R ADU111111 N64407116002002 BLUESTONE CIBluestone BR20-0185 O 5+555 6/17/2021 555 N64407116002200 BLUESTONE CIBluestone BR20-0186 O 5+555 6/17/2021 555 N64407116002195 BLUESTONE CIBluestone BR20-0187 O 5+666 6/30/2021 666 N2179 BLUESTONE CIBluestone BR20-0188 O 5+666 6/30/2021 666 N5633220600 240 SHIRLEY ST BR20-0190 R ADU111 10/7/2021 111 N64407202001612 WHITMORE LPWhitmore BR20-0191 O SFD111111 N64407202001610 WHITMORE LPWhitmore BR20-0192 O SFD111111 N64407202001614 WHITMORE LPWhitmore BR20-0193 O SFD111111 N64407202001799 WHITMORE LPWhitmore BR20-0194 O SFD111 6/2/2021 111 N64407202001797 WHITMORE LPWhitmore BR20-0195 O SFD111 6/2/2021 111 N64407202001795 WHITMORE LPWhitmore BR20-0196 O SFD111 6/2/2021 111 N64407202001793 WHITMORE LPWhitmore BR20-0197 O SFD111 6/2/2021 111 N64407202001791 WHITMORE LPWhitmore BR20-0198 O SFD111 6/7/2021 111 N64407202001789 WHITMORE LPWhitmore BR20-0199 O SFD111 6/2/2021 111 N64407202001788 WHITMORE LPWhitmore BR20-0200 O SFD111 6/8/2021 111 N64407202001792 WHITMORE LPWhitmore BR20-0201 O SFD111 6/8/2021 111 N64407202001790 WHITMORE LPWhitmore BR20-0202 O SFD111 6/8/2021 111 N64407202001776 WHITMORE LPWhitmore BR20-0203 O SFD111 7/12/2021 111 N64407202001786 WHITMORE LPWhitmore BR20-0204 O SFD111 6/8/2021 111 N64407202001794 WHITMORE LPWhitmore BR20-0205 O SFD111 6/8/2021 111 N64407202001778 WHITMORE LPWhitmore BR20-0206 O SFD111 7/12/2021 111 N64407202001770 WHITMORE LPWhitmore BR20-0207 O SFD111 7/13/2021 111 N64407202001780 WHITMORE LPWhitmore BR20-0208 O SFD111 7/13/2021 111 N6401524200700 PASEO DEL REYBR20-0209 R ADU111111 N569100050076 MONTEBELLO STBR20-0210 R ADU111 3/2/2021 11 7/21/2021 1 N6233422600 49 CONNOLEY CI BR20-0213 R ADU111 7/6/2021 111 N5692510300 465 SECOND AV BR20-0214 R ADU111 10/7/2021 111 N5685124500 480 SECOND AV BR20-0215 R ADU111 4/2/2021 11 10/13/2021 1 N6191630300 1178 TOBIAS DR BR20-0218 R ADU111 5/28/2021 111 N64113137001413 VENTERS DRBR20-0219 R ADU111 2/22/2021 11 10/12/2021 1 N5692520400 467 ELM AV BR20-0220 R ADU111 11/22/2021 111 N5692520400 467 ELM AV BR20-0221 R ADU111 11/22/2021 111 N6395501500 584 DOUGLAS ST BR20-0222 R ADU111 7/20/2021 111 N59431205001468 ENCANTADA CTBR20-0223 R ADU111 6/24/2021 111 N6191521100 1118 TOBIAS DR BR20-0224 R ADU111 7/2/2021 111 N6220728400 750 ANITA ST BR20-0225 R 5+121212 7/12/2021 121212 N6220728400 750 ANITA ST BR20-0226 R 5+181818 7/12/2021 181818 N6220728400 750 ANITA ST BR20-0227 R 5+181818 7/12/2021 181818 N6220728400 750 ANITA ST BR20-0228 R 5+242424 7/12/2021 242424 N6220728400 750 ANITA ST BR20-0229 R 5+242424 7/12/2021 242424 N5733420400715 TWIN OAKS AVBR20-0231 R ADU111 4/20/2021 111 N61929007001324 PRESTON LNBR20-0232 R ADU111 6/10/2021 111 N5710721600572 JEFFERSON AVBR20-0233 R ADU111111 N5662504100 168 SECOND AV BR20-0234 R ADU111 4/22/2021 11 10/15/2021 1 N5733520200 711 ELM AV BR20-0236 R ADU111 4/30/2021 111 N6240532800 237 PALM AV BR20-0237 R ADU111 10/5/2021 111 N5733712500 795 THIRD AV BR20-0238 R 5+14214216126 10/20/2021 142 16126142 NDB N/A 5532.0% 0Development Standards ModificationYes5741910600 620 CLAIRE AV BR20-0239 O SFD111111 N6182705600 446 OXFORD ST 2 BR20-0241 R ADU111 9/17/2021 111 N5660720100 252 SEA VALE ST BR21-0001 R ADU111 4/19/2021 11 12/1/2021 1 N6202621600111 E PALOMAR STBR21-0002 R ADU111111 N5730900700 395 I ST BR21-0003 R ADU111 2/24/2021 111 N6232901900 1632 JASPER AV BR21-0004 R ADU111 6/15/2021 11 11/23/2021 1 N6310128300 366 PALM AV BR21-0005 O SFD111 6/11/2021 111 N5682631000 473 G ST BR21-0006 R ADU111 6/9/2021 111 N64350515002698 GEIGER CREEK CTBR21-0007 R ADU111111 N5711110600634 OAKLAWN AVBR21-0008 R ADU111 7/15/2021 111 N5956604900720 N VALLEY VIEW DRBR21-0009 R ADU111 7/20/2021 11 1/20/2022 1 N64431352001800 SANTA CAROLINA RDBR21-0010 R 5+989898 9/22/2021 989898 N64431352001800 SANTA CAROLINA RDBR21-0012 R 5+646464 1/27/2022 646464 N64431352001800 SANTA CAROLINA RDBR21-0013 R 5+353535353535 N64431352001800 SANTA CAROLINA RDBR21-0014 R 5+515151515151 N5732100100 625 SECOND AV BR21-0015 R ADU111 9/1/2021 111 N5741920800 635 CLAIRE AV BR21-0016 R ADU111111 N5662911600194 CORTE HELENA AVBR21-0017 R ADU111 5/25/2021 111 N6411910300 951 ISOM CT BR21-0018 R ADU111 12/22/2021 111 N64362028001344 N PARADISE RIDGE WYBR21-0021 R ADU111 10/29/2021 111 N5663004800 174 D ST BR21-0022 R ADU111 10/27/2021 111 N59129013003673 BONITA VERDE DRBR21-0023 R ADU111 8/10/2021 111 N5743912200 35 E H ST BR21-0024 R ADU111 9/20/2021 111 N6395301900 852 CREST DR BR21-0025 R ADU111 9/8/2021 111 N5671031400 545 PARK WY BR21-0026 R ADU444 12/2/2021 444 N5684111800 390 VANCE ST BR21-0027 R 2-4222222 N575031140037 SAN MIGUEL DRBR21-0028 R ADU111 11/19/2021 111 N5711511000 637 J ST BR21-0029 R ADU111 5/21/2021 111 N5932300300250 CAMINO ELEVADOBR21-0030 R ADU111 7/21/2021 111 N5683320100 224 F ST BR21-0031 R ADU111 7/1/2021 111 N6220111200 886 STELLA ST BR21-0032 R ADU111 9/15/2021 111 N58519073001826 CORTE GALEANABR21-0033 R ADU111 10/13/2021 111 N6392000300 510 DOUGLAS ST BR21-0034 R ADU111111 NTable A -2 Page 32022/03/15 City Council Post Agenda Page 43 of 277
JurisdictionChula VistaANNUAL ELEMENT PROGRESS REPORTReporting Year2021 (Jan. 1 - Dec. 31)Housing Element ImplementationCells in grey contain auto-calculation formulasPlanning Period6th Cycle04/15/2021 - 04/15/2029Note: "+" indicates an optional field(CCR Title 25 §6202)5958610700366 BRYAN POINT DRBR21-0035 R ADU111111 N59509808002872 GATE THREE PLBR21-0036 O SFD111 10/12/2021 111 N59509502002906 GATE THIRTEEN PLBR21-0037 O SFD111111 N5732502300 668 DEL MAR AV BR21-0038 R ADU000000 N5670323100267 WOODLAWN AVBR21-0039 R 5+666666 N5684201000 414 CHURCH AV BR21-0040 R 2-4222 11/29/2021 222 N5851913800169 AVENIDA ALTAMIRABR21-0041 R ADU111 5/18/2021 111 N5650310400695 CHULA VISTA STBR21-0042 R ADU111 8/17/2021 11 11/24/2021 1 N5733410300 711 DEL MAR AV BR21-0043 R ADU000000 N5752000900 946 HELIX AV BR21-0044 R ADU111111 NBR21-0047000000 N5661010800211 CHULA VISTA STBR21-0048 R ADU111 8/16/2021 111 N6393023200 1019 MISSION CT BR21-0049 R ADU222 10/11/2021 222 N5712921200866 JEFFERSON AVBR21-0050 R ADU111 12/9/2021 111 N6231110700 418 TREMONT ST BR21-0051 R ADU111 7/14/2021 111 N5703111100125 CORTE MARIA AVBR21-0052 R ADU111 8/5/2021 111 N5731800700 629 DEL MAR AV BR21-0053 R ADU111111 N5951650400 895 RUTGERS AV BR21-0054 R ADU111111 N5752211000968 CORTE MARIA AVBR21-0055 R ADU111 6/14/2021 11 7/29/2021 1 N6204801200 1425 OCALA CT BR21-0056 R ADU111 12/15/2021 111 N5652021000136 BRIGHTWOOD AVBR21-0057 R ADU111 8/2/2021 111 N5721805100 519 JAMES ST BR21-0058 R ADU111 2/14/2022 111 N64407202001781 WHITMORE LPWhitmore BR21-0059 O SFD111 7/13/2021 111 N64407202001775 WHITMORE LPWhitmore BR21-0060 O SFD111 7/13/2021 111 N64407202001783 WHITMORE LPWhitmore BR21-0061 O SFD111 7/13/2021 111 N64407202001773 WHITMORE LPWhitmore BR21-0062 O SFD111 7/13/2021 111 N64407202001779 WHITMORE LPWhitmore BR21-0063 O SFD111 7/13/2021 111 N64407202001777 WHITMORE LPWhitmore BR21-0064 O SFD111 7/13/2021 111 N59319024001012 CALLE MESITABR21-0065 R ADU111111 N5711231200610 W MANOR DRBR21-0067 R ADU111111 N6422202700 1758 GOTHAM ST BR21-0069 R ADU111 11/15/2021 111 N5690802000 77 DAVIDSON ST BR21-0070 R ADU111 9/24/2021 111 N6310128100 358 PALM AV BR21-0072 R ADU111111 N5741920700 631 CLAIRE AV BR21-0073 R ADU112111211121112111211121 N5931421100593 VISTA MIRANDABR21-0074 R ADU111 11/24/2021 111 N6402524000 640 DIAMOND DR BR21-0075 R ADU111 1/11/2022 111 N64407204002053 PASEO LEVANTENLucca BR21-0076 O SFD111 8/10/2021 111 N64407204002065 PASEO LEVANTENLucca BR21-0077 O SFD111 8/10/2021 111 N64407204002077 PASEO LEVANTENLucca BR21-0078 O SFD111 8/10/2021 111 N64407204002076 PASEO LEVANTENLucca BR21-0079 O SFD111 8/10/2021 111 N64407204002049 PASEO LEVANTENLucca BR21-0080 O SFD111 8/10/2021 111 N64407204002061 PASEO LEVANTENLucca BR21-0081 O SFD111 8/10/2021 111 N64407204002073 PASEO LEVANTENLucca BR21-0082 O SFD111 8/10/2021 111 N64407204002057 PASEO LEVANTENLucca BR21-0083 O SFD111 8/10/2021 111 N64407204002069 PASEO LEVANTENLucca BR21-0084 O SFD111 8/10/2021 111 N63936209001072 OLEANDER AVBR21-0085 R ADU111111 N6193603700 1300 FIRST AV BR21-0086 R ADU111 10/7/2021 111 N63910201001003 NEPTUNE DRBR21-0087 O SFD111111 N64407204002093 PASEO LEVANTENLucca BR21-0088 O SFD111 8/10/2021 111 N64407204002092 PASEO LEVANTENLucca BR21-0089 O SFD111 8/10/2021 111 N64407204002085 PASEO LEVANTENLucca BR21-0090 O SFD111 8/10/2021 111 N64407204002084 PASEO LEVANTENLucca BR21-0091 O SFD111 8/10/2021 111 N64407204002096 PASEO LEVANTENLucca BR21-0092 O SFD111 8/10/2021 111 N64407204002081 PASEO LEVANTENLucca BR21-0093 O SFD111 8/10/2021 111 N64407204002089 PASEO LEVANTENLucca BR21-0094 O SFD111 8/10/2021 111 N64407204002080 PASEO LEVANTENLucca BR21-0095 O SFD111 8/10/2021 111 N64407204002088 PASEO LEVANTENLucca BR21-0096 O SFD111 8/10/2021 111 N64407204002113 PASEO LEVANTENLucca BR21-0097 O SFD111 8/11/2021 111 N64407204002104 PASEO LEVANTENLucca BR21-0098 O SFD111 8/11/2021 111 N64407204002101 PASEO LEVANTENLucca BR21-0099 O SFD111 8/11/2021 111 N64407204002109 PASEO LEVANTENLucca BR21-0100 O SFD111 8/11/2021 111 N64407204002108 PASEO LEVANTENLucca BR21-0101 O SFD111 8/11/2021 111 N64407204002097 PASEO LEVANTENLucca BR21-0102 O SFD111 8/11/2021 111 N64407204002105 PASEO LEVANTENLucca BR21-0103 O SFD111 8/11/2021 111 N64407204002100 PASEO LEVANTENLucca BR21-0104 O SFD111 8/11/2021 111 N64407204002116 PASEO LEVANTENLucca BR21-0105 O SFD111 8/11/2021 111 N6191322100 1120 ELM AV BR21-0106 O SFD111 8/9/2021 111 N64407116002190 BLUESTONE CIBluestone BR21-0107 O 5+666 8/3/2021 666 N64407116002159 BLUESTONE CIBluestone BR21-0108 O 5+666 9/27/2021 666 N64407116002168 BLUESTONE CIBluestone BR21-0109 O 5+666 9/27/2021 666 N6403115000 755 DUORO DR BR21-0110 R ADU111 9/8/2021 111 N5750601700999999 TELEGRAPH CANYON RDBR21-0111 O SFD111111 NBR21-0112 R ADU111111 N58521124002013 CORTE BELMARINABR21-0113 R ADU111 11/5/2021 111 N5722130700 796 BEECH AV BR21-0114 R ADU111 10/29/2021 111 N5712101100773 RIVERLAWN AVBR21-0115 R ADU111111 N566122170045 LAS FLORES DRBR21-0116 R ADU111 10/22/2021 111 N6443147500999999 DONZE AVBR21-0119 O SFD111111 N6192501900 1280 FIRST AV 1 BR21-0120 O SFD111 12/2/2021 111 N6192501900 1280 FIRST AV 2 BR21-0121 O SFD111 12/2/2021 111 N6443149400999999 DONZE AVBR21-0122 O SFD111111 N6443149500999999 DONZE AVBR21-0123 O SFD000000 N62914117003324 ANCURZA WYBR21-0124 R ADU111111 N6401721900 1018 ARROYO DR BR21-0125 R ADU111 11/19/2021 111 N6393300600 474 JAMUL CT BR21-0126 R ADU111 1/14/2022 111 N6192212600 216 KENNEDY ST BR21-0128 O SFD111111 N6192212600 214 KENNEDY ST BR21-0129 O SFD111111 N6192212600216 KENNEDY ST 2BR21-0130 R ADU111111 N6192212600214 KENNEDY ST 2BR21-0131 R ADU111111 N5680122200 219 ELDER AV BR21-0132 R ADU111 11/24/2021 111 N57548203001107 MONSERATE AVBR21-0134 R ADU111 2/11/2022 111 N5921721700 469 SMOKY CI BR21-0135 R ADU000000 N64263014001229 BOLINAS BAY CTBR21-0136 R ADU111 11/15/2021 111 N5943842500470 CHERRY HILLS LNBR21-0137 R ADU111 2/2/2022 111 N59509404002907 GATE FOURTEEN PLBR21-0138 O SFD111 10/13/2021 111 N5754111300 95 E NAPLES ST BR21-0139 R ADU111 12/29/2021 111 N63941317001148 OLEANDER AVBR21-0140 R ADU111111 N5693110300 446 VISTA WY BR21-0141 R ADU111111 N6202620800128 E ORLANDO STBR21-0142 R ADU222222 N6393520700432 MONTCLAIR STBR21-0143 R ADU111111 N5752620300 951 GUATAY AV BR21-0144 R ADU111 9/30/2021 111 N5731401500 626 GLOVER PL BR21-0145 R ADU111 12/6/2021 111 N6240333300 115 LOTUS DR BR21-0146 R ADU111 11/5/2021 111 N5671500600 524 PARK WY BR21-0147 R 2-4333333 N5711510500672 W MANOR DRBR21-0148 R ADU111111 N59545107001912 MARQUIS CTBR21-0149 R ADU111 1/7/2022 111 N6182301300 429 NAPLES ST BR21-0150 R ADU111 12/22/2021 111 N5682633100 416 PARK WY BR21-0151 R ADU111 11/16/2021 111 N6430606100 999999 ORION AV BR21-0153 R 5+103103103103103103 N5933011700 355 CORRAL CT BR21-0154 R ADU111111 N64407202001765 WHITMORE LPWhitmore BR21-0155 O SFD111 9/2/2021 111 N64407202001759 WHITMORE LPWhitmore BR21-0156 O SFD111 9/2/2021 111 N64407202001767 WHITMORE LPWhitmore BR21-0157 O SFD111 9/2/2021 111 N64407202001757 WHITMORE LPWhitmore BR21-0158 O SFD111 9/2/2021 111 N64407202001763 WHITMORE LPWhitmore BR21-0159 O SFD111 9/2/2021 111 N64407202001761 WHITMORE LPWhitmore BR21-0160 O SFD111 9/2/2021 111 N64407202001751 WHITMORE LPWhitmore BR21-0161 O SFD111 10/11/2021 111 N64407202001745 WHITMORE LPWhitmore BR21-0162 O SFD111 10/11/2021 111 N64407202001741 WHITMORE LPWhitmore BR21-0163 O SFD111 10/11/2021 111 N64407202001743 WHITMORE LPWhitmore BR21-0164 O SFD111 10/11/2021 111 N64407202001749 WHITMORE LPWhitmore BR21-0165 O SFD111 10/11/2021 111 N64407202001747 WHITMORE LPWhitmore BR21-0166 O SFD111 10/11/2021 111 N64407202001717 WHITMORE LPWhitmore BR21-0167 O SFD111 11/12/2021 111 N64407202001725 WHITMORE LPWhitmore BR21-0168 O SFD111 11/12/2021 111 N64407202001733 WHITMORE LPWhitmore BR21-0169 O SFD111 11/12/2021 111 N64407202001722 WHITMORE LPWhitmore BR21-0170 O SFD111 11/12/2021 111 N64407202001720 WHITMORE LPWhitmore BR21-0171 O SFD111 11/12/2021 111 N64407202001724 WHITMORE LPWhitmore BR21-0172 O SFD111 11/12/2021 111 N64407202001726 WHITMORE LPWhitmore BR21-0173 O SFD111 11/12/2021 111 N64407202001706 WHITMORE LPWhitmore BR21-0174 O SFD111 12/22/2021 111 N64407202001712 WHITMORE LPWhitmore BR21-0175 O SFD111 12/22/2021 111 N64407202001704 WHITMORE LPWhitmore BR21-0176 O SFD111 12/22/2021 111 N64407202001714 WHITMORE LPWhitmore BR21-0177 O SFD111 12/22/2021 111 N64407202001708 WHITMORE LPWhitmore BR21-0178 O SFD111 12/22/2021 111 N64407202001710 WHITMORE LPWhitmore BR21-0179 O SFD111 12/22/2021 111 N64407202001711 WHITMORE LPWhitmore BR21-0180 O SFD111 12/21/2021 111 N64407202001705 WHITMORE LPWhitmore BR21-0181 O SFD111 12/21/2021 111 N64407202001713 WHITMORE LPWhitmore BR21-0182 O SFD111 12/21/2021 111 N64407202001703 WHITMORE LPWhitmore BR21-0183 O SFD111 12/21/2021 111 N64407202001709 WHITMORE LPWhitmore BR21-0184 O SFD111 12/21/2021 111 N64407202001707 WHITMORE LPWhitmore BR21-0185 O SFD111 1/19/2022 111 N5662321000 178 THIRD AV BR21-0186000000 N64407116002148 BLUESTONE CIBluestone BR21-0187 O 5+666 10/29/2021 666 N64407116002128 BLUESTONE CIBluestone BR21-0188 O 5+666 11/12/2021 666 N64407116002129 BLUESTONE CIBluestone BR21-0189 O 5+666 11/12/2021 666 N64407116002108 BLUESTONE CIBluestone BR21-0190 O 5+666 12/21/2021 666 N64407116002107 BLUESTONE CIBluestone BR21-0191 O 5+666 12/21/2021 666 N64407116002008 BLUESTONE CIBluestone BR21-0192 O 5+666 2/10/2022 666 N64407116002068 BLUESTONE CIBluestone BR21-0194 O 5+666666 N64407116002048 BLUESTONE CIBluestone BR21-0195 O 5+666666 N64407116002039 BLUESTONE CIBluestone BR21-0196 O 5+666666 N6182300500 1121 FIFTH AV BR21-0197 R ADU111111 N6401421600 655 DEL REY PL BR21-0198 O SFD111111 NTable A -2 Page 42022/03/15 City Council Post Agenda Page 44 of 277
JurisdictionChula VistaANNUAL ELEMENT PROGRESS REPORTReporting Year2021 (Jan. 1 - Dec. 31)Housing Element ImplementationCells in grey contain auto-calculation formulasPlanning Period6th Cycle04/15/2021 - 04/15/2029Note: "+" indicates an optional field(CCR Title 25 §6202)5722140700 796 CEDAR AV BR21-0199 R ADU111111 N6442122600583 POINT SAN LUIS CTBR21-0200 R ADU111111 N5933810400 525 PADERA WY BR21-0202 R ADU111111 N59407119001454 COUNTRY VISTAS LNBR21-0203 R ADU111111 N5733811300 231 K ST BR21-0205 R ADU000000 N5958812300424 AGUA VISTA DRBR21-0206 R ADU111 1/21/2022 111 N6191323000 1128 ELM AV BR21-0207 R ADU111111 N5662911200189 CORTE HELENA AVBR21-0208 R ADU111 12/14/2021 111 N62411009001555 MELROSE AVBR21-0210 R ADU111 2/15/2022 111 N6240556100 264 PALM AV BR21-0211 O SFD000000 N6240555900 272 PALM AV 2 BR21-0212 O SFD111111 N5720430300 524 FOURTH AV BR21-0213 R ADU111111 N5662911000197 CORTE HELENA AVBR21-0215 R ADU111111 N64407204002073 VIA MIRAFLORESLucca BR21-0218 O SFD111 11/1/2021 111 N64407204002072 VIA MIRAFLORESLucca BR21-0219 O SFD111 11/1/2021 111 N64407204002067 VIA MIRAFLORESLucca BR21-0220 O SFD111 11/1/2021 111 N64407204002068 VIA MIRAFLORESLucca BR21-0221 O SFD111 11/1/2021 111 N64407204002076 VIA MIRAFLORESLucca BR21-0222 O SFD111 11/1/2021 111 N64407204002084 VIA MIRAFLORESLucca BR21-0223 O SFD111 11/1/2021 111 N64407204002064 VIA MIRAFLORESLucca BR21-0224 O SFD111 11/1/2021 111 N64407204002080 VIA MIRAFLORESLucca BR21-0225 O SFD111 11/1/2021 111 N64407204002079 VIA MIRAFLORESLucca BR21-0226 O SFD111 11/1/2021 111 N64407204002088 VIA MIRAFLORESLucca BR21-0227 O SFD111 11/1/2021 111 N64407204002096 VIA MIRAFLORESLucca BR21-0228 O SFD111 11/1/2021 111 N64407204002104 VIA MIRAFLORESLucca BR21-0229 O SFD111 11/1/2021 111 N64407204002101 VIA MIRAFLORESLucca BR21-0230 O SFD111 11/1/2021 111 N64407204002093 VIA MIRAFLORESLucca BR21-0231 O SFD111 11/1/2021 111 N64407204002100 VIA MIRAFLORESLucca BR21-0232 O SFD111 11/1/2021 111 N64407204002087 VIA MIRAFLORESLucca BR21-0233 O SFD111 11/1/2021 111 N64407204002092 VIA MIRAFLORESLucca BR21-0234 O SFD111 11/1/2021 111 N64407204002097 VIA MIRAFLORESLucca BR21-0235 O SFD111 11/1/2021 111 N64407204002116 VIA MIRAFLORESLucca BR21-0236 O SFD111 11/1/2021 111 N64407204002125 VIA MIRAFLORESLucca BR21-0237 O SFD111 11/1/2021 111 N64407204002117 VIA MIRAFLORESLucca BR21-0238 O SFD111 11/1/2021 111 N64407204002109 VIA MIRAFLORESLucca BR21-0239 O SFD111 11/1/2021 111 N64407204002108 VIA MIRAFLORESLucca BR21-0240 O SFD111 11/1/2021 111 N64407204002120 VIA MIRAFLORESLucca BR21-0241 O SFD111 11/1/2021 111 N64407204002121 VIA MIRAFLORESLucca BR21-0242 O SFD111 11/1/2021 111 N64407204002105 VIA MIRAFLORESLucca BR21-0243 O SFD111 11/1/2021 111 N64407204002112 VIA MIRAFLORESLucca BR21-0244 O SFD111 11/1/2021 111 N64407204002124 VIA MIRAFLORESLucca BR21-0245 O SFD111 11/1/2021 111 N64407204002113 VIA MIRAFLORESLucca BR21-0246 O SFD111 11/1/2021 111 N6240555800 276 PALM AV BR21-0247 O SFD111111 N6181522700 523 WELTON ST BR21-0248 R ADU111 2/11/2022 111 N6240556000 268 PALM AV BR21-0249 O SFD111111 N5693201300 21 H ST A BR21-0250 R ADU111 10/12/2021 111 N5671023800 312 FIFTH AV BR21-0252 R ADU111 1/25/2022 111 N5754701700 98 LEANNA ST BR21-0254 R ADU111111 N5734830200 228 SIERRA WY BR21-0255 R ADU111 12/10/2021 111 N5692810100 48 G ST BR21-0256 R ADU111 12/22/2021 111 N5711021500620 WOODLAWN AVBR21-0257 R ADU111111 N5651101500524 CASSELMAN STBR21-0258 R ADU111 2/7/2022 111 N6204102200 347 QUAIL PL BR21-0259 R ADU111111 N5721500200 681 BEECH AV BR21-0260 R ADU111 12/21/2021 111 N5952512600 1874 GAMAY TE BR21-0261 R ADU111 12/27/2021 111 N6206012400 1212 RAVEN PL BR21-0262 R ADU111 1/5/2022 111 N5743520100749 GRETCHEN RDBR21-0265 R ADU111 1/28/2022 111 N64407201002260 TREVI CIRCLEBR21-0266 O 2-4333 1/18/2022 333 N64407201002232 TREVI CIRCLEBR21-0268 O 2-4333 1/18/2022 333 N64407201002189 TREVI CIRCLEBR21-0273 O 2-4333333 N64407201002165 TREVI CIRCLEBR21-0276 O 2-4333333 N6243402700 241 MALITO CT BR21-0278 R ADU222 1/12/2022 222 N5691330100 276 Fourth ST BR21-0279 R ADU111111 N5754600600 90 LEANNA ST BR21-0282 R ADU111111 N6184101100 1244 ORDE CT BR21-0283 R ADU000000 N5751001300135 EL CAPITAN DRBR21-0287 R ADU111111 N5651511100143 WOODLAWN AVBR21-0288 R ADU111111 N57549214001166 CUYAMACA AVBR21-0292 R ADU111111 N64351425001431 AGATE CREEK WYBR21-0293000000 N6202720600227 E ORLANDO STBR21-0294 R ADU111111 N5950933200907 NORTHWOODS DRBR21-0295 R ADU111111 N64407205002153 PASEO LEVANTENSavona BR21-0297 O SFD111111 N64407205002164 PASEO LEVANTENSavona BR21-0298 O SFD111111 N64407205002163 PASEO LEVANTENSavona BR21-0299 O SFD111111 N64407205002160 PASEO LEVANTENSavona BR21-0300 O SFD111111 N64407205002167 PASEO LEVANTENSavona BR21-0301 O SFD111111 N64407205002159 PASEO LEVANTENSavona BR21-0302 O SFD111111 N64407205002171 PASEO LEVANTENSavona BR21-0304 O SFD111111 N64407205002172 PASEO LEVANTENSavona BR21-0305 O SFD111111 N64407205002184 PASEO LEVANTENSavona BR21-0306 O SFD111111 N64407205002175 PASEO LEVANTENSavona BR21-0307 O SFD111111 N64407205002176 PASEO LEVANTENSavona BR21-0308 O SFD111111 N64407205002179 PASEO LEVANTENSavona BR21-0309 O SFD111111 N6240554300 208 PALM AV BR21-0310 R ADU111111 N6192611700 1247 FIRST AV BR21-0312 R ADU111111 N5652101100 434 D ST BR21-0313 R ADU111111 N5672310300588 ROOSEVELT STBR21-0315 R ADU000000 N64366240002406 WISHING STAR WYBR21-0318 R ADU111111 N6400223300 696 CAZORLA AV BR21-0319 R ADU111111 N5691330100 122 F ST BR21-0320 R ADU000000 N6401722500 1041 ARROYO DR BR21-0322 R ADU111111 N5683530600 226 MADRONA ST BR21-0323 R ADU111111 N6190400400 999999 L ST BR21-0326 O SFD000000 N5753660500 194 JAMUL AV BR21-0329 R ADU111111 N58522104003216 CORTE CARLAZZOBR21-0330 R ADU111111 N6191630700 1198 TOBIAS DR BR21-0332 R ADU111111 N64407116002020 BLUESTONE CIBR21-0333 O 5+555555 N64407116002017 BLUESTONE CIBR21-0334 O 5+666666 N64407116002001 BLUESTONE CIBR21-0335 O 5+666666 N64407201002151 TREVI CIRCLEBR21-0337 O 2-4333333 N64407201002120 TREVI CIRCLEBR21-0339 O 2-4333333 N64407201002115 TREVI CIRCLEBR21-0341 O 2-4333333 N64407201002081 TREVI CIRCLEBR21-0344 O 2-4333333 N6440720100 2010 VIA ROMA BR21-0346 O 2-4333333 N64407202001695 WHITMORE LPBR21-0348 O SFD111111 N64407202001689 WHITMORE LPBR21-0349 O SFD111111 N64407202001697 WHITMORE LPBR21-0350 O SFD111111 N64407202001687 WHITMORE LPBR21-0351 O SFD111111 N64407202001693 WHITMORE LPBR21-0352 O SFD111111 N64407202001691 WHITMORE LPBR21-0353 O SFD111111 N6443135200999999 SANTA CAROLINA RDBR21-0354 O 2-4000000 N6443135200999999 SANTA CAROLINA RDBR21-0355 O 2-4000000 N6443135200999999 SANTA CAROLINA RDBR21-0356 O 2-4000000 N6443135200999999 SANTA CAROLINA RDBR21-0357 O 2-4000000 N6443135200999999 SANTA CAROLINA RDBR21-0358 O 2-4000000 N6443135200999999 SANTA CAROLINA RDBR21-0359 O 2-4000000 N6443135200999999 SANTA CAROLINA RDBR21-0360 O 2-4000000 N6443135200999999 SANTA CAROLINA RDBR21-0361 O 2-4000000 N6443135200999999 SANTA CAROLINA RDBR21-0362 O 2-4000000 N6443135200999999 SANTA CAROLINA RDBR21-0363 O 2-4000000 N6443135200999999 SANTA CAROLINA RDBR21-0364 O 2-4000000 N6443135200999999 SANTA CAROLINA RDBR21-0365 O 2-4000000 N6443135200999999 SANTA CAROLINA RDBR21-0366 O 2-4000000 N6443135200999999 SANTA CAROLINA RDBR21-0367 O 2-4000000 N6443135200999999 SANTA CAROLINA RDBR21-0368 O 2-4000000 N6443135200999999 SANTA CAROLINA RDBR21-0369 O 2-4000000 N64407202001690 WHITMORE LPBR21-0372 O SFD111111 N64407202001696 WHITMORE LPBR21-0373 O SFD111111 N64407202001688 WHITMORE LPBR21-0374 O SFD111111 N64407202001698 WHITMORE LPBR21-0375 O SFD111111 N64407202001692 WHITMORE LPBR21-0376 O SFD111111 N64407202001694 WHITMORE LPBR21-0377 O SFD111111 N64407202001674 WHITMORE LPBR21-0378 O SFD111111 N64407202001680 WHITMORE LPBR21-0379 O SFD111111 N64407202001672 WHITMORE LPBR21-0380 O SFD111111 N64407202001682 WHITMORE LPBR21-0381 O SFD111111 N64407202001676 WHITMORE LPBR21-0382 O SFD111111 N64407202001678 WHITMORE LPBR21-0383 O SFD111111 N6392611200908 MONTEREY CTBR21-0384 R ADU111111 N6402311500 971 E J ST BR21-0388 O SFD222222 N5681103300 276 FOURTH AV BR21-0389 O SFD111111 N5685110300239 ALVARADO STBR21-0390 O SFD000000 N5684110200 435 FOURTH AV BR21-0392 R 2-4222222 N5684110200 435 FOURTH AV BR21-0393 R 2-4222222 N6182600100491 QUEEN ANNE DRBR21-0394 R ADU111111 N6190503200 366 NAPLES ST BR21-0395 R ADU111111 N64407202001679 WHITMORE LPBR21-0396 O SFD111111 N64407202001673 WHITMORE LPBR21-0397 O SFD111111 N64407202001681 WHITMORE LPBR21-0398 O SFD111111 N64407202001671 WHITMORE LPBR21-0399 O SFD111111 N64407202001677 WHITMORE LPBR21-0400 O SFD111111 N64407202001675 WHITMORE LPBR21-0401 O SFD111111 NTable A -2 Page 52022/03/15 City Council Post Agenda Page 45 of 277
JurisdictionChula VistaANNUAL ELEMENT PROGRESS REPORTReporting Year2021 (Jan. 1 - Dec. 31)Housing Element ImplementationCells in grey contain auto-calculation formulasPlanning Period6th Cycle04/15/2021 - 04/15/2029Note: "+" indicates an optional field(CCR Title 25 §6202)64407202001663 WHITMORE LPBR21-0402 O SFD111111 N64407202001657 WHITMORE LPBR21-0403 O SFD111111 N64407202001665 WHITMORE LPBR21-0404 O SFD111111 N64407202001655 WHITMORE LPBR21-0405 O SFD111111 N64407202001661 WHITMORE LPBR21-0406 O SFD111111 N64407202001659 WHITMORE LPBR21-0407 O SFD111111 N64407202001658 WHITMORE LPBR21-0408 O SFD111111 N64407202001664 WHITMORE LPBR21-0409 O SFD111111 N64407202001656 WHITMORE LPBR21-0410 O SFD111111 N64407202001666 WHITMORE LPBR21-0411 O SFD111111 N64407202001660 WHITMORE LPBR21-0412 O SFD111111 N64407202001662 WHITMORE LPBR21-0413 O SFD111111 N64407202001642 WHITMORE LPBR21-0414 O SFD111111 N64407202001648 WHITMORE LPBR21-0415 O SFD111111 N64407202001640 WHITMORE LPBR21-0416 O SFD111111 N64407202001650 WHITMORE LPBR21-0417 O SFD111111 N64407202001644 WHITMORE LPBR21-0418 O SFD111111 N64407202001646 WHITMORE LPBR21-0419 O SFD111111 N64407202001622 WHITMORE LPBR21-0420 O SFD111111 N64407202001628 WHITMORE LPBR21-0421 O SFD111111 N64407202001620 WHITMORE LPBR21-0422 O SFD111111 N64407202001630 WHITMORE LPBR21-0423 O SFD111111 N64407202001624 WHITMORE LPBR21-0424 O SFD111111 N64407202001626 WHITMORE LPBR21-0425 O SFD111111 N5663304900 163 D ST BR21-0426 R ADU111111 N6430650612 1825 LYNX TE BR21-0427 R ADU000000 N6240325200 154 LOTUS DR BR21-0428 R ADU000000 N6203010900217 E PAISLEY STBR21-0429 R ADU111111 N6204802700 1414 OCALA CT BR21-0430 R ADU111111 N6290402500 205 27TH ST BR21-0432323 - Hospitals & Other Institutional Buildings111111 N6290402500 205 27TH ST BR21-0432323 - Hospitals/Institutional111111 N6290402500 205 27TH ST BR21-0432323 – Hospitals/Institutional111111 N59538003002239 MOUNTAIN RIDGE RDBR21-0433 R ADU111111 N6183310900 1328 ELDEN AV BR21-0435 R ADU111111 N6233422900 43 CONNOLEY CI BR21-0436 R ADU111111 N6443510100999999 PERSHING RDBR21-0438 O SFD111111 N6443510100999999 PERSHING RDBR21-0439 O SFD111111 N5691801000 331 FIRST AV BR21-0442 R ADU111111 N6443510100999999 PERSHING RDBR21-0445000000 N6443503100999999 PERSHING RDBR21-0446 O000000 N6443510100999999 PERSHING RDBR21-0447 O SFD111111 N6443510100999999 PERSHING RDBR21-0448 O SFD111111 N6443510100999999 PERSHING RDBR21-0449000000 N6443510100999999 PERSHING RDBR21-0450000000 N6443510100999999 PERSHING RDBR21-0451 O SFD111111 N6443510100999999 PERSHING RDBR21-0452 O SFD111111 NTable A -2 Page 62022/03/15 City Council Post Agenda Page 46 of 277
JurisdictionChula VistaANNUAL ELEMENT PROGRESS REPORTReporting Year2021 (Jan. 1 - Dec. 31)Housing Element ImplementationPlanning Period6th Cycle04/15/2021 - 04/15/2029(CCR Title 25 §6202)13 4RHNA Allocation by Income Level2021 2022 2023 2024 2025 2026 2027 2028 2029Total Units to Date (all years)Total Remaining RHNA by Income LevelDeed Restricted 12 - - - - - - - - Non-Deed Restricted 16 - - - - - - - - Deed Restricted - - - - - - - - - Non-Deed Restricted - - - - - - - - - Deed Restricted - - - - - - - - - Non-Deed Restricted - - - - - - - - - Above Moderate 4,667 1,728 - - - - - - - - 1,728 2,939 11,105 1,756 - - - - - - - - 1,756 9,349 Note: units serving extremely low-income households are included in the very low-income permitted units totals and must be reported as very low-income units. 1,777 Please note: For the last year of the 5th cycle, Table B will only include units that were permitted during the portion of the year that was in the 5th cycle. For the first year of the 6th cycle, Table B will include units that were permitted since the start of the planning period.Total RHNATotal UnitsIncome LevelVery LowLowPlease note: The APR form can only display data for one planning period. To view progress for a different planning period, you may login to HCD's online APR system, or contact HCD staff at apr@hcd.ca.gov. 1,911 28 jurisdiction name and current year data. Past year information comes from previous APRs. - Moderate 2,750 1,777 1,911 Please contact HCD if your data is different than the material supplied here - 2Table BRegional Housing Needs Allocation ProgressPermitted Units Issued by Affordability 2,722 Table B Page 12022/03/15 City Council Post Agenda Page 47 of 277
JurisdictionChula VistaANNUAL ELEMENT PROGRESS REPORTReporting Year2021 (Jan. 1 - Dec. 31)Housing Element ImplementationPlanning Period6th Cycle04/15/2021 - 04/15/2029Date of RezoneRezone Type24 5 6 79 10 11APN Street AddressProject Name+Local Jurisdiction Tracking ID+Date of RezoneVery Low-IncomeLow-Income Moderate-IncomeAbove Moderate-IncomeRezone Type Parcel Size(Acres)General Plan DesignationZoningMinimum Density Allowed Maximum Density AllowedRealistic CapacityVacant/NonvacantDescription of Existing UsesNote: "+" indicates an optional fieldCells in grey contain auto-calculation formulasSummary Row: Start Data Entry Below83Project IdentifierRHNA Shortfall by Household Income CategorySites Description1Sites Identified or Rezoned to Accommodate Shortfall Housing Need and No Net-Loss LawTable C(CCR Title 25 §6202)Table C Page 12022/03/15 City Council Post Agenda Page 48 of 277
Jurisdiction Chula Vista
Reporting Year 2021 (Jan. 1 - Dec. 31)
1 2 3 4
Name of
Program Objective Timeframe in H.E Status of Program Implementation
1.1 Preserve
Existing Housing
for Long Term
Housing Needs
Establish policies and programs that more effectively address regulations for short term vacation rentals in residential zones as a
means to preserve the City’s longterm housing stock to serve the long-term housing needs of residents.
Within 12 months of
adoption of the 2021-
2029
Housing Element
On December 14, 2021, the City adopted Resolution 21-245 and
amended the Zoning Code to include these provisions, reference CVMC
5.68.
1.2 Rehabilitation
of Owner
Occupied
Housing
Continue implementation of the City’s Community Housing Improvement Program (CHIP), which provides favorable loans to
low-income homeowners to fund improvements to correct unsafe, unsanitary, or illegal housing conditions, reduce barriers
to accessibility, and improve energy efficiency, water conservation, and lead based paint abatement. Assistance will be
focused on a block by block basis to homeowners residing in the Northwest and Southwest Planning Areas with priority
given to those single-family homeowners of very low-income, special needs and/or senior households. The City will also
increase marketing and outreach efforts for the CHIP, particularly in lower-income neighborhoods and mobile home parks.
30 low-income units
Ongoing/As funding
resources are available
Program participation has fluctuated due to eligibility levels of participants
due to credit, home loan values, availability of contractors to complete
work and the COVID-19 pandemic.
In 2021, there were 12 applications received for the Community Housing
Improvement Program (CHIP). However, it was put on hold due to COVID-
19 and issues with the inspection process. Applicants are on the waitlist.
Due to these constraints, there were no increases in marketing and
outreach efforts. All inspections and marketing resumed in January of
2022.
1.3 Rental
Housing
Acquisition and
Rehabilitation
As part of a comprehensive neighborhood revitalization strategy, the City seeks to acquire and rehabilitate existing rental
housing throughout the Northwest and Southwest planning areas of the City and set aside a number of the housing units
for very low-income and/or special need households at affordable rents. 15 housing units
As opportunities and
resources become
available
The City has identified properties for potential acquisition and
rehabilitation. However, due to the current competitive housing market,
the City has been unable to acquire and rehabilitate property based upon
extended timelines required for City Council approval and other funding
requirements.
1.4
Neighborhood
Revitalization
Support a program focusing financial resources and collaborative efforts that improve the conditions and appearances of
neighborhoods. This on-going program will target specific low-and moderate-income neighborhoods within Western Chula
Vista that can be leveraged with other public and private investments, such as public infrastructure and facility
improvements funded through Measure P, to ensure the improvements benefit the most in need. Funds available through
the City’s CDBG and HOME entitlement program prioritize public improvements to low resource residential areas. 15
housing units
As opportunities and
resources become
available
Chula Vista voters approved Measure P – a temporary, ten-year, half-
cent sales tax to fund high priority infrastructure needs. Collection of the
sales tax began April 1, 2017. Updates on how Measure P Funds are
used can be found at https://www.chulavistaca.gov/departments/public-
works/infrastructurement.
In 2021 Measure P funded major projects including repair and
replacement of three fire stations, 121,451 feet of street pavement
rehabilitation, turf installation at public parks, sidewalk replacement in
6,200 locations, traffic signal system-fiber network repair in 13 locations,
and start of rehabilitation of the Loma Verde Recreation Center.
1.5 Multifamily
Housing
Inspection
Continue implementing the Multifamily Housing Inspection Program that evaluates conditions of rental housing complexes
of three or more units and reports violations to the City’s Code Enforcement Division regarding current health and safety
codes. The City will follow up on all reports of violations to ensure the correction of any identified deficiencies to remedy
substandard rental housing conditions and provide education and resource information to property owners.
Ongoing/ Annual
review of progress
Chula Vista Code Enforcement conducted a total of 49 inspections for
apartment communities. This number is substantially limited due to a hold
on inspections being placed due to Covid-19.
1.6 Mobilehome
Inspection
Program
Continue implementing the systematic inspection of mobilehome and trailer park communities for compliance with Title 25
of the California Code of Regulations to promote safe and sanitary housing and neighborhoods. The City will follow up
on all reports of violations to ensure the correction of any identified deficiencies to remedy substandard housing conditions
and provide education and resource information to park and mobilehome owners.
Ongoing Through Title 25, Code Enforcement staff has completed 65 unit
inspections throughout various parks in 2021.
1.7 Code
Enforcement
Activities
Continue Code Enforcement activities monitoring housing and neighborhood conditions for adherence to minimum standards
of habitability and appearance by responding to service requests from concerned citizens. Code Enforcement staff shall
continue to provide property owners and tenants with information on how to rectify violations, who to contact in Code
Enforcement for assistance, and other resources that may be pertinent to the citation, particularly available housing repair
assistance and subsidy programs for lower-income, senior and disabled households.
Ongoing
Code enforcement staff responded to 499 residential (e.g. apartments,
duplexes, condominiums, mobile homes and single-family homes)
complaints during 2021. For condos and single-family dwellings such
activities included unpermitted construction, trash junk and debris, and
inoperable vehicles. Code Enforcement conducted a total of 49
apartment, 12 condominium and 4 duplex inspections.
Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.
Table D
Program Implementation Status pursuant to GC Section 65583
ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
(CCR Title 25 §6202)
Table D Page 1 2022/03/15 City Council Post Agenda Page 49 of 277
1.8 Implement
Energy
Conservation and
Energy Efficiency
Opportunities
Since 2000, Chula Vista has been implementing its adopted CAP to address the threat of climate change impacts to the
local community. To further advance community energy and water conservation goals, the City is implementing the
following actions listed in its CAP to achieve residentialfocused greenhouse gas emission reductions.
Formed San Diego Community Power (SDCP) to provide 100 clean electricity by 2035
Adopted Active Transportation Plan to facilitate future active transportation infrastructure
Launched Chula Vista Climate Action Challenge to encourage voluntary home improvements to reduce waste and
pollution
Require installation of solar photovoltaic systems in new single- family housing
Require residential electric vehicle pre-wiring in new development and,
Evaluate residential organics collection pilot program.
Ongoing/ Annual
review of progress
SDCP is on track to provide 100 renewable electricity by 2035.
Municipal and commercial accounts have been enrolled in phase 1 and 2
(97 of all phase 1 and 2 customers enrolled with SDCP) and residential
and solar accounts will begin enrollment in May 2022.
The active transportation plan was approved on May, 12, 2020 and
notable projects completed include the Bike lanes on Broadway, bike
lanes added on Mane St, Sweetwater Bike Path.
The Chula Vista Action Challenge is active and has 314 users that have
reduced 250 tons of CO2.
Solar photovoltaic systems were required in single family homes starting
in 2019 and starting in 2023 single family homes will have to be all
electric ready and multifamily and some commercial properties are
required to have solar and battery storage systems.
Currently 10 of parking spots in Multifamily and 6 of other
nonresidential parking spots are required to be EV capable.
The City completed a residential food waste collection pilot program in
2021 and is on track to begin the new residential Food and Yard waste
collection program in all single family residences and multi-family
complex by the end of 2022.
2.1
Accommodate
the City’s
Regional Housing
Needs
Assessment
Allocation
In compliance with SB 166, all jurisdictions must ensure that its housing element inventory of identified sites can
accommodate its share of the regional housing need throughout the planning period, also referred to as “No Net Loss.”
The City has been assigned a total Regional Housing Needs Allocation (RHNA) of 11,105 dwelling units, with 2,750 for
Very Low-Income households and 1,777 for Low-Income for the 2021-2029 Planning Period. The City has identified
adequate sites with appropriate zoning to accommodate the RHNA and to accommodate the need for groups of all
income levels as required by State Housing Element Law and consistent with its obligation to affirmatively furthering fair
housing (AFFH) in encouraging integrated and balanced living patterns. Appendix C lists sites suitable for meeting the
City's RHNA for each income category without the need for rezoning, as shown in Appendix C. Sites that are identified
for lower income housing and had been identified in the last two Housing Element cycles will be considered by right for
the development of such housing and the zoning ordinance will be amended, as appropriate.
Required amendments
to the zoning
ordinance to allow for
by right development of
lower income housing
on previously identified
sites
within 12 months of
adoption of the 2021-
2029
Housing Element
DSD, Planning Division is working on responding to HCD's November
comments. Furthermore, sites that are identified for lower income housing
and had been identified in the last two Housing Element cycles will be
considered by right for the development of such housing and the zoning
ordinance will be amended, as appropriate.
2.2 Adequate
Sites Inventory
In compliance with SB 166 to ensure No Net Loss of sites available to meet the RHNA, the City will monitor the
consumption of residential acreage to ensure an adequate inventory is available to meet the City’s 2021-2029 RHNA
obligations. The City will develop and implement a system to coordinate tracking units with Development Services staff,
who process permitting, pursuant to California Government Code Section 65863, and will make the findings required by
that code section if a site is proposed for development with fewer units or at a different income level than shown in the
Housing Element. Should an approval of development result in a reduction of capacity below the residential capacity
needed to accommodate the remaining need for lower income, moderate, or above moderate income households, the City
will identify and, if necessary, rezone sufficient sites within 180 days to accommodate the shortfall and ensure “no net
loss” in capacity to accommodate the RHNA. Any site rezoned will satisfy the adequate site requirements of Section
65583.2 and will be consistent with the City’s obligation to affirmatively further fair housing.
Within 12 months of
adoption of the 2021-
2029
Housing
Element/Ongoing
As of time of report the City's Housing Element has not been certified by
HCD. DSD, Planning Division is working on responding to HCD's
November comments. Furthermore, sites that are identified for lower
income housing and had been identified in the last two Housing Element
cycles will be considered by right for the development of such housing
and the zoning ordinance will be amended, as appropriate.
2.3 Housing
Impact
Statement” for
Discretionary
Land Use and
Planning
Decisions
In compliance with SB 166 to ensure No Net Loss of sites available to meet the RHNA, to support the required
findings when development of any parcel with fewer units by income category than identified in the housing element for
that parcel and to demonstrate progress towards the RHNA, a “Housing Impact Statement” will be included in all staff
reports for discretionary land use and planning decisions. This statement will expressly state how proposed actions meet
the City’s housing goals and affirmatively furthers fair housing to encourage integrated and balanced living patterns. The
statement will also describe any potential impacts that proposed actions may have on the City’s housing supply and the
provision or loss of affordable housing.
Within 12 months of
adoption of the 2021-
2029
Housing Element
Implemented in July 2021, all Planning Commission reports now provide
a dedicated section on Housing Impact.
2.4 Annual
Report on
Housing
Continue gathering, tracking, and reporting data on development permits and construction in Chula Vista. Gather and
analyze data on the City’s existing housing stock, including naturally affordable housing (housing priced at affordable rents
but not subject to a rentrestriction agreement). Such information is to be provided on an annual basis to State HCD.
By March 30th each
year
Ongoing. Staff will continue to track and report on development permits
and construction for the Annual Progress Report.
2.5 Enforce
Density
Minimums
In compliance with SB 166 to ensure No Net Loss of sites available to meet the RHNA, to support the required findings
when development of any parcel with fewer units by income category than identified in the housing element for that
parcel, and to demonstrate progress towards the RHNA, require discretionary projects to meet dwelling unit density
minimums.
Ongoing
As of time of report the City's Housing Element has not been certified by
HCD. DSD, Planning Division is working on responding to HCD's
November comments.
Table D Page 2 2022/03/15 City Council Post Agenda Page 50 of 277
2.6 Community
Purpose
Facilities Zoning
Amendment
(CVMC Chapter
19.48)
The P-C zone, or any section thereof, must provide adequate land designated as “community purpose facilities (CPF),” as
defined in CVMC 19.04.055, to serve the residents of the planned community. This zone currently allows services for the
homeless, emergency shelters, and senior care but does not currently provide for other types of housing for special need
population groups or lower income households. The City will explore amendments to applicable sections of the CVMC to
allow residential development for lower income households as a by right use and as a public benefit in the context of
CVMC 19.48.025. An amendment to the Community Plan would not be necessary. A change in allowed uses would
facilitate future projects in the CPF Zone as needed to meet the City’s unmet RHNA.
Within 36 months of
adoption of the 2021-
2029
Housing Element
In process.
2.7 Annual
Municipal Code
Updates
Continue to identify opportunities to modify Title 19 of the CVMC to provide more certainty and flexibility in the project
application and permitting approval process. Each update may include all state legislative changes to ensure local
consistency with state requirements and to minimize conflicts with and reduce redundancy between codes.
Ongoing In process.
2.8 Establish
Parking
Standards
Appropriate for
Different Kinds of
Housing
Basic construction costs for residential developments have rapidly increased, and together with land prices, have
increased the cost of housing. This has made homeownership and affordable rentals unattainable for many households.
Parking is more expensive to supply in some places, so parking requirements add a cost to development, and a
developer might build fewer housing units or may not develop at all if parking standards are excessive. Additionally, how
people travel continues to change as more focus is being placed on alternative modes of transportation such as bikes
and rideshares and on remote work. The City will review its development standards to reflect current and anticipated
parking needs and, if appropriate, revise or adopt new parking standards for affordable, senior-aged, mixed-use, and
transit-oriented housing projects.
Within 36 months of
adoption of the 2021-
2029
Housing Element
In process.
2.9 Objective
Design
Standards
The Housing Accountability Act, SB 35, and SB 2162 require that the City review housing development projects based on
objective standards. The City will review and where necessary, revise and develop design guidelines and development
standards to adopt more clear and objective standards related to the architectural review of residential and mixed-use
residential developments.
Within 36 months of
adoption of the 2021-
2029
Housing Element
In process.
2.10 Improve
Project Tracking
and Reviews
Continue to improve the City’s development project tracking system, which is used to coordinate and complete project
reviews. Monitor average processing times for ministerial and discretionary development permits and use data on
processing times and applications to track review times and trends in citywide development. Improving electronic plan
reviews can also reduce approval times and costs.
Within 24 months of
adoption of the 2021-
2029
Housing Element
Ongoing
In process.
2.11 Improve the
Efficiency of the
Development
Review Process
for Housing
Projects
Continue to improve the efficiency of the development review process. In conformance with California Government Code
Section 65940.1 (SB 1483), the City has posted on its web site a current schedule of fees, application forms, zoning
ordinances, and other information, and updates the information within 30 days of any changes. The City will be
undergoing a review and update of its current website with the goal of improving navigation of the site and making more
information available on the City’s website, along with review and development of other educational information to facilitate
the permit process. The Development Services Department currently operates a one-stop front counter that combines
building, fire, planning and engineering services to facilitate project review. The City offers an internet-based permit
management system, through which, the public is able to access and track permit review and status. The City will
continue to find opportunities to streamline the permitting process to remove unnecessary barriers, while implementing
objective design standards, without compromising public health and safety.
Within 36 months of
adoption of the 2021-
2029
Housing Element
Ongoing. Identified a need to develop a pre-application for density bonus
projects. Also initiated improvements to the website to be launched in
2022.
Table D Page 3 2022/03/15 City Council Post Agenda Page 51 of 277
2.12 Review
Nongovernmental
Constraints
Impeding
Residential
Development
In instances where residential developments have been approved by the City but building permits or final maps have not
been obtained, the City will make diligent efforts to contact applicants to discover why units have not been constructed
within two years after approval. If due to nongovernmental constraints, such as rapid increases in construction costs,
shortages of labor or materials, or rising interest rates, to the extent appropriate and legally possible, the City will seek
to identify actions that may help to remove these constraints. Additionally, the City will proactively work with stakeholders
to identify nongovernmental constraints or other considerations that may impede the construction of housing in Chula
Vista and work collaboratively to find strategies and actions that can eliminate or reduce identified constraints.
Within 24 months of
adoption of the 2021-
2029
Housing Element and
every 24 months
thereafter
Ongoing. Several applicants are currently determining a substantial
conformance to utilize density bonus for previously entitled projects.
2.13 Water and
Sewer Service
Providers
Pursuant to California Government Code Section 65589.7 (a) (Senate Bill 1087 2005), the City is required to deliver its
adopted Housing Element and any amendments to local water and sewer service providers. This legislation allows for
coordination between the City and water and sewer providers when considering approval of new residential projects.
Additionally, cooperation with local service providers will support the prioritization of water and sewer services for future
residential development, including units affordable to lower-income households. The City will submit the adopted Housing
Element to local water and sewer providers for their review and consideration when reviewing new residential projects.
Within 3 months of
adoption of the 2021-
2029
Housing Element
As of time of report the City's Housing Element has not been certified by
HCD. The City will provide a copy of the adopted Housing Element to the
Otay Water District and Sweetwater Authority within 30 days of its
adoption.
2.14 Promote
Accessory
Dwelling Unit
Construction
In accordance with AB 671, local governments must include in their General Plan housing elements plans to incentivize
and promote the creation of affordable ADUs. The City will continue to accommodate and promote the construction of
affordable ADUs, particularly for special needs groups, seniors and persons with disabilities, by increasing the public
awareness of the new provisions in state law expanding opportunities for ADU and JADU development and any future
programs that may be adopted by the City. The City will develop multilingual outreach material for public dissemination,
including updates to the City’s website, information at City Hall and via other appropriate print and digital media,
particularly directed to historically underrepresented communities and in collaboration with local agencies serving such
communities.
Upon adoption of the
City’s ADU ordinance
in FY
2021 and Ongoing
Ongoing, the ADU ordinance was updated in 2021. Staff will work on
code amendments and updates. In January 2022 the city submitted a
grant application through the SANDAG Housing Acceleration Program
(HAP) that would provide funds for developing permit-ready pre-approved
ADU plans, a one-stop shop website for ADU development, and planning
software. City expects to hear in winter of 2022 if grant application was
successful. In addition the City intends to use PLHA funding to develop a
pilot project for ADU development.
A total of 118 ADU building permits were issued during 2021.
2.15 Monitoring
of Accessory
Dwelling Units
Maintain an ADU monitoring program during the planning period that tracks ADU development, specifically for affordability
levels and deed-restricted affordable units. By tracking ADUs, units can be accurately reflected in the Annual Housing
Element report as providing more affordable housing opportunities.
FY 2024-2025 To be completed in 2024
2.16 Mid-Cycle
Accessory
Dwelling Unit
Production
Conduct a midcycle review of ADU development within the 2021-2029 planning period to evaluate if production estimates
are being achieved. Depending on the finding of that review, amendments to the Housing Element may be necessary
pursuant to California Government Code 65583.2.
FY 2024-2025 To be completed in 2024
2.17 Permit
Ready ADUs
In accordance with AB 671, local governments must include in their General Plan housing elements plans to incentivize
and promote the creation of affordable ADUs. The City will explore establishing a 'Permit Ready' program for ADUs. As a
part of the program, the City may accept prepared packages of pre-approved designs allowed under the County of San
Diego’s program for ADUs that may be used by owners and that provide expedited processing and may result in overall
reduced costs for applicants.
Within 12 months of
adoption of the City’s
ADU
ordinance in FY 2021
and Ongoing
Reference item 2.14.
Table D Page 4 2022/03/15 City Council Post Agenda Page 52 of 277
2.18 Establish an
Accessory
Dwelling Unit
Amnesty
Program
In accordance with AB 671, local governments must include in their General Plan housing elements plans to incentivize
and promote the creation of affordable ADUs. The City will analyze the demand for a program to allow owners with
existing unpermitted ADUs to obtain permits to legalize the ADUs during the 20212029 planning period. The Amnesty
Program would provide property owners the opportunity to formally legalize existing unpermitted ADUs of any size.
Within 24 months of
adoption of the 2021-
2029
Housing Element
The city identified 31 unpermitted ADUs in 2021 and listed an amnesty
program as part of the goals for the City's ADU program and will seek
funding to develop the program. The City will continue to collect data on
unpermitted ADUs annually.
2.19 Tiny
Houses as
ADUs
“Tiny Houses” are small, independent dwelling units, often mobile, that typically range between 120 and 400 square feet
in size. Due to the size and nature of typical tiny house development, they generally may fit the City’s definition of an
accessory dwelling unit (ADU). The City will explore the accommodation of movable tiny houses as a separate regulated
residential use within the CVMC’s ADU regulations to encourage housing supply, choices, and affordability.
Within 24 months of
adoption of the 2021-
2029
Housing Element
Reference item 2.14. As part of development of the ADU program, this
will be considered.
2.20 Emergency
Shelters
California Government Code Section 65583(a)(4) requires local governments to identify one or more zoning categories that
allow emergency shelters (year-round shelters for the homeless) without discretionary review. The statute permits the City
to apply limited conditions to the approval of ministerial permits for emergency shelters. Pursuant to state law, emergency
shelters are permitted within I-L industrial zone or an equivalent limited industrial zone within a City approved Sectional
Planning Area plan or Specific Plan, as a use by right. Emergency shelters may also be allowed in the C-T
thoroughfare commercial zone or an equivalent commercial zone or on land designated as “community purpose facilities”
(CPF) within a City approved Sectional Planning Area plan or Specific Plan with an approved conditional use permit.
State law provisions (AB 139), have recently been modified to require the assessment of shelter needs be based on the
most recent Point-in-Time Count and the parking standards for shelters be based on staffing levels. The City will review
and revise as necessary its zoning ordinance related to AB 139.
Within 24 months of
adoption of the 2021-
2029
Housing Element
The City will review and revise as necessary its zoning ordinance related
to AB 139.
The City is currently in process of developing its first emergency shelter
with an anticipated opening in summer of 2022 utilizing pallet homes.
2.21 Transitional
and Supportive
Housing
State Housing law mandates that local jurisdictions allow for transitional and supportive housing in residential zones. The
City adopted Ordinance 3442 in 2018 to amend the City of Chula Vista Municipal Code to identify transitional/supportive
housing meeting California Government Code Section 65582 (g-j) definitions as a residential use of a property in a
dwelling to be allowed under the same conditions as apply to other residential dwellings of the same type in the same
zones, reference CVMC 19.58.315.
As requested Ongoing
The City adopted Ordinance 3442 in 2018 to amend the City of Chula
Vista Municipal Code to identify transitional/supportive housing meeting
California Government Code Section 65582 (g-j) definitions as a
residential use of a property in a dwelling to be allowed under the same
conditions as apply to other residential dwellings of the same type in the
same zones, reference CVMC 19.58.315.
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2.22 Supportive
Housing and Low
Barrier
Navigation
Centers
State law provisions (AB 2162 and AB 101), have recently been modified to require approval “by right” of supportive
housing with up to 50 units and low barrier navigation centers that meet the requirements of state law. Low barrier
navigation centers are generally defined as service-enriched shelters focused on moving people into permanent housing.
Low barrier navigation centers provide temporary living facilities while case managers connect individuals experiencing
homelessness to income, public benefits, health services, shelter, and housing. If the City receives applications for these
uses, it will process them as required by state law. The City will adopt policies and procedures for processing these
uses. The City will continue to annually monitor the effectiveness and appropriateness of existing adopted policies. Should
any amendments be required to existing policies pursuant to state law, the City will modify its existing policies, as
appropriate.
Within 24 months of
adoption of the 2021-
2029
Housing Element
As the City allocates funding to new housing development projects and
programs, priority will be given to those designed to provide permanent
supportive services as well as a bridge to a more permanent housing
solution.
2.23 Shared
Living
Support private programs for shared living that connect those with a home and are willing to share living
accommodations with those that are seeking housing, particularly persons with disabilities, seniors, students, and single
person households. The City can identify programs offered in the community and assist in program outreach efforts for
shared living programs through advertisements on the City’s website and placement of program brochures in key
community locations, particularly where directed to historically underrepresented communities and in collaboration with local
agencies serving such communities.
Ongoing/ Annual
review of progress
Ongoing. Staff will continue to monitor opportunities to participate in
programs. This is also identified as a goal in the Age Friendly Action
Plan.
2.24 Single
Room
Occupancy
Residences
SRO units are typically one-room units intended for occupancy by a single individual. They are distinct from a studio or
efficiency unit, in that a studio is a one-room unit that must contain a kitchen and bathroom. Although SRO units are not
required to have a kitchen or bathroom, many SROs have one or the other and could be equivalent to an efficiency unit.
State law requires that the City accommodate this housing type, and they provide smaller, less expensive housing units.
The City has amended its Zoning Ordinance to permit SROs in its multifamily zones to encourage units that are cheaper
by design, reference CVMC 19.58.265.
As requested Ongoing
The City has amended its Zoning Ordinance to permit SROs in
its multifamily zones to encourage units that are cheaper by design,
reference CVMC 19.58.265. Staff continues to monitor opportunities for
development of SROs.
2.25 Qualified
Employee
Housing
Pursuant to the State Employee Housing Act (Section 17000 et seq. of the Health and Safety Code), employee housing
for agricultural workers consisting of no more than 36 beds in group quarters or 12 units or spaces designed for use by
a single family or household is permitted by right in a zoning district that permits agricultural uses by right. Therefore, for
properties that permit agricultural uses by right, a local jurisdiction may not treat employee housing that meets the above
criteria any differently than an agricultural use. The Act also requires that any employee housing providing
accommodations for six or fewer employees be treated as a single-family structure, with no conditional or special use
permit or variance required. The City has amended the Zoning Code to include these provisions, reference CVMC
19.58.144.
As requested Ongoing
The City has amended the Zoning Code to include these
provisions, reference CVMC 19.58.144. Staff continue to monitor
opportunities to develop housing for agricultural workers.
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2.26 Large
Residential
Facilities
Residential facilities for seven or more persons are allowed in any zone as an unclassified use with a conditional use
permit (CUP) approved by the City’s Zoning Administrator without a requirement for a public hearing (CVMC 19.14.030
(A)). The minor CUP is subject to additional standards listed in CVMC 19.58.268. The City will review the provisions for
large residential facilities for seven or more persons, analyze the demand and consider revisions to consider the use by
right within appropriate zones throughout the City and other revisions as necessary to its zoning ordinance to mitigate the
potential constraints on housing for persons with disabilities.
Within 24 months of
adoption of the 2021-
2029
Housing Element
In process.
3.1 Expiring
Affordability
Restrictions
Proactively work with property owner(s) of “at-risk” assisted housing developments whose affordability restrictions are due
to expire by 2029, as identified within Appendix D of this Element, and affordable housing developers to evaluate the
viability of continuing the affordability of such housing through owner participation, public subsidies or participation by
affordable housing developers. The City will implement the following actions on an ongoing basis to conserve its
affordable housing stock:
Annually monitor the status of identified “at-risk” assisted housing developments.
If an opportunity arises due to the pending sale of the property, establish contact with public and non-profit agencies
interested in purchasing and/or managing units at risk. Where feasible, provide technical assistance to these organizations
with respect to financing.
Should the property owner pursue conversion of the units to market rate, ensure that tenants are properly noticed and
informed of their rights and that they are eligible to receive special Section 8 vouchers that would enable them to stay in
their units. Provide tenants with multilingual information regarding Section 8 rent subsidies through the San Diego County
Housing Authority, and other affordable housing opportunities in the City.
Ongoing There were no expiring covenants in 2021. Staff will continue to monitor
expiring covenants.
3.2 Data
Collection and
Compliance with
Coastal Zone
Housing Element-
Related
Requirements
A small area south of Palomar Street along Stella, Ada and Elise Street along the Bayfront, with approximately 38
residential units, is located within the Coastal Zone. There has been no activity (new construction or demolition of existing
housing) since 1982 and remains unchanged. Development along the Bayfront Coastal area has taken place north of
Palomar Street. California Government Code Section 65588(d) requires that cities with areas within the Coastal Zone
include within their Housing Element all of the following:
A review of the number of housing units approved for construction within the Coastal Zone after January 1, 1982
The number of housing units for persons and families of low or moderate income provided in new housing
developments either within the Coastal Zone or within three miles of the Coastal Zone
The number of existing residential units occupied by persons and families of low or moderate income that have been
authorized to be demolished or converted since January 1, 1982 in the Coastal Zone and
The number of residential units for persons and families of low or moderate income required for replacement in
compliance with Section 65590. The City will continue to monitor and maintain records regarding the affordability of new
construction, conversion, and demolition of residential units within the City limits in order to comply with Sections 65588(d)
and 65590 of the California Government Code.
As required Ongoing Staff worked with GIS to create a layer to identify this coastal zone to
track and monitor any redevelopment in that area.
Table D Page 7 2022/03/15 City Council Post Agenda Page 55 of 277
3.3 Data
Collection and
Compliance with
SB 330 Housing
Replacement
Requirements
Senate Bill 330, effective January 1, 2020 through January 1, 2025, requires developers demolishing housing to replace
any restricted affordable or rent-controlled units and comply with specified requirements, including the provision of
relocation assistance and a right of first refusal in the new housing to displaced occupants. With the passage of
Assembly Bill 1482 or the “Tenant Protection Act of 2019,” effective January 1, 2020 until January 1, 2030, residential
tenants are provided statewide rent control. Any housing units covered under AB 1482-statewide rent control are
therefore also subject to SB 330 and replacement of the housing. As permits are requested for the demolition of
housing, the City will obtain information related to the following and require one-for-one replacement when required:
The number of existing residential units proposed to be demolished or converted and
The number of these residential units by bedroom size occupied within the last five years by persons and families of
low or moderate income and therefore required for replacement.
As required Ongoing
Ongoing. At the end of 2021, staff began working on a council referral to
examine the feasibility of a local tenant protection ordinance to provide
protections above state law.
3.4 Balanced
Communities –
Affordable
Housing
Continue to implement the Balanced Communities-Affordable Housing Policy first adopted by the City’s Housing Element in
1981 and any implementing guidelines as adopted and updated. For all new residential projects consisting of 50 or
more dwelling units, 10 percent of the residential units within the development shall be affordable to low- and moderate-
income households (5 percent low-income and 5 percent moderate-income). The City may approve alternatives to the
construction of new inclusionary units, such as provision at another location (“off-site”) or payment of an in-lieu fee, where
the proposed alternative provides a more effective and feasible means of satisfying the requirements and greater public
benefit. For those developments proposed in areas of concentrated with low-income households, the requirement is waived
to avoid further segregated living patterns.
Ongoing Within 36
months of adoption of
the
2021-2029 Housing
Element
Ongoing. Staff will be reviewing opportunities to update the policy in the
near term.
3.5 Establish
Streamlining and
Incentives for
Projects
Proposing
Affordable Units
This program will seek to reduce or eliminate potential constraints to the development of affordable housing. The City will
identify and evaluate constraints to affordable housing development and propose specific methods and strategies to
address and remove the identified regulatory constraints to facilitate production of affordable housing. Results of this
program may include entitlement exemptions, streamlined review processes or allowing affordable housing as a by right
use, fee subsidies and/or payment deferrals, or other methods deemed appropriate to support the accommodation of future
affordable housing units. The program will also explore potential incentives for projects that provide a greater number of
affordable housing units than the City’s Balanced Communities Policy (aka “inclusionary housing”) would otherwise require
and in areas with greater access to resources, amenities, and opportunity.
Within 36 months of
adoption of the 2021-
2029
Housing Element
Ongoing. Chula Vista offers expedited permit processing for certain
development projects, including affordable housing. Affordable Housing
Developers can request the expedited program to ensure the project is
placed into service by the required deadlines established by the funders
of the project (i.e. tax credit investors). Staff continues to explore
opportunities to increase expedited services and prioritize affordable
housing projects.
Table D Page 8 2022/03/15 City Council Post Agenda Page 56 of 277
3.6 Update
Density Bonus
Ordinance
(CVMC 19.)
California Government Code Section 65915 (“State Density Bonus Law”) requires that a jurisdiction adopt a local Density
Bonus Ordinance consistent with state law. Recent updates to State Density Bonus law, AB 1763 and AB 2345,
particularly provide significant incentives for 100 percent affordable housing and those that are transit oriented. State law
imposes density bonus requirements on local jurisdictions. The Density Bonus law allows an increase in the total number
of units permitted on a lot, above the baseline number of units permitted per the applicable zone, in exchange for the
provision of more affordable housing units (units that are income restricted for lower income households) in the “bonus
project” than would otherwise to increase the production of housing for a wide range of residential needs in the
community, including housing for very-low, low- and moderate-income households, students, homeless, disabled veterans
and for seniors. Additionally, Density Bonus law provides for developers of eligible projects to request waivers, incentives
and concessions as needed to make the project economically feasible. Waivers are modifications of volumetric
requirements that can be requested to physically accommodate increased density (i.e. height and floor area ratio). The
requested waiver cannot exceed what is necessary to accommodate the bonus. In addition, developers of a density bonus
project can receive development incentives or concessions, up to four concessions, depending upon the percentage of
affordable units the developer provides. Parking ratios are also dictated by State Density Bonus law and have been
eliminated for those transit affordable housing developments. For those infill developments, replacement of any existing or
prior housing units within the last five years on the project site will be required by bedroom size and affordability level.
Full details of concession/incentive application requirements are detailed in Chapter 19.40 of the Chula Vista Municipal
Code (CVMC) and State Density Bonus law.
The City will continue to review and approve requests under State Density Bonus law (including requests for incentives,
concessions, waivers, and parking reductions) so that projects that qualify are not prevented from developing at the
densities to which they are entitled The City is required to apply current state law regardless of when the local
amendments are adopted. Chapter 19.40 of the Chula Vista Municipal Code (CVMC) will be revised for compliance with
State Density Bonus law.
Within 24 months of
adoption of the 2021-
2029
Housing Element
In process. Staff has initiated revisions to its current application and
development of a pre-application form for any density bonus projects.
Additionally, staff has developed a presentation for all planning staff and
will continue to monitor and update City ordinances accordingly.
3.7 Promote
Accessory
Dwelling Unit
Construction
Develop an incentive program that will facilitate the development of Accessory Dwelling Units (ADU) or Junior Accessory
Dwelling Units (JADU) affordable to very lowincome households, particularly for persons with disabilities or special needs,
seniors, students, and single person households, for a period of 30 years. This program would specifically target the
production of affordable units to accommodate RHNA growth need. The development of incentives will be based upon
review and evaluation of current programs and policies, survey of programs from other agencies to determine the most
feasible and effective alternatives. For instance, the City is exploring potential loan programs or other financial incentives
to encourage the preservation and construction of ADUs that are affordable to lower and moderate-income households.
The City is also reviewing other incentive programs that would encourage new ADU/JADU development at affordable
rents, assistance for existing un-permitted ADU/JADU units to meet code compliance, and other forms of assistance.
Programs such as the City of Los Angeles LA ADU Accelerator Program, Napa County Junior ADU Loan Program, and
the Los Angeles County Second Dwelling Unit Pilot Program are being researched. The exploration and determination of
incentives will be done in conjunction with other ADU policies and programs.
Within 24 months of
adoption of the 2021-
2029
Housing Element
Ongoing, the ADU ordinance was adopted on June 15, 2021. Reference
item 2.14 for more information.
3.8 Track lower
income housing
units by Council
District:
Maintain a comprehensive, consolidated information resource of units reserved for low- and moderate- income households
that includes the District with the units’ location information to ensure a balanced and equitable distribution of affordable
housing throughout the City.
Within 12 months of
adoption of the 2021-
2029
Housing Element
Ongoing
Staff will continue to monitor. A project tracking system is already
established to track this type of information to monitor and maintain
records.
3.9 First Time
Homebuyer
Assistance
Continue assistance to low-income households, specifically targeting participation by current residents in rent restricted
affordable housing, to purchase their first home through the City’s First Time Homebuyer Down Payment and Closing
Cost Assistance Program. Consider amendments, as necessary, to the Program to adequately reflect real estate market
conditions.
Ongoing Funding,
review and revision of
the
Program with execution
of a new administrator
in
FY 2021-2022
On target to relaunch homebuyer program by spring 2022.
3.10 Support
Homeownership
Development and
Financing
Support and encourage the development of homeownership, particularly self-help, development projects or permanent
financing for mutual housing and cooperative developments
As opportunities and
resources become
available.
Apply for CalHOME in
FY 2021-2022 and
evaluate
annually
Chula Vista will seek CalHome funding when NOFA becomes available in
2022.
3.11
Condominium
Conversion
Ordinance
Review the feasibility of implementing a program to mitigate the displacement of residents, who may be required to move
as a result of the conversion of residential rental units to ownership housing (e.g. condominium, stock cooperatives, or
community apartment units). The intent of the program would be to allow the conversion of existing dwelling units to
ownership housing should the project also provide the City with affordable housing units or dedicated housing fees that
can be used for the development of affordable housing within the City. Possible alternatives to explore include: An
Affordable Unit Set-aside, Donation of off-site affordable units, or Payment of an in-lieu Housing Mitigation Fee for
each unit to be converted.
Within 48 months of
adoption of the 2021-
2029
Housing Element
At the end of 2021, staff began working on a council referral to examine
the feasibility of a local tenant protection ordinance to provide protections
above state law. This ordinance would include provisions that cover
condominium conversions. In addition, staff will be looking at
opportunities to provide greater protections for displacement of tenants in
case of conversion.
Table D Page 9 2022/03/15 City Council Post Agenda Page 57 of 277
3.12 Mobilehome
Space Rent
Review
Continue to enforce CVMC Chapter 9.50 to protect mobilehome residents’ investment in their home while at the same
time providing a reasonable return to the park owner in order to preserve this housing alternative.
Ongoing/ Annual
review of progress
The City continues to monitor and enforce the Mobilehome Space Rent
Review Ordinance (Chula Vista Municipal Code “CVMC” Chapter 9.50).
In 2021, the Mobilehome Rent Review Commission meetings were
disrupted by the COVID-19 pandemic. However, City staff continued to
provide information to commissioners through e-mail and website
updates related to mobilehome living in Chula Vista and other relevant
matters that would assist them in their duties prescribed under CVMC
Chapter 9.50. The Commission did not review any proposed rent
increases.
3.13 Resident
Ownership of
Mobilehome
Parks
Promote the purchase of those mobilehome parks with a Mobilehome Park (MHP) zone designation by park residents,
when a park becomes available for sale in accordance with CVMC Chapter 9.60 (Sale of a Mobilehome Park).
Accordingly, resident organizations shall have a right to purchase a park listed for sale if the organization is able to
reach an acceptable price and terms and conditions with the mobilehome park owner. Financial assistance that may be
provided by the state, or other funding sources may be limited to income eligible residents and require affordable housing
costs. Over the past 25+ years, mobliehome residents have not expressed an interest in the purchase of their park. Due
to current market conditions and high real estate costs, the financial feasibility to purchase, should an opportunity occur,
is not anticipated.
As opportunities and
funding resources
become
available. Review on
an annual basis
MPROP
funding and interest.
No mobilehome/trailer parks were listed for sale in 2021.
3.15 Mobilehome
Park Conversion
Continue to enforce CVMC Chapter 9.40 to protect the rights of residents as mobilehome/trailer parks are closed or converted to
other uses.As required.The City will continue to enforce CVMC 9.40 if and when a park is
proposed for closure.
4.1 Affirmatively
Further Fair
Housing
Pursuant to AB 686, the City will affirmatively further fair housing by taking meaningful actions in addition to resisting
discrimination, that overcomes patterns of segregation and foster inclusive communities free from barriers that restrict
access to opportunity based on protected classes, as defined by state law. Chula Vista is a recipient of Federal
Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) funds, which requires
a Regional Analysis of Impediments to F air Housing Choice. As a recipient of these funds, the City certifies that it will
affirmatively further fair housing and utilizes these funds to further the efforts of affordable housing in the City and to
affirmatively further fair housing. The City is a participant in the regional planning efforts to reduce impediments to fair
housing choice and to affirmatively further fair housing through education, testing and enforcement activities. To
affirmatively further fair housing in Chula Vista, the City will work with regional and local partners to identify, address and
eliminate housing discrimination as identified in the Regional Analysis of Impediments to Fair Housing Choice (AI). The
City collaborates with other jurisdictions in San Diego County through the San Diego Regional Alliance for Fair Housing
(SDRAFFH), to prepare the San Diego County AI every five years. The current AI identifies the following impediments to
fair housing within jurisdictions in San Diego County:
§ Fair housing information needs to be disseminated through many media forms to reach the targeted groups.
§ Hispanics and Blacks continue to be under-represented in the homebuyer market and experience large disparities in
loan approval rates.
§ County Housing Choice Voucher holders tend to be concentrated in El Cajon and National City.
§ Housing choices for special needs groups, especially persons with disabilities and seniors, are limited.
§ Fair housing enforcement activities such as random testing are limited.
§ Patterns of racial and ethnic concentration exist in the region, although there are no racially or ethnically concentrated
areas of poverty in Chula Vista.
§ Racial Segregation and Linguistic Isolation: The cities of National City, Chula Vista, El Cajon, and Escondido have the
highest percentage of total residents who spoke English “less than very well”. Most of these residents were Spanish
speakers. Chula Vista will continue to support the San Diego Regional Alliance for Fair Housing in the development of
and subsequent amendments to the Regional Analysis of Impediments to Fair Housing Choice in the County of San
Diego and implement its recommended actions.
Chula Vista will continue to support the San Diego Regional Alliance for Fair Housing in the development of and
subsequent amendments to the Regional Analysis of Impediments to Fair Housing Choice in the County of San Diego
and implement its recommended actions.
The City will continue to work with the community to address potential constraints to fair housing within Chula Vista. The
City and its Fair Housing Provider will ensure that the items described in the below matrix are addressed during the 6th
Housing Element Cycle using available funding sources. Quantifiable objectives and outcomes are further described below
Ongoing
Ongoing. The City contracts with CSA San Diego to provide outreach and
counseling for fair housing issues. Information regarding fair housing
education and resources is available on the City's website and at the
public counter. CSA conducted several virtual workshops during the
year for the benefit or residents and property owners/managers.
The City is a member of the San Diego Regional Alliance for Fair
Housing that consists of 18 participating Cities and the County of San
Diego.
4.2
Environmental
Justice Element
Adopt an Environmental Justice Element as an additional Element of the City’s General Plan. The Environmental Justice
Element will include policies and programs to reduce community health risks including addressing air quality, access to
public facilities, healthy food access, safe and sanitary homes and physical activity.
Within 24 months of
adoption of the 2021-
2029
Housing Element
Staff is currently evaluating compliance.
4.3 Issuance of
Multifamily
Housing
Revenue Bonds
Facilitate the creation of new affordable housing opportunities for very low and low-income households through the
issuance by the Chula Vista Housing Authority of Multifamily Mortgage Revenue Bonds providing below-market financing
for developers willing to set aside a portion of their rental units as affordable housing.
Ongoing
Ongoing. A bond issuance was completed in 2021 for a 200 unit
affordable housing development in Eastern Chula Vista, also known as
Columba.
In addition, due to market conditions and developer interest, the City
adopted a Workforce Housing Policy on October 26, 2021, to consider
joining joint power authorities to enable the development or converstion
of middle income rental units in the City.
Table D Page 10 2022/03/15 City Council Post Agenda Page 58 of 277
4.4 Housing
Assistance
Funds
Continue to make the funds accrued in the City’s Housing Assistance funds available to increase, preserve, and enhance
housing affordable to individuals or families of extremely low, very low or low-income levels. Funding comes from the
City’s available federal HOME funds, state Permanent Local Housing Allocation funds, Low and ModerateIncome Housing
Asset fund, or any local Balanced Communities In Lieu fees. As funding permits, the City will provide gap financing to
developers of affordable housing to leverage state, federal, and other public affordable funding sources. Gap financing will
focus on multifamily rental housing units affordable to lower income households and households with special needs (such
as seniors and disabled). To the extent feasible, the City will also ensure a portion of the affordable housing units
created will be available to extremely low-income households. Funding can be used for acquisition of land, rehabilitation
and construction of affordable units.
As opportunities and
resources become
available.
Ongoing. The City considered providing funding to the Columba project.
They withdrew their request upon favorable market conditions.
Staff continue to work with developers seeking funding for development
of affordable housing.
4.5 Fee Waivers
and Deferrals
The City currently offers certain waivers or deferral of development impact fees for projects with an affordable housing
component. The City Council may waive or defer such fees for projects that include affordable housing units, as outlined
within the City’s Municipal Code. These waivers or deferrals may contribute to the reductions in construction costs and
positively influences the affordability of the units for lower income households. The City will continue its fee waiver and
deferral program and related policies that remove or reduce governmental constraints for those projects that include an
affordable housing component.
As requested Ongoing
The City currently offers certain waivers or
deferral of development impact fees for projects with an affordable
housing component.
4.6 SB 35 and
AB 2162
Develop materials and outreach methods that explain SB 35, effective January 1, 2018, and AB 2162, effective January
1, 2019, streamlining provisions and eligibility for certain housing units. SB 35 requires cities to streamline the approval
of certain housing projects with at least 50 of the proposed residential units dedicated as affordable to households at
80 AMI and meeting other criteria by providing a ministerial approval process. AB 2162 requires cities to streamline the
approval of housing projects containing a minimum amount of Supportive Housing by providing a ministerial approval
process, removing the requirement for CEQA analysis and removing the requirement for Conditional Use Authorization or
other similar discretionary entitlement.
Within 24 months of
adoption of the 2021-
2029
Housing Element
Ongoing. An application meeting AB 2162 requirements has been
developed and is available on the City website.
4.7 Community
Support for
Housing at a
Variety of Income
Levels
Work with the community to achieve community support for housing at a variety of income levels. The City may pursue
this through policy and regulatory strategies such as ensuring that higher density housing developments are of excellent
design quality. If additional infrastructure improvements are required to accommodate increased housing development, the
City will proactively amend its capital improvement program. The City will provide information to the Chula Vista
community about local housing needs, state law requirements, and other topics related to housing for all income levels.
Ongoing Ongoing.
4.8 Reasonably
Accommodate
Housing for
Persons with
Disabilities
To ensure full compliance with reasonable accommodation procedures of the Fair Housing Act, the City has adopted a
Reasonable Accommodation Ordinance to establish procedures for the review and approval of requests to modify zoning
and development standards to reasonably accommodate persons with disabilities, including persons with developmental
disabilities. The procedures do not require any permit other than the reasonable accommodation request, involve no public
notice unless the City's determination is appealed, and no fee is charged. To ensure continued compliance with
reasonable accommodation procedures of the Fair Housing Act, the City will provide for annual review of requests for
reasonable accommodations. Based upon this annual review, the City will update the Reasonable Accommodation
Ordinance as appropriate. To ensure the community is aware of reasonable accommodation policies and programs, the
City will conduct specific actions to promote the Reasonable Accommodation Ordinance and disseminate this information
to the general public, including underrepresented communities. The City will develop materials and outreach methods to
increase public awareness and ease of access to policies, programs and processes addressing reasonable accommodation.
These methods will be consistent with Policy 4.16 below to promote access to information and resources.
As requested Ongoing
The City has adopted a Reasonable Accommodation Ordinance
to establish procedures for the review and approval of requests to modify
zoning and development standards to reasonably accommodate persons
with disabilities, including persons with developmental disabilities.
Associated forms and information are available on the City's website.
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4.9 Homebuyer
Education &
Counseling
Support and encourage developers, lenders and social service organizations to provide educational programs, loan
counseling, and materials for homeowners and potential homeowners on home maintenance, improvement, and financial
management. The purpose of these educational programs will be to help first time homebuyers prepare for the purchase
of a home and to understand the importance of maintenance, equity, appreciation, and personal budgeting to minimize
foreclosure rates.
As funds are available Reference (homebuyer program). The City's website identifies resources
for homeownership.
4.10 Interfaith
Partnership
Opportunities
Continue to encourage local faithbased organizations to work together to provide services and housing (e.g. participation
in the Interfaith Shelter Network rotating shelter and St. Mark’s Lutheran Church Helping Hands program).
As resources become
available Ongoing
The City will continue to facilitate and coordinate with local agencies,
departments and jurisdictions to work together in addressing the regional
homelessness crisis. This includes pursuing collaborative funding
opportunities and coordinating regional operations such as area clean-up
and outreach events
4.11 Reduce
Homeless
Continue to work with regional agencies to identify the annual and seasonal need for homeless in Chula Vista through
the “We All Count” program conducted through the San Diego Regional Task Force on the Homeless. The City will
support and advance programs and policies to address the identified annual and seasonal need in Chula Vista. To the
extent that funds are available, the City will continue to sponsor or assist emergency shelter facilities, inside City limits or
outside within a reasonable proximity to the City, as well as encourage or support facilities by providing grants, or low
cost loans, to operating agencies. In 2020, City Council accepted a donation of a stress membraned structure
manufactured by Sprung Structures and allocated federal funding to site improvements, infrastructure and equipment
necessary to support the development and operation of a temporary Bridge Shelter program for the homeless to serve the
Chula Vista community.
As resources become
available Ongoing
The City will continue to pursue funding opportunities which support
programs and projects aimed at alleviating the homeless crisis.
Furthermore, Local, State and Federal resources will be leveraged to
fund the Homeless Bridge Shelter operations which include case
management and housing navigation. Funding will also be allocated to
continue existing efforts through coordinated outreach, homeless
prevention and rapid rehousing programs.
4.12 Housing
Choice Voucher
Program
The Housing Choice Voucher Program is a rent subsidy program that utilizes Section 8 funds for rental assistance to low
income households to facilitate their rental of private units. The Housing Authority of the County of San Diego (HACSD)
administers this housing assistance program for the City of Chula Vista. The Program extends rental assistance to low
income and very low-income families, elderly, and disabled persons who spend more than 30 percent of their income on
rent. The rental assistance represents the difference between 30 percent of the monthly income and the actual rent. The
owner’s asking price must be comparable to rent charged in the area for similar units.
Ongoing
The City will continue to contract with HACSD to administer and
allocate Housing Choice Vouchers and expand outreach and
education on SB 329 and SB 229 on Source of Income Protection
to promote the use and expand the locational choices for the
Housing Choice Voucher Program.
4.13 Information
of Resources for
Basic Needs
Continue to make available on the City’s website, public/civic center public counters and by City personnel in regular
contact with homeless or economically vulnerable households multilingual informational materials to provide contact
information regarding basic needs, such as emergency food, shelter, and services for the homeless and economically
vulnerable.
Ongoing
Continue to provide resources including First Time Homebuyer Program
Fact Sheet, Affordable Rental Housing Listing and Homeless Resource
Pocket Guide.
4.14 Student
Housing
Resources and
Assistance
The San Diego region is home to several universities and colleges, all of which have students of varying income levels
and housing needs. Located in Chula Vista, serving students in the South Bay region, Southwestern College generates a
high demand for housing to accommodate students. Many students are of low income, independent and are not able to
secure paid work due to the commitment required to focus on coursework, leaving them with less income available to
afford housing. In order to help connect students with affordable housing options in Chula Vista, the City will develop
informational materials on available affordable housing options and housing assistance and make these housing resources
available to students of colleges and universities in proximity to Chula Vista. It is hoped that as the local production of
ADUs increases, the City will be able to connect ADU property owners who are seeking renters with students, singles,
and seniors who are seeking housing.
Ongoing Ongoing.
Table D Page 12 2022/03/15 City Council Post Agenda Page 60 of 277
4.15 Maintain a
Database and
Provide
Information on
Community
Assistance
Programs
Compile, maintain and publicize a list of federal, state, regional, and local community assistance programs that may be
available to residents, dependent on certain qualification criteria. The City will periodically update this list to ensure
information is up-to-date and promote and coordinate access to housing and community assistance programs, particularly
to the City’s elderly and other special needs populations (disabled/developmentally disabled, large households, female-
headed households, homeless, and students) .
Ongoing Continue to provide information via website.
4.16 Promote
and Coordinate
Access to
Housing and
Community
Assistance
Resources,
Programs and
Services
To ensure the community is aware of available resources, such as community assistance programs, student and senior
housing resources, fair housing, landlord-tenant relations, and reasonable accommodations processes, the City will
collaborate with service providers and other Agencies to promote and disseminate this information to the general public,
including underrepresented communities and special needs population groups. A list of available housing assistance and
community assistance programs and services will be made accessible to the public, both online and in hardcopy format
at City Hall and other appropriate public facilities such as libraries and the Norman Park Senior Center. The City will
develop multilingual materials and outreach methods to increase public awareness and ease of access to resources
policies, programs and processes addressing housing needs. These methods may include, but not be limited to:
Publishing of multilingual materials
Directed outreach to historically underrepresented communities
Development of online materials for use on the City’s website and with community partners and use of social media
Partnerships with local and regional service agencies for information dissemination
Ongoing
Five (5) households received HOME funded Tenant Based Rental
Assistance (TBRA). The target population for the TBRA program
included those households who are literally homeless or are at risk of
being homeless. Thirty-one (31) participated in the HOME COVID-19
Program.
Two (2) households received Rapid Re-Housing rental and/or security
deposit assistance (for those who are literally homeless).
One (1) household was assisted through the City’s Low-Mod Homeless
Prevention Program.
Due to the pandemic, limited outreach was conducted in 2021. Staff has
identified a number of outreach opportunities for 2022. Staff will continue
to monitor and update resources.
4.17 Limited
English
Proficiency Policy
Implement a City-wide policy to provide services to persons with limited English proficiency, particularly Spanish speakers,
with the goal of providing such persons with better access to verbal and written information provided by the City,
specifically related to affordable housing resources and programs for low-and moderate-income households. Analyze the
demographic composition of the community to determine if additional languages should be accommodated.
Ongoing
Staff continues to access and find opportunities to provide additional
LEPP services.
In 2021 City Clerks office updated the Council and Commission Agenda
format with resident and stakeholder input to provide greater accessibility
for all residents. This includes providing definitions on the agenda,
location of projects and both online and in-person comments. In addition,
a simultaneous translation services for all council meetings was
implemented.
4.18 Public Input
& Participation Continue to incorporate public input and participation in the design and development of City housing plans and policies. Ongoing
The Housing Advisory Commission continues to provide input into
projects and policies prior to Council consideration and provides an
additional forum for resident input. Staff continues to provide additional
opportunities for input through survey applications and workshops.
General Comments
Table D Page 13 2022/03/15 City Council Post Agenda Page 61 of 277
Table D Page 14 2022/03/15 City Council Post Agenda Page 62 of 277
JurisdictionChula VistaANNUAL ELEMENT PROGRESS REPORTReporting Period2021 (Jan. 1 - Dec. 31)Housing Element ImplementationPlanning Period6th Cycle04/15/2021 - 04/15/2029Description of Commercial Development BonusCommercial Development Bonus Date Approved3 4APN Street AddressProject Name+Local Jurisdiction Tracking ID+Very LowIncomeLowIncomeModerateIncomeAbove ModerateIncomeDescription of Commercial Development BonusCommercial Development Bonus Date ApprovedSummary Row: Start Data Entry BelowUnits Constructed as Part of Agreement Commercial Development Bonus Approved pursuant to GC Section 65915.7Table ENote: "+" indicates an optional fieldProject Identifier12Cells in grey contain auto-calculation formulas(CCR Title 25 §6202)Annual Progress Report January 2020Table E Page 12022/03/15 City Council Post Agenda Page 63 of 277
JurisdictionChula VistaANNUAL ELEMENT PROGRESS REPORTNote: "+" indicates an optional fieldReporting Period2021 (Jan. 1 - Dec. 31)Housing Element ImplementationCells in grey contain auto-calculation formulasPlanning Period6th Cycle04/15/2021 - 04/15/2029(CCR Title 25 §6202)Extremely Low-Income+Very Low-Income+Low-Income+TOTAL UNITS+Extremely Low-Income+Very Low-Income+Low-Income+TOTAL UNITS+Rehabilitation ActivityPreservation of Units At-RiskAcquisition of UnitsMobilehome Park PreservationTotal Units by IncomeTable F Please note this table is optional: The jurisdiction can use this table to report units that have been substantially rehabilitated, converted from non-affordable to affordable by acquisition, and preserved, including mobilehome park preservation, consistent with the standards set forth in Government Code section 65583.1, subdivision (c). Please note, motel, hotel, hostel rooms or other structures that are converted from non-residential to residential units pursuant to Government Code section 65583.1(c)(1)(D) are considered net-new housing units and must be reported in Table A2 and not reported in Table F.Activity TypeUnits that Do Not Count Towards RHNA+Listed for Informational Purposes OnlyUnits that Count Towards RHNA +Note - Because the statutory requirements severely limit what can be counted, please contact HCD to receive the password that will enable you to populate these fields.The description should adequately document how each unit complies with subsection (c) of Government Code Section 65583.1+Units Rehabilitated, Preserved and Acquired for Alternative Adequate Sites pursuant to Government Code section 65583.1(c) Annual Progress Report January 2020Table F Page 12022/03/15 City Council Post Agenda Page 64 of 277
JurisdictionChula VistaReporting Period2021 (Jan. 1 - Dec. 31)Planning Period6th Cycle04/15/2021 - 04/15/2029ANNUAL ELEMENT PROGRESS REPORTHousing Element Implementation234APN Street AddressProject Name+Local Jurisdiction Tracking ID+Realistic Capacity Identified in the Housing ElementEntity to whom the site transferredIntended Use for Site1Summary Row: Start Data Entry BelowNote: "+" indicates an optional fieldCells in grey contain auto-calculation formulas(CCR Title 25 §6202)Table GLocally Owned Lands Included in the Housing Element Sites Inventory that have been sold, leased, or otherwise disposed ofProject IdentifierNOTE: This table must only be filled out if the housing element sites inventory contains a site which is or was owned by the reporting jurisdiction, and has been sold, leased, or otherwise disposed of during the reporting year.Table G Page 12022/03/15 City Council Post Agenda Page 65 of 277
Jurisdiction Chula Vista
Note: "+" indicates
an optional field
Reporting Period 2021
(Jan. 1 - Dec.
31)
Cells in grey
contain auto-
calculation
formulas
Designation Size Notes
1 2 3 4 5 6 7
APN Street Address/Intersection Existing Use
Number of
Units
Surplus
Designation
Parcel Size (in
acres)Notes
Summary Row: Start Data Entry Below
Parcel Identifier
ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
(CCR Title 25 §6202)
Table H
Locally Owned Surplus Sites
Table H Page 1
2022/03/15 City Council Post Agenda Page 66 of 277
Jurisdiction Chula Vista
Reporting Year 2021 (Jan. 1 - Dec. 31)
Planning Period 6th Cycle 04/15/2021 - 04/15/2029
Current Year
Deed Restricted 12
Non-Deed Restricted 16
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
1728
1756
Units by Structure Type Entitled Permitted Completed
SFA 0 0 0
SFD 0 0 0
2 to 4 0 0 0
5+0 0 0
ADU 0 0 0
MH 0 0 0
Total 0 0 0
17
1,606
1,332
0
0
0
0
0
Income Rental Ownership Total
Very Low 0 0 0
Low 0 0 0
Moderate 0 0 0
Above Moderate 0 0 0
Total 0 0 0
Cells in grey contain auto-calculation formulas
Above Moderate
Units Constructed - SB 35 Streamlining Permits
Number of Streamlining Applications Approved
Total Developments Approved with Streamlining
Total Units Constructed with Streamlining
Total Housing Applications Submitted:
Number of Proposed Units in All Applications Received:
Total Housing Units Approved:
Total Housing Units Disapproved:
Total Units
Housing Applications Summary
Use of SB 35 Streamlining Provisions
Note: Units serving extremely low-income households are included in the very low-income permitted units totals
Number of Applications for Streamlining
Building Permits Issued by Affordability Summary
Income Level
Very Low
Low
Moderate
Summary Table Page 1 2022/03/15 City Council Post Agenda Page 67 of 277
Jurisdiction Chula Vista
Reporting Year 2021 (Jan. 1 - Dec. 31)
Total Award Amount Total award amount is auto-populated based on amounts entered in rows 15-26.
Task $ Amount Awarded
$ Cumulative Reimbursement
Requested
Other
Funding Notes
Hsg Element Update Preparation
$140,000.00 $1.00
Local
General Fund
2/26/2021;
Reimbursement not
requested.
Hsg Element Coordinate HCD $20,000.00
Local
General Fund In Progress
Hsg Element Initial Implement $80,000.00
Comm/Stakeholder Input Hsg $70,000.00
Inclusionary Housing Ordinance $80,000.00
ADU Design Std Expedite $30,000.00
Objective Design Std $30,000.00
In Lieu Fee $50,000.00
Summary of entitlements, building permits, and certificates of occupancy (auto-populated from Table A2)
Current Year
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
0
0
Current Year
Deed Restricted 12
Non-Deed Restricted 16
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
1728
1756
Current Year
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
765
765
Moderate
Above Moderate
Total Units
Completed Entitlement Issued by Affordability Summary
Income Level
Very Low
Low
Moderate
Above Moderate
Total Units
Building Permits Issued by Affordability Summary
Income Level
Very Low
Low
Total Units
Certificate of Occupancy Issued by Affordability Summary
Income Level
Very Low
Low
Moderate
Above Moderate
ANNUAL ELEMENT PROGRESS REPORT
Local Early Action Planning (LEAP) Reporting
(CCR Title 25 §6202)
Please update the status of the proposed uses listed in the entity’s application for funding and the corresponding impact on housing within the region or jurisdiction, as applicable, categorized based on the eligible uses specified in
Section 50515.02 or 50515.03, as applicable.
500,000.00$
Task Status
Completed
In Progress
LEAP Reporting Page 1
2022/03/15 City Council Post Agenda Page 68 of 277
HOUSING SUCCESSOR ANNUAL REPORT
Chula Vista Housing Authority
Fiscal Year 2020-21
2022/03/15 City Council Post Agenda Page 69 of 277
TABLE OF CONTENTS
INTRODUCTION ..................................................................................................................................................... 14
Housing Authority as Housing Successor ............................................................................................................ 14
Scope of This Housing Successor Annual Report ............................................................................................... 14
Assets Transferred to the Housing Successor .................................................................................................... 15
BACKGROUND ....................................................................................................................................................... 15
Legal Requirements Pertaining to Housing Successors ...................................................................................... 15
Permitted Uses of Housing Asset Funds ............................................................................................................. 16
Limits on the Accumulation of Housing Funds (Excess Surplus) ........................................................................ 18
HOUSING ASSET FUND ACTIVITY ....................................................................................................................... 19
Deposits and Fund Balance ................................................................................................................................. 19
Expenditures ........................................................................................................................................................ 20
Ending Cash and Fund Balance .......................................................................................................................... 20
Housing Successor Portfolio ................................................................................................................................ 20
Real Properties and Disposition Status ............................................................................................................ 21
Loans Receivable ............................................................................................................................................. 22
COMPLIANCE WITH EXPENDITURE & PRODUCTION LIMITS ........................................................................... 24
Proportionality Requirements .............................................................................................................................. 24
Senior Rental Housing Limit Compliance ............................................................................................................ 27
Excess Surplus .................................................................................................................................................... 27
OTHER INFORMATION .......................................................................................................................................... 29
Homeownership Unit Inventory ............................................................................................................................ 29
Transfers to Other Housing Successors .............................................................................................................. 29
APPENDIX 1 – HOUSING ASSET TRANSFER FORM .......................................................................................... 29
APPENDIX 2 - HOUSING SUCCESSOR ANNUAL REPORT REQUIREMENTS .................................................. 30
APPENDIX 3 – HOUSING ASSET FUND EXPENDITURE REQUIREMENTS ...................................................... 31
2022/03/15 City Council Post Agenda Page 70 of 277
Chula Vista Housing Successor Annual Report 20-21 14
INTRODUCTION
This Housing Successor Agency Annual Report (“Annual Report”) presents information on Fiscal Year
(“FY”) 2020-21 expenditures and activities as required by Health and Safety Code (“HSC”) Section
34176.1(f), including but not limited to a housing successor’s compliance with certain expenditure
activities over the year as well as a five-year planning period. This Annual Report is required of any
housing successor to a former redevelopment agency.
Housing Authority as Housing Successor
The Chula Vista Housing Authority (“Housing Authority”) is the Housing Successor Agency (“Housing
Successor”) to the former Chula Vista Redevelopment Agency (“Agency”), which was dissolved along
with all redevelopment agencies statewide by the State legislature in 2012. At the time of dissolution, a
housing successor was to be selected to transfer and be responsible for the remaining assets and
liabilities of a former redevelopment agency.
The City of Chula Vista (“City”) City Council elected to designate the Housing Authority as the Housing
Successor to the former Agency. The Housing Authority performs many other duties beyond those of a
housing successor while acting in its broader capacity as a housing authority. The Housing Authority
reports on all of its activities in a separate (broader and more extensive) annual report required by HSC
Section 34328, to be submitted to California Department of Housing and Community Development
(“HCD”) by October 1 for the prior year.
Scope of This Housing Successor Annual Report
This Annual Report is limited to the Housing Authority’s activities as it relates to its role as a housing
successor. This may include, but is not limited to, financial activities, property disposition, loan
administration, monitoring of covenants, and affordable housing development. This Annual Report
describes compliance with various annual, five-year, and ten-year housing expenditure and production
requirements. FY 2019-20 was the first year of the current five-year compliance period for income
proportionality, which begins July 1, 2019 and ends June 30, 2024.
The Housing Successor Annual Report was due to HCD by December 31. The Housing Authority’s
audited financial statements will be posted on the City’s website when available and incorporated herein
by reference.
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Chula Vista Housing Successor Annual Report 20-21 15
Assets Transferred to the Housing Successor
Upon the statewide dissolution of redevelopment in 2012, all rights, powers, committed assets, liabilities,
duties, and obligations associated with the affordable housing activities of the Agency were transferred
to the Housing Authority. As one of its first duties as a housing successor, the Housing Authority prepared
and submitted to the California Department of Finance (“DOF”) an inventory of housing assets to be
transferred from the former Agency. The inventory was enumerated on a Housing Asset Transfer Form
(“HAT”) which included:
1. Real properties;
2. Loan/Grant receivables;
3. Rent/Operation Income; and
4. Deferrals.
All items on the HAT were reviewed and ultimately approved by the DOF on September 5, 2012. A copy
of the HAT is provided as Appendix 1. Once approved by DOF and as directed by law, the Housing
Authority, acting as the Housing Successor, transferred these assets to the Low and Moderate Income
Housing Asset Fund (“Housing Asset Fund”). Approval of the HAT set in motion a series of obligations
by the Housing Authority as a housing successor, as described in the following section.
BACKGROUND
This Section summarizes the legal requirements for use of housing successor assets that are addressed
in this Annual Report.
Legal Requirements Pertaining to Housing Successors
In general, housing successors must comply with three major requirements pursuant to HSC Section
34176.1:
1. Expenditures and housing production are subject to income and age targets.
2. Housing successors may not accumulate an “excess surplus,” or a high unencumbered Housing
Asset Fund balance based on certain thresholds.
2022/03/15 City Council Post Agenda Page 72 of 277
Chula Vista Housing Successor Annual Report 20-21 16
3. Properties must be developed with affordable housing within five to ten years of DOF’s approval
of the HAT.
Appendix 2 provides a detailed summary of the reporting requirements that are addressed in this Annual
Report.
Permitted Uses of Housing Asset Funds
Pursuant to HSC Section 34176.1, Housing Asset Funds may be spent on:
• Administrative costs for operation of the housing successor agency. The law allows a housing
successor to spend the greater of:
o $200,000 per year adjusted for inflation, or
o 5% of the statutory value of real property owned by the Housing Successor and the value
of loans and grants receivable from the HAT (“Portfolio”).
According to HCD, the $200,000 limit adjusted for inflation is $223,400 for FY 2020-21. The
Housing Successor’s FY 2020-21 Portfolio balance is $25,139,904 of which 5% is $1,256,995.
Chula Vista’s FY 2020-21 annual administrative cost limit is the higher of these amounts, or
$1,256,995.
• Homeless prevention and rapid rehousing services up to $250,000 per year if the former
redevelopment agency did not have any outstanding inclusionary housing or replacement housing
production requirements as of 2012. Chula Vista is eligible for this expense because it did not
have any outstanding inclusionary or replacement housing requirements upon dissolution.
• Affordable housing development assisting households up to 80 percent of the Area Median
Income (“AMI”), subject to specific income and age targets over a five-year period.
Five-Year Income Proportionality on Development Expenditures: Any Housing Asset
Funds may be spent on development of affordable housing projects affordable to low, very
low, and extremely low income households. “Development” is defined as “new construction,
acquisition and rehabilitation, substantial rehabilitation as defined in HSC Section 33413, the
acquisition of long-term affordability covenants on multifamily units as described in HSC
Section 33413, or the preservation of an assisted housing development that is eligible for
2022/03/15 City Council Post Agenda Page 73 of 277
Chula Vista Housing Successor Annual Report 20-21 17
prepayment or termination or for which within the expiration of rental restrictions is scheduled
to occur within five years.”
Over each five-year compliance period, the current one beginning July 1, 2019, at least 30
percent of such development expenditures must assist extremely low income households
(30% AMI), while no more than 20 percent may assist low income households (between 60-
80% AMI). The balance of the funds may be used on very low income households (defined
as households earning between 30% and 60% of AMI).
The first five-year compliance period was January 1, 2014 through June 30, 2019. The
Housing Authority was non-compliant with Housing Asset Fund income proportionality
expenditure requirements during the first five-year compliance period, specifically with the
20% maximum expenditure requirement for the 60-80% AMI category. This is discussed later
in the report. The current (second) five-year compliance period is July 1, 2019 to June 30,
2024.
Note that housing successors must report expenditures by category each year, but
compliance with income proportionality limits is measured every five years. For example, a
housing successor could spend all its funds in a single year on households earning between
60-80% AMI, as long as it was 20 percent or less of the total expenditures during the five-year
compliance period.
Should a housing successor not spend at least 30% of its development expenditures for
extremely low income households, or exceeds the amount spent on low income households,
future expenditures are subject to greater restriction until these proportionality targets are met.
Specifically, if a housing successor is unable to spend at least 30% of its development
expenditures on extremely low units, it is required to increase this spending to 50% until
compliant with the 30% threshold; a housing successor that spends more than 20% of its
development expenditures on low income units cannot spend any further funds on low income
developments until it is at or below the 20% threshold.
As such, tracking these expenditures and their progress over the corresponding five-year
period is an important function of this Annual Report.
2022/03/15 City Council Post Agenda Page 74 of 277
Chula Vista Housing Successor Annual Report 20-21 18
Ten-Year Age Proportionality on Units Assisted: If more than 50% of the total aggregate
number of rental units produced by the city, housing authority, or former redevelopment
agency during the past 10 years are restricted to seniors, the housing successor may not
spend more Housing Asset Funds on senior rental housing.
It is important to stress that Housing Successor expenditure and production requirements are measured
on different timeframes:
• One-Year Limits: Administrative Allowance and Homeless Prevention Allowance. Compliance
evaluated annually and resets every year.
• Five-Year Limit: Expenditures by Income Level. Compliance evaluated over a fixed five-year
period set by law, the current period being July 1, 2019 to June 30, 2024.
• Ten-Year Limit: Number of Senior Deed-Restricted Units Assisted. Compliance evaluated based
on a rolling ten-year period that is different every year, the current period being FY 2020-21 to
2029-30.
Appendix 3 describes Housing Asset Fund expenditure requirements in more detail, including the types
of costs eligible in each category.
Limits on the Accumulation of Housing Funds (Excess Surplus)
State law limits how much cash a housing successor may retain and, if it fails to commit and spend these
dollars in a reasonable timeframe, ultimately penalizes the housing successor by requiring unspent funds
to be transferred to HCD for use on State housing programs.
HSC Section 34176.1(d) establishes a limit, known as an “excess surplus” on the amount of
unencumbered Housing Asset Funds based on the greater of the following:
• $1,000,000, or
• The total amount of deposits made into the Housing Asset Fund over the preceding four years.
Only amounts in excess of this threshold are considered an excess surplus. Once an excess surplus is
determined, a housing successor must account for these funds separately and encumber said monies
within three years. If after the third year the excess surplus has not been fully encumbered, the remaining
2022/03/15 City Council Post Agenda Page 75 of 277
Chula Vista Housing Successor Annual Report 20-21 19
balance of the excess surplus is to be transferred to HCD within 90 days. HCD is permitted to use these
transferred excess surplus funds anywhere in the State under its Multifamily Housing Program or the Joe
Serna, Jr. Farmworker Housing Grant Program.
As part of the Annual Report, a housing successor must disclose any excess surplus and describe the
housing successor’s plan for eliminating this excess surplus.
HOUSING ASSET FUND ACTIVITY
This section describes FY 2020-21 Housing Asset Fund activity and balances.
Deposits and Fund Balance
The Housing Authority deposited $2,277,410 into the Housing Asset Fund during FY 2020-21 from a
variety of revenue sources, as shown in Figure 1.
Figure 1: Housing Asset Fund Deposits, 2020-21
$225,584 73,351
836,819
1,044
1,284,003
(143,390)
Figure 1.
FY 2020-21 Deposits ($2,277,410)
Investment Earnings City Pool
Orange Tree Revenues
Investment Earnings Others
City Staff Time & Cost Recovery
Loan Repayments
Change in Fair Market Value of
Investments
2022/03/15 City Council Post Agenda Page 76 of 277
Chula Vista Housing Successor Annual Report 20-21 20
Expenditures
The Housing Authority expended a total of $1,517,435 during 2020-21. Of these expenditures, $16,650
were for administrative costs and $147,362 were for homeless prevention and rapid rehousing, and
$1,353,424 were development expenses for affordable units at 30% AMI for the Wakeland Anita Street
Project.
Ending Cash and Fund Balance
The Housing Asset Fund balance as of June 30, 2021 was $13,120,185, as summarized in Table 1.
Table 1: Housing Asset Fund - Ending Balance as of June 30, 2021
Housing Successor Portfolio
The Housing Successor Portfolio as of FY 2020-21 includes three properties within Orange Tree Mobile
Home Park valued at $100,000 each and several loans receivable transferred from the former Agency.
The Portfolio had a value of $25,139,904 as of FY 2020-21, as detailed in Table 2.
Balance Type Amount
Cash 11,717,869
Interest Receivable 3,724
Prepaid expenses -
Loans Receivable 24,839,904
Advance to Other Funds 27,088
Accrued Interest 15,069
Interest Receivable SW Project Area 6,292
Orange Tree Mobile Home Park 828,348
Accounts Payable (1,215)
Deferred/Unearned Revenue (24,316,895)
Ending Balance 13,120,185$
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Chula Vista Housing Successor Annual Report 20-21 21
Table 2: Housing Successor Real Property and Loans Receivable Portfolio
REAL PROPERTIES AND DISPOSITION STATUS
Pursuant to the approved HAT, the former Agency transferred three parcels to the Housing Authority,
specifically three properties in the Orange Tree Mobile Home Park, with space numbers 101, 106, and
134. All three formerly had income restriction covenants that have since expired. The properties,
however, are continually rented to seniors with incomes at or below 120% of AMI. During FY 2020-21
the final loan for Orange Tree space number 24 was fully paid.
HSC Section 34176.1(e) requires all real properties acquired by a redevelopment agency prior to
February 1, 2012 and transferred to the housing successor to be developed pursuant to the requirements
detailed in HSC Section 33334.16. All property that falls within these parameters must be developed for
affordable housing purposes or sold by September 5, 2017. Because the properties were already
developed for affordable housing purposes the above requirements have been satisfied.
Asset Amount
Real Properties
Orange Tree- 3 Spaces $300,000
Loans Receivable
South Bay Community Services 686,244$
Cordova Trolley 549,498$
Rancho Vista Housing -$
St Regis Park 1,295,230$
Chula Vista Rehabilitation CHIP Loans 326,676$
Park Village Apartments 128,642$
Mobile Home Assistance Programs (Orange Tree)-$
Los Vecinos 9,469,732$
Main Plaza 2,083,008$
The Landings II 2,964,731$
Duetta Apartments 1,040,474$
Voita Senior Apartments 1,075,738$
Anita Street 5,219,931$
Subtotal 24,839,904$
Total Portfolio Value $25,139,904
Source: Chula Vista Audit (LSL)
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Chula Vista Housing Successor Annual Report 20-21 22
LOANS RECEIVABLE
There were 12 loan agreements transferred from the former Agency to the Authority following dissolution,
and approval by DOF on September 5, 2012. The loans are described below with outstanding loan
balances as of June 30, 2021.
1. South Bay Community Services: In 1998, the former Agency and the City entered into two loan
agreements with South Bay Community Services. Prior years’ loan was made to South Bay
Community Services in order to purchase several properties including Concord Way (1-unit) and
Trolley Trestle (11-unit). Interest accrues annually between three and six percent. As of June 30,
2021, the outstanding balance of the loans was $686,244, which included an interest accrual of
$276,450.
2. Rancho Vista Housing Project: In 2000, the former Agency loaned $1,000,000 using Housing
Asset funds, and the City loaned $500,000 using HOME funds to CIC Eastlake, L.P. for the
development and operation of Rancho Vista Housing Project. The outstanding principal on the
loan is to be repaid over 55 years and interest accrues at the simple interest rate of three percent
per year. As of June 30, 2021, the outstanding balance of the loan was $1,462,658.
3. St. Regis Park: Also in 2000, the former Agency entered into a loan agreement with the St. Regis
Park Chelsea Investment Corporation for the acquisition and rehabilitation of the 119-unit multi-
family housing project at 1025 Broadway (St Regis Park). In 2019, the developer repaid the
outstanding principal balance of the previous loan in the amount of $1,387,152 and carried
forward the accrued interest of $1,232,822 as a new loan amount. The loan repayment period
lasts 52 years and will accrue six percent interest. As of June 30, 2021, the outstanding balance
of the loan was $1,295,230, which included an interest accrual of $62,408.
4. Chula Vista Rehabilitation: The Chula Vista Rehabilitation Community Housing Improvement
Program (“CHIP”) is under direct control of the Authority acting as the Successor Housing Entity
for those loans that were funded using Housing Asset funds. CHIP offers deferred and low-interest
rate home improvement loans to qualified borrowers residing within a target area. Loan
repayments are re-deposited into the program cash accounts and are redistributed as future
loans. As of June 30, 2021, the outstanding balance of the loan was $326,676, which included an
interest accrual of $22,150.
2022/03/15 City Council Post Agenda Page 79 of 277
Chula Vista Housing Successor Annual Report 20-21 23
5. Park Village Apartments: In 1991, the former Agency entered into a loan agreement with the Civic
Center Barrio Housing Corporation. The loan was made for the purchase of land and the
development of a 28 – unit low-income housing project. During 1992, the loan was assigned to
Park Village Apartments Ltd., in which Civic Center Barrio Housing Corporation is the managing
general partner. In 2009 an amendment to the loan was entered into changing the interest from
three percent to five percent per year. The entire balance is due and payable by December 31,
2022. As of June 30, 2021, the outstanding balance of the loan was $128,642.
6. Orange Tree Mobile Home Park: The former Agency entered into agreements with eligible
residents of the Orange Tree Mobile Home Park, whereby the Agency loaned $250,030 as
permanent financing assistance to residents for the purpose of purchasing certain mobile home
property. Interest is contingent on calculations specified in the agreement. As of June 30, 2021,
all the loans have been fully paid off.
7. Los Vecinos: In 2008, the former Agency entered into a loan agreement with Wakeland Housing
and Development Corporation to assist the borrower in constructing 41 affordable multi-family
rental housing units. The loan amount of $5,680,000 was funded by the Housing Asset Fund. The
loan bears an interest rate of five percent per year. As of June 30, 2021, the outstanding balance
of the loan was $9,469,732, which included an interest accrual of $3,789,732.
8. Brisa del Mar: In 2003, the former Agency and City entered into a loan agreement with Main
Plaza, LP to assist in acquiring and improving certain real property for occupancy by very low,
low, and moderate income households. The loan bears an interest rate of three percent per year
with a 55-year term. The loan is due and payable in 2061. As of June 30, 2021, the outstanding
balance of the loan was $2,083,008, which included an interest accrual of $583,008.
9. Landings I & II: The City entered into a loan agreement with CIC Landings, L.P. to assist the
borrower in constructing 91 affordable multifamily apartment units for occupancy by extremely
low, very low, and lower income households. In 2010, the City and former Agency also entered
into loan agreements with Landings II, L.P. to assist with constructing 143 affordable multi-family
rental housing units (very low and low income households). The loan bears an interest rate of
3.6% annually. As of June 30, 2021, the outstanding balance of the loan was $2,964,731.
10. Duetta Apartments: In 2016, the City entered into a loan agreement with F Street Family CIC, LP
to assist in the construction and permanent financing of affordable multi-family apartments with
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Chula Vista Housing Successor Annual Report 20-21 24
86 deed restricted units (Duetta Apartments). The loan principal is in the amount of $895,340 from
the Housing Asset Fund. The loan bears an interest rate of three percent per year for 55 years.
The loan is to be repaid by December 31, 2072. As of June 30, 2021, the outstanding balance of
the loan was $1,040,474, which included an interest accrual of $145,134.
11. Volta Senior Apartments: In 2016, the City entered into a loan agreement with G Street Senior
CIC, LP to assist in the construction and permanent financing of affordable multifamily apartments
with 122 deed restricted units (Volta Senior Apartments). The loan amount of $932,000 was
funded by the Housing Asset Fund. The loan bears an interest rate of three percent per year for
55 years. The loan is to be repaid by December 31, 2072. As of June 30, 2021, the outstanding
balance of the loan was $1,075,738, which included an interest accrual of $143,738.
12. Anita Street Apartments: In 2017 and 2018, the City entered into an amended a loan agreement
with Wakeland Housing to assist in the acquisition of land and pre-development of an affordable
multi-family housing project of 72 units (Anita Street). The City’s loan would draw from the Housing
Asset Fund and assist in the construction of extremely low income units from the 72 total. The
original loan amount of $3,300,000 was amended in 2018 and 2020, respectively, for an additional
$858,740 and $1,036,425 for a total loan commitment to $5,195,165. No interest accrues on the
loan during the predevelopment phase of the Project. Fund balance has been restricted in the
Low & Moderate Income Housing Successor Special Revenue Fund. However, in 2020 only
$3,841,741 has been disbursed to assist with 22 of the 32 units. As of June 30, 2021, the
outstanding balance of the loan was $5,219,931, which included an interest accrual of $24,766.
COMPLIANCE WITH EXPENDITURE & PRODUCTION LIMITS
During the 2020-21 year, the Housing Authority was in compliance with all annual and five- to ten-year
planning period requirements as described in this section.
Proportionality Requirements
As summarized in Figure 2 below, the Housing Authority fully complied with all Housing Asset Fund
spending restrictions:
• During FY 2020-21, the Housing Authority expended $16,650 on allowable administrative
expenses which is well under the current annual maximum limit of $223,400 ($200,000 plus
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Chula Vista Housing Successor Annual Report 20-21 25
inflation), or 5% of the Housing Successor Portfolio balance, whichever is greater. As shown
earlier on Table 2, the Portfolio balance is $25,139,904, of which 5% is $1,256,995.
• During FY 2020-21, the Housing Authority used $147,362 of Housing Asset Funds for homeless
prevention or rapid rehousing expenses and was therefore in compliance with the $250,000
spending limit.
• During FY 2020-21, the Housing Authority used $1,353,424 for affordable housing development-
related expenditures for the Wakeland Anita Street project. The Second Amendment to
Declaration of Covenants, Conditions and Restrictions for the project commits Housing Asset
Funds only to the units for 30% AMI. This expenditure is therefore only for 29 of the 95 total units
in the project. Because 100% of the affordable housing development-related expenditures are for
units at 30% AMI, the Housing Authority complies with the requirement that at least 30% of project
expenditures are used for 30% AMI units.
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Chula Vista Housing Successor Annual Report 20-21 26
Figure 2: 2020-21 Housing Asset Fund Expenditure Summary
The Housing Authority will ensure it continues to meet all Housing Asset Fund expenditure requirements
throughout this five-year compliance period of July 1, 2019 through June 30, 2024 and future five-year
compliance periods.
In the previous five-year compliance period (July 1, 2014 to June 30, 2019), the Housing Successor
complied with the limits on administrative expenditures, homeless prevention or rapid rehousing
expenditures, and expenditures on projects with units restricted to 60% to 80% of AMI. However, the
Housing Successor was not in compliance with the limits on project expenditures restricted to extremely-
low income households (those in the 30% of AMI range). As was reported in FY 2019-2020, the Housing
Successor spent $632,723 (27%) on projects with units at or below 30% of AMI in the previous five-year
compliance period, which was 27% of total expenditures during the compliance period. This was below
the 30% minimum expenditure requirement, meaning the Housing Successor was out of compliance with
the provision.
Failure to comply with the extremely low income requirement in any five-year compliance period results
in the Housing Authority now having to ensure that 50 percent of remaining funds will be spent on
$16,650 $147,362
$1,353,424
$0 $0$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
Administration/
Monitoring
Homeless Prevention/
Rapid Rehousing
30% AMI
(30% minimum)
31-59% AMI
(no limit)
60-80% AMI
(20% maximum)
Chula Vista Complies with
Proportionality Requirements
Limit Expenditure
spent out of
$250,000
maximum
spent
is within
$1,348,122
maximum
2022/03/15 City Council Post Agenda Page 83 of 277
Chula Vista Housing Successor Annual Report 20-21 27
extremely low income rental units until the Housing Authority demonstrates it is in compliance again.
Because 100% of project expenditures in 2020-21 were used for extremely low-income rental units, the
Housing Authority is now in compliance.
Senior Rental Housing Limit Compliance
Pursuant to HSC Section 34176 (b), a maximum of 50% of deed-restricted rental housing units assisted
by the former Agency, Housing Authority, or City in the previous 10 years may be restricted to seniors.
The Housing Authority complies with the limit since 48% of the total aggregate number of rental units
produced within the preceding ten years were restricted to seniors. The Housing Authority, City, and
former Agency assisted 861 deed-restricted rental units in the last ten years, 409 of which are restricted
to seniors, as shown in Table 3.
Table 3: Deed-Restricted Units Assisted in Last 10 Years
Excess Surplus
The Housing Asset Fund may not accumulate an “excess surplus”, or an unencumbered amount that
exceeds the greater of $1 million, or the sum of deposits in the prior four fiscal years. This requirement
ensures that housing successors are actively spending available Housing Asset Funds on affordable
housing.
Year Senior Units %Non-Senior
Units %Total Units
2020-21 0 0%95 100%95
2019-20 0 0%0 0%0
2018-19 0 0%0 0%0
2017-18 0 0%71 100%71
2016-17 126 59%86 41%212
2015-16 0 0%1 100%1
2014-15 184 97%6 3%190
2013-14 99 76%31 24%130
2012-13 0 0%0 0%0
2011-12 0 0%0 0%0
2010-11 0 0%162 100%162
Total 409 452 861
Total Deed-Restricted Senior Units:48%
Source: City of Chula Vista
2022/03/15 City Council Post Agenda Page 84 of 277
Chula Vista Housing Successor Annual Report 20-21 28
In 2019-20, the Housing Successor Annual Report reported an excess surplus in the amount of $238,229.
Upon review, $1,353,424 was encumbered for the Anita Street project in FY 2019-2020, resulting in no
excess surplus.
The Housing Authority had an excess surplus in FY 2020-21 as shown in Table 4. This was the first year
that the Housing Successor calculated a surplus since dissolution began in February 1, 2012.
Table 4: Excess Surplus Calculation
The Housing Successor will continue monitoring its deposits and fund balance and seek to expend at
least $431,404 on eligible projects or programs as soon as practicable, in order to correct and avoid
accumulating an excess surplus in the future. The excess surplus must be expended or encumbered
within three fiscal years and, if the Housing Successor fails to comply, it must transfer any excess surplus
to HCD within 90 days of the end of the third fiscal year.
FY 20-21 Beginning Cash Balance 10,821,715$
Less: Encumbered Funds (1,353,423.85)$
Unencumbered Amount 9,468,291$
$1 Million, or 1,000,000$
Last 4 Years' Deposits 9,036,887$
2019-20 770,397$
2018-19 2,503,208$
2017-18 4,582,310$
2016-17 1,180,972$
Result: Larger Number 9,036,887$
(1) Unencumbered amount 9,468,291$
(2) Less: Larger Number from Step 2 9,036,887$
Excess Surplus 431,404$
Source: City of Chula Vista
Step 1: Determine Unencumbered Cash Balance from Financials
Step 2: Determine Greater of $1M or Last 4 Deposits
Step 3: Excess Surplus is Amount Step 1 Exceeds Step 2, If Any
2022/03/15 City Council Post Agenda Page 85 of 277
Chula Vista Housing Successor Annual Report 20-21 29
OTHER INFORMATION
Homeownership Unit Inventory
The Housing Authority does not currently assist any homeownership units. During FY 2020-21 the final
loan for Orange Tree space number 24 was fully paid.
Transfers to Other Housing Successors
There were no transfers to another housing successor entity for a joint project pursuant to HSC Section
34176.1(c)(2).
APPENDIX 1 – HOUSING ASSET TRANSFER FORM
The Housing Asset Transfer Form is attached as a separate document.
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Chula Vista Housing Successor Annual Report 20-21 30
APPENDIX 2 - HOUSING SUCCESSOR ANNUAL REPORT REQUIREMENTS
Health and Safety Code Section 34176.1(f)
Housing Asset
Fund
Revenues &
Expenditures
Total amount deposited in the Housing Asset Fund for the fiscal year.
Amount of deposits funded by a Recognized Obligation Payment Schedule (“ROPS”).
Statement of balance at the close of the fiscal year.
Description of Expenditures for the fiscal year, broken out as follows:
• Homeless prevention and rapid rehousing
• Administrative and monitoring
• Housing development expenses by income level assisted
Description of any transfers to another housing successor for a joint project.
Other Assets
and Active
Projects
Description of any project(s) funded through the ROPS.
Update on property disposition efforts (note that housing successors may only hold
property for up to five years unless it is already developed with affordable housing).
Other “portfolio” balances, including:
• Statutory value of any real property either transferred from the former Agency
or purchased by the Housing Asset Fund
• Value of loans and grants receivable
Inventory of homeownership units assisted by the former Agency or the Housing
Successor that are subject to covenants or restrictions or to an adopted program that
protects the former Agency’s investment of monies from the Low and Moderate
Income Housing Fund.
Obligations &
Proportionality
Description of any outstanding production obligations of the former Agency that were
inherited by the Housing Authority.
Compliance with proportionality requirements (income group targets), which must be
upheld on a five-year cycle.
Percentage of deed-restricted rental housing restricted to seniors and assisted by the
former Agency, the Housing Authority, or the City within the past ten years compared
to the total number of units assisted by any of those three agencies.
Amount of any excess surplus, and, if any, the plan for eliminating it.
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Chula Vista Housing Successor Annual Report 20-21 31
APPENDIX 3 – HOUSING ASSET FUND EXPENDITURE REQUIREMENTS
Health and Safety Code Section 34176.1
Expense
Category Limits Allowable Uses
Administration
and Compliance
Monitoring
Measured
Annually
$1,256,995
maximum for
FY 2020-21
(limit varies
each year)
Administrative activities such as:
• Professional services (consultant fees, auditor fees, etc.)
• Staff salaries, benefits, and overhead for time spent on Housing
Successor administration
• Compliance monitoring to ensure compliance with affordable
housing and loan agreements
• Property maintenance at Housing Successor-owned properties
Capped at $200,000 adjusted annually for inflation or 5% of the
statutory value of real property owned by the Housing Successor
and the value of loans and grants receivable from the HAT
(“Portfolio”), whichever is greater.
Homeless
Prevention and
Rapid
Rehousing
Solutions
Measured
Annually
$250,000
maximum per
fiscal year
Services for individuals and families who are homeless or would be
homeless but for this assistance, including:
• Contributions toward the construction of local or regional
homeless shelters
• Housing relocation and stabilization services including housing
search, mediation, or outreach to property owners
• Short-term or medium-term rental assistance
• Security or utility deposits
• Utility payments
• Moving cost assistance
• Credit repair
• Case management
• Other appropriate activities for homelessness prevention and
rapid rehousing of persons who have become homeless.
Affordable
Housing
Development
No spending
limit, but must
comply with
income and
age targets
“Development” includes:
• New construction
• Acquisition and rehabilitation
• Substantial rehabilitation
• Acquisition of long-term affordability covenants on multifamily
units
• Preservation of at-risk units whose affordable rent restrictions
would otherwise expire over the next five years
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Chula Vista Housing Successor Annual Report 20-21 32
Health and Safety Code Section 34176.1
Expense
Category Limits Allowable Uses
Income
Targets
Fixed Five-
Year
Compliance
Period
(currently
2019-20 to
2023-24)
Every five years (currently FYs 2020-2024), Housing Asset Funds
must meet income targets:
• At least 30% on extremely low income rental households (up to
30% AMI or “Area Median Income”)
• No more than 20% on low income households (60-80% AMI)
Moderate and above moderate income households may not be
assisted (above 80% AMI).
Failure to comply with the extremely low income requirement in
any five-year compliance period will result in having to ensure that
50 percent of remaining funds be spent on extremely low income
rental units until in compliance.
Exceeding the expenditure limit for low households earning
between 60-80% AMI in any five-year reporting period will result in
not being able to expend any funds on these income categories
until in compliance.
Age Targets
Rolling Ten-
Year Period
(looks back at
prior ten
years)
For the prior ten years (resets every year), a maximum of 50% of
deed-restricted rental housing units assisted by the Housing
Successor or its host jurisdiction may be restricted to seniors.
If a housing successor fails to comply, Housing Asset Funds may not
be spent on deed-restricted rental housing restricted to seniors until
in compliance.
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v . 0 03 P a g e | 1
March 15, 2022
ITEM TITLE
Housing Service Agreement: Waiver of Bidding Requirement and Approval of an Agreement With
Compliance Services, LLC for Affordable Housing Monitoring Software, Including Authorization for Up to
Four Additional One-Year Options to Extend
Report Number: 22-0087
Location: No specific geographical location
Department: Development Services
Environmental Notice: The activity is not a "Project" as defined under Section 15378 of the California
Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no
environmental review is required.
Recommended Action
City Council and Housing Authority adopt a resolution (A) waiving the competitive bidding requirements
pursuant to Chula Vista Municipal Code Section 2.56.070(b)(3); (B) approving an Agreement with
Compliance Services, LLC for affordable housing monitoring software; and (C) authorizing the City Manager
or designee to execute the agreement, including authorizing the City Manager or designee to also execute up
to four additional one-year options to extend, for a total contract period of five years.
SUMMARY
The City of Chula Vista and the Chula Vista Housing Authority (collectively “City”) utilizes computer software
provided by Compliance Services, LLC (“CS”) for the monitoring of affordable housing projects to ensure
compliance with City and funding regulatory agreements. This action requests an approval of an agreement
with CS and authorization of the City Manager/Housing Authority Director to execute the initial agreement
and to execute four additional one-year options to extend, for a total contract period of five years.
ENVIRONMENTAL REVIEW
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 is not a “Project” as defined under
Section 15378 of the State CEQA Guidelines because the action consist of the use of computer software for
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reporting purposes, is not site specific, and will not result in a direct or indirect physical change in the
environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not
subject to CEQA. Thus, no environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable
DISCUSSION
The City utilizes, as available, federal Community Development Block Grant (“CDBG”), federal HOME
Investment Partnership (“HOME”), State of California Redevelopment funds including the Low-and-
Moderate Income Housing funds and Multi-Family Housing Revenue Bond proceeds for financing of
affordable housing developments. As a condition of receiving assistance through these governmental
resources, the City is required to monitor affordable housing projects in accordance with applicable U.S.
Department of Housing and Urban Development (“HUD”) requirements, the attendant Code of Federal
Regulations, State of California Department of Housing and Community Development (“HCD”)
requirements, Community Redevelopment Law of the State of California (Health and Safety Code Section
33000, et seq.) and State Bond financing requirements.
CS as Software Administrator
CS compliance, monitoring, and reporting software system enables developers and the City to manage
affordable housing records easily and efficiently. Real-time calculations and reports ensure compliance
with federal, state and local income and rent restrictions. The reporting is submitted electronically through
the software by property owners/managers. The software determines compliance with the information
submitted. City staff monitors submittals and addresses compliance issues. CS software is used by various
public agencies to monitor over 400 affordable housing properties. Cities across California that currently
utilize this software and related services include the Cities of Concord, Escondido, Foster City, Fresno,
Hayward, Hesperia, and Contra Costa County.
The City of Chula Vista has been using CS software since 2010 to monitor compliance of 21 properties,
consisting of approximately 2,057 units. In 2022, the City anticipates adding additional properties
including: Otay Ranch Apartments (173 restricted units); Anita Street Apartments (95 restricted units);
Columba Apartments (118 restricted units); The Residences at Escaya (272 units, less 30 units already
restricted) and CasaLago Eastlake (425 restricted units). With these additional properties, the total
number of properties will grow to 26 and will include 3,110 total units.
Scope of Work
The scope of work to be performed by CS:
Review the regulatory agreement for each property and prepare a concise Compliance Summary.
The summary shall outline tenant eligibility responsibilities specific to each project and provide
procedures for ensuring continuing compliance.
Update Compliance Summary, as needed.
Respond to request from users to reset passwords and/or provide technical assistance.
Host the software on its web servers.
Take reasonable efforts and actions to provide the city with any available updates to the
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P a g e | 3
software, whenever the same becomes available to those other cities or consultants that have a
commercial license to the software.
Back up and protect all city data, using commercially reasonable efforts. The City shall
designate an authorized contact person(s), who shall have 24/7 access to the aforementioned City
data.
Waiving Competitive Bidding Requirement
The existing software is unique in providing for the electronic submission of reports that are then tied to
the applicable rent and income limits as determined by the funding source. Based on City research, no other
vendor currently provides a similar type of software product.
The City has used CS software since 2010. Significant resources have been dedicated to training City staff
and property owners/managers in the software system and data input, including all property information
and copies of all loan agreements and regulatory documents.
Based on the above, City staff is recommending that the bid process be waived and an agreement with
CS be approved as to form.
City Council/Housing Authority Action
This action authorizes the City Manager/Housing Authority Director to enter into a contract with Compliance
Services, LLC to cover the compliance software costs for the first year with options to extend the agreement.
Table I below provides the project costs anticipated to be monitored over the next five-years. It also
authorizes up to four (4) additional one-year options based on available fund balance. The goal is to add
funding to the contract if additional properties are added to the affordable housing portfolio.
Table I
Annual Contract Costs
Term Amount
Initial $ 25,000.00
Option Year 1 $ 25,000.00
Option Year 2 $ 25,000.00
Option Year 3 $ 25,000.00
Option Year 4 $ 25,000.00
Total $ 125,000.00
It is anticipated with approval of this item that the City can renew its software license.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and
consequently, the real property holdings of the City Council/Housing Authority members do not create a
disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't
Code § 87100, et seq.). Staff is not independently aware and has not been informed by any City
Council/Housing Authority member, of any other fact that may constitute a basis for a decision-maker
conflict of interest in this matter.
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P a g e | 4
CURRENT-YEAR FISCAL IMPACT
There is no fiscal impact to the General Fund as a result of this action. Funding for this agreement is included
in the adopted budget for fiscal year 2021-2022 in the Chula Vista Housing Authority fund.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact to the General Fund as a result of this action. All costs associated with this
agreement are covered by administrative and monitoring fees.
ATTACHMENTS
None.
Staff Contact: Jose Dorado, Senior Management Analyst
Tiffany Allen, Director of Development Services
2022/03/15 City Council Post Agenda Page 98 of 277
C:\Program Files\eSCRIBE\TEMP\1333660909\1333660909,,,Resolution Compliance Svcs.docx
CITY COUNCIL RESOLUTION NO. __________
HOUSING AUTHORITY RESOLUTION NO. _____
RESOLUTION OF THE C IT Y O F C H U L A V IS T A
AND CHULA VISTA HOUSING AUTHORITY: (1)
WAIVING THE COMPETITIVE FORMAL BID
REQUIREMENTS; (2) APPROVING AN AGREEMENT
BETWEEN THE CITY/HOUSING AUTHORITY AND
COMPLIANCE SERVICES, LLC FOR AFFORDABLE
HOUSING MONITORING SOFTWARE ; AND (3)
AUTHORIZING THE CITY MANAGER/HOUSING
AUTHORITY DIRECTOR OR DESIGNEE TO EXECUTE
THE INITIAL AGREEMENT AND AUTHORIZING THE
CITY MANAGER/HOUSING AUTHORITY DIRECTOR TO
EXECUTE FOUR ONE-YEAR OPTIONS TO EXTEND THE
AGREEMENT
WHEREAS, as a condition of receiving Federal funding from the U.S. Department of
Housing and Urban Development, the City of Chula Vista (the “City”) is required to monitor its
Community Development Block Grant, and HOME Investment Partnership assisted projects
during the affordable rental housing affordability period, and
WHEREAS, as the issuer of Multi-Family Housing Revenue Bonds, the Chula Vista
Housing Authority (“CVHA”) is required to monitor its California Debt Allocation Committee
(“CDLAC”) funded projects during the Qualified Compliance Period; and
WHEREAS, the CVHA is required to monitor projects funded using Low- and Moderate-
Income Housing funds in accordance with California Health and Safety Code Section 33000,
et.seq.; and
WHEREAS, the City and CVHA has funds collected from issuer fees and annual
compliance monitoring fees; and
WHEREAS, the City and CVHA is seeking professional consultant services to assist in
monitoring its affordable housing stock; and
WHEREAS, Compliance Services, LLC ("Consultant”) software is currently in use by
various public agencies and said system is used to monitor over 400 affordable housing
properties. Cities that currently use the software and related services include the City of Concord,
City of Escondido, City of Foster City, City of Fresno, City of Hayward, City of Hesperia, and
Contra Costa County; and
2022/03/15 City Council Post Agenda Page 99 of 277
Resolution No.
Page 2
WHEREAS, Consultant was selected due to its intimate knowledge of and approach to
monitoring affordable housing using a web-based reporting compliance reporting system, its
extensive experience, and its ability to complete the services in a timely manner; and
WHEREAS, the City and CVHA has used the Consultant’s software since 2010 and
significant resources have been dedicated to training city staff and property owner/managers to
effectively operate the software; and
WHEREAS, Consultant warrants and represents that it is experienced and staffed in a
manner such that it can deliver the services required of Consultant to the City and CVHA in
accordance with the time frames and the terms and conditions of this Agreement; and
WHEREAS, based on Consultant's unique software product and history of use by the
City as set forth above, the City and CVHA desire to waive the competitive bidding requirements,
finding that said circumstances support waiving the competitive bid requirements, and enter into
a two-party agreement with Compliance Services, LLC to provide compliance monitoring and
reporting software services ("Agreement") in an initial amount not to exceed $25,000, with four
(4) one-year options to extend in amounts not to exceed $25,000 each year, for a maximum
authorized amount of $125,000, contingent upon availability of funding.
NOW, THEREFORE, BE IT RESOLVED, based on the findings above, the City of Chula
Vista and the Board of Commissioners of the Chula Vista Housing Authority do hereby waive
the competitive bidding requirements pursuant to Chula Vista Municipal Code Section
2.56.070(b)(3).
NOW, THEREFORE, BE IT FURTHER RESOLVED, by the City Council of the City of
Chula Vista and the Board of Commissioners of the Chula Vista Housing Authority, that they
approve the Agreement with Compliance Services, LLC, with such minor modifications as may
be required or approved by the City Attorney’s Office, a copy of which shall be kept on file in
the Office of the City Clerk and authorize the City Manager/Housing Authority Director or
designee to execute the initial Agreement in an amount not to exceed $25,000, including four (4)
one-year options to extend in amounts not to exceed $25,000, for a maximum authorized amount
of $125,000.
Presented by
Tiffany Allen
Director of Development Services
Approved as to form by
Glen R. Googins
City Attorney/ Housing Authority Legal
Counsel
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March 15, 2022
ITEM TITLE
Housing Service Agreement: Approval of an Agreement with RSG, Inc. for Affordable Housing Monitoring
and Reporting Services, Including Authorization for Up to Four Additional One-Year Options to Extend
Report Number: 22-0088
Location: No specific geographical location
Department: Development Services
Environmental Notice: The activity is not a "Project" as defined under Section 15378 of the California
Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no
environmental review is required.
Recommended Action
City Council and Housing Authority adopt a resolution approving an agreement with RSG, Inc. (“RSG”) for
affordable housing monitoring and reporting services and authorizing the City Manager/Housing Authority
Director (for the Successor Housing Entity pursuant to Government Code section 34176(a)), or their
designees, to enter into an initial agreement with RSG for affordable housing monitoring and reporting
services with four additional one-year options to extend, for a total contract period of up to five years.
SUMMARY
The City of Chula Vista and the Chula Vista Housing Authority (acting in its capacity as the Successor Housing
Entity pursuant to Government Code Section 34176(a); collectively “City”) utilize the services of RSG for the
monitoring of affordable housing projects and for the preparation of two annual reports to State of California
Department of Housing and Community Development (“HCD”). This action requests: (1) the approval of an
agreement with RSG; (2) authorization of the City Manager/Housing Authority Director to execute said
agreement; and (3) additional authorization to execute up to four (4) additional one-year options to extend,
for a total contract period of up to five years.
ENVIRONMENTAL REVIEW
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 is not a “Project” as defined under
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Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the
environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not
subject to CEQA. Thus, no environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
The City utilizes, as available, federal HOME Investment Partnership (“HOME”), State of California
Redevelopment funds including the Low-and-Moderate Income Housing fund and Multi-Family Housing
Revenue Bond proceeds for financing of affordable housing developments. As a condition of receiving
assistance through these governmental resources, the City is required to monitor affordable housing projects
in accordance with applicable U.S. Department of Housing and Urban Development (“HUD”) requirements,
the attendant Code of Federal Regulations, State HCD requirements, Community Redevelopment Law of the
State of California (Health and Safety Code Section 33000, et seq.) and State Bond financing requirements. In
addition, the Housing Authority, acting as the Successor Housing Entity, has to prepare and submit annual
reporting to HCD.
Consultant Selection Process
On March 12, 2021, an RFQ (RFQ Q13-20-21) was issued for agencies interested in providing housing related
services on behalf of the City. Although 101 parties downloaded a copy of the RFQ through the City’s Planet
Bids, eight (8) agencies submitted proposals for housing related services (3 specific to monitoring services)
by the deadline. Proposal evaluations were completed in accordance with the applicable provisions of the
Chula Vista Municipal Code including policies, procedures, and guidelines contained in the Chula Vista
Municipal Code Section 2.56.110. Proposal review and scoring was based on the best value selection process
outlined in the RFQ, which emphasized qualifications scored based on four main components: 1) ability of
business to provide the desired services; 2) relevant skills; 3) experience; and 4) availability of key
personnel, quality of relevant references, and cost. The City’s Selection Committee selected RSG as the top
ranked proposal.
RSG as the Compliance Consultant
The City and Housing Authority anticipate RSG monitoring 21 affordable housing complexes that will
include a total of 2,101 units. RSG’s Scope of Work to be performed is as follows:
I. Affordable Housing Compliance Reviews:
1. Review semi-annual compliance reports from FOCUS web-based compliance reporting
system prior to scheduling an onsite monitoring visit.
2. Conduct site visits.
3. Prepare a written report listing all findings.
4. Consultant shall use monitoring checklist for those projects that are subsidized using HUD
funds.
5. Consultant shall support the City in the resolution of legal issues involving regulatory
agreement enforcement.
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II. Reporting
1. Assist in the preparation of the annual SB-341 Successor Housing Entity Annual Report and
the Housing Authority Annual Report starting with fiscal year 2022-2023.
City Council/Housing Authority Action
This action authorizes the City Manager/Housing Authority Director or their designees to enter into a
contract with RSG to cover the compliance monitoring costs for the first year with options to extend the
agreement for up to four (4) additional one-year options based on available fund balance, for an agreement
period of up to a total of five years. Table 1 provides the project costs anticipated to be monitored over the
five-years. The goal is to add funding to the contract if additional properties are added to the affordable
housing portfolio.
Table 1 - Annual Contract Costs
Term Amount
Initial $ 50,000.00
Option Year 1 $ 75,000.00
Option Year 2 $ 75,000.00
Option Year 3 $ 75,000.00
Option Year 4 $ 75,000.00
Total $ 350,000.00
It is anticipated with approval of this item that RSG can begin scheduling the required onsite visits.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and
consequently, the real property holdings of the City Council/Housing Authority members do not create a
disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't
Code § 87100, et seq.). Staff is not independently aware and has not been informed by any City
Council/Housing Authority member, of any other fact that may constitute a basis for a decision-maker
conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There is no fiscal impact to the General Fund as a result of this action. Funding for this agreement is included
in the adopted budget for fiscal year 2021-2022 in the Chula Vista Housing Authority fund.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact to the General Fund as a result of this action. All costs associated with this
agreement are covered by administrative and monitoring fees.
ATTACHMENTS
None.
Staff Contact: Jose Dorado, Senior Management Analyst
Tiffany Allen, Director of Development Services
2022/03/15 City Council Post Agenda Page 103 of 277
C:\Program Files\eSCRIBE\TEMP\1259527796\1259527796,,,Resolution RSG.docx
CITY COUNCIL RESOLUTION NO. __________
HOUSING AUTHORITY RESOLUTION NO. _____
RESOLUTION APPROVING AN AGREEMENT WITH RSG
FOR AFFORDABLE HOUSING MONITORING AND
REPORTING SERVICES (INCLUDING FOUR ONE-YEAR
OPTIONS TO EXTEND SAID AGREEMENT) AND
AUTHORIZING THE CITY MANAGER/HOUSING
AUTHORITY DIRECTOR OR THEIR DESIGNEES TO
EXECUTE SAID AGREEMENT AND EXTENSIONS
WHEREAS, as a condition of receiving Federal funding from the U.S. Department of
Housing and Urban Development, the City of Chula Vista (“City”) is required to monitor its
HOME Investment Partnership assisted projects during the affordable rental housing affordability
period, and
WHEREAS, as the issuer of Multi-Family Housing Revenue Bonds, the Chula Vista
Housing Authority (“CVHA”) is required to monitor its California Debt Allocation Committee
(“CDLAC”) funded projects during the Qualified Compliance Period; and
WHEREAS, the CVHA, in its capacity as the Successor Housing Entity pursuant to
Government Code Section 34167(a), is required to monitor and report on projects funded using
Low- and Moderate-Income Housing funds in accordance with California Health and Safety Code
Section 33000, et.seq); and
WHEREAS, the City and CVHA have funds collected from issuer fees and annual
compliance monitoring fees; and
WHEREAS, the City and CVHA are seeking professional consultant services to assist in
monitoring its affordable housing stock; and
WHEREAS, the City and CVHA are seeking professional consultant services to assist in
completing the annual SB-341 and Housing Authority Annual Report; and
WHEREAS, RSG, Inc. ("Consultant ") was selected due to its intimate knowledge of and
approach to monitoring affordable housing and completing the annual reports, its extensive
experience, and its ability to complete the services in a timely manner; and
WHEREAS, Consultant warrants and represents that it is experienced and staffed in a
manner such that it can deliver the services required of Consultant to the City and CVHA in
accordance with the time frames and the terms and conditions of this Agreement; and
WHEREAS, based on Consultant's unique experience, as set forth above, the City and
CVHA desires to enter into a two-party agreement with RSG, Inc. to provide compliance
monitoring and annual reporting services ("Agreement") in an initial amount not to exceed
2022/03/15 City Council Post Agenda Page 104 of 277
Resolution No.
Page 2
$50,000, with four (4) one-year options, for a total of five years, to extend in amounts not to
exceed $75,000 each year, for a maximum authorized amount of $350,000, contingent upon
availability of funding.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Chula Vista
and the Board of Commissioners of the Chula Vista Housing Authority, that they approve the
Agreement with RSG, with such minor modifications as may be required or approved by the City
Attorney’s Office, a copy of which shall be kept on file in the Office of the City Clerk. The City
Manager/Housing Authority Director or their designee are also authorized to execute the
Agreement and options to extend.
Presented by
Tiffany Allen
Director of Development Services
Approved as to form by
Glen R. Googins
City Attorney/ Housing Authority Legal
Counsel
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March 15, 2022
ITEM TITLE
Community Facilities District (CFD) Annexations: Initiate Annexation of Otay Ranch Village 3
Neighborhood R-20 into CFD 97-2 and CFD 18M
Report Number: 22-0063
Location: Located generally near the intersection of Main Street and Heritage Road, as shown more
particularly on the annexation maps
Department: Development Services
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California
Environmental Quality Act (“CEQA”) State Guidelines; therefore, pursuant to State Guidelines Section
15060(c)(3) no environmental review is required.
Recommended Action
Adopt resolutions A) setting forth the boundaries of the proposed Annexation No. 12 to CFD 97-2,
Improvement Area “C”; B) declaring the intention of the City Council to authorize the proposed Annexation
No. 12 to Improvement Area “C” of CFD 97-2, levy a Special Tax and set a time and place for the public hearing;
C) setting forth the boundaries of the proposed Annexation No. 1 to CFD 18M; and D) declaring the intention
of the City Council to authorize the proposed Annexation No. 1 to CFD 18M, levy a Special Tax and set a time
and place for the public hearing.
SUMMARY
In June 2021, the Chula Vista City Council (“City”) approved amendments to the Otay Ranch Village 3
Sectional Planning Area (“SPA”) Plan. One of the amendments was to expand the Village 3 SPA boundaries
to add an adjacent property (Neighborhood R-20) owned by the Flat Rock Land Company, LLC (“Developer”)
an affiliate of HomeFed Corporation. A Tentative Map (“TM”) condition of approval required Neighborhood
R-20 to be annexed into two existing maintenance Community Facility Districts (“CFDs”) for long-term
maintenance of landscaping, open space and lands within the Otay Ranch Preserve. This action initiates the
process of annexation into these districts as required by the TM.
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The Developer has requested that the City conduct proceedings to consider annexing Neighborhood R-20
into Improvement Area “C” of Community Facilities District No. 97-2 (Preserve Maintenance District) (“CFD
97-2”), and into Community Facilities District No. 18M (Otay Ranch Village 3) (“CFD 18M”). The City has
retained the services of Willdan & Associates as special tax consultant and Best Best and Krieger LLP as legal
counsel to provide assistance with the Developer’s request. For efficiency, tonight’s action will jointly initiate
the formal proceedings to consider the annexation of Neighborhood R-20 into both CFD 97-2, Improvement
Area “C” (Annexation No. 12), and CFD 18M (Annexation No. 1). However, future actions, including public
hearings and elections, will be conducted separately for each CFD.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with CEQA and has
determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines
because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3)
of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
The Developer requests to annex Neighborhood R-20 in Otay Ranch Village 3 into both CFD 97-2,
Improvement Area “C”, and CFD 18M.
CFD 97-2, Improvement Area “C”, Annexation No. 12
Background
The Council formed CFD 97-2 in July of 1998 to establish a long-term financing mechanism to monitor and
maintain open space within the Otay Ranch Preserve. CFD 97-2 initially was divided into two Improvement
Areas – Improvement Area “A” and Improvement Area “B”. Improvement Area “A” and Improvement Area
“B” both fund the costs of the Resource Monitoring Program. Improvement Area “B” also funds costs
associated with Preserve Operations and Maintenance. Improvement Area “C” pays for both the Resource
Monitoring Program and Preserve Operations and Maintenance and was formed to include lands not
originally contemplated to be included within the territory of CFD 97-2.
Property to be Annexed
Neighborhood R-20 in Otay Ranch Village 3 (Tentative Map CVT-20-0005) is owned by the Developer and is
proposed to be annexed into CFD 97-2, Annexation No. 12, and developed with 116 multi-family units. City
staff has reviewed the proposed annexation boundary map and has found it acceptable and ready for
approval by City Council. A reduced copy of the map is provided as Attachment 1 to this report.
Maximum Special Taxes
The approved maximum special tax rates for Fiscal Year 2021-2022 for Improvement Area “C” of CFD No.
97-2 are as follows:
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Table 1 – Maximum Special Tax for Monitoring
Special Tax Category Maximum Special Tax (Monitoring)
Category I – Residential (per square foot) $0.0085
Category I – Non-Residential (per acre) $138.72
Category II – Final Mapped Property (per acre) $138.72
Category III – Undeveloped Property (per acre) $89.54
Table 2 – Maximum Special Tax for Operations & Maintenance
Special Tax Category Maximum Special Tax (Operations &
Maintenance)
Category I – Residential (per square foot) $0.0136
Category I – Non-Residential (per acre) $220.23
Category II – Final Mapped Property (per acre) $220.23
Category III – Undeveloped Property (per acre) $142.14
The rates for special taxes shown above are proposed to be increased each fiscal year, beginning Fiscal Year
2022-23, by a factor equal to the annual percentage change in the San Diego Metropolitan Area Consumer
Price Index for All Urban Consumers (CPI-U, All Items) or zero percent (0%), whichever is greater. The
special taxes are proposed to be collected in the same manner and at the same time as ordinary ad valorem
property taxes; provided, however, that the administrator of CFD 97-2 may directly bill the special tax and
may collect special taxes at a different time or in a different manner if necessary.
CFD 18M, Annexation No. 1
Background
The Council formed CFD 18M in November of 2016 to fund the maintenance and replacement of (a)
landscaping, including without limitation trees, slopes, parkways, and medians; (b) facilities that are directly
related to storm water quality control; (c) walls and fencing; and (d) trails within the Otay Ranch Village 3
master planned community.
Property to be Annexed
Neighborhood R-20 in Otay Ranch Village 3 (Tentative Map CVT-20-0005) is owned by the Developer and is
proposed to be annexed into CFD 18M, Annexation 1, and developed with 116 multi-family units. City staff
has reviewed the proposed annexation boundary map and has found it acceptable and ready for approval by
Council. A reduced copy of the map is provided as Attachment 3 to this report.
Maximum Special Taxes
The maximum special tax rates for Fiscal Year 2021-2022 for CFD 18M are equal to the Fiscal Year 2021-
2022 Maximum Special Tax Basis, described in the table below:
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Land Use Class Maximum
Special Tax
Basis for
Labor
Maximum
Special Tax
Basis for
Water
Maximum
Special Tax Basis
for Asset
Replacement
Maximum
Special Tax Basis
Single-Family
Detached Property $ 1,038.98 $409.79 $287.40 $1,736.17
Single-Family
Attached Property $831.18 $327.83 $229.92 $1,388.94
Multi-Family
Property $83.11 $32.77 $23.00 $138.87
Non-Residential
Property $4,155.93 $1,639.17 $1,149.67 $6,944.77
The Maximum Special Tax Basis, which represents the actual costs for services funded by the CFD, is
proposed to increase in subsequent years based on the components in the table above, as follows:
i. The annual percentage change of the Maximum Special Tax Basis for Labor shall be equal
to the annual percentage change in the Consumer Price Index for Urban Wage Earners
and Clerical Workers (CPI-W); and
ii. The annual percentage change of the Maximum Special Tax Basis for Water shall be equal
to the annual percentage change in the Otay Water District Commodity Rate; and
iii. The annual percentage change of the Maximum Special Tax Basis for Asset Repla cement
shall be equal to the annual percentage change in the Engineering News Record
Construction Cost Index for the Los Angeles Area.
The maximum special tax for Fiscal Year 2021-22 is proposed to equal the Fiscal Year 2021-22 Maximum
Special Tax Basis. In each subsequent fiscal year, the maximum special tax is proposed to be increased by an
amount not less than two percent (2%) and not greater than six percent (6%) that results in a minimal
absolute difference from the Maximum Special Tax Basis for that fiscal year.
The special taxes are proposed to be collected in the same manner and at the same time as ordinary ad
valorem property taxes; provided, however, that the administrator of CFD 97-2 may directly bill the special
tax and may collect special taxes at a different time or in a different manner if necessary.
Resolutions
There are four resolutions for this action item, which if approved would accomplish the following:
A) The Resolution adopting the boundary map for CFD 97-2 is the formal action adopting the map and
setting forth the boundaries of proposed Annexation No. 12 to CFD 97-2, Improvement Area “C”.
B) The Resolution of intention to annex territory to CFD 97-2 is the jurisdictional resolution declaring
the intention of the City Council to authorize proposed Annexation No. 12 to Improvement Area “C”
of CFD 97-2, authorize the levy of a Special Tax, and set the time and place for the public hearing.
C) The Resolution adopting the boundary map for CFD 18M is the formal action adopting the map and
setting forth the boundaries of proposed Annexation No. 1 to CFD 18M.
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D) The Resolution of intention to annex territory to CFD 18M is the jurisdictional resolution declaring
the intention of the City Council to authorize proposed Annexation No. 1 to CFD 18M, authorize the
levy of a Special Tax, and set the time and place for the public hearing.
Future Actions
The public hearings and consideration of the adoption of separate resolutions annexing territory to CFD 97-
2, Improvement Area “C”, and CFD 18M, and submitting the authorization for the levy of special taxes to the
qualified electors of each CFD, are scheduled for the City Council meeting of April 26, 2022.
As noted above, tonight’s action is being done as a single agenda item for purposes of efficiency. However,
future City Council actions with respect to the annexations into CFD 97-2, Improvement Area “C”, and CFD
18M, will be conducted as separate proceedings, including through separate public hearings and elections.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings
within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item
does not present a disqualifying real property-related financial conflict of interest under California Code of
Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code
§87100, et seq.). Staff is not independently aware, and has not been informed by any City Councilmember, of
any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There are no current year fiscal impacts to the General Fund or the Development Services Fund as a result of
this action. All costs of this annexation to the districts are borne by the developer and the on-going
administration will be funded entirely by the district.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact to the General Fund as a result of this action.
ATTACHMENTS
1. Boundary Map for CFD 97-2, Improvement Area C, Annexation No. 12
2. Rate of Method of Apportionment (“RMA”) for CFD 97-2, Improvement Area C, Annexation No. 12
3. Boundary Map for CFD 18M, Annexation No. 1
4. RMA for CFD 18M, Annexation No. 1
Staff Contact: Kimberly Vander Bie, Associate Planner, Development Services
Tiffany Allen, Director, Development Services
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CITY OF CHULA VISTACOUNTY OF SAN DIEGO, STATE OF C ALIFORNIA
.
SITE
VICINITY MAP SHE ET 1 OF 1
Legend
AN NEXATIO N BO UNDARY
MAP REFERENCE NUMBER1
1
M A IN S T R E E T
MAP REFEREN CE N U MBER ASSESSOR'S PARCEL N UMBER1644-060-13HERITAGE ROADPALM
MAIN STREETBRANDYWINEOLYMPIC P K W Y
HERITAGE ROADI-805OTAY MESA R OAD
ANNEXATION M AP NO. 12 OFANNEXATION M AP NO. 12 OFCOMMUNITY FACILITIES DISTRICT NO. 97-2COMMUNITY FACILITIES DISTRICT NO. 97-2(PRESERVE MAIN TENAN CE DISTRIC T)(PRESERVE MAIN TENAN CE DISTRIC T)
FILED IN THE O FFICE OF THE CITY CLERK OF THE CITY OF C HULA VISTA THIS_______ DAY ___________, 2 0__.
__________________________________________CITY C LERKCITY O F CHUL A VISTASTATE O F CALIFO RNIA
I HEREBY CERTIFY THAT THE WITHIN MAP SHOW ING PROPO SED BO UNDARIES O FANNEXATION MAP NO. 1 2 TO CO MMU NITY FAC ILITIES DISTR ICT NO. 9 7-2 (PRESERVEMAINTENANCE DISTRICT) OF THE CITY OF CH ULA VISTA, COU NTY OF SAN DIEG O,STATE OF CALIFO RNIA, WAS APPRO VED BY THE C ITY COU NCIL O F THE CITY O FCHULA VISTA AT A REGU LAR MEETING THEREOF, H EL D ON THE ________ DAY O F___________,2 0__, BY ITS RESO LUTIO N NO. _________.
__________________________________________CITY C LERKCITY O F CHUL A VISTASTATE O F CALIFO RNIA
FILED THIS ______ DAY O F ___________, 20__ AT THE HO UR O F _____ O 'CLO CK __.M.IN BO OK _______, PAGE _____ OF MAPS OF ASSESSMEN T AND COMMUNITYFACILITIES DISTR ICTS IN THE O FFIC E OF THE C OUNTY R EC ORDER IN THE CO UNTYOF SAN DIEG O, CALIFORNIA.
___________________________________COUNTY RECORD ERCOUNTY OF SAN DIEG OSTATE O F CALIFO RNIA
THE LINES AN D DIMENSIONS O F EACH L OT OR PARC EL ENCO MPASSED BY THISMAP SHALL BE THOSE LINES AND DIMEN SION S AS SHO WN O N TH E SAN DIEG OCOUNTY ASSESSO R'S MAPS.
THE SAN DIEG O C OUNTY ASSESSO R'S MAPS SHALL GO VER N FOR ALL D ETAILSCONCERNING THE LINES AND D IMENSIO NS O F SUCH LO TS OR PAR CELS.
2022/03/15 City Council Post Agenda Page 118 of 277
Attachment 2
1
Rate and Method of
Apportionment of Special Tax
City of Chula Vista
Community Facilities District No. 97-2
(PRESERVE MAINTENANCE DISTRICT )
Improvement Area C
Annexation No. 12
A Special Tax of Community Facilities District No. 97-2 (“Preserve Maintenance District”) of the
City of Chula Vista ("CFD") shall be levied on all Assessor's Parcels in Annexation No. 11 of
Improvement Area C of the CFD and collected each Fiscal Year commencing with Fiscal Year
2022-2023 in an amount determined through the application of the rate and method of
apportionment of the Special Tax set forth below. All of the real property within Annexation
No. 11 of Improvement Area C of the CFD, unless exempted by law or by the provisions hereof,
shall be taxed for the purposes, to the extent and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the land area of an Assessor’s Parcel as shown on an Assessor's Parcel
Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the
applicable Final Subdivision Map, other final map, other parcel map, other condominium plan,
or functionally equivalent map or instrument recorded in the Office of the County Recorder.
The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5,
Part 1, Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the actual or estimated costs incurred by the City, acting for
and on behalf of the CFD as the administrator thereof, to determine, levy and collect the
Special Taxes, including salaries of City employees and a proportionate amount of the City’s
general administrative overhead related thereto, and the fees of consultants and legal counsel
providing services related to the administration of the CFD; the costs of collecting installments
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Attachment 2
2
of the Special Taxes; and any other costs required to administer Area C of the CFD as
determined by the City.
"Assessor's Parcel" or “Parcel” means a lot or parcel shown in an Assessor's Parcel Map with
an assigned assessor's parcel number.
"Assessor's Parcel Map" means an official map of the Assessor of the County designating
parcels by assessor's parcel number.
"Building Square Foot or Square Footage" means the square footage as shown on an
Assessor’s Parcel’s building permit of Residential Property excluding garages or other structures
not used as living space.
"CFD Administrator" means an official of the City, or designee thereof, responsible for
determining the Special Tax Requirement and providing for the levy and collection of the
Special Taxes.
"CFD" means Community Facilities District No. 97-2 (Preserve Maintenance District) of the City
of Chula Vista.
"City" means the City of Chula Vista.
"City Clerk" means the City Clerk for the City of Chula Vista or his or her designee.
"City Manager" means the City Manager for the City of Chula Vista or his or her designee.
"Community Purpose Facility Property" or "CPF Property" means all Assessor’s Parcels which
are classified as community purpose facilities and meet the requirements of City of Chula Vista
Ordinance No. 2883.
"Council" means the City Council of the City of Chula Vista, acting as the legislative body of the
CFD.
"County" means the County of San Diego, California.
"Developed Property" means all Taxable Property for which a building permit was issued prior
to the March 1st preceding the Fiscal Year in which the Special Tax is being levied.
"Final Map Property" means any residential lot or non-residential lot created by a Final
Subdivision Map, but which is not classified as Developed Property.
"Final Subdivision Map" means a subdivision of property creating residential or non-residential
buildable lots by recordation of a final subdivision map or parcel map pursuant to the
Subdivision Map Act (California Government Code Section 66410 et seq.), or recordation of a
condominium plan pursuant to California Civil Code 1352, that creates individual lots for which
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Attachment 2
3
building permits may be issued without further subdivision and is recorded prior to March 1
preceding the Fiscal Year in which the Special Tax is being levied.
"Fiscal Year" means the period starting July 1 and ending on the following June 30.
"Improvement Area C" or "Area C" means Improvement Area C of the CFD, as identified on the
boundary map for the CFD as amended from time to time.
"Land Use Class" means any of the classes listed in Table 1, Table 2, or Table 3.
"Maximum Special Tax" means the maximum Special Tax, determined in accordance with
Section C below that may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable
Property.
"Non-Residential Property" means all Assessor’s Parcels of Developed Property for which a
building permit(s) has been issued for a structure or structures for non-residential use.
"Operating Fund" means a fund that shall be maintained within the CFD for each Fiscal Year to
pay for Resource Monitoring and/or Preserve Operations and Maintenance activities and
Administrative Expenses.
"Operating Fund Balance" means the amount of funds in the Operating Fund at the end of the
preceding Fiscal Year.
"Operating Fund Requirement" means for any Fiscal Year an amount equal to the Resource
Monitoring Fund Requirement and the Preserve Operations and Maintenance Fund
Requirement for the current Fiscal Year in which Special Taxes are levied.
"Preserve Operations and Maintenance" means those activities described in Attachment A
hereto which is incorporated herein by this reference.
"Preserve Operations and Maintenance Fund Requirement" means for any Fiscal Year an
amount equal to the budgeted costs for Preserve Operations and Maintenance plus a pro -rata
share of the budgeted Administrative Expenses of the District for the current Fiscal Year in
which Special Taxes are levied.
"Property Owner Association Property" means any property within the boundaries of Area C of
the CFD that is owned by, or irrevocably dedicated as indicated in an instrument recorded with
the County Recorder to, a property owner association, including any master or sub -association.
"Public Property" means any property within the boundaries of Area C of the CFD that is, at the
time of the CFD formation, expected to be used for any public purpose and is owned by or
dedicated to the federal government, the State, the County, the City or any other public
agency.
"Reserve Fund" means a fund that shall be maintained for the CFD each Fiscal Year to provi de
necessary cash flow for the first six months of each Fiscal Year, working capital to cover
monitoring, maintenance and repair cost overruns and delinquencies in the payment of Special
Taxes and a reasonable buffer to prevent large variations in annual Special Tax levies.
"Reserve Fund Balance" means the amount of funds in the Reserve Fund at the end of the
preceding Fiscal Year.
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Attachment 2
4
"Reserve Fund Requirement" means an amount equal to up to 100% of the Operating Fund
Requirement for any Fiscal Year.
"Residential Property" means all Assessor’s Parcels of Developed Property for which a building
permit(s) has been issued for purposes of constructing one or more residential dwelling unit.
"Resource Management Plan" means the Otay Ranch Phase 1 Resource Management Plan also
referred to as “The Otay Ranch Resource Management Plan” dated October 28, 1993, and the
Otay Ranch Phase 2, Resource Management Plan dated June 4, 1996, as both such plans may be
amended from time to time.
"Resource Monitoring Program" means those described in Attachment B hereto which is
incorporated herein by this reference.
"Resource Monitoring Fund Requirement" means for any Fiscal Year an amount for each
Improvement Area equal to the Improvement Area’s fair share of the budgeted costs of the
Resource Monitoring Program plus a pro rata share of the budgeted Administrative Expenses of
the CFD for the current Fiscal Year in which Special Taxes are levied. Improvement Area C’s “fair
share” shall be based on Improvement Area C’s percentage of the total acreage within the Otay
Ranch General Development Plan Planning Area for which a Resource Monitoring Program
funding mechanism has been established.
"Special Tax" means the Special Tax levied pursuant to the provisions of sections C and D below
in each Fiscal Year on each Assessor's Parcel of Developed Property and Undeveloped Property
in Area C to fund the Special Tax Requirement.
"Special Tax Requirement" means that amount required in any Fiscal Year for Area C to: (i) pay
the Resource Monitoring Fund Requirement, and Preserve Operations and Maintenance Fund
Requirement, less the Operating Fund Balance, and (ii) pay any amounts required to establish
or replenish the Reserve Fund to the Reserve Fund Requirement; (iii) pay for reasonably
anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in
the previous Fiscal Year.
"State" means the State of California.
"Taxable Property" means all of the Assessor's Parcels within the boundaries of Area C of the
CFD that are not exempt from the Special Tax pursuant to law or as defined below.
"Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as
Developed Property.
B. ASSIGNMENT TO CATEGORIES OF SPECIAL TAX
Each Fiscal Year using the definitions above, all Taxable Property within Annexation No. 11 of
Improvement Area C of the CFD shall be classified as Category I, Category II, Category III or
Exempt as defined in Section C. The Taxable Property shall further be classified as Developed
Property, Final Map Property or Undeveloped Property and shall be subject to Special Taxes
pursuant to Sections C and D below. Developed Property shall be further assigned to a Land Use
Class as specified in Table 1.
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Attachment 2
5
C. MAXIMUM SPECIAL TAX RATE
CATEGORY I
Category I includes Developed Property within the District (“Category I”).
The Maximum Special Tax for the Resource Monitoring Program and Preserve Operations and
Maintenance for Fiscal Year 2021-2022 on Developed Property are the rates set forth in Ta ble 1
below. For Residential Property, the Special Tax shall be levied based upon Building Square
Footage and for Non-Residential Property shall be levied based on Acreage.
TABLE 1
Maximum Special Tax for Category I
Community Facilities District No. 97-2
Improvement Area C
(Fiscal Year 2021-2022)
Description Resource
Monitoring
Operation &
Maintenance
Total
Residential $0.0085/sq ft $0.0136/sq ft $0.0221/sq ft
Non-Residential $138.72/acre $220.23/acre $358.95/acre
CATEGORY II
Category II includes each Assessor’s Parcel of Taxable Property within the District for which a
Final Map has been recorded, but which is not classified as a Developed Parcel (“Category II”).
The Maximum Special Tax for the Resource Monitoring Program, and Preserve Operations and
Maintenance approved for Fiscal Year 2020-2021 on each Assessor’s Parcel in Category II is the
rate set forth in Table 2 below (said amount to be levied pro rata for any portion of an Acre).
TABLE 2
Maximum Special Tax for Category II
Community Facilities District No. 97-2
Improvement Area C
(Fiscal Year 2021-2022)
Resource
Monitoring
Operation &
Maintenance
Total
$138.72/acre $220.23/acre $358.95/acre
CATEGORY III
Category III includes each Assessor’s Parcel of Taxable Property within the District not subject
to Special Tax under any other category (“Category III”).
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The Maximum Special Tax approved for Fiscal Year 2021-2022 on Taxable Property within
Category III is the rate set forth in Table 3 below (said amount to be levied pro rata for any
portion of an Acre).
TABLE 3
Maximum Special Tax for Category III
Community Facilities District No. 97-2
Improvement Area C
(Fiscal Year 2021-2022)
Resource
Monitoring
Operation &
Maintenance
Total
$89.54/acre $142.14/acre $231.68/acre
EXEMPT CATEGORY
The Exempt Category includes each property owned, conveyed or irrevocably offered for
dedication to a public agency, or land which is in the public right-of-way, unmanned utility
easements which make utilization for other than the purpose set forth in th e easement
impractical, common areas, private streets and parks, and open space lots (“Exempt Category”).
SPECIAL CASES
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land
Use Class and be considered “Special Case”. The Maximum Special Tax that may be levied on an
Assessor’s Parcel identified as Special Case shall be the sum of the Maximum Special T ax levies
that may be levied on all Land Use Classes located on that Assessor’s Parcel. The CFD
Administrator shall determine the allocation to each Land Use Class.
ANNUAL ESCALATION OF MAXIMUM SPECIAL TAX
The Maximum Special Tax as shown in the tables abo ve that may be levied on each Assessor’s
Parcel in Improvement Area C, Annexation No. 11, shall be increased each Fiscal Year beginning
in Fiscal Year 2021-2022 and thereafter by a factor equal to the annual percentage change in
the San Diego Metropolitan Area Consumer Price Index for All Urban Consumers (CPI-U, All
Items) or zero percent (0%), whichever is greater.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2022-2023, and for each following Fiscal Year, the Council shall
levy the Improvement Area C, Annexation No. 11, Special Tax at the rates established pursuant
to steps 1 through 4 below so that the amount of the Special Tax levied equals the Special Tax
Requirement. The Special Tax shall be levied each Fiscal Year as follows:
Step 1: Determine the revenue which could be generated by Parcels assigned to Category I by
multiplying the Building Square Footage for Parcels classified as Residential Parcels by the
Maximum Special Tax per Building Square Foot for the Resource Monitoring Program, and
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Attachment 2
7
Preserve Operations and Maintenance for Parcels and adding to that the maximum revenue
which could be generated by multiplying the total acres for Parcels classified as Non-Residential
Parcels by the Maximum Special Tax per Acre for the Resource Monitoring Program, and
Preserve Operations and Maintenance.
Step 2: If the total revenue as calculated in Step 1 is greater than the estimated Special Tax
Liability for Improvement Area C, reduce the Special Tax for each Parcel proportionately so that
the Special Tax levy for the Fiscal Year is equal to the Special Tax Liability for the Fiscal Year.
Step 3: If the total revenue as calculated in Step 1 is less than the Special Tax Liability for
Improvement Area C, a Special Tax shall be levied upon each Parcel within Improvement Area C,
classified as Category II. The Special Tax for Parcels assigned to Category II shall be calculated as
the lesser of:
The Special Tax Liability for Improvement Area C as determined by the City,
less the total revenue generated for all Parcels under Step 1 above, divided by
the total Acres for all Parcels within Improvement Area C assigned to Category
II,
OR
The Maximum Special Tax rate for Parcels assigned to Category II.
Step 4: If the total revenue as calculated in Step 1 and 3 is less than the Special Tax Liability, for
Improvement Area C, a Special Tax shall be levied upon each Parc el within Improvement Area C
classified as Category III. The Special Tax for Parcels assigned the Category III shall b e calculated
as the lesser of:
The Special Tax Liability for Improvement Area C as determined by the City,
less the total revenue generated for all Parcels under Step 1 and 3 above,
divided by the total Acres for all Parcels within Improvement Area C assigned
to Category III,
OR
The Maximum Special Tax rate for Parcels assigned to Category III and within
Improvement Area C.
However, in the event it is determined that the Special Tax Liability for Improvement Area C
includes delinquent Special Taxes from Parcel in Category III from the prior Fiscal Year, the City
shall determine the amount of delinquent taxes that arose from such Parcels and identify the
owner(s). The amount of delinquent Special Taxes, if any, that arose from the applicable
owner(s) shall first be divided by the total Category III Acres owned by such owner(s) and
collected from the applicable owner(s) with the remaining portio n of the Special Tax Liability
not related to delinquent Special Taxes to be collected from all Parcels in Category II I according
to the procedure set forth in the preceding paragraph.
Notwithstanding the above, under no circumstances will the Special Tax levied against any
Assessor’s Parcel of Residential Property or Multi-Family Property for which an occupancy
permit for private residential use has been issued be increased by more than ten percent (10%)
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Attachment 2
8
annually up to the Maximum Special Tax as a conseque nce of delinquency or default by the
owner of any other Assessor's Parcel within Area C of the CFD.
E. APPEALS
Any landowner or resident who pays the Special Tax and believes that the amount of the
Special Tax levied on their Assessor’s Parcel is in error shall first consult with the CFD
Administrator regarding such error. If following such consultation, the CFD Administ rator
determines that an error has occurred; the CFD Administrator may amend the amount of the
Special Tax levied on such Assessor’s Parcel. If following such consultation and action, if any, by
the CFD Administrator, the landowner or resident believes such error still exists; such person
may file a written notice with the City Clerk of the City appealing the amount of the Special Tax
levied on such Assessor’s Parcel. Upon the receipt of any such notice, the City Clerk shall
forward a copy of such notice to the City Manager who shall establish as part of the
proceedings and administration of the CFD, a special three-member Review/Appeal Committee.
The Review/Appeal Committee may establish such procedures, as it deems necessary to
undertake the review of any such appeal. The Review/Appeal Committee shall interpret this
Rate and Method of Apportionment and make determinations relative to the ann ual
administration of the Special Tax and any landowner or resident appeals, as herein specified.
The decision of the Review/Appeal Committee shall be final and binding as to all persons.
F. MANNER OF COLLECTION
Special Taxes levied pursuant to Section D above shall be collected in the same manner and at
the same time as ordinary ad valorem property taxes; provided, however, that the CFD
Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in
a different manner if necessary to meet the financial obligations of Area C of the CFD or as
otherwise determined appropriate by the CFD Administrator.
G. TERM OF SPECIAL TAX
Taxable Property in Improvement Area C of the CFD shall remain subject to the Special Tax in
perpetuity.
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Attachment 2
9
Attachment A
Description of Preserve Operations and Maintenance
Preserve Operations and Maintenance includes the maintenance, operation and management
of the public or private property within boundaries of the Otay Ranch Preserve, as such
boundaries may be modified from time to time, required by the Resource Management Plan to
be maintained as open space or habitat preservation land or both. Such maintenance,
operations and management shall include, but not be limited to, the following:
(i) Preserve Maintenance. Development, implementation and ongoing
provision of programs to maintain, operate and manage preserve habitat
values through: cultivation, irrigation, trimming, spraying, fertilizing,
and/or treatment of disease or injury; removal of trimm ings, rubbish,
debris and other solid waste; maintenance of trails; removal and control
of exotic plant species (weeds); and control of cowbirds through
trapping.
(ii) Security. Development, implementation and ongoing provision of security
programs to: enforce "no trespassing" rules; curtail activities that
degrade resources, such as grazing, shooting, and illegal dumping;
remove trash, litter, and other debris; control access; prohibit off-road
traffic; and maintain fences and trails.
(iii) Preserve improvements: Acquire equipment and/or install improvements
necessary to maintain, operate and manage the open space and habitat
preservation land described above.
The above description of the Preserve Operations and Maintenance is general in nature. The
actual maintenance, operations and management of the open space and habitat preservation
land within the Otay Ranch Preserve may be mod ified from time to time as necessary in order
to effectively provide such services in compliance with the requirements of the Resource
Management Plan.
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Attachment 2
10
Attachment B
Description of Resource Monitoring
Implement the annual biota monitoring and reporting program consistent with the Resource
Management Plan to identify changes in the quality and quantity of preserve resources
including wildlife species, sensitive plants and sensitive habitat types.
The above description of the Resource Monitoring is general in nature. The actual monitoring
and reporting program may be modified from time to time as necessary in order to effectively
provide such services consistent with the requirements of the Resource Management Plan.
2022/03/15 City Council Post Agenda Page 128 of 277
ANN EXATION M AP NO. 1 OFANNEXATION M AP NO. 1 OFCOMMUNITY FAC ILITIES DISTR IC T NO. 18MCOMMUNITY FAC ILITIES DISTR IC T NO. 18M(OTAY RANCH VILLAGE 3)(OTAY RANCH VILLAGE 3)CITY OF CHULA VISTACOUNTY OF SAN DIEGO, STATE OF C ALIFORNIA
.
SITE
VICINITY MAP SHE ET 1 OF 1
Legend
AN NEXATIO N BO UNDARY
MAP REFERENCE NUMBER1
FILED IN THE O FFICE OF THE CITY CLERK OF THE CITY OF C HULA VISTA THIS_______ DAY ___________, 2 0__.
__________________________________________CITY C LERKCITY O F CHUL A VISTASTATE O F CALIFO RNIA
I HEREBY CERTIFY THAT THE WITHIN MAP SHOW ING PROPO SED BO UNDARIES O FANNEXATION MAP N O. 1 TO COMMUNITY FACIL ITIES DISTRIC T NO. 1 8M (OTAYRANCH VILLAGE 3) OF THE CITY OF CHUL A VISTA, COU NTY OF SAN DIEGO, STATEOF CALIFO RNIA, WAS APPROVED BY THE C ITY CO UNCIL O F THE CITY OF CHUL AVISTA AT A REGU LAR MEETIN G THEREOF, HELD ON THE ________ DAY OF___________,2 0__, BY ITS RESO LUTIO N NO. _________.
__________________________________________CITY C LERKCITY O F CHUL A VISTASTATE O F CALIFO RNIA
FILED THIS ______ DAY O F ___________, 20__ AT THE HO UR O F _____ O 'CLO CK __.M.IN BO OK _______, PAGE _____ OF MAPS OF ASSESSMEN T AND COMMUNITYFACILITIES DISTR ICTS IN THE O FFIC E OF THE C OUNTY R EC ORDER IN THE CO UNTYOF SAN DIEG O, CALIFORNIA.
___________________________________COUNTY RECORD ERCOUNTY OF SAN DIEG OSTATE O F CALIFO RNIA
THE LINES AN D DIMENSIONS O F EACH L OT OR PARC EL ENCO MPASSED BY THISMAP SHALL BE THOSE LINES AND DIMEN SION S AS SHO WN O N TH E SAN DIEG OCOUNTY ASSESSO R'S MAPS.
THE SAN DIEG O C OUNTY ASSESSO R'S MAPS SHALL GO VER N FOR ALL D ETAILSCONCERNING THE LINES AND D IMENSIO NS O F SUCH LO TS OR PAR CELS.
1
M A IN S T R E E T
MAP REFEREN CE N U MBER ASSESSOR'S PARCEL N UMBER1644-060-13HERITAGE ROADPALM
MAIN STREETBRANDYWINEOLYMPIC P K W Y
HERITAGE ROADI-805OTAY MESA R OAD
2022/03/15 City Council Post Agenda Page 129 of 277
Attachment 4
1
Rate and Method of
Apportionment of Special Tax
City of Chula Vista
Community Facilities District No. 18M
(Otay Ranch Village 3)
Annexation No. 1
A Special Tax as hereinafter defined shall be levied on all Assessor’s Parcels of Taxable Property
within the boundaries of Community Facilities District No. 18M (Otay Ranch Village 3) of the City
of Chula Vista and collected each Fiscal Year commencing with Fiscal Year 2022-23 in an amount
determined by the CFD Administrator through the application of the procedures described
below. All of the real property within CFD No. 18M, unless exempted by law or by the provisions
hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel
Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the
applicable Final Subdivision Map, other final map, other parcel map, other condominium plan, or
functionally equivalent map or instrument recorded in the Office of the County Recorder. Th e
square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5,
Part 1, Division 2 of Title 5 of the Government Code of the State of California.
“Administrative Expenses” means the actual or estimated costs incurred by the City, acting for
and on behalf of the CFD as the administrator thereof, to determine, levy and collect the Special
Taxes, including salaries of City employees and a proportionate amount of the City’s general
administrative overhead related thereto, and the fees of consultants and legal counsel providing
services related to the administration of the CFD; the costs of collecting installments of the
Special Taxes; and any other costs required to administer the CFD as determined by the City.
“Assessor’s Parcel” or “Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an
assigned assessor’s parcel number.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels
by assessor’s parcel number.
“CFD Administrator” means an official of the City, or designee thereof, responsible for
determining the Special Tax Requirement and providing for the levy and collection of the Special
Taxes.
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Attachment 4
2
“CFD No. 18M” or “CFD” means Community Facilities District No. 18M (Otay Ranch Village 3) of
the City of Chula Vista.
“City” means the City of Chula Vista.
“Community Purpose Facility Property” or “CPF Property” means all Assessor’s Parcels which
are classified as community purpose facilities and meet the requirements of City Ordinan ce No.
2883.
“Construction Cost Index” means, for any Fiscal Year, the applicable Construction Cost Index for
the City of Los Angeles as set forth in the Engineering News Record for July of such Fiscal Year. In
the event that this rate is no longer published or provided, the CFD Administrator shall choose a
comparable rate to use in its place.
“Consumer Price Index for Urban Wage Earners and Clerical Workers” or “CPI-W” means the
applicable CPI-W as set forth by the United States Department of Labor, Bureau of Labor Statistics
for July of such Fiscal Year. In the event that this rate is no longer published or provided, the CFD
Administrator shall choose a comparable rate to use in its place.
“Council” means the City Council of the City, acting as the legislative body of the CFD.
“County” means the County of San Diego, California.
“Developed Property” means all Taxable Property for which a building permit was issued prior
to the March 1st preceding the Fiscal Year in which the Special Tax is being levied.
“Dwelling Unit” or “DU” means each separate residential dwelling unit that comprises an
independent facility capable of conveyance or rental separate from adjacent residential dwelling
units.
“Exempt Property” means all Assessor’s Parcels within CFD No. 18M that are exempt from the
Special Taxes pursuant to law or Section F herein.
“Final Subdivision Map” means a subdivision of property creating residential or non-residential
buildable lots by recordation of a final subdivision map or parcel map pursuant to the Subdivision
Map Act (California Government Code Section 66410 et seq.), or recordation of a condominium
plan pursuant to California Civil Code 1352, that creates individual lots for which building permits
may be issued without further subdivision and is recorded prior to March 1 preceding the Fiscal
Year in which the Special Tax is being levied.
“Fiscal Year” means the period starting July 1 and ending on the following June 30.
“Land Use Class” means any of the classes listed in Table 1.
“Maximum Special Tax Basis” means the amount determined in accordance with Section C
below that represents the actual costs associated with providing the Services funded by CFD No.
18M.
“Maximum Special Tax” means the maximum Special Tax, determined in accordance with
Section C below that may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
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3
“Multi-Family Property” means all Assessor’s Parcels of Residential Property consisting of two or
more for-rent Dwelling Units that share common walls, including, but not limited to, apartments
and townhomes that are not for sale to an end user and are under common management .
“Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a
building permit(s) has been issued for a structure or structures for non-residential use.
“Otay Water District Commodity Rate” means the maximum rate charged by the Otay Water
District for recycled water on July 1st of any Fiscal Year. In the event that this rate is no longer
published or provided, the CFD Administrator shall choose a comparable rate to use in its place.
“Property Owner Association Property” means any property within the boundaries of the CFD
that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County
Recorder to, a property owner association, including any master or sub-association.
“Public Property” means any property within the boundaries of the CFD that is, at the time of
the CFD formation, expected to be used for any public purpose and is owned by or dedicated to
the federal government, the State, the County, the City or any other public agency.
“Reserve Fund” means a fund that shall be maintained for the CFD each Fisc al Year to provide
necessary cash flow for the first six months of each Fiscal Year, working capital to cover
monitoring, maintenance and repair cost overruns and delinquencies in the payment of Special
Taxes and a reasonable buffer to prevent large variat ions in annual Special Tax levies.
“Residential Property” means all Assessor’s Parcels of Developed Property for which a building
permit(s) has been issued for purposes of constructing one or more residential dwelling unit (s).
“Services” means those authorized services that may be funded by CFD No. 18M pursuant to the
Act, as amended, including, without limitation, those services authorized to be funded by CFD
No. 18M as set forth in the documents adopted by the City Council at the time CFD No. 18M was
formed.
“Single Family Attached Property” means all Assessor’s Parcels of for-sale Residential Property
consisting of one or more Dwelling Unit(s) that share common walls with one or more other
Dwelling Unit(s), including, but not limited to, duplexes, triplexes, townhomes, and
condominiums.
“Single Family Detached Property” means all Assessor’s Parcels of Residential Property
consisting of a single Dwelling Unit.
“Special Tax” means the Special Tax levied pursuant to the provisions of sections C and D below
in each Fiscal Year on each Assessor’s Parcel of Developed Property and Undeveloped Property
in CFD No. 18M to fund the Special Tax Requirement.
“Special Tax Requirement” means the amount, as determined by the CFD Administrator, for any
Fiscal Year to: (i) pay the costs of providing the Services during such Fiscal Year, (ii) pay
Administrative Expenses associated with the Special Tax, (iii) establish or replenish the Reserve
Fund, (iv) pay incidental expenses related to the Services as authorized pursuant to the Act, (v)
fund an amount equal to a reasonable estimate of delinquencies expected to occur in the Fiscal
Year in which the Special Tax will be levied (“Estimated Special Tax Delinquency Amount”) and
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Attachment 4
4
(vi) fund the shortfall, if any, in the Special Tax revenues collected in the preceding Fiscal Year
necessary to fund the Special Tax Requirement for Services for such Fiscal Year where such
shortfall resulted from delinquencies in the payment of Special Taxes in such Fiscal Year that
exceeded the Estimated Special Tax Delinquency Amount included in the Special Tax
Requirement for Services for such Fiscal Year, less (vii) any funds available in the Reserve Fund or
other funds associated with CFD No. 18M.
“State” means the State of California.
“Taxable Property” means all of the Assessor’s Parcels within the boundaries of CFD No. 18M of
the CFD that are not exempt from the Special Tax pursuant to law or as defined below.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as
Developed Property.
B. ASSIGNMENT TO CATEGORIES OF SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2022-23, using the definitions above, each Assessor’s
Parcel within CFD No. 18M shall be classified by the CFD Administrator as Taxable Property or
Exempt Property. In addition, each such Fiscal Year, each Assessor’s Parcel of Taxable Property
shall be further classified by the CFD Administrator as Developed Property or Undeveloped
Property.
Developed Property shall be further assigned to a Land Use Class as specified in Table 1. The Land
Use Class of each Assessor’s Parcel of Residential Property or Non-Residential Property shall be
determined based on the records of the County Assessor or other such information provided by
the City. Commencing with Fiscal Year 2022-23 and for each subsequent Fiscal Year, Developed
Property shall be subject to the levy of Special Taxes pursuant to Section C below.
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land
Use Class. The Maximum Special Tax levied on such Assessor’s Parcel shall be the sum of the
Maximum Special Taxes for all Land Use Classes located on that Assessor’s Parcel.
C. MAXIMUM SPECIAL TAX RATE
1. Developed Property
The Maximum Special Tax for any Assessor’s Parcel classified as Developed Property shall be
determined by reference to Table 1 and the paragraphs that follow Table 1.
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Attachment 4
5
TABLE 1
Maximum Special Tax Basis for Developed Property
Community Facilities District No. 18M
(Fiscal Year 2021-22)
Land Use Class
Maximum
Special Tax
Basis for
Labor
Maximum
Special Tax
Basis for
Water
Maximum
Special Tax Basis
for Asset
Replacement
Maximum
Special Tax Basis
Single Family
Detached Property $ 1,038.98 $409.79 $287.40 $1,736.17
Single Family
Attached Property $831.18 $327.83 $229.92 $1,388.94
Multi-Family
Property $83.11 $32.77 $23.00 $138.87
Non-Residential
Property $4,155.93 $1,639.17 $1,149.67 $6,944.77
The Maximum Special Tax Basis shall be equal to the sum of Maximum Special Tax Basis for
Labor, Maximum Special Tax Basis for Water and Maximum Special Tax Basis for Asset
Replacement as shown in Table 1 above.
In determining the Maximum Special Tax Basis, the components of the Maximum Special
Tax Basis for each Land Use Description shall be increased in the 2022-23 Fiscal Year, and
each Fiscal Year thereafter, as follows:
i. the annual percentage change of the Maximum Special Tax Basis for Labor
shall be equal to the annual percentage change in the Consumer Price Index
for Urban Wage Earners and Clerical Workers (CPI-W); and
ii. the annual percentage change of the Maximum Special Tax Basis for Water
shall be equal to the annual percentage change in the Otay Water District
Commodity Rate; and
iii. the annual percentage change of the Maximum Special Tax Basis for Asset
Replacement shall be equal to the annual percentage change in the
Engineering News Record Construction Cost Index for the Los Angeles Area.
The Fiscal Year 2021-22 Maximum Special Tax shall be equal to the Fiscal Year 2021-22
Maximum Special Tax Basis. In each subsequent Fiscal Year, the Maximum Special Tax shall
be increased by an amount not less than two percent (2%) and not greater than six percent
(6%) that results in a minimal absolute difference from the Maximum Special Tax Basis for
that Fiscal Year.
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Attachment 4
6
2. Other Property Types
No Special Tax shall be levied on Undeveloped Property or Exempt Property.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2022-23, and for each subsequent Fiscal Year, the CFD
Administrator shall levy the Special Tax on all Taxable Property of CFD No. 18M until the total
amount of Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied
Proportionately on each Assessor’s Parcel of Developed Property within CFD No. 18M up to 100%
of the applicable Maximum Special Tax to satisfy the Special Tax Requirement.
Notwithstanding the above, under no circumstances will the Special Tax levied against any
Assessor’s Parcel of Residential Property for which an occupancy permit for private residential
use has been issued be increased as a consequence of delinquency or default by the owner of
any other Assessor’s Parcel within the CFD by more than ten percent (10%) above what such
Special Tax would have been in the absence of delinquencies .
E. PREPAYMENT OF THE SPECIAL TAX
The Special Tax shall be levied in perpetuity for the purpose of financing ongoing authorized
Services and therefore may not be prepaid.
F. EXEMPTIONS
The City Council shall classify as Exempt Property: (i) Public Property, (ii) Property Owner
Association Property, (iii) CPF Property, (iv) Assessor’s Parcels with public or utility easements
making impractical their utilization for other than the purposes set forth in the easement,
including but not limited to property designated for open space, trails, pathways, parks or park
and recreation related facilities, and (v) property reasonably designated by the City or CFD
Administrator as Exempt Property due to deed restrictions, conservation easement, or similar
factors.
G. APPEALS
Any landowner who pays the Special Tax and claims the amount of the Special Tax levied on his
or her Assessor’s Parcel is in error shall first consult with the CFD Administrator regarding such
error not later than thirty-six (36) months after first having paid the first installment of the Special
Tax that is disputed. If following such consultation, the CFD Administrator determines that an
error has occurred, then the CFD Administrator shall take any of the following actions, in order
of priority, in order to correct the error:
(i) Amend the Special Tax levy on the landowner’s Assessor’s Parcel(s) for the current Fiscal
Year prior to the payment date,
(ii) Require the CFD to reimburse the landowner for the amount of the overpayment to the
extent of available CFD funds, or
(iii) Grant a credit against, eliminate or reduce the future Special Taxes on the landowner ’s
2022/03/15 City Council Post Agenda Page 135 of 277
Attachment 4
7
Assessor’s Parcel(s) in the amount of the overpayment.
If following such consultation and action by the CFD Administrator the landowner believes such
error still exists, such person may file a written notice of appeal with the City Council. Upon the
receipt of such notice, the City Council or designee may establish such procedures as deemed
necessary to undertake the review of any such appeal. If the City Council or designee determines
an error still exists, the CFD Administrator shall take any of the actions described as (i), (ii) and
(iii) above, in order of priority, in order to correct the error.
The City Council or designee thereof shall interpret this Rate and Method of Apportionment of
Special Tax for purposes of clarifying any ambiguities and make determinations re lative to the
administration of the Special Tax and any landowner appeals. The decision of the City Council or
designee shall be final.
H. MANNER OF COLLECTION
Special Taxes levied pursuant to Section D above shall be collected in the same manner and at
the same time as ordinary ad valorem property taxes, provided that the CFD Administrator may
directly bill the Special Tax, may collect Special Taxes at a differe nt time or in a different manner
if necessary to meet the financial obligations of the CFD or as otherwise determined appropriate
by the CFD Administrator.
I. TERM OF SPECIAL TAX
Taxable Property in the CFD shall remain subject to the Special Tax in perpetuity.
2022/03/15 City Council Post Agenda Page 136 of 277
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ADOPTING AN ANNEXATION MAP
SHOWING TERRITORY PROPOSED TO BE ANNEXED TO
IMPROVEMENT AREA “C” OF COMMUNITY FACILITIES
DISTRICT NO. 97-2 (PRESERVE MAINTENANCE
DISTRICT)
(ANNEXATION NO. 12)
WHEREAS, the City Council of the City of Chula Vista, California, (“City Council”),
formed a Community Facilities District and certain improvement areas therein pursuant to the
terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5,
Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”), and the
City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers
reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of
the State of California (the “Ordinance”) (the Act and the Ordinance may be referred to
collectively as the “Community Facilities District Law”). The Community Facilities District has
been designated as Community Facilities District No. 97-2 (Preserve Maintenance District) (the
“District”) and the Improvement Areas were designated as Improvement Area “A,” Improvement
Area “B” and Improvement Area “C” of such District; and
WHEREAS, the City Council desires to initiate proceedings to annex certain territory to
Improvement Area “C” thereof; and
WHEREAS, there has been submitted a map entitled “Annexation Map No. 12 of
Community Facilities District No. 97-2 (Preserve Maintenance District), City of Chula Vista,
County of San Diego, State of California” (the “Annexation Map”) showing the territory
proposed to be annexed to the District and Improvement Area “C” thereof (the “Territory”).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula
Vista, California, that it hereby adopts an annexation map showing territory proposed to be
annexed to Improvement Area “C” of Community Facilities District No. 97 -2 (Preserve
Maintenance District).
SECTION 1. The above recitals are all true and correct.
SECTION 2. The Annexation Map showing the Territory proposed to be annexed
to the District and Improvement Area “C” thereof and to be subject to the levy of a special tax is
hereby approved and adopted.
SECTION 3. A certificate shall be endorsed on the original and on at least one
(1) copy of the Annexation Map, evidencing the date and adoption of this Resolution, and within
fifteen (15) days after the adoption of the Resolution fixing the time and place of the hearing on
the intention to annex or extent of the annexation to the District and Improvement Area “C”
thereof, a copy of such map shall be filed with the correct and proper endorsements thereon with
2022/03/15 City Council Post Agenda Page 137 of 277
Resolution No. 2022-___
Page No. 2
the County Recorder, all in the manner and form provided for in Section 3111 of the Streets and
Highways Code of the State of California.
PRESENTED BY: APPROVED AS TO FORM BY:
____________________________ ________________________________
Tiffany Allen Glen R. Googins
Director of Development Services City Attorney
2022/03/15 City Council Post Agenda Page 138 of 277
1
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA DECLARING ITS INTENTION TO
AUTHORIZE THE ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE
MAINTENANCE DISTRICT) AND IMPROVEMENT AREA “C”
THERETO
(ANNEXATION NO. 12)
WHEREAS, the City Council of the City of Chula Vista, California, (“City Council”),
formed a Community Facilities District and designated certain improvement areas therein pursuant
to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter
2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”), and
the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers
reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of
the State of California (the “Ordinance”) (the Act and the Ordinance may be referred to collectively
as the “Community Facilities District Law”). The Community Facilities District has been
designated as Community Facilities District No. 97-2 (Preserve Maintenance District) (the
“District”) and the Improvement Areas were designated as Improvement Area “A,” Improvement
Area “B” and Improvement Area “C” of such District; and
WHEREAS, the District was formed for the purpose of financing the monitoring,
maintenance, operation and management of public property required to be maintained as open
space or habitat preservation or both; and
WHEREAS, Improvement Area “C” was established to finance Preserve Operations and
Maintenance and Resource Monitoring, plus a pro-rata share of Administrative Expenses of the
District as such terms are defined in the rate and method of apportionment of special taxes (the
“Improvement Area “C” Rate and Method”) attached as Exhibit A hereto and incorporated herein
by this reference; and
WHEREAS, certain territory identified as a part of Otay Ranch Village 3 is proposed to be
annexed to the District and Improvement Area “C” thereto and such territory shall be known and
designated as Community Facilities District No. 97-2 (Preserve Maintenance District),
Improvement Area “C,” Annexation No. 12 (the “Territory”); and
WHEREAS, this legislative body now desires to proceed to adopt its Resolution of
Intention to annex the Territory to Improvement Area “C,” to describe the territory included within
Improvement Area “C” and the Territory proposed to be annexed thereto, to specify the services
to be financed from the proceeds of the levy of special taxes within the Territory, to set and specify
the special taxes that would be levied within the Territory to finance such services, and to set a
time and place for a public hearing relating to the annexation of the Territory to Improvement Area
“C”; and
WHEREAS, a map showing the Territory proposed to be annexed has been submitted,
which map has been previously approved and a copy of the map shall be kept on file with the
transcript of these proceedings.
2022/03/15 City Council Post Agenda Page 139 of 277
2
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it hereby declares its intention to authorize the annexation of territory to Community Facilities
District No. 97-2 (Preserve Maintenance District) and Improvement Area “C” thereto.
SECTION 1. Recitals. The above recitals are all true and correct.
SECTION 2. Legal Authority. These proceedings for annexation are initiated by
this City Council pursuant to the authorization of the Community Facilities District Law.
SECTION 3. Intent to Annex; Description of Territory. This legislative body
hereby determines that the public convenience and necessity requires that the Territory be added
to the District and Improvement Area “C” thereto and this City Council declares its intention to
annex the Territory to the District and Improvement Area “C” thereto.
A description of the boundaries and Territory proposed to be annexed is as follows:
All that Territory proposed to be annexed to the District and
Improvement Area “C” thereto, as such property is shown on a map
as previously approved by this legislative body, such map entitled
“Annexation Map No. 12 to Community Facilities District No. 97-
2 (Preserve Maintenance District), City of Chula Vista, County of
San Diego, State of California” (the “Annexation Map”), a copy of
which is on file in the Office of the City Clerk and shall remain open
for public inspection.
A general description of the territory included in the District is hereinafter described as
follows:
All that property and territory as originally included within and
previously annexed to the District and Improvement Area “C”
thereto, as such property is shown on maps of the original District
and territory previously annexed as approved by this City Council
and designated by the name of the original District and Annexation
Nos. 1 through 12. A copy of such maps are on file in the Office of
the City Clerk and have also been filed in the Office of the County
Recorder.
SECTION 4. Name. The proposed annexation shall be known and designated as
COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT),
IMPROVEMENT AREA “C,” ANNEXATION NO. 12.
SECTION 5. Services Authorized to be Financed by the District. The services that
are authorized to be financed by the District from the proceeds of special taxes levied within
Improvement Area “C” are certain services which are in addition to those provided in or required
for the territory within Improvement Area “C” and will not be replacing services already available.
A general description of such services to be financed by the District is as follows:
The monitoring, maintenance, operation and management of public
property in which the City has a property interest and which
conforms to the requirements of the Ordinance or private property
2022/03/15 City Council Post Agenda Page 140 of 277
3
within the Otay Ranch Preserve which is required by the Preserve
Owner/Manager to be maintained as open space or for habitat
maintenance or both. Such property may be located outside the
boundaries of the District and outside the jurisdictional boundaries
of the City of Chula Vista. Such services shall not include the
maintenance, operation and/or management of any property owned,
maintained, operated and/or managed by the federal and/or state
government as open space, habitat maintenance and/or for any other
purpose.
A more complete description of such services may be found in Attachments A and B to the
Improvement Area “C” Rate and Method (defined in Section 6 below).
The District shall finance all direct, administrative and incidental annual costs and expenses
necessary to provide such monitoring, maintenance, operation and management of such public
property.
The same types of services which are authorized to be financed by the District from the proceeds
of special taxes levied within Improvement Area “C” are the types of services to be provided in
the Territory. If and to the extent possible such services shall be provided in common within the
District and the Territory.
SECTION 6. Special Taxes. It is the further intention of this City Council that,
except where funds are otherwise available, a special tax sufficient to pay for such services and
related incidental expenses authorized by the Community Facilities District Law, secured by
recordation of a continuing lien against all non-exempt real property in the Territory, will be levied
annually within the boundaries of such Territory. For further particulars as to the rate and method
of apportionment of the proposed special tax, reference is made to the attached and incorporated
Exhibit “A” (the “Improvement Area ‘C’ Rate and Method”), which sets forth in sufficient detail
the method of apportionment to allow each landowner or resident within the proposed Territory to
clearly estimate the maximum amount that such person will have to pay.
The special tax proposed to be levied within the Territory shall be equal to the special tax levied
to pay for the same services in Improvement Area “C,” except that a higher or lower special tax
may be levied within the Territory to the extent that the actual cost of providing the services in the
Territory is higher or lower than the cost of providing those services in Improvement Area “C.”
Notwithstanding the foregoing, the special tax may not be levied at a rate which is higher than the
maximum special tax authorized to be levied pursuant to the Improvement Area “C” Rate and
Method.
The special taxes herein authorized, to the extent possible or unless otherwise determined by the
CFD administrator, shall be collected in the same manner as ad valorem property taxes and shall
be subject to the same penalties, procedure, sale and lien priority in any case of delinquency as
applicable for ad valorem taxes. Any special taxes that may not be collected on the County tax
roll shall be collected through a direct billing procedure by the CFD Administrator.
The maximum special tax rate in Improvement Area “C” shall not be increased as a result of the
annexation of the Territory to Improvement Area “C.”
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4
SECTION 7. Public Hearing. NOTICE IS GIVEN THAT ON TUESDAY, APRIL
12, 2022, AT THE HOUR OF 5:00 P.M., IN THE REGULAR MEETING PLACE OF THE
LEGISLATIVE BODY, BEING THE COUNCIL CHAMBERS, 276 FOURTH AVENUE,
CHULA VISTA, CALIFORNIA, OR VIA VIDEO CONFERENCE OR TELECONFERENCE
AS DIRECTED BY THE CITY DUE TO PUBLIC HEALTH CONCERNS, A PUBLIC
HEARING WILL BE HELD WHERE THIS LEGISLATIVE BODY WILL CONSIDER THE
AUTHORIZATION FOR THE ANNEXATION OF THE TERRITORY TO THE DISTRICT
AND IMPROVEMENT AREA “C” THERETO, THE PROPOSED RATE AND METHOD OF
APPORTIONMENT OF THE SPECIAL TAX TO BE LEVIED WITHIN THE TERRITORY
AND ALL OTHER MATTERS AS SET FORTH IN THIS RESOLUTION OF INTENTION.
AT SUCH PUBLIC HEARING, THE TESTIMONY OF ALL INTERESTED PERSONS FOR
OR AGAINST THE ANNEXATION OF THE TERRITORY OR THE LEVYING OF SPECIAL
TAXES WITHIN THE TERRITORY WILL BE HEARD.
AT SUCH PUBLIC HEARING, PROTESTS AGAINST THE PROPOSED ANNEXATION OF
THE TERRITORY, THE LEVY OF SPECIAL TAXES WITHIN THE TERRITORY OR ANY
OTHER PROPOSALS CONTAINED IN THIS RESOLUTION MAY BE MADE ORALLY BY
ANY INTERESTED PERSON. ANY PROTESTS PERTAINING TO THE REGULARITY OR
SUFFICIENCY OF THE PROCEEDINGS SHALL BE IN WRITING AND SHALL C LEARLY
SET FORTH THE IRREGULARITIES OR DEFECTS TO WHICH OBJECTION IS MADE.
ALL WRITTEN PROTESTS SHALL BE FILED WITH THE CITY CLERK PRIOR TO THE
TIME FIXED FOR THE PUBLIC HEARING. WRITTEN PROTESTS MAY BE WITHDRAWN
AT ANY TIME BEFORE THE CONCLUSION OF THE PUBLIC HEARING.
SECTION 8. Majority Protest. If (a) 50% or more of the registered voters, or six
(6) registered voters, whichever is more, residing within Improvement Area “C” of the District,
(b) 50% or more of the registered voters, or six (6) registered voters, whichever is more, residing
within the Territory, (c) owners of one-half or more of the area of land in the territory included in
Improvement Area “C” of the District, or (d) owners of one-half or more of the area of land
included in the Territory, file written protests against the proposed annexation of the Territory to
the District in the future and such protests are not withdrawn so as to reduce the protests to less
than a majority, no further proceedings shall be undertaken for a period of one year from the date
of the decision by the City Council on the issue discussed at the public hearing.
SECTION 9. Election. Upon the conclusion of the public hearing, if the legislative
body determines to proceed with the annexation of the Territory, a proposition shall be submitted
to the qualified electors of the Territory. The vote shall be by registered voters within the Territory;
provided, however, if there are less than 12 registered voters, the vote shall be by landowners, with
each landowner having one vote per acre or portion thereof within the Territory.
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5
SECTION 10. Notice. Notice of the time and place of the public hearing shall be
given by the City Clerk by publication in the legally designated newspaper of general circulation,
pursuant to Section 6061 of the Government Code, with said publication to be completed at least
seven (7) days prior to the date set for the public hearing.
PRESENTED BY: APPROVED AS TO FORM BY:
_________________________ ____________________________
Tiffany Allen Glen R. Googins
Director of Development Services City Attorney
2022/03/15 City Council Post Agenda Page 143 of 277
1
EXHIBIT A
CITY OF CHULA VISTA
COMMUNITY FACILITIES DISTRICT NO. 97-2
(PRESERVE MAINTENANCE DISTRICT)
IMPROVEMENT AREA “C”
[insert updated text of RMA]
2022/03/15 City Council Post Agenda Page 144 of 277
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ADOPTING AN ANNEXATION MAP
SHOWING TERRITORY PROPOSED TO BE ANNEXED TO
COMMUNITY FACILITIES DISTRICT NO. 18M (OTAY
RANCH VILLAGE 3)
(ANNEXATION NO. 1)
WHEREAS, the City Council of the City of Chula Vista, California, (“City Council”),
formed a Community Facilities District pursuant to the terms and provisions of the “Mello-Roos
Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the
Government Code of the State of California (the “Act”), and the City of Chula Vista Community
Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista
under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the
“Ordinance”) (the Act and the Ordinance may be referred to collectively as the “Community
Facilities District Law”). The Community Facilities District has been designated as Community
Facilities District No. 18M (Otay Ranch Village 3) (the “District”); and
WHEREAS, the City Council desires to initiate proceedings to annex certain territory to
the District; and
WHEREAS, there has been submitted a map entitled “Annexation Map No. 1 of
Community Facilities District No. 18M (Otay Ranch Village 3), City of Chula Vista, County of
San Diego, State of California” (the “Annexation Map”) showing the territory proposed to be
annexed to the District (the “Territory”).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
California, that it hereby adopts an annexation map showing territory proposed to be annexed to
the District.
SECTION 1. The above recitals are all true and correct.
SECTION 2. The Annexation Map showing the Territory proposed to be annexed
to the District and to be subject to the levy of a special tax is hereby approved and adopted.
SECTION 3. A certificate shall be endorsed on the original and on at least one (1)
copy of the Annexation Map, evidencing the date and adoption of this Resolution, and within
fifteen (15) days after the adoption of the Resolution fixing the time and place of the hearing on
the intention to annex or extent of the annexation to the District, a copy of such map shall be filed
with the correct and proper endorsements thereon with the County Recorder, all in the manner and
form provided for in Section 3111 of the Streets and Highways Code of the State of California.
2022/03/15 City Council Post Agenda Page 145 of 277
Resolution No. 2022-___
Page No. 2
PRESENTED BY: APPROVED AS TO FORM BY:
____________________________ ________________________________
Tiffany Allen Glen R. Googins
Director of Development Services City Attorney
2022/03/15 City Council Post Agenda Page 146 of 277
1
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA DECLARING ITS INTENTION TO
AUTHORIZE THE ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 18M (OTAY
RANCH VILLAGE 3)
(ANNEXATION NO. 1)
WHEREAS, the City Council of the City of Chula Vista, California, (“City Council”),
formed a Community Facilities District pursuant to the terms and provisions of the “Mello-Roos
Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the
Government Code of the State of California (the “Act”), and the City of Chula Vista Community
Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista
under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the
“Ordinance”) (the Act and the Ordinance may be referred to collectively as the “Community
Facilities District Law”). The Community Facilities District has been designated as Community
Facilities District No. 18M (Otay Ranch Village 3) (the “District”); and
WHEREAS, the District was formed for the purpose of financing the maintenance and
replacement of (a) landscaping, including, but not limited to, trees, slopes, parkways and medians;
(b) facilities that are directly related to storm water quality control; (c) walls and fencing; and (d)
trails within the Otay Ranch Village 3 master planned community; and
WHEREAS, certain territory identified as a part of Otay Ranch Village 3 is proposed to be
annexed to the District and such territory shall be known and designated as Community Facilities
District No. 18M (Otay Ranch Village 3) Annexation No. 1 (the “Territory”); and
WHEREAS, this legislative body now desires to proceed to adopt its Resolution of
Intention to annex the Territory to the District, to describe the territory included within the District
and the Territory proposed to be annexed thereto, to specify the services to be financed from the
proceeds of the levy of special taxes within the Territory, to set and specify the special taxes that
would be levied within the Territory to finance such services, and to set a time and place for a
public hearing relating to the annexation of the Territory to the District; and
WHEREAS, a map showing the Territory proposed to be annexed has been submitted,
which map has been previously approved and a copy of the map shall be kept on file with the
transcript of these proceedings.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it hereby declares its intention to authorize the annexation of territory to Community Facilities
District No. 18M (Otay Ranch Village 3).
SECTION 1. Recitals. The above recitals are all true and correct.
SECTION 2. Legal Authority. These proceedings for annexation are initiated by
this City Council pursuant to the authorization of the Community Facilities District Law.
2022/03/15 City Council Post Agenda Page 147 of 277
2
SECTION 3. Intent to Annex; Description of Territory. This legislative body
hereby determines that the public convenience and necessity requires that the Territory be added
to the District and this City Council declares its intention to annex the Territory to the District.
A description of the boundaries and Territory proposed to be annexed is as follows:
All that Territory proposed to be annexed to the District, as such
property is shown on a map as previously approved by this
legislative body, such map entitled “Annexation Map No. 1 of
Community Facilities District No. 18M (Otay Ranch Village 3),
City of Chula Vista, County of San Diego, State of California” (the
“Annexation Map”), a copy of which is on file in the Office of the
City Clerk and shall remain open for public inspection.
A general description of the territory included in the District is hereinafter described as
follows:
All that property and territory as originally included within the
District, as such property is shown on the map of the original District
as approved by this City Council and designated by the name of the
original District. A copy of such map is on file in the Office of the
City Clerk and has also been filed in the Office of the County
Recorder.
SECTION 4. Name. The proposed annexation shall be known and designated as
COMMUNITY FACILITIES DISTRICT NO. 18M (OTAY RANCH VILLAGE 3)
ANNEXATION NO. 1.
SECTION 5. Services Authorized to be Financed by the District. The services that
are authorized to be financed by the District from the proceeds of special taxes levied within the
District are certain services which are in addition to those provided in or required for the territory
within the District, and will not be replacing services already available. A general description of
such services to be financed by the District is as follows:
(a) landscaping, including, but not limited to, trees, slopes, parkways
and medians; (b) facilities that are directly related to storm water
quality control; (c) walls and fencing; and (d) trails within the Otay
Ranch Village 3 master planned community;
A more complete description of such services may be found in Exhibit A to this Resolution.
The District shall finance all direct, administrative and incidental annual costs and expenses
necessary to provide such monitoring, maintenance, operation and management of such public
property.
The same types of services which are authorized to be financed by the District from the proceeds
of special taxes levied within the District are the types of services to be provided in the Territory.
If and to the extent possible such services shall be provided in common within the District and the
Territory.
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3
SECTION 6. Special Taxes. It is the further intention of this City Council that,
except where funds are otherwise available, a special tax sufficient to pay for such services and
related incidental expenses authorized by the Community Facilities District Law, secured by
recordation of a continuing lien against all non-exempt real property in the Territory, will be levied
annually within the boundaries of such Territory. For further particulars as to the rate and method
of apportionment of the proposed special tax, reference is made to the attached and incorporated
Exhibit B (the “Rate and Method”), which sets forth in sufficient detail the method of
apportionment to allow each landowner or resident within the proposed Territory to clearly
estimate the maximum amount that such person will have to pay.
The special tax proposed to be levied within the Territory shall be equal to the special tax levied
to pay for the same services in the District, except that a higher or lower special tax may be levied
within the Territory to the extent that the actual cost of providing the services in the Territory is
higher or lower than the cost of providing those services in the District. Notwithstanding the
foregoing, the special tax may not be levied at a rate which is higher than the maximum special
tax authorized to be levied pursuant to the Rate and Method.
The special taxes herein authorized, to the extent possible or unless otherwise determined by the
CFD administrator, shall be collected in the same manner as ad valorem property taxes and shall
be subject to the same penalties, procedure, sale and lien priority in any case of delinquency as
applicable for ad valorem taxes. Any special taxes that may not be collected on the County tax
roll shall be collected through a direct billing procedure by the CFD Administrator.
The maximum special tax rate in the District shall not be increased as a result of the annexation of
the Territory to the District.
SECTION 7. Public Hearing. NOTICE IS GIVEN THAT ON TUESDAY, APRIL
12, 2022, AT THE HOUR OF 5:00 P.M., IN THE REGULAR MEETING PLACE OF THE
LEGISLATIVE BODY, BEING THE COUNCIL CHAMBERS, 276 FOURTH AVENUE,
CHULA VISTA, CALIFORNIA, OR VIA VIDEO CONFERENCE OR TELECONFERENCE
AS DIRECTED BY THE CITY DUE TO PUBLIC HEALTH CONCERNS, A PUBLIC
HEARING WILL BE HELD WHERE THIS LEGISLATIVE BODY WILL CONSIDER THE
AUTHORIZATION FOR THE ANNEXATION OF THE TERRITORY TO THE DISTRICT,
THE PROPOSED RATE AND METHOD OF APPORTIONMENT OF THE SPECIAL TAX TO
BE LEVIED WITHIN THE TERRITORY AND ALL OTHER MATTERS AS SET FOR TH IN
THIS RESOLUTION OF INTENTION.
AT SUCH PUBLIC HEARING, THE TESTIMONY OF ALL INTERESTED PERSONS FOR
OR AGAINST THE ANNEXATION OF THE TERRITORY OR THE LEVYING OF SPECIAL
TAXES WITHIN THE TERRITORY WILL BE HEARD.
AT SUCH PUBLIC HEARING, PROTESTS AGAINST THE PROPOSED ANNEXATION OF
THE TERRITORY, THE LEVY OF SPECIAL TAXES WITHIN THE TERRITORY OR ANY
OTHER PROPOSALS CONTAINED IN THIS RESOLUTION MAY BE MADE ORALLY BY
ANY INTERESTED PERSON. ANY PROTESTS PERTAINING TO THE REGULARITY OR
SUFFICIENCY OF THE PROCEEDINGS SHALL BE IN WRITING AND SHALL CLEARLY
SET FORTH THE IRREGULARITIES OR DEFECTS TO WHICH OBJECTION IS MADE.
ALL WRITTEN PROTESTS SHALL BE FILED WITH THE CITY CLERK PRIOR TO THE
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4
TIME FIXED FOR THE PUBLIC HEARING. WRITTEN PROTESTS MAY BE WITHDRAWN
AT ANY TIME BEFORE THE CONCLUSION OF THE PUBLIC HEARING.
SECTION 8. Majority Protest. If (a) 50% or more of the registered voters, or six
(6) registered voters, whichever is more, residing within the District, (b) 50% or more of the
registered voters, or six (6) registered voters, whichever is more, residing within the Territory, (c)
owners of one-half or more of the area of land in the territory included in the District, or (d) owners
of one-half or more of the area of land included in the Territory, file written protests against the
proposed annexation of the Territory to the District in the future and such protests are not
withdrawn so as to reduce the protests to less than a majority, no further proceedings shall be
undertaken for a period of one year from the date of the decision by the City Council on the issue
discussed at the public hearing.
SECTION 9. Election. Upon the conclusion of the public hearing, if the legislative
body determines to proceed with the annexation of the Territory, a proposition shall be submitted
to the qualified electors of the Territory. The vote shall be by registered voters within the Territory;
provided, however, if there are less than 12 registered voters, the vote shall be by landowners, with
each landowner having one vote per acre or portion thereof within the Territory.
SECTION 10. Notice. Notice of the time and place of the public hearing shall be
given by the City Clerk by publication in the legally designated newspaper of general circulation,
pursuant to Section 6061 of the Government Code, with said publication to be completed at least
seven (7) days prior to the date set for the public hearing.
PRESENTED BY: APPROVED AS TO FORM BY:
_________________________ ____________________________
Tiffany Allen Glen R. Googins
Director of Development Services City Attorney
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1
EXHIBIT A
CITY OF CHULA VISTA
COMMUNITY FACILITIES DISTRICT NO. 18M
(OTAY RANCH VILLAGE 3)
Description of Services
The types of services (the “Services”) to be funded by special taxes levied within CFD No. 18M
shall include maintenance, servicing and replacement of (a) landscaping, including, but not limited
to, trees, shrubs, grass, other ornamental vegetation located in or on slopes, parkways and medians;
(b) facilities that are directly related to storm water quality control; (c) walls and fencing; and (d)
trails (collectively, the “Improvements”) located in public right-of-way, property owned by the
City of Chula Vista (“City”) or property over which the City has an easement authorizing the City
to maintain such landscaping, facilities, walls and fencing and trails.
For purposes of this description of the Services to be funded by the levy of Special Taxes within
CFD No. 18M, “maintenance” includes, but is not limited to, the furnishing of services and
materials for the ordinary and usual maintenance, operation, and servicing of any of the
Improvements, including:
(a) Repair, removal, or replacement of all or any part of any Improvement.
(b) Providing for the life, growth, health, and beauty of landscaping, including cultivation,
irrigation, trimming, spraying, fertilizing, or treating for disease or injury.
(c) The removal of trimmings, rubbish, debris, silt, and other solid waste.
(d) The cleaning, sandblasting, and painting of walls and other Improvements to remove or cover
graffiti.
(e) The elimination, control, and removal of rodents and vermin.
(f) The maintenance and cleaning of drainage and other storm water control facilities required to
provide storm water quality control.
"Service" or "servicing" means the furnishing of:
(a) Electric current or energy, gas, or other illuminating agent for any public lighting facilities or
for the lighting or operation of any other Improvements.
(b) Water for the irrigation of any landscaping or the operation or maintenance of any other
Improvements.
For purposes of this description of the Services to be funded by the levy of Special Taxes within
CFD No. 18M, “administrative expenses” means the actual or estimated costs incurred by the City,
acting for and on behalf of CFD No. 18M as the administrator thereof, to determine, levy and
collect the Special Taxes within CFD No. 18M, including salaries of City employees and a
proportionate amount of the City’s general administrative overhead related thereto, and the fees of
consultants and legal counsel providing services related to the administration of CFD No. 18M;
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the costs of collecting installments of the Special Taxes levied within CFD No. 18M; and any other
costs required to administer CFD No. 18M as determined by the City.
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EXHIBIT B
CITY OF CHULA VISTA
COMMUNITY FACILITIES DISTRICT NO. 18M
(OTAY RANCH VILLAGE 3)
Rate and Method of Apportionment
[insert updated text of RMA]
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March 15, 2022
ITEM TITLE
Workforce Housing: Consideration of Proposals to Convert “The Residences at Escaya” and “CasaLago
Eastlake” Rental Communities into Moderate Income Rental Opportunities
Report Number: 22-0035
Location: The Residences at Escaya – 1925 Avenida Escaya (91913) and CasaLago Eastlake - 2816 Cielo
Circulo (91915)
Department: Development Services
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California
Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no
environmental review is required.
Recommended Action
Consider adopting resolutions: Authorizing (1) Execution of a Joint Exercise of Powers Agreement Related
to the California Municipal Financial Authority (“CMFA”) Special Finance Agency Approving the Issuance of
Revenue Bonds by said Agency for the Purposes of Financing the Acquisition of The Residences at Escaya
Project Conditioned Upon Approval and Execution by the City Manager of a Public Benefit Agreement
(“PBA”) with CMFA; and Authorizing the City Manager to Negotiate the PBA with CMFA With Terms
Acceptable to the City Manager and City Attorney’s Office and Consistent With Policy No. 453-03, Including
Determining Whether to Accept and Execute the PBA or to Reject the PBA and not Execute the PBA (Ending
Negotiations) and/or (2) Authorizing Execution of a Joint Exercise of Powers Agreement Related to the
California Statewide Communities Development Authority (“CSCDA”) Special Finance Agency Approving the
Issuance Of Revenue Bonds by Said Agency for the Purposes of Financing the Acquisition of Casalago Eastlake
Project Conditioned Upon Approval and Execution by the City Manager of a PBA With CSCDA and Authorizing
the City Manager to Negotiate the PBA With CSCDA With Terms Acceptable to the City Manager and City
Attorney’s Office and consistent With Policy No. 453-03, Including Determining Whether to Accept and
Execute the PBA or to Reject the PBA and not Execute the PBA (Ending Negotiations).
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SUMMARY
On October 26, 2021, City Council adopted Policy No. 453-03 “Workforce Housing to Serve Moderate Income
Households” (the “Policy” or “Policy No. 453-03”) by Resolution No. 2021-199, to guide review of
applications and enable the purchase of market rate housing to convert units to approximately 30-year deed-
restricted moderate income (81-120% area median income) rental housing to address the “missing middle.”
This item considers two separate project applications from The Residences at Escaya (“The Residences”) in
Otay Ranch Village 3 and the CasaLago Eastlake (“CasaLago”) apartments located in Eastlake III.
At its discretion, the City Council may approve either, both, or none of the projects.
ENVIRONMENTAL REVIEW
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 is not a “Project” as defined under
Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment;
therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
Thus, no environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
On January 31, 2022, the Housing Advisory Commission recommended that both projects be brought
forward to City Council for consideration.
DISCUSSION
Background
Over the past year, various investors and financing authorities have approached the City of Chula Vista
regarding joining a Joint Power Authority (“JPA”) to enable municipal bonds to be issued to convert existing
rental properties to moderate income housing, including: (1) California Municipal Financial Authority
(“CMFA”) and HomeFed Corporation (“HomeFed”) for The Residences; and (2) California Statewide
Communities Development Authority (“CSCDA”) and Opportunity Housing Group, LLC (“OHG”) for CasaLago.
The adoption of the Policy on October 26, 2021 enabled staff to intake Workforce Housing (“WFH”)
applications.
It should be noted that both projects under the Policy would enter into a Joint Powers Agreement, a project
specific Public Benefit Agreement (“PBA”), and have the following important commonalities:
• Rental Subsidies & Non-Displacement – Under the new WFH program, a Regulatory Agreement
would be recorded, requiring new tenants (and, for existing tenants at lease renewal) to complete
an initial and annual income verification process to determine eligibility rent restricted rents set
asides for the following income groups: 80% AMI (33% of units), 100% AMI (33% of units), and
120% AMI (33% of units) restricted. For existing tenants, if they qualify, they are offered the
according affordable rent. If they do not qualify, they may remain at market rents. This avoids any
issues with displacement of current residents.
• Annual Rent Increases - For all income-qualifying households, annual increases would be capped at
no more than 4%, which is greater protection for tenants than provided under Assembly Bill (“AB”)
1482, the recently adopted State tenant protection legislation, which limits rent increases to the
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change in the Consumer Price Index (“CPI”) plus 5%. Furthermore, eligible households will only have
their rent increased up to the 35% limit, as further described in the project analysis.
• Property Tax Exemption - During the bond period, the property may be exempt from paying property
taxes. This will result in an initial loss of discretionary revenue to the City of Chula Vista, as well as
other taxing entities, including the County of San Diego and school districts. The foregone property
tax loss would enable the financial feasibility of acquiring properties to create housing opportunities
for middle-income residents that might not otherwise exist. The State of California would make up
the foregone property taxes to the school districts through the Local Control Funding Formula.
• Host Charge – As part of the annual operating expenses, a Host Charge shall be paid to the City of
Chula Vista and deposited into the City’s General Fund, per the PBA, with the anticipation that it
would replace the foregone property taxes due to the City of Chula Vista, but not the other affected
taxing entities.
• Sale of Property - Under the terms of the PBA, the City of Chula Vista, at its sole discretion, may force
a sale of the property between Year 15 and Year 35 (the end of the life of the bonds). If a property
generates surplus cash flow through the proceeds of the sale of a property, the City will receive the
surplus revenue, which shall be distributed per the Policy. Although the City would be eligible to
require the owner to sell the property at Year 15, none of the projects anticipates a positive value in
Year 15. This is a function of the initial restricted rents and limitations on increases, as well as the
high level of debt that needs to be amortizedcosts to the projects, including the payment of the Host
Charge, foregone property taxes for other agencies and a healthy capital reserve set-aside. A property
cannot realistically be sold until the sales proceeds exceed the debt on the property, which is
expected to occur after Year 15. The City may require sale once the projects have a net positive value
(when sale price is anticipated to exceed the cost to pay off remaining bonds), as more fully described
under the project analysis.
• City Liability and Risk - The City incurs minimal costs, liabilities, or administrative responsibilities in
connection with membership in a JPA or participation in a HFH program. The City is not the bond
issuer and provides no funding or credit enhancement to the transaction. The acquisition bonds do
not diminish the City’s issuing capacity and are backed solely by the Project revenues. On this basis,
participation creates a relatively low risk and potential high return opportunity for the City. The PBA
will provide indemnification language that protects the City’s interests.
• Long-Term Affordability - There is the potential that a WFH project could become unable to meet
debt service due to lower rents, higher operating costs, or other unforeseen events. Ultimately, if the
bondholders needed to foreclose on the asset to satisfy outstanding debt, the Regulatory Agreement
would be terminated, and the rent restrictions would be lifted. Rents could then be increased under
the maximum State limits, eventually returning to market level rents.
• Third Party Review – Per the Policy, the City of Chula Vista contracted with outside parties to provide
support in evaluating the proposals and conducting negotiations. All third-party costs were born by
the applicants including outside counsel through Colantuono, Highsmith & Whatley, PC and financial
analysis as further described in each project analysis by RSG Inc. (“RSG”).
Under the Policy, a variety of considerations must be reviewed including overall project impact to the City’s
housing stock (both market and affordable), as well as direct impacts to existing tenants and the surrounding
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community. Additionally, a full financial analysis of the City’s risks and benefits must be conducted. Both
projects have complied with the Policy submittal checklist and full applications are provided as noted in the
analysis below.
PBA Negotiation and City Manager Authorization
Negotiations regarding the PBA’s are still being conducted and are not complete. Market conditions and
CSCDA and CMFA’s existing time frames to issue Revenue Bonds are time sensitive. Accordingly, the
attendant Resolutions that conditionally approve and authorize entry into the JPA’s and issuance of Revenue
Bonds (they are conditioned upon having an executed PBA’s by the City Manager), authorize the City
Manager to continue to negotiate the PBA’s with CSCDA and CMFA in substantial form as set forth in the
attached draft PBA’s Attachments 1a and 1b,, but with modifications to include terms acceptable to the City
Manager and City Attorney’s Office and consistent with Policy No. 454.03453-03. The Resolutions further
authorize the City Manager to determine whether to accept and execute the PBA’s (satisfying the condition
to authorize approval of the JPA’s and authorizing the issuance of the Revenue Bonds) or to reject the PBA’s
and not execute the PBA’s (ending negotiations and not entering into the JPA and not issue the Revenue
Bonds).
Housing Stock Considerations & Current Policy
The City of Chula Vista is committed to providing a variety of income-level housing options per the Housing
Element’s Regional Housing Needs Assessment (“RHNA”) goals and adherence to the 1981 Balanced
Communities Policy. As traditionally proposed, WFH units do not currently count towards RHNA housing
unit requirements; however, the Policy identified the moderate-income RHNA goals/needs as a metric for
allowable workforce-housing units. In total 1,911 WFH units are allowable during the 2021-2029 Housing
Element cycle. Should both subject projects be approved the total remaining units available for WFH would
be 1,212, as detailed in Table 1.
Table 1
WFH Units
Moderate Income Need/Allowable WFH Units 1,911
The Residences 272
CasaLago 427
2021-2029 Remaining Allowable WFH Units 1,212
Both projects are located in eastern Chula Vista (east of I-805) where currently 14 properties provide 1,284
restricted affordable units, but only 54 units are restricted for moderate income households. Approving the
subject projects would increase moderate income opportunities by 666 699 units. As noted previously, while
these units would not count towards RHNA goals, they would provide new opportunities for moderate
income households.
While ample rental opportunities remain throughout the City it should be pointed out that the CasaLago
project provides the only rental opportunity in the far eastern portion of the City (near the Lower Otay
Reservoir), with the nearest rental community existing approximately 1.5 miles away (The Landings
affordable housing in Otay Ranch Village 11). The nearest market rate rental housing is in Millenia,
approximately 1.7 miles away. The Residences will have both market and affordable opportunities within
one mile of the property based on current projects in review, inclusive of a new market ren tal project in
Village 3 - Escaya.
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The Residences at Escaya
The Residences is a 272-unit apartment complex located in the master planned community of Otay Ranch
Village Three on 9.06-acres and is improved with 14 three-story buildings. The community was placed into
service in 2019 and consists of 141 one-bedroom, 111 two-bedroom, and 20 three-bedroom units. Project
amenities includes on-site retail, dog parks, picnic areas, playground, hiking trails, clubhouse, fitness center,
mail parcel center, lounge area, resort-style swimming pool, spa, cabanas, lawn areas, and bike storage.
The Residences has an existing Affordable Housing Regulatory Agreement that restricts 30 units to 120%
area median income (“AMI”) until 2039. Per the Policy, the preservation of existing affordable units is a
priority for the City of Chula Vista and the existence of covenants that would be extended to match the bond
term has been proposed.
CMFA and HomeFed have been working with the City since February 2021. HomeFed currently retains
construction financing on the project and desires to use this financing mechanism to convert into their
permanent financing. Due to their existing and expected continued ownership, HomeFed has a long -term
vested interest in the project. A formal application under the City’s policy was submitted on December 13,
2021, after various documents were updated, including a recent appraisal of the property, which is included
as Attachment 2.
Sponsorship Team
Joint Powers Authority - CMFA
CMFA was created on January 1, 2004, pursuant to a joint exercise of powers agreement, to promote
economic, cultural, and community development, through the financing of economic development and
charitable activities throughout California. CMFA was formed to assist local governments, non-profit
organizations, and businesses with the issuance of taxable and tax-exempt bonds aimed at improving the
standard of living in California.
CMFA offers a Middle-Income Housing Program that offers private entities access to low-cost, tax-exempt
financing for projects that provide a tangible public benefit, contribute to social and economic growth, and
improve the overall quality of life in local communities throughout California. One unique element is that
through its conduit issuance activities, CMFA shares a portion of the issuance fees it receives with its member
communities and donates a portion of these issuance fees to the Board of Directors of the California
Foundation for Strong Communities for the support of local charities. With respect to the City of Chula Vista,
CMFA will grant a portion of the issuance fees to the City’s General Fund, which can be used for any lawful
purpose of the City. In addition, CMFA will also donate 25% of the issuance fee to a Chula Vista charitable
organization (of the City’s choice). To date, CMFA has donated over $25 million to host municipalities and
nonprofits throughout California.
Project Administrator – HomeFed Corporation
HomeFed is a real estate development company that specializes in creating vibrant, mixed -use master-
planned communities that combine innovative placemaking techniques and environmental stewardship.
Incorporated in 1988 and headquartered in Carlsbad, California, HomeFed is known for undertaking large,
complex, environmentally challenging projects that require long -term investments. HomeFed’s portfolio of
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successful projects includes developments in California and along the East Coast from New York to Florida,
including many in Chula Vista.
Project Operator - Greystar California, Inc.
Greystar California, Inc. (“Greystar”) is the current Project Operator at Escaya and therefore no transitional
period will occur. Greystar is the largest and most experienced operator of multifamily projects in California.
Greystar has an approximately 740,000-unit international portfolio ranging from conventional, mixed use,
affordable, senior living and renovations/value add products, with an affordable housing portfolio covering
301 communities representing approximately 15,500 units spanning more than 24 states. Greystar’s
California operations cover over 400 communities and approximately 100,000 units under management
with a long history in San Diego County. Greystar has significant experience with workforce housing
programs and implementation of their regulatory agreements.
Property Profile
An appraisal of the property was provided by the applicant and indicates the property is in “very good
condition”. Since the property was under construction in 2019 and in lease-up in 2020, there is not stabilized
operating data available. The project is currently operating under the construction loan which continues to
be extended in anticipation of approval of this financing to provide the permanent debt.
Current Tenancy
The current property average contract rent is $2,352 and vacancy was 4%, as of April 15, 2021. A majority
of the leases are 12-month lease terms with a small percentage of shorter-term leases (month-to-month).
Project Affordability
Table 2 details the proposed initial project rents for The Residences project. Most of the units are being set
at rents lower than the maximum (35% of qualifying income) amounts allowed by the Regulatory Agreement.
Initial Project Rents range from 23% to 35% of the qualifying income. By starting with lower initial rents,
particularly at the 120% AMI level, the Sponsor is building in some assurance that the scheduled rents will
be achieved, and have room to grow modestly over time, without being impact ed by the maximum rents
allowed under the income limits or by market rent.
Table 2
The Residences Proposed Initial Project Rents
Unit Type Total Units 80% AMI 100% AMI 120% AMI Total/Average
1-bedroom 98 $2,043 $2,156 $2,270 $2,156
2-bedroom 154 $2,380 $2,562 $2,697 $2,546
3-bedroom 20 $2,799 $3,477 $3,786 $3,354
Total/Average 272 $2,289 $2,483 $2,623 $2,465
Number of Units 91 91 90 272
According to HomeFed, the Project rents will range from 5% to 10% below market, and up to 7% below the
current in-place rents but are on par with in-place rents on average resulting in minimal annual “rental
savings” in the first year compared to the current in-place rents. However, the initial rents represent about
a $500,000 "savings" compared to market rents. Rental savings will only grow over time because Project rent
increases will be limited to 4% per year (and no greater than 35% of the qualifying income limits) while
market rents can increase at whatever rate the market commands.
Proposed Financial Structure & Purchase Information
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In compliance with the Policy, the City contracted with RSG Inc. to provide a third-party review of the
proposed financial structure, projections and assumptions for the project. The full analysis is provided as
Attachment 3 and a summary of their main findings includes:
• The Project is highly leveraged under the financial structure of the Workforce Housing program, with
a debt to value of 119% following acquisition. The issuance of $1601 million in bonds will entirely
fund the acquisition ($135 million), reserve accounts ($156 million), and payment of transaction, JPA
and Sponsor fees ($13 million). CMFA will be the owner, but without an equity investment or residual
interest.
• Based on RSG's modified projections, the Project will need to rely on reserves to pay debt service for
the first seven years, is not expected to begin repaying principal on the Series A bonds until Year 101
and will not achieve a Net Operating Income ("NOI") to debt service coverage ratio of 1.2x until Year
15.
• Following conversion of all units to restricted rents, the Project would provide only modestminimal
total rental savings compared to current in-place rents, andof approximately $500,000 in rental
savings annually compared to estimated market rents compared to current in-place rents (about $32
157 per unit per month on average). This is partly due to an existing covenant that restricts 30 units
for Moderate Income households. The rent savings will grow over the life of the Project as market
rents and restricted rents continue to diverge over time.
• CMFA would share with the City 25% of the $500,000 bond issuance fees it receives at closing. In
addition, CMFA would share an equal amount via its affiliated foundation to fund local charities
designated by the City, reducing its upfront fee to $250,000. CMFA would also receive a $150,000
annual fee during the Project term, with no escalation.
• The City currently receives about $103,000 in property tax from the Project based on its pre-
acquisition assessed value. The Sponsor has proposed to provide the City with a "Host City Charge"
of $103,000 to mitigate the revenue loss after purchase by the JPA, since it will be exempt from paying
ad valorem property taxes. If not for the exemption, the new assessed value from acquisition would
result in property taxes to the City of about $144,000 in the first year.
• RSG projects that by Year 15, when the City has the option to purchase the asset, the estimated Project
value of $1665 million would not provide adequate proceeds to fully reimburse the other taxing
entities for their cumulative foregone property tax, as is contemplated by the Public Benefit
Agreement with CMFA. If the City were to "equitably share" the proceeds with other taxing entities,
it may realize an overall negative net fiscal impact of about $24493,000 in present value 2022 dollars.
• RSG projects that by Year 35, approximately $47 million in bond debt would still be outstanding, but
the Project value would have grown to $2221 million. The City would be able to reimburse the other
taxing entities for their cumulative foregone property taxes, and still retain $1 142 million. The
projected net fiscal impact to the City would be about $3940 million in present value 2022 dollars.
• It is important to note, that the projected proceeds from any property sale 35 years into the future
are estimates and may change.
CasaLago Eastlake
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CasaLago is a 30.2 acre 427-unit complex located at 2816 Cielo Circulo, in the Eastlake III community, located
south of Olympic Parkway, east of the Olympic Training Facility and west of the Lower Otay Reservoir. The
community was opened to renters in 2014 and consists of 79 one-bedroom, 183 two-bedroom, and 165
three-bedroom units within 89 buildings. Project amenities include, but are not limited to two-swimming
pools, two club houses, playgrounds, open space and fitness center. The property has been owned by John
Hancock Life Insurance Co. USA since 2015.
CSCDA initially approached the City of Chula Vista in summer of 2021 regarding the project and indicated
they were already under purchase contract for the property with an initial purchase contract deadline in
September 2021. Since that time CSCDA has received extensions for the purchase to accommodate policy
adoption and compliance. A formal application under the City’s policy was submitted on December 3, 2021,
Attachment 4.
Sponsorship Team
Joint Powers Authority - CSCDA
CSCDA is a joint powers authority founded and sponsored by the League of California Cities ("League") and
the California State Association of Counties ("CSAC"). CSCDA was created by the League and CSAC in 1988 to
enable local government and eligible private entities access to low-cost, tax-exempt financing for projects
that provide a tangible public benefit, contribute to social and economic growth, and improve the overall
quality of life in local communities throughout California. CSCDA is comprised of more than 530 cities,
counties, and special districts, including the City of Chula Vista, which has been a member since 1996. CSCDA
has issued more than $65 billion through 1,600 plus transactions across its diverse public benefit financing
programs. CSCDA helps local governments build community infrastructure, provide affordable housing,
create jobs, and make access available to quality healthcare.
Project Administrator - Opportunity Housing Group, LLC
Opportunity Housing Group, LLC (“OHG”) was founded to provide communities in California with immediate
access to workforce housing: the foundation for strong communities and sustained growth. OHG is a
preferred Project Administrator (Asset Manager role) with CSCDA’s Workforce Housing Program and in
2021 has closed on a variety of assets, including in the cities of Monrovia (261 units) and Fairfield (180 units).
The OHG Principals have led the acquisition of over $1.3 billion in multifamily real estate over their careers,
including over 6,150 multifamily units, and the development of over $4.8 billion, including 7,750 multifamily
units, extended stay hotels, retail and for sale homes throughout California and the western states. The OHG
Principals’ multifamily asset management experience includes portfolio management responsibilities for 44
properties and 13,100 units for a major pension fund and a federal agency; asset management responsibility
for 35 properties and 13,700 units for a public Real Estate Investment Trust and property management
responsibility for 30 properties; and 9,000 units for a national property management company.
Project Operator – Greystar California, Inc.
Greystar will also be the property manager for CasaLago after closing. Greystar is the property manager on
the majority of CSCDA’s Workforce Housing portfolio and has significant e xperience with the workforce
housing program and implementation of its regulatory agreement.
Property Profile
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An inspection of the property was provided by the applicant and indicates the property is in “good to fair
overall condition”. According to property management, capital improvements are anticipated to be
completed within the next three years including exterior painting and pool deck recoating. The property’s
total revenue was $12,289,406 in 2019 and $12,659,549 in 2020. Total operating expenses were $6,010,286
in 2019 and $4,388,207 in 2020. There is no existing debt on the property.
Current Tenancy
The property average contract rent is $2,691, slightly above the average asking rent of $2,687. The property
has maintained occupancy above 95% for the previous five years, with the current vacancy at 3.3% with an
annual turnover of 30%. A majority of the leases are 12-month lease terms with a small percentage of
shorter-term leases (month-to-month). CSCDA states that based on the income criteria below, 72% of
current renters will income-qualify for the program.
Project Affordability
Table 3 details the proposed initial project rents for the CasaLago project. Most of the units are being set at
rents lower than the maximum (35% of qualifying income) amounts allowed by the Regulatory Agreement.
Initial Project Rents range from 23% to 36% of the qualifying income. By starting with lower initial rents,
particularly at the 120% AMI level, the Sponsor is building in some assurance that the scheduled rents will
be achieved, and have room to grow modestly over time, without being impacted by the maximum rents
allowed under the income limits or by market rent. The Sponsor's initial rents at the 80% AMI level, however,
are exceeding the 35% of qualifying income program limit. The Sponsor has assumed that AMI limits set by
HUD will increase by at least 3% effective April 1, 2022.
Table 3
CasaLago Proposed Initial Project Rents
Unit Type Total Units 80% AMI 100% AMI 120% AMI Total/Average
1-bedroom 79 $2,240 $2,250 $2,259 $2,250
2-bedroom 183 $2,622 $2,842 $2,849 $2,771
3-bedroom 165 $2,913 $3,210 $3,245 $3,123
Total/Average 427 $2,664 $2,87557 $2,893 $2,810
Number of Units 143 142 142 427
According to OHG, an independent appraiser, the project rents will range from 17% to 23% below the current
in-place rents and will be about 19% below in-place rents on average. Using those per unit rent differences,
multiplied by the distribution of units across the three income limits, OHG calculated the total annual “rental
savings” to be about $3 million annually in the first year compared to the current in-place rents. This rental
savings amount will only grow over time because project rent increases will be limited to 4% per year (and
no greater than 35% of the qualifying income limits) while market rents can increase at whatever rate the
market commands.
Proposed Financial Structure & Purchase Information
In compliance with the Policy, the City contracted with RSG Inc. to provide a third-party review of the
proposed financial structure, projections and assumptions for the project. The full analysis is provided as
Attachment 5 and a summary of their main findings includes:
• The Project is highly leveraged under the financial structure of the Workforce Housing program, with
a debt to value of 117% following acquisition. The issuance of $324 million in bonds will entirely
2022/03/15 City Council Post Agenda Page 162 of 277
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fund the acquisition ($279 million), reserve accounts ($29 million), and payment of transaction, JPA
and Sponsor fees ($18 million). CSCDA will be the owner, but without an equity investment or
residual interest.
• Based on RSG's modified projections, the Project will need to rely on reserves to pay debt service for
the first seven years, is not expected to begin repaying principal on the Series A bonds until Year 11
and will not achieve a Net Operating Income ("NOI") to debt service coverage ratio of 1.2x until Year
15.
• Following conversion of all units to restricted rents, the Project is estimated to provide a rental
savings of more than $3 million annually compared to market rents, according to the Sponsor. This
amount will only grow over the life of the Project as market rents and restricted rents continue to
diverge over time. However, the Sponsor has assumed some of the initial rents will be higher than
current income limit restrictions allow, on the expectation that the AMI limits will grow by at least
3% when announced later this year.
• The City currently receives about $170,000 in property tax from the Project based on its pre-
acquisition assessed value. The Sponsor has proposed to provide the City with a "Host City Charge"
of $200,000 to mitigate tax revenue loses after purchase by the JPA, since it will be exempt from
paying ad valorem property taxes. If not for the exemption, the new assessed value based on the
acquisition price would result in property taxes to the City of about $302,000 in the first year. Over
the 35-year life of the bonds, this tax gap would total approximately $5.2 million, or about $3 million
in 2022 present value dollars.
• RSG projects that by Year 15, when the City has the option to purchase the asset, the Project value of
$302 million would not provide adequate proceeds to repay the $325 million of outstanding debt.
• RSG projects that by Year 35, approximately $151 million in bond debt would still be outstanding,
but the Project value would have grown to $487 million. The City would be able to reimburse the
other taxing entities for their cumulative foregone property taxes, and still retain $211 million. The
projected net fiscal benefit to the City of a sale in Year 35 would be almost $7 2 million in present
value 2022 dollars.
• It is important to note, that the projected proceeds from any property sale 35 years into the future
are estimates and may change.
• CSCDA would receive a fee equivalent to 1% of the bond issuance amount, not to exceed $2 million.
CSCDA will also receive a $150,000 annual fee during the Project term, with no escalation. OHG would
receive a fee payment of $2.75 million at closing of the acquisiti on. According to OHG, this fee is
comparable to an acquisition fee standard of 1% that could be earned on a typical market-rate
acquisition. In addition, OHG will receive an Asset Management Fee for its ongoing role as Project
Administrator starting at $213,500 ($500 per unit) in the first year and increasing by 3% per year.
Conclusion
While these projects would serve moderate income households with a new rental option, there is still risk
that the property will not be able to sustain affordability and payment of debt service due to market or
unforeseen conditions. Specifically, staff has expressed its concern over the large upfront and ongoing fees
associated with the CasaLago project to pay CSCDA and OHG (as JPA and Sponsor/Project Administrator,
respectively) and are included in the debt load. HomeFed is not receiving any upfront acquisition fee for the
2022/03/15 City Council Post Agenda Page 163 of 277
P a g e | 11
acquisition of The Residences, since they are both the buyer and seller and should be realizing a capital gain
on the sale. In addition, CMFA would provide 25% of their bond fee to the City and an additional 25% to a
local charity.
The Residences post-acquisition rents are not much lower than current in-place rents and while the short-
term benefit of conversion is not as great, the long-term preservation of affordability will still be achieved.
As another point of comparison, the average rents proposed at Escaya are about $350 lower than those
proposed at CasaLago.
While neither project will likely be sold in year 15 due to remaining debt/transaction fees, the CasaLago
project will also likely not have a greater market value at year 15 than debt service. Finally, the CasaLago
project serves as the only large rental opportunity in far east Chula Vista, while The Residences project has
a variety of rental opportunities within its proximity.
Overall, the City incurs minimal costs, liabilities, or administrative responsibilities in connection with these
WFH projects and creates a relatively low risk and high return opportunity for the City.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings
within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item
does not present a disqualifying real property-related financial conflict of interest under California Code of
Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code
§87100, et seq.).
Staff is not independently aware and has not been informed by any City Council member, of any other fact
that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
All costs associated with the third-party analysis and staff time to review the application have been
reimbursed by the developers. The City has no liability or financial obligation for the bonds.
ONGOING FISCAL IMPACT
Both projects have included an annual Host Charge to be paid to the City’s General Fund as part of operating
expenses. The Host Charge will be paid in the amount of $103,000 (The Residences) and $200,000
(CasaLago), which will escalate by 2% annually and is anticipated to offset the annual lost property taxes.
Should the projects have positive cash flow, dependent on bond performance, additional funds may be
received by the City.
For The Residences project, RSG projects that that if the property were sold in 35 years, the City may yield
about $1142 million even after reimbursing the other taxing entities for their cumulative foregone property
taxes. The projected net fiscal impact to the City would be about $40 39 million in present value 2022 dollars.
For the CasaLago project, RSG projects that if the property were sold in 35 years, the City may yield about
$211 million even after reimbursing the other taxing entities for their cumulative foregone property taxes.
The net proceeds to the City are estimated at $725 million in present value 2022 dollars.
ATTACHMENTS
1. Draft City Workforce Housing PBAs
2022/03/15 City Council Post Agenda Page 164 of 277
P a g e | 12
2. The Residences Workforce Housing Application 12/13/21
3. RSG Summary Findings Memo for The Residences 3/8/22
4. CasaLago Eastlake Workforce Housing Application 12/3/21
5. RSG Summary Findings Memo for CasaLago 3/4/22
Staff Contact: Stacey Kurz, Acting Housing Manager
Tiffany Allen, Director Development Services
2022/03/15 City Council Post Agenda Page 165 of 277
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA (1) APPROVING AND AUTHORIZING
EXECUTION OF A JOINT EXERCISE OF POWERS
AGREEMENT RELATING TO THE CMFA SPECIAL FINANCE
AGENCY AND APPROVING THE ISSUANCE OF REVENUE
BONDS BY THE AUTHORITY FOR THE PURPOSE OF
FINANCING THE ACQUISITION OF THE RESIDENCES AT
ESCAYA PROJECT CONDITIONED UPON EXECUTION OF A
PUBLIC BENEFIT AGREEMENT (PBA) BY THE CITY
MANAGER; (2) APPROVING THE FORM OF A PUBLIC
BENEFIT AGREEMENT; AND (3) AUTHOR IZING THE CITY
MANAGER TO CONTINUE TO NEGOTIATE SAID PBA WITH
CMFA AND TO DETERMINE WHETHER OR NOT TO
EXECUTE SAID PBA
WHEREAS, pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of the
State of California (the “Act”), the City of Chula Vista (the “City”) and the California Municipal
Finance Authority (the “CMFA” and together with the City, the “Members”) propose to enter into
a Joint Exercise of Powers Agreement Relating to the CMFA Special Finance Agen cy (the
“Agreement”) in order to form the CMFA Special Finance Agency (the “Agency”) for the purpose
of promoting economic, cultural and community development and in order to exercise any powers
common to the Members or granted by the Act, including by the issuance of bonds, notes or other
evidences of indebtedness;
WHEREAS, the City has determined that it is in the public interest and for the public
benefit that the City become a Member of the Agency in order to facilitate the promotion of
economic, cultural and community development activities in the City, including the financing of
projects therefor by the Agency; and
WHEREAS, the Agreement has been filed with the City, and the members of the City
Council of the City (the “City Council”), with the assistance of its staff, have reviewed said
document; and
WHEREAS, the Authority is authorized to issue and sell revenue bonds for the purpose,
among others, of financing or refinancing the construction, acquisition and rehabilitation of capital
projects; and
WHEREAS, on October 26, 2021, the City adopted Policy No. 453-03 “Workforce
Housing to Serve Moderate Income Households” (the “Policy”) by Resolution No. 2021-199, to
guide review of applications for projects to address the “missing middle”; and
WHEREAS, among projects that may be financed by the Authority, the Authority proposes
to issue its governmental purpose revenue bonds (the “Bonds”) to finance the acquisition of The
Residences at Escaya multifamily housing development located at 1925 Avenida Escaya, Chula
Vista, CA 91913 (the “Project” or the “Workforce Housing Project”); and
2022/03/15 City Council Post Agenda Page 166 of 277
WHEREAS, the Authority proposes to grant to the City in connection with the financing
of the Workforce Housing Project the right to cause the Authority to sell such Project, starting
upon the date fifteen (15) years from the issuance of the Bonds pursuant to a Public Benefit
Agreement (the “Public Benefit Agreement” or “PBA”); and
WHEREAS, negotiations between the City and CMFA regarding the PBA have been on-
going, but are not complete; and
WHEREAS, due to market conditions and that CMFA has certain timelines to meet to issue
said Revenue Bonds, this Resolution will allow the City Manager to further negotiate with CMFA
and make such additional modifications to the proposed JPA that may be made or required by the
City Manager and City Attorney and consistent with Policy No. 453-03. This Resolution will
further allow the City Manager to determine whether to accept and execute the PBA (completing
negotiations and satisfying the conditions to enter into the Agreement and issue Revenue Bonds)
or to reject the PBA and not execute the PBA (ending negotiations and not entering into the
Agreement and not issuing Revenue Bonds); and
WHEREAS, the approval of and entry into the Agreement and issuance of Revenue Bonds
are conditioned upon the City Manager’s execution of a PBA between the City and CMFA.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL, AS FOLLOWS:
Section 1. The foregoing recitals are true and correct.
Section 2. The City hereby requests to become a Member of the Agency. The
Agreement is hereby approved and the Mayor or the designee thereof is hereby authorized to
execute said document, and the City Clerk or such Clerk’s designee is hereby authorized to attest
thereto.
Section 3. The issuance of Bonds shall be subject to the approval of the Agency of all
financing documents relating thereto to which the Agency is a party. Pursuant to Section 3(A) of
the Agreement and the Public Benefit Agreement, the City shall have no responsibility or liability
whatsoever with respect to the Bonds or any other debts, liabilities and obligations issued by the
Agency, and such Bonds and any other debts, liabilities and obligations of the Agency do not
constitute debts, liabilities or obligations of any Members including the City.
Section 4. The adoption of this Resolution shall not obligate the City or any
department thereof to (i) provide any financing to acquire or construct the Project or any
refinancing of the Project; (ii) approve any application or request for or take any other action in
connection with any planning approval, permit or other action necessary for the acquisition,
construction, rehabilitation or operation of the Project; (iii) make any contribution or advance any
funds whatsoever to the Agency; or (iv) except as provided in this Resolution, take any further
action with respect to the Agency or its membership therein.
Section 5. The executing officers(s), the City Clerk and all other proper officers and
officials of the City are hereby authorized to execute such other agreements, documents and
2022/03/15 City Council Post Agenda Page 167 of 277
Resolution No.
Page 3
certificates, and to perform such other acts and deeds, as may be necessary or convenient to effect
the purposes of this Resolution and the transactions herein authorized.
Section 6. That the City Council approves the PBA on file in the City Clerk’s Office,
in substantial form, subject to further negotiation with CMFA and with such additional
modifications which may be made or required by the City Manager and City Attorney and
consistent with Policy No. 453-03. The City Manager is further authorized to determine whether
to accept and execute the PBA (thereby completing negotiations and satisfying the conditions to
enter into the Agreement and issue bonds) or to reject the PBA and not execute the PBA (there by
ending negotiations and not entering into the JPA to issue Revenue Bonds).
Section 7. Sections 2 through 5 of this Resolution which authorize approval of the
Agreement and issuance of Revenue Bonds are conditioned upon execution of a PBA between the
City and CMFA by the City Manager and absent such execution by the City Manager, approval of
the Agreement and issuance of Revenue Bonds are not approved nor authorized.
Section 8. The City Clerk shall forward a certified copy of this Resolution and an
originally executed Agreement to the Agency:
Jones Hall, A Professional Law Corporation
475 Sansome Street, Suite 1700
San Francisco, California 94111
Attention: Ronald E. Lee, Esq.
Section 9. This resolution shall take effect immediately upon its passage.
Presented by Approved as to form by
Tiffany Allen Glen R. Googins
Director of Development Services City Attorney
2022/03/15 City Council Post Agenda Page 168 of 277
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA (1) APPROVING AND AUTHORIZING
EXECUTION OF A JOINT EXERCISE OF POWERS
AGREEMENT RELATING TO THE CSCDA COMMUNITY
IMPROVEMENT AUTHORITY AND APPROVING THE
ISSUANCE OF REVENUE BONDS BY THE AUTHORITY FOR
THE PURPOSE OF FINANCING THE ACQUISITION OF THE
CASALAGO EASTLAKE PROJECT CONDITIONED UPON
EXECUTION OF A PUBLIC BENEFIT AGREEMENT (PBA) BY
THE CITY MANAGER; (2) APPROVING THE FORM OF A
PUBLIC BENEFIT AGREEMENT; AND (3) AUTHORIZING
THE CITY MANAGER TO CONTINUE TO NEGOTIATE SAID
PBA WITH CSCDA AND TO DETERMINE WHETHER OR NOT
TO EXECUTE SAID PBA
WHEREAS, pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of the
State of California (the “Act”), certain public agencies (the “Members”) have entered into a Joint
Exercise of Powers Agreement Relating to the CSCDA Community Improvement Authority, dated
as of October 15, 2020 (the “Agreement”), in order to form the CSCDA Community Improvement
Authority (the “Authority”), for the purpose of promoting economic, cultural and community
development, and in order to exercise any powers common to the Members or granted by the Act,
including by the issuance of bonds, notes or other evidences of indebtedness; and
WHEREAS, the City of Chula Vista (the “City”), has determined that it is in the public
interest and for the public benefit that the City become an Additional Member of the Authority
pursuant to Section 12 of the Agreement in order to facilitate the promotion of economic, cultural
and community development activities in the City, including the financing of projects therefor by
the Authority; and
WHEREAS, the Agreement has been filed with the City, and the members of the City
Council of the City (the “City Council”), with the assistance of its staff, have reviewed said
document; and
WHEREAS, the Authority is authorized to issue and sell revenue bonds for the purpose,
among others, of financing or refinancing the construction, acquisition and rehabilitation of capital
projects; and
WHEREAS, on October 26, 2021 the City adopted Policy No. 453-03 “Workforce Housing
to Serve Moderate Income Households” (the “Policy”) by Resolution No. 2021 -199, to guide
review of applications for projects to address the “missing middle”; and
WHEREAS, among projects that may be financed by the Authority, the Authority proposes
to issue its governmental purpose revenue bonds (the “Bonds”) to finance the acquisition of the
2022/03/15 City Council Post Agenda Page 169 of 277
CasaLago Eastlake multifamily housing development located at 2816 Cielo Circulo, Chula Vista,
CA 91915 (the “Project” or the “Workforce Housing Project”); and
WHEREAS, the Authority proposes to grant to the City in connection with the financing
of the Workforce Housing Project, inter alia, the right to cause the Authority to sell such Project,
starting upon the date fifteen (15) years from the issuance of the Bonds pursuant to a Public Benefit
Agreement (the “Public Benefit Agreement” or “PBA”); and
WHEREAS, negotiations between the City and CSCDA regarding the PBA have been on-
going, but are not complete; and
WHEREAS, due to market conditions and that CSCDA has certain timelines to meet to
issue said bonds, this Resolution will allow the City Manager to further negotiate with CSCDA
and make such additional modifications to the proposed JPA that may be made or required by the
City Manager and City Attorney and consistent with Policy No. 453-03. This Resolution will
further allow the City Manager to determine whether to accept and execute the PBA (completing
negotiations and satisfying the conditions to enter into the Agreement and issue Revenue Bonds)
or to reject the PBA and not execute the PBA (ending negotiations and not entering into the
Agreement and not issuing Revenue Bonds); and
WHEREAS, the approval of and entry into the Agreement and issuance of Revenue Bonds
are conditioned upon the City Manager’s execution of a PBA between the City and CSCDA.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL, AS FOLLOWS:
Section 1. The foregoing recitals are true and correct.
Section 2. The City hereby requests to become a Member of the Agency. The
Agreement is hereby approved and the Mayor or the designee thereof is hereby authorized to
execute said document, and the City Clerk or such Clerk’s designee is hereby authorized to attest
thereto.
Section 3. The issuance of Bonds shall be subject to the approval of the Agency of all
financing documents relating thereto to which the Agency is a party. Pursuant to Section 3(A) of
the Agreement and the Public Benefit Agreement, the City shall have no responsibility or liability
whatsoever with respect to the Bonds or any other debts, liabilities and obligations issued by the
Agency, and such Bonds and any other debts, liabilities and obligations of the Agency do not
constitute debts, liabilities or obligations of any Members including the City.
Section 4. The adoption of this Resolution shall not obligate the City or any
department thereof to (i) provide any financing to acquire or construct the Project or any
refinancing of the Project; (ii) approve any application or request for or take any other action in
connection with any planning approval, permit or other action necessary for the acquisition,
construction, rehabilitation or operation of the Project; (iii) make any contribution or advance any
funds whatsoever to the Agency; or (iv) except as provided in this Resolution, take any further
action with respect to the Agency or its membership therein.
2022/03/15 City Council Post Agenda Page 170 of 277
Resolution No.
Page 3
Section 5. The executing officers(s), the City Clerk and all other proper officers and
officials of the City are hereby authorized to execute such other agreements, documents and
certificates, and to perform such other acts and deeds, as may be necessary or convenient to effect
the purposes of this Resolution and the transactions herein authorized.
Section 6. That the City Council approves the PBA on file in the City Clerk’s Office,
in substantial form, subject to further negotiation with CSCDA and with such additional
modifications which may be made or required by the City Manager and City Attorney and
consistent with Policy No. 453-03. The City Manager is further authorized to determine whether
to accept and execute the PBA (thereby completing negotiations and satisfying the conditions to
enter into the Agreement and issue bonds) or to reject the PBA and not execute the PBA (there by
ending negotiations and not entering into the JPA to issue Revenue Bonds).
Section 7. Sections 2 through 5 of this Resolution which authorize approval of the
Agreement and issuance of Revenue Bonds are conditioned upon execution of a PBA between the
City and CSCDA by the City Manager and absent such execution by the City Manager, approval
of the Agreement and issuance of Revenue Bonds are not approved nor authorized.
Section 8. The City Clerk shall forward a certified copy of this Resolution and
an originally executed Agreement to the Agency:
CSCDA Community Improvement Authority
1100 K Street, Suite 101
Sacramento, California 95814
Attention: Chair
Section 9. This Resolution shall take effect immediately upon its passage.
Presented by Approved as to form by
Tiffany Allen Glen R. Googins
Director of Development Services City Attorney
2022/03/15 City Council Post Agenda Page 171 of 277
Item 7.2
Attachment 1a
Draft City Workforce Housing PBA
CMFA for The Residences at Escaya
2022/03/15 City Council Post Agenda Page 172 of 277
4136-5162-3473.2
1
SS-3-8-22 V1
SS 3-11-22 V2
RECORDING REQUESTED BY
CMFA Special Finance Agency
WHEN RECORDED RETURN TO:
Jones Hall, APLC
475 Sansome Street, Suite 1700
San Francisco, CA 94111
Attention: Ron Lee
THIS DOCUMENT IS EXEMPT FROM RECORDING FEES PURSUANT TO SECTION 27383 OF THE
CALIFORNIA GOVERNMENT CODE
PUBLIC BENEFIT AGREEMENT
By and Between
CMFA SPECIAL FINANCE AGENCY
and
CITY OF CHULA VISTA
_________________________
Dated as of [DATE], 2022
_________________________
Relating to
CMFA SPECIAL FINANCE AGENCY
ESSENTIAL HOUSING REVENUE BONDS
(THE RESIDENCES AT ESCAYA)
2022/03/15 City Council Post Agenda Page 173 of 277
4136-5162-3473.2
1
PUBLIC BENEFIT AGREEMENT
This PUBLIC BENEFIT AGREEMENT (“Agreement ”) is dated as of [DATE] by and
between the CMFA SPECIAL FINANCE AGENCY (“CMFA”) a joint exercise of powers agency
organized and existing under the laws of the State of California (including its successors and
assigns, “Owner”) and the CITY OF CHULA VISTA (“Host”).
BACKGROUND
WHEREAS, Village of Escaya Apartments, LLC, a Delaware limited liability company
(“Existing Property Owner”), heretofore owned that certain parcel of real property consisting of a
multifamily rental housing project marketed as The Residences at Escaya (“the Project”) located
at 1925 Avenida Escaya, Chula Vista, California 91913, described in Exhibit “A” attached hereto;
and
WHEREAS, the Project is required to restrict thirty (30) rental units as affordable units
pursuant the City’s Inclusionary Housing Policy (“Existing Inclusionary Housing Requirements”),
which are subject to a Declaration of Covenants, Conditions and Restrictions and other attendant
documents (“Inclusionary Housing Documents”), which are hereby fully incorporated by reference
into this Agreement and attached as Exhibit “B” and to which Owner will accept an assignment,
which includes an extension of the term for said affordable housing requirements; and
WHEREAS, Owner proposes to issue Bonds (as hereinafter defined) to finance Owner’s
acquisition of the Project from Existing Property Owner, concurrently with the delivery of this
Agreement; and
WHEREAS, the Owner has executed a Regulatory Agreement and Declaration of
Restrictive Covenants between Owner and Wilmington Trust, National Association (“Bond
Trustee”), dated concurrently and recorded in the official records of San Diego County, California,
which imposes requirements upon the Project with respect to maximum income levels of tenants,
maximum rents payable by tenants, maintenance of the Project in accordance with industry
standards, and certain other matters (attached as Exhibit “C” and hereby fully incorporated by
reference into this Agreement); and
WHEREAS, in order for the Bonds, as defined below, to be issued Owner requires and is
requesting that Host enter into Joint Powers Agreement (“JPA”) with Owner; and
WHEREAS, as part of the JPA and Bond issuance, related property taxes on the Property
will be suspended, including property taxes due to the Host; and
WHEREAS, Owner and Bond Trustee will benefit by the Host’s approval of the JPA
because it will, inter alia, permit a Bond issuance to fund the acquisition of the Property and result
in the suspension of property tax on the Property during the term of this Agreement and Owner
and Bond Trustee agree that Host approval of the JPA is good, valuable, and sufficient
consideration; and
2022/03/15 City Council Post Agenda Page 174 of 277
4136-5162-3473.2
2
WHEREAS, as part of the JPA and Bond issuance, rents for units will have affordability
restrictions on the rental units, minus a manager’s unit, under the terms set forth in this Agreement
and related Regulatory Agreement; and
WHEREAS, as part of the JPA and Bond Issuance, the Host will have the right to cause the
sale of the Property, under the terms set forth herein and receive the sales proceeds as stated herein,
including an amount sufficient to recoup all suspended property taxes; and
WHEREAS, Owner and Trustee agree that the Host has an interest in the Property to ensure,
inter alia, that the middle-income housing requirements are met and maintained; that the Project
is financially well run; that the Project is not so encumbered by debt or other obligations that it
cannot operate the Project or pay the Bonds or other Project Debt in a timely fashion; pay, in a
timely fashion, all other debts that are due; have sufficient equity, at the time the Host’s right to
sale is exercised or Owner’s Request for Conveyance is approved by Host, to pay the Host as
required under this Agreement; and that the Property is well maintained and operated.
AGREEMENT
In consideration of the mutual covenants herein contained, and such other good and valuable
consideration the receipt and sufficiency of which is hereby acknowledged, Owner and Host
mutually agree as follows:
ARTICLE 1 RIGHT TO CAUSE SALE
Section 1. Right to Cause Sale. Host shall have the right (“Sale Right”), in its sole
discretion, to cause Owner to sell the Property (as herein defined) upon payment by the purchaser
thereof (the “Purchaser”) of the applicable Sale Price (as herein provided) during the Sale Right
Term as provided for in Section 4 or following the Sale Right Term as provided for in Section 5
hereof, in each case, in compliance with and observance of all of the terms and conditions of this
Agreement.
Section 2. Definitions. Capitalized terms used in this Agreement shall have the
meanings assigned to them in this Section 2; capitalized terms used in this Agreement and not
defined in this Section 2 or elsewhere herein shall have the meanings assigned to them in the
Indenture (herein defined).
(a) “Bonds” – collectively, the (i) CMFA Special Finance Agency Essential Housing
Senior Lien Revenue Bonds, Series 2022A-1 (The Residences at Escaya), (ii) CMFA Special
Finance Agency Essential Housing Senior Lien Revenue Bonds, Series 2022A-2 (The Residences
at Escaya), (iii) CMFA Special Finance Agency Subordinate Essential Housing Mezzanine Lien
Revenue Bonds, Series 2022B (The Residences at Escaya), and (iv) CMFA Special Finance
Agency Essential Housing Subordinate Lien Revenue Bonds, Series 2022C (The Residences at
Escaya), with such other series and sub-series designations as may be set forth in the Indenture,
originally issued to finance Owner’s acquisition of the Project and related transaction costs.
(b) “Bond Trustee” – Wilmington Trust, National Association, or any successor
trustee under the Indenture.
2022/03/15 City Council Post Agenda Page 175 of 277
4136-5162-3473.2
3
(c) “Closing” – shall have the meaning set forth in Section 8 hereof.
(d) “Conveyance” – that transaction or series of transactions by which Owner shall
transfer, sell and convey any and all right, title or interest in and to the Property pursuant to this
Agreement.
(e) “Extraordinary Costs and Expenses” – shall have the meaning set forth in the
Indenture.
(f) “Host Charge” shall have the meaning set forth in [Section 33(O)] hereof.
(g) “Indenture” – the Trust Indenture between Owner, as issuer, and Bond Trustee,
as trustee, pursuant to which the Bonds were issued.
(h) “Minimum Sale Price” –the lowest price at which the Property may be sold, as
described in Section 4(d) hereof.
(i) “Monitoring Fee” the annual monitoring fee payable by Owner to Host pursuant
to [Section 32 ] hereof.
(j) “Outstanding” – with respect to Bonds, as of any given date, all Bonds which
have been authenticated and delivered by the Bond Trustee under the Indenture, except: (i) Bonds
cancelled at or prior to such date or delivered to or acquired by the Bond Trustee at or prior to such
date for cancellation; (ii) Bonds deemed to be paid in accordance with Article [VIII] of the
Indenture; and (iii) Bonds in lieu of which other Bonds have been authenticated under the
Indenture.
(k) “Owner Indemnified Person” – Owner and each of its officers, governing
members, directors, officials, employees, attorneys, agents, and members.
(l) “Project” - the multi-unit multifamily rental housing development to be located
in the City of Chula Vista on the real property site described in Exhibit A hereto, consisting of
those facilities, including real property, structures, buildings, fixtures or equipment situated
thereon, as it may at any time exist, the acquisition of which facilities is to be financed, in whole
or in part, from the proceeds of the sale of the Bonds, and any real property, structures, buildings,
fixtures or equipment acquired in substitution for, as a renewal or replacement of, or a modification
or improvement to, all or any part of the facilities described in the Deed of Trust securing the
Bonds.
(m) “Project Administration Agreement” - the Project Administration Agreement
between Owner and Project Administrator for the Project, dated as of _______, 2022.
(n) “Project Administrator” – HomeFed Corporation, a California corporation, and
its successors and assigns.
(o) “Project Debt” – any debt secured by the Project and incurred to finance or
refinance Owner’s acquisition of the Project and related transaction costs, including any portion
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of the Bonds and any bonds, notes or other indebtedness incurred by Owner to improve the Project
or to refund the Bonds in whole or in part, approved by Host under the terms hereof, if required.
(p) “Property” –all of Owner’s right, title and interest (which includes fee simple title
to the real property) in and to all property and assets used in or otherwise related to the operation
of the Project, including, without limitation, all real property and interests in real property, all
tangible and intangible personal property including furniture, fixtures, equipment, supplies,
intellectual property, licenses, permits, approvals, and contractual rights of any kind or nature
together with the right to own and carry on the business and operations of the Project.
(q) “Property Manager” shall have the meaning set forth in Section [33(O)] hereof.
(r) “Regulatory Agreement” – the Regulatory Agreement and Declaration of
Restrictive Covenants by and between Owner and Bond Trustee, relating to operation of the
Project.
(s) “Sale Price” – the purchase price of the Property to be paid by the Purchaser upon
sale of the Property by Owner pursuant to Host’s Sale Right in compliance with Section 4 or
Owner’s Request for Conveyance in compliance with Section 5 hereof.
(t) “Sale Right” –the right of Host to cause Owner to sell the Property pursuant to
Section 1 hereof.
(u) “Sale Right Term” –the time period during which Host may exercise its Sale Right
hereunder pursuant to the terms of Section 4 hereof, commencing upon the fifteenth anniversary
of the issuance of the Bonds and terminating on the date upon which all Project Debt is retired, at
which point Host’s Sale Right under the terms of Section 5 hereof shall arise.
(v) “Transaction Costs” – to the extent not otherwise described herein, any costs or
expenses of any kind or nature associated with or incurred by Owner and/or Bond Trustee in
connection with the consummation of the Conveyance, regardless of whether such costs and
expenses are customarily borne by the seller or purchaser in any such transaction, including but
not limited to taxes, recording fees and other impositions, Owner’s and Bond Trustee’s legal and
other professional fees, fees for verification agents, bidding agents, escrow agents, custodians or
trustees, assumption fees, prepayment fees, the cost of the appraisal, brokers’ fees and expenses,
surveys, inspections, title commitments, title insurance premiums and other title-related fees, and
all amounts required for indemnification of Owner, Bond Trustee and Project Administrator.
(w) “Middle-Income Affordable Unit(s)” or “Middle-Income Units” – means all rental
units within the Property, except those that are on-site manager units. All Middle-Income
Affordable Units shall be subject to Article 3 that provides for, inter alia, rent restrictions as
provided in Section 22 hereof and shall only be occupied by income-eligible tenants as and to the
extent provided in the Regulatory Agreement.
Section 3. Effectiveness; Term and Termination. The Sale Right shall become and
remain effective during the Sale Right Term. Owner agrees that it will not enter into any agreement
to sell or otherwise transfer or convey any ownership interest in all or any part of the Property
during the Sale Right Term other than as may be allowed or required by the Indenture in the event
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of default under the terms of the Indenture, without (i) the prior written approval or the specific
written request of the Host, and (ii) delivery of an Opinion of Bond Counsel to the Owner
substantially to the effect that such sale will not, in and of itself, adversely affect the exclusion of
interest on the Bonds from gross income for purposes of federal income taxation.
Section 4. Manner of Exercise of Sale Right.
(a) Host’s Notice. To exercise the Sale Right, Host shall provide a notice (an
“Exercise Notice”) to Owner (with a copy to the Project Administrator) at any time during the Sale
Right Term.
(b) Sale of Property to or as Directed by Host. Unless Host notifies Owner in writing
that it is withdrawing its Exercise Notice within fifteen (15) business days of delivering the
Exercise Notice under Section 4(a) hereof, Owner shall be obligated to use its best efforts to sell
good and marketable title to the Property within one hundred and twenty days (120) days
following receipt of the Exercise Notice or as soon as possible thereafter, at a price acceptable to
Host that is at or above the Minimum Sale Price (defined below) and otherwise on the terms set
forth in this Agreement. The time frame to sell the Property may extended by Host upon written
notice to Owner. The purchase and sale agreement shall be in commercially standard form
acceptable to Host in its reasonable discretion. Notwithstanding the foregoing, during the Sale
Right Term, Host may instead direct Owner to sell the Property to any party designated by Host,
or to Host itself, at a price designated by Host at or above the Minimum Sale Price, and Owner
shall follow such directions. Owner shall incur no monetary liability to any party as a result of or
otherwise in connection with the sale or failure to sell the Property as provided in this section.
Owner shall direct the Bond Trustee to cooperate in the foregoing as and to the extent necessary
or appropriate, and to the extent it is within the Owner’s legal authority so to direct.
(c) Owner’s Best Efforts to Sell. Owner shall exercise its best efforts in selling and
conveying good and marketable title to the Property. The obligation of Owner to sell and convey
the Property shall be on a best-efforts basis. Owner shall endeavor to sell the Property at a com-
mercially reasonable price, subject to subsection (d) of this Section, by such means as it shall
determine to be suitable for such purpose, and Owner shall incur no liability to any party as a result
of or otherwise in connection with the sale or failure to sell. Subject to subsection (d), nothing
herein shall require or prevent Owner selling the Property subject to the restrictions set forth in the
Regulatory Agreement or similar types of restrictions established by Owner with the approval of
Host. Owner shall direct the Bond Trustee in the foregoing as and to the extent necessary or
appropriate.
(d) Sale Price. The Sale Price for any sale of the Property under this Section 4 or
Section 5 shall be at least equal to the sum of the amounts set forth below (net of any adjustments
or prorations of the type described in Section 8(b)) (the “Minimum Sale Price”):
i. An amount sufficient to either prepay, redeem in whole or fully defease for
redemption on the earliest call date all Project Debt; plus
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ii. Any fees or other amounts not identified in clause (i) that may be necessary
to affect the complete discharge of the Indenture and the complete release
from and discharge of any lien, mortgage, or other monetary encumbrance
on the Property; plus
iii. All amounts required to pay the Host for all property taxes that were
suspended during the term of this Agreement, including all amounts which
would have been collected for all the affected taxing entities, minus any
amounts paid to Host via the Host Fee, which amounts would be provided
solely to Host as part of the sale; plus
iv. Any unpaid Host Fee or Monitoring Fee, including accrued and unpaid
interest thereon, if any; plus
v. Any amounts due to Owner (including Owner Indemnified Persons, as
provided in the Indenture), the Bond Trustee, the Property Manager, the
Project Administrator, or any predecessor or successor, or any other Person
under any indenture, loan agreement, bond, note, or other instrument
relating to any Project Debt (including, without limitation, indemnification
amounts, Owner’s Extraordinary Costs and Expenses, recurrent and
extraordinary fees and expenses, and reimbursable costs and expenses of
any kind or nature); plus
vi. Transaction Costs; minus
Any funds held by or for Owner under the Indenture applied to the retirement of Project Debt.
Owner shall retain all moneys in the Extraordinary Expense Fund and may, in addition retain such
portion of moneys in the Rebate Fund and in any other funds it deems reasonable as a reserve
against future expected costs and expenses of the type described in subparagraph [(v.]. Prior to the
closing of any Conveyance of the Property, Owner shall provide to Host for Host’s review and
approval an estimate of each component of the proposed Minimum Sales Price, including a
detailed list of any and all fees and costs. Prior to the closing of a Conveyance, Owner shall
provide, or cause to be provided, a detailed accounting of the actual amounts for such components.
The cost of preparing such estimates and accounting shall be Transaction Costs reimbursable to
Owner.
At the election of Host, in its sole discretion, the Minimum Sale Price may be reduced by some or
all of the amounts otherwise owed to Host under [subparagraph (iii) and (iv)], above.
Section 5. Mandatory Conveyance after Retirement of Project Debt. Upon the
retirement of all Project Debt, Owner shall use its best efforts to effect a Conveyance to a third
party within one hundred and twenty days (120) or as soon as possible thereafter, subject to Section
4(d) hereof; provided, however, that Host, by notice to Owner within sixty (60) days after notice
from Owner that no Project Debt remains outstanding, may direct Owner to transfer the Property
to Host or any person designated by Host for a price determined by Host at or above the Minimum
Sale Price and Owner shall do so. Host may extend the aforementioned time frames by providing
written notice to Owner. Nothing herein shall require or prevent Owner selling the Property
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subject to the restrictions set forth in the Regulatory Agreement or similar types of restrictions
established by Owner with the approval of Host.
Section 6. Surplus Cash; Surplus Conveyance Proceeds.
Upon any Conveyance of the Property, Owner shall apply the proceeds of such Convey-
ance (i) to redeem the Bonds then Outstanding, (ii) to prepay, redeem in whole or fully defease
any other Project Debt, and (iii) to pay any fees or other amounts listed in Section 4(d)(ii) – ([v]).
Any proceeds remaining following the foregoing payments (such remaining amounts hereinafter
referred to as “Surplus Conveyance Proceeds”) shall be transferred to Host and Host may use
such Surplus Conveyance Proceeds as it determines appropriate in its sole discretion. Owner
shall provide Host a full accounting of the distribution of such proceeds.
Section 7. Terms of Conveyance.
(a) The Conveyance shall be in the nature of a grant deed to Purchaser in which
Owner shall deliver one or more deeds, bills of sale, or other instruments of transfer without
recourse or warranty of any kind or nature (except as provided at Section 7(b) and 7(d)); provided
that Owner shall provide an ALTA owner’s policy of title insurance, the cost of which shall be a
Transaction Cost and at no cost to Owner. If Purchaser is either Host or Host’s designee, Owner
and the Purchaser shall enter into a purchase and sale agreement consistent with the terms of this
Agreement and in commercially reasonable form as approved by Owner and Host.
(b) The Property will be conveyed to Purchaser in AS IS CONDITION, WITH ALL
FAULTS, and without representations or warranties of any kind or nature as to the condition of
the Property; provided that Host may require disclosure by Owner, Property Manager and Project
Administrator of the physical conditions of the Property actually known by the persons employed
by those entities with principal responsibilities that encompass the physical operation and
maintenance of the condition of the Property. In addition, Owner, Property Manager and Project
administrator shall provide to Host or its designee the financial statements for the operation of the
Property for the immediately prior five (5) years, and all financial records pertaining to amounts
then due and owing at the close of escrow and thereafter. Host is not required to accept the property
in an “AS CONDITION WITH ALL, WITH ALL FAULTS.” Host may require a Due Diligence
period as set forth in Section 7(d) and may require that Owner cure issues identified in the Host’s
Due Diligence.
(c) There shall be no partial transfer and, upon consummation of the Conveyance,
Owner shall be fully divested of any and all right, title or interest in and to the Property.
(d) Notwithstanding Section 7(b), Host shall have right to conduct Due Diligence on
the Conveyance of the Property to the Host prior to any Conveyance as follows:
1. Host’s obligation to purchase the Property is expressly conditioned on Host’s approval of the
condition of title of the Property in accordance with the following:
(i) Owner shall provide the following: (1) a preliminary title report, together with
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a legible copy of all Exceptions shown in the preliminary title report, including
each document referred to in the preliminary title report and (2) an Environmental
Assessment Report (“ESA”). The parties agree that the findings stated in the ESA
Report will serve as the baseline for the environmental condition of the Property
as of the Closing Date.
(ii) Host’s Approval of Preliminary Title Report. Host will have forty-five (45)
days after receipt to review the preliminary title report and to deliver written no
tice of any objection to the Exceptions and other matters disclosed therein (Title
Objection”) to Owner.
(iii) Permitted Exceptions. The following Exceptions may be approved by
Host, including but not limited to: (i) any lien for local real estate Taxes and
assessments not yet due or payable, including (without limitation) special Taxes und
er Gov. Code §§53311-53368.3 or installment assessments under Streets & High
ways Code §§85008887; (ii) the standard preprinted exceptions and exclusions of
the Title Company; (iii) any matters approved or deemed approved by Host
pursuant to this Section 7; and (iv) any matters which would be disclosed by an
accurate rate survey or physical inspection of the Property (collectively, “Permitted
Exceptions”).
(iv) Title Objections. With respect to any Title Objection, Owner will have thirty
(30) days after receipt of Host’s Title Objection to give notice to Host in writing,
stating either (i) the manner in which Owner will remove or cure such Title Objection or
(ii) that Owner will not remove or cure such Title Objection. If Owner
fails to deliver such notice within the time specified herein, Owner shall be
deemed to have elected not to remove or cure such Title Objection.
(v) Owner Elects Not to Cure. If Owner elects not to cure or remove a Title
Objection (or is deemed to have so elected), or Owner’s cure is not acceptable to
Host, then Host will have thirty (30) days thereafter to provide Owner with
written notice that Host (i) accepts the matters disclosed in the preliminary title
report, waive such Title Objection, and accept the Exception shown in the preliminary
title report as a Permitted Exception or (ii) is terminating the Conveyance to the
Host.
(vi) Additional Encumbrances. If any encumbrance or other Exception to title
arises or is discovered after the delivery of the preliminary title report, the party
discovering such additional encumbrance must promptly give written notice to the
other. No later than five (5) days after delivery of the notice of such additional
encumbrance, Host will deliver written notice to Owner specifying whether the
additional encumbrance is a Title Objection or a Permitted Exception. If Host
objects to the additional encumbrance, the parties will proceed in the same manner
as set forth above for Title Objections in Sections (d)(1)(iv)-(v).
2. Host’s obligation to purchase the Property is expressly conditioned on its approval, in its sole
discretion, of the condition of the Property and all other matters concerning the Property,
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including without limitation economic, financial, and accounting matters relating to or affecting
the Property, its operations (including operating expenses), or its value, title (Section (d)(1)),
and the physical and environmental condition of the Property. Host will have one hundred eighty
(180) days after written notice that Owner is making a Conveyance of the property under the
terms of this Agreement to Host (“Due Diligence Period”) to conduct such investigations as Host
may choose (“Due Diligence”) to determine whether this contingency is met. Host and Host’s
representatives will be given reasonable access to the Property during regular business hours for
the purpose of performing such Due Diligence.
3. On or before expiration of the Due Diligence Period, Host will deliver written notice to
Owner that it elects to proceed with the Conveyance of the Property to Host by Owner. Host
may extend the Due Diligence Period by providing notice to Owner.
Section 8. Closing.
(a) The closing of the Conveyance (“Closing”) shall take place, in the case of a
Conveyance pursuant to Section 4 hereof, not later than the one hundred and twentieth (120)
calendar day following Owner’s receipt of the Exercise Notice, or as soon as possible thereafter,
or a date designated by Host via written notice and in the case of a mandatory Conveyance pursuant
to Section 5 hereof, not later than the one hundred and twentieth day (120) calendar day or as soon
as possible thereafter or to a date designated by Host following the later of (i) the retirement of all
Project Debt, or (ii) Owner's receipt of Host’s notice of its election to cause a Conveyance to Host
or Host’s designee.
(b) Prorations. All general and special real property taxes and assessments, and rents
shall be prorated as of the Closing, with Purchaser responsible for all such items to the extent
arising or due at any time following the Closing and Owner responsible for all such items to the
extent arising or due prior to the Closing. General real property taxes shall be prorated at the time
of Closing based on the net general real property taxes for the year of Closing.
Section 9. Recording. This Agreement, and any amendment thereto, shall be recorded
with the recorder’s office of the County; provided, that upon termination of the term of this
Agreement, Host shall cooperate with Owner to remove any such recorded Agreement or
amendment thereto from title to the Property upon Owner’s reasonable request therefor and, in any
event, by no later than thirty (30) days after the expiration of the original term of this Agreement.
Section 10. Conflicts with Regulatory Agreement. In the event of any conflict between
the terms of the Regulatory Agreement and this Agreement, the specific terms and requirements
set forth in the Regulatory Agreement shall prevail, except for the Inclusionary Housing Units
which are subject to the Inclusionary Housing Documents.
Section 11. Maintenance of Membership. To the extent required in order to preserve
the Property’s exemption from property tax or to preserve the tax-exempt status of interest on the
Bonds, Host agrees to remain a member of Owner’s joint powers authority so long as any Bonds
remain Outstanding.
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Section 12. Assignment. Neither party to this Agreement may assign its interests,
obligations, rights and/or responsibilities under this Agreement without the prior written consent
of the other party.
Section 13. Tenant Displacement. Owner shall provide a minimum 120 days’ notice of
any pending Conveyance (right to sale or mandatory conveyance) to all tenants (or such shorter
amount of notice as may be permitted by Owner’s obligations to affect a Conveyance hereunder).
If a tenant is required to move from the Property, Owner shall provide such tenant household the
greater of (a) the cash equivalent of three months’ rent as relocation assistance, or (b) the relocation
assistance required by then applicable state law or local law, provided that the costs thereof are
Transaction Costs and payable solely from the sale proceeds of the Property.
Section 13.5 Limitation on Liability. The Bonds will not be a debt, liability or obligation
of Host but, rather, solely indebtedness of the Owner, limited to the Trust Estate pledged and
available therefor under the Indenture. Under no circumstances shall Host be obligated to
(i) provide any financing to acquire or construct the Project or any refinancing of the Project;
(ii) approve any application or request for or take any other action in connection with any planning
approval, permit or other action necessary for the acquisition, construction, rehabilitation or
operation of the Project; or (iii) make any contribution or advance any funds whatsoever to the
Owner.
ARTICLE 2 PROTECTION OF PROJECT/PROPERTY
Section 14. No Delay in Bond Payments. Owner shall ensure that all required Bond
payments are timely made and not delayed as and to the extent required by the Indenture. Owner
shall not refinance or restructure the Bonds so that the amount due (including but not limited to
principal and interest) on the Bonds are increased or the payment period is extended without the
prior written approval of Host.
Section 15. Debt Service Coverage Ratio. Owner shall maintain a minimum debt
service coverage ratio as and to the extent required by the Indenture.
Section 16. No Equity Loans/Sale. Owner shall not encumber the Property with any
type of debt instrument using the Property as collateral of any type without the prior written
consent of Host. Owner may not sell all or any part of the Property without prior written consent
of Host. Owner shall provide the Host any and all information requested by the Host when
requesting consent as set forth in this Section 16.
Section 17. Reserved.
Section 18. Foreclosure on the Property. The Host acknowledges that this Agreement
is subordinate in lien priority to the Deed of Trust securing the Bonds, and that foreclosure of such
Deed of Trust will wipe out this Agreement by operation of law.
Section 19. Maintenance/Physical Condition of Property. Owner shall continually main-
tain the Property (including all residential units) as and to the extent required by the Indenture
and the Regulatory Agreement. Host shall have the right to inspect the Project from time to
time, including reasonable access into individual units from time to time, on reasonable notice
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and during normal business hours, with approval of the occupying tenants, in order to verify
compliance with the foregoing maintenance covenant. Further, each Workforce Affordable Unit
shall be requalified annually, as to the foregoing maintenance covenant, as part of the annual ten-
ant requalification process described in Section 26 below. Any deficiencies in the physical con-
dition of the Property or a Workforce Affordable Unit shall be corrected by Owner at Owner’s
expense within thirty (30) days of the identification of such deficiency by Host and delivery of
written notice of the same to Owner (unless such deficiency is not capable of being cured within
such thirty (30) day period, then such amount of time as Host determines is needed, not to ex-
ceed one hundred twenty (120) days, provided Owner commences cure within such thirty (30)
day period and continues to diligently pursue cure). Owner shall establish and fund the Operat-
ing Reserve Fund (as defined in the Indenture) in an amount as required by the Indenture to en-
sure adequate funds are available to pay for capital repairs as required to maintain the Property as
required by this Section.
Section 20. Reserved.
Section 21. Enforcement; Remedies.
(a) Standing; Equitable Remedies; Remedies Cumulative. Owner expressly agrees
and declares that Host or any successor public agency shall be the proper party and shall have
standing to initiate and pursue any and all actions or proceedings, at law or in equity, to enforce
all the provisions this Agreement and/or to recover damages, including compensatory damages,
for any act or omission constituting a default or failure to perform any of the terms of the Agree-
ment hereunder and which act or omission remains uncured following sixty (60) days’ written
notice to Owner by Host (or up to one hundred eighty (180) days after notice, if actions to cor-
rect the material default have been timely initiated and are, in the reasonable opinion of Host, be-
ing diligently pursued), notwithstanding the fact that such damages or the detriment arising from
such a default or failure to perform the terms of this Agreement that remains uncured as afore-
said may have actually been suffered by some other person or by the public at large. Further,
Owner expressly agrees that injunctive relief and specific performance are proper pre-trial and/or
post-trial remedies hereunder to assure compliance with this Agreement. The remedies set forth
in this Section are cumulative to any other remedies that may be had and not mutually exclusive,
except to the extent that their award is specifically determined to be duplicative by final order of
a court of competent jurisdiction.
(b) Excess Rents. If the default in question involves the collection of rents in excess
of the rents permitted hereunder, the amount of such compensatory damages shall be the product
of multiplying: (a) the number of months that the default in question has continued until the time
of trial by (b) the result of subtracting the rents properly chargeable hereunder for the Affordable
Units in question from the amount actually charged for those Affordable Units. Owner and Host
agree that it would be extremely difficult or impracticable to ascertain the precise amount of ac-
tual damages accruing to Host as a result of such a default and that the foregoing formula is a fair
and reasonable method of approximating such damages. The Host shall be entitled to seek and
to recover damages in separate actions for successive and separate breaches which may occur.
Further, interest shall accrue on the amount of such damages from the date of the breach in ques-
tion at the rate of ten percent (10%) per annum or the maximum rate than allowed by law, which-
ever is less.
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ARTICLE 3 MIDDLE-INCOME AFFORDABILITY REQUIREMENTS
Section 22. Middle-Income Affordable Unit Restrictions. The Project shall be rent
restricted as set forth in Section XXX of the Regulatory Agreement, which includes, but is not
limited to, the maximum amounts of rents that may be set and the percentages of units to be rented
as Low-Income Units, Median Income Units and Moderate-Income Units. Owner shall report to
Host annually or upon request any information requested by Host to ensure compliance with this
Section 22, including, but not limited the rents set per unit, the percentages of units to be rented
as Low-Income Units, Median Income Units and Moderate-Income Units, and unit distribution
within the Project. Owner shall not amend the Regulatory Agreement to increase the maximum
income levels or maximum rents of the Affordable Units, or to revise the percentages of units to
be rented as Low-Income Units, Median Income Units and Moderate-Income Units, without the
prior written approval of Host. Owner shall comply with such provisions of the Regulatory Agree-
ment.
Section 23. Occupancy by Eligible Tenants. During the term of this Agreement all
Workforce Units shall be occupied only by Eligible Tenants as set forth in Section XXX of the
Regulatory Agreement. For Affordable Units subject to the Inclusionary Housing Requirements,
they shall be subject to the Inclusionary Housing documents.
Section 24. Rent Adjustment. Rents may be increased (up to 4% annually) or de-
creased (to the applicable rent category) as set forth in Section XXX of the Regulatory Agreement.
Section 25. Workforce Marketing Plan Compliance; Selection of Residents.
(a) Marketing Plan. Owner shall, at a minimum, utilize the Host’s standardized man-
agement and affirmative fair marketing plan for rental of all of the Workforce Units. The affirm-
ative fair marketing plan, at a minimum, requires publicizing the availability of the Workforce
Affordable Units within the City, such as notices in any Host-sponsored newsletter, advertising in
local newspapers and notice in City offices, particularly in areas of the community and in media
forms to reach the targeted groups. In addition, within _______ days after closing, Owner shall
update the Project’s website to reflect the terms and conditions of this Agreement and any Regu-
latory Agreement that governs the occupancy requirements of the Project (affordability levels,
etc.). Owner shall ensure that all previous market rate advertising is updated to reflect that the
Project is now a work force housing project. This includes updating third party websites such as
rent café, apartments.com, apartment finder, etc.). As provided above at Section 23, all tenants of
a Workforce Affordable Unit shall meet the requirements to be an Eligible Tenant. The manage-
ment marketing plan shall be in conformance with the terms and standards set forth in this Agree-
ment. No preference may be used for the purpose or effect of delaying or otherwise denying
admission to the Property or unit based on the race, color, ethnic origin, gender, religion, disability,
or age of any member of an applicant household.
(b) Affirmative Marketing. The Project will maintain a waiting list and follow the af-
firmative marketing procedures in compliance with HCD’s Affirmatively Furthering Fair Housing.
(c) No Discrimination. Owner shall not discriminate in renting units against voucher
holders including those receiving rental assistance from any local, federal, state, or non-profit
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agency nor shall there be any form of discrimination or denial of use based on a Tenant’s affordable
housing rental status or income in their use of Project services, facilities, entrances, or amenities.
(d) Screening. Nothing herein shall restrict Owner from screening tenants through the
application of criteria which is lawful and customary in apartment management in San Diego
County and otherwise consistent with federal, state, and local regulations and restrictions related
to the financing for the Project. In reviewing and considering applications from prospective ten-
ants, the Owner shall provide a preference to households which include one or more persons who
live, work, or have been hired to work in the City, have graduated from a City high school, are
employed by a public school district in the City, and/or are employed as a first responder.
Section 26. Determination; Annual Requalification. Owner shall obtain from each
person to whom Owner leases a Workforce Affordable Unit a “Tenant Income Certification”
(“TIC”) in the form of Exhibit “D”, attached hereto (or such other reasonable form as Host may
from time to time adopt). Owner shall be entitled to rely on the TIC and supporting documents
thereto in determining whether a household is an “Eligible Tenant” as may be established in
Owner’s application review guidelines. Owner shall retain the TIC and supporting documents for
a period of not less than three (3) years after the applicant ceases to occupy a Workforce Affordable
Unit. A Workforce Affordable Unit occupied by an Eligible Tenant, shall be treated as an Eligible
Tenant until a recertification of such tenant’s income demonstrates that such tenant no longer qual-
ifies as an “Eligible Tenant.”
Owner is required to recertify existing Eligible Tenants for continuing eligibility within
ninety (90) days of the annual renewal of each tenant lease. Owner shall require all existing Eli-
gible Tenants to complete a Recertification TIC and review such TIC to determine eligibility for
occupancy of a Workforce Affordable Unit.
Section 27. Certification; Annual Recertification. Within ninety (90) days of execu-
tion of this PBA by all required Parties and annually each year during of the term of this Benefit
Agreement, Owner shall certify to the Host under penalty of perjury, utilizing such forms and
providing such backup documentation as requested by the Host.
Section 28. Increased Income of Tenants. Section X of the Regulatory Agreement
shall govern, where, upon recertification of the income of an Eligible Tenant of a Workforce Af-
fordable Unit, the Owner determines that such Tenant’s income exceeds the applicable income
restrictions.
Section 29. Additional Limitations on Tenants. The following restrictions shall also
be applicable to the Affordable Unit:
(a) Relationship with Owner, Bond Trustee, Property Manager and Project Adminis-
trator. The Workforce Affordable Unit shall not be occupied by or leased to Owner, Bond Trustee,
Property Manager or the Project Administrator, or any individuals who are partners or shareholders
in Owner, Property Manager, Project Administrator or Bond Trustee or in any entity having an
interest in Owner, Bond Trustee, Property Manager or Project Administrator or in the Property,
officer, employee, agent, or consultant of the Owner, Bond Trustee, Property Manager or Project
Administrator or any relative thereof (by blood or marriage).
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(b) Owners of Real Property. The Workforce Affordable Unit shall not be occupied
by or leased to any person or any household comprised of one or more persons who own real
property.
(c) Liquid Asset Limitation. The Workforce Affordable Unit shall not be occupied by
or leased to any person or household holding, directly or indirectly, liquid assets whose aggregate
value exceeds, at the time of determination of eligibility, sixty-five percent (65%) of the then-
current annual Area Median Income. As used herein, the term “liquid assets” refers to cash and
assets which are readily convertible to cash within a reasonable period, including but not limited
to savings and checking accounts, certificates of deposit of any term, marketable securities, money
market and similar accounts, mutual fund shares, and insurance policy cash values. The term
“liquid assets” shall not include retirement funds which are not readily accessible, or which cannot
be accessed by the buyer without the buyer incurring a penalty.
Section 30. Additional Lease Provisions/Annual Income Verification. Owner
agrees that it will require each Eligible Tenant to execute an Authorization for Release of Infor-
mation, in the form attached hereto as Exhibit “E.” Owner agrees that it will include the following
provision in all of its leases:
“Lessee agrees, upon written request from the Landlord or the City of Chula Vista
(“City”), to certify under penalty of perjury the accuracy of all information provided
in connection with the examination or reexamination of annual income of the ten-
ant’s household. Further, tenant agrees that the annual income and other eligibility
requirements are substantial and material obligations of the tenancy and that the
tenant will comply promptly with all requests for information with respect to the
tenancy from the Landlord and/or City. Further, tenant acknowledges that tenant’s
failure to provide accurate information regarding such requirements (regardless of
whether such inaccuracy is intentional or unintentional) or the refusal to comply
with the request for information with respect thereto, shall be deemed a violation
of this lease provision, and a material breach of the tenancy and shall constitute
cause for immediate termination of the tenancy.”
Section 31. Monitoring. It is contemplated that, during the term of this Agreement, the
Host will perform the following monitoring functions. Notwithstanding the following description
of the Host’s functions, Owner shall have no claim or right of action against the Host based on any
alleged failure to perform such function. In addition, the Owner shall cooperate with and utilize
such forms, software, websites, and third-party vendors as may be required by the Host. Host will
endeavor to complete the following:
(a) Prepare and make available to Owner any general information that the Host pos-
sesses regarding income limitations and restrictions which are applicable to the Workforce Afford-
able Units;
(a) Review the documentation submitted by Owner in connection with the annual cer-
tification process for Eligible Tenants described in Section 26, above; and,
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(b) Inspect the Affordable Units to verify that they are being maintained in accordance
with Section 19, above.
Section 32. Owner Required to Pay Occupancy Monitoring Fees. Owner, or Bond
Trustee on its behalf, shall pay to Host on each anniversary of the date hereof, commencing with
the first anniversary and terminating upon Conveyance, an annual monitoring fee of $ _______
with annual increases of three percent (3.00%). The annual monitoring fee shall be paid to Host
annually within thirty (30) days after Host provides a written invoice for the same. Amounts of
the monitoring fee not paid within thirty (30) days after deliver of written invoice for the same
shall bear interest at the per annum rate of 8.00%, compounded annually, from the date of the
invoice until paid. In addition, failure to timely pay such fees shall constitute a material default
under this Agreement.
Section 32.5. Existing Inclusionary Housing Obligations. Escaya Property Owner is
required to provide thirty (30) affordable units (moderate) pursuant the City’s Inclusionary Hous-
ing Policy at the Property and in that regard Escaya Property Owner has previously executed In-
clusionary Housing Documents, binding it to its Inclusionary Housing Obligations. Owner
agrees to accept and execute an Assignment and Assumption agreement in a form acceptable to
Host. As a result of said Assignment and Agreement Owner agrees to undertake and assume all
the requirements, terms, burdens, and obligations of said Inclusionary Housing Obligations as set
forth in the Inclusionary Housing Documents with the additional requirement that the term of the
Inclusionary Housing Obligations shall be extended to run with the term of this Agreement. Not-
withstanding anything to the contrary in this Agreement, in the event of any conflict between this
Agreement and the Inclusionary Housing Documents, the Inclusionary Housing Documents shall
govern, except for the monitoring, whose reimbursement of cost is set forth in Section 32 of this
Agreement during the term of this Agreement. The Assignment and Assumption Agreement
shall run with the land and be recorded, in a manner and form acceptable to the Host.
ARTICLE 4 MISCELLANEOUS PROVISIONS
Section 33. Miscellaneous Provisions.
A. Notices. All notices provided for in this Agreement shall be in writing and shall be given
to Owner or Host at the address set forth below or at such other address as they individually
may specify thereafter by written notice in accordance herewith:
If to Owner: CMFA Special Finance Agency
2111 Palomar Airport Road, Suite 320
Carlsbad, CA 92011
Attention: Financial Advisor
With a copy to: Property Manager
Attention:
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If to Host: City of Chula Vista
276 4th Avenue, Building A
Chula Vista, California 91910
Attention: Housing Manager
With Copy to: City of Chula Vista
276 4th Avenue, Building A
Chula Vista, California 91910
Attention: City Attorney
Such notices shall be deemed effective upon actual delivery or upon the date that any such delivery
was attempted and acceptance thereof was refused, or if mailed, certified return receipt requested,
postage prepaid, properly addressed, three (3) days after posting. These addresses may be changed
by any party by written notice to all other parties.
B. Consents and Approvals. All consents and approvals and waivers required or asserted
hereunder shall be in writing, signed by the party from whom such consent, approval, waiver, or
notice is requested.
C. Indemnity. Owner agrees to indemnify, defend, and hold harmless the City of Chula
Vista (“Host”) and any and all of its respective elected officials, members, officers, agents, serv-
ants, employees or volunteers (the “Indemnitees”) from and against all claims, liens, claims of
lien, losses, damages, costs, and expenses, whether direct or indirect, arising in any way from the
Bond issuance or sale, rental or operation of the Property and/or any of the units, including, without
limitation, Owner’s obligation to pay relocation assistance as provided in Section 13, or from the
default by Owner in the performance of its obligations under this Agreement; provided, however,
that Owner shall not be required to indemnify, defend or hold harmless any of the Indemnitees
from claims, losses, damages, costs and expenses related to the sole negligence or willful miscon-
duct of the Indemnitees. Owner’s indemnity obligations hereunder shall survive the termination
of this Agreement.
D. Covenants to Run With the Land. Owner agrees that all of its obligations hereunder
shall constitute covenants, which shall run with the land and shall be binding upon the Property
and upon every person having any interest therein at any time and from time to time during the
term of this Agreement. Further, Owner agrees that, if a court of competent jurisdiction determines
that the obligations set forth herein do not qualify as covenants running with the land, they shall
be enforced as equitable servitudes.
E. Reserved.
F. Pronouns. Where appropriate to the context, words of one gender include all genders,
and the singular includes the plural and vice versa.
G. Amendments. This Agreement may not be modified except in a written instrument
signed by Host and Owner.
H. Complete Agreement; Benefits. This Agreement together with all schedules and
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exhibits attached hereto and made part thereof supersedes all previous agreements, understandings
and representations made by or between the parties hereto. This Agreement shall inure solely and
exclusively to the benefit of the Owner and Host, and no other party shall have any right, remedy
or claim under or by reason of this Agreement. There are no third-party beneficiaries of this Agree-
ment.
I. Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of California, without regard to conflicts of law principles. All claims of
whatever character arising out of this Agreement, or under any statute or common law relating in
any way, directly or indirectly, to the subject matter hereof or to the dealings between Owner and
any other party hereto, if and to the extent that such claim potentially could or actually does involve
Owner, shall be filed and maintained in the Superior Court of California, County of San Diego,
California. By executing and delivering this Agreement, each party hereto irrevocably: (i) accepts
generally and unconditionally the exclusive jurisdiction and venue of such court; (ii) waives any
defense of forum non-conveniens; and (iii) agrees not to seek removal of such proceedings to any
court or forum other than as specified above. The foregoing shall not be deemed or construed to
constitute a waiver by Owner of any prior notice or procedural requirements applicable to actions
or claims against or involving governmental units and/or political subdivisions of the State of Cal-
ifornia that may exist at the time of and in connection with such matter.
J. Legal Construction. In case any one or more of the provisions contained in this Agree-
ment shall for any reason be held by a court of competent jurisdiction to be invalid, illegal, or
unenforceable in any respect, such invalid provision shall be deemed severable, and shall not affect
the validity or enforceability of any other provisions of this Agreement, all of which shall remain
fully enforceable.
K. Term. This Agreement shall terminate upon the Conveyance of the Property as set
forth in either Sections 4 or 5, in the event of a foreclosure, or upon the earlier conveyance of the
property pursuant to a remedy for default under the Indenture.
L. Captions. The captions used in this Agreement are solely for convenience and shall not
be deemed to constitute a part of the substance of the Agreement for purpose of its construction.
M. Property Management. The Owner shall comply with the terms of the Indenture
and the Regulatory Agreement concerning property management.
N. Property Maintenance Report. The Owner shall comply with the terms of the Inden-
ture and the Regulatory Agreement concerning property maintenance reporting and shall provide
Host with copies of any such reports upon request.
O. Host Charge. Owner, or Bond Trustee on its behalf, shall pay to Host, commencing
within 120 days of execution of this Agreement, continuing every year anniversary thereafter, and
terminating upon Conveyance, an annual host charge of $_____________with annual increases of
two percent (2.00%). Amounts of the Host Fee not paid within thirty (30) days after delivery of
written invoice for the same shall bear interest at the per annum rate of 8.00%, compounded annu-
ally, from the date of the invoice until paid. Should a host charge be determined to be improper in
any manner or if Owner does not timely pay the Host Charge, Host, among its remedies, many
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require Owner to provide additional Workforce Housing units at greater affordability levels, as
directed by Host.
P. Bond Issuance Fee. Owner shall, upon sale of the Bonds, pay to Host 25% of the
Bond Issuance fee for deposit in the general fund of the Host. Owner will donate or cause to be
donated an additional 25% of the Bond Issuance fee to one or more non-profit organizations in the
City of Host’s choosing.
Q. Additional Documents. The parties each agree to sign any additional documents,
which are reasonably necessary to carry out this Agreement or to accomplish its intent.
R. Counterparts. This Agreement may be executed in any number of counterparts and
each of such counterparts shall for all purposes be deemed to be an original.
S. Cost Reimbursement.
(1) At the closing for the sale of the Bonds, Owner agrees to reimburse Host for all of its
documented costs incurred in connection with Host’s actual, third party costs incurred for the
review and analysis of this Agreement and preparations for Owner’s financing and acquisition of
the Property
(2) In addition, Owner agrees to reimburse Host for all costs and fees, including reasonable
attorney’s fees, arising from an audit of Host by any state or federal agency due to Host’s
participation in the Project for reasons other than the gross negligence, fraud, willful misconduct,
malfeasance or material violation of any law of the Host.
T. Conflicts. For sake of clarity, Jones Hall, A Professional Law Corporation (“Bond
Counsel”) represents the Owner in the matters covered by this Agreement and does not represent
or owe any attorney-client or similar duty to Host with respect to any such matters.
[SIGNATURE PAGE TO FOLLOW]
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set forth
above.
CMFA SPECIAL FINANCE AGENCY
By:
Authorized Signatory
CITY OF CHULA VISTA
By:
Maria Kachadoorian
City Manager
Approved as to form:
_________________
City Attorney
Signature Page to Public Benefit Agreement
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A Notary Public or other officer completing this certificate verifies only the identity of the
individual who signed the document to which this certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
State of California )
County of ______________________ )
On _________________________, before me, ,
(insert name and title of the officer)
Notary Public, personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
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EXHIBIT A
LEGAL DESCRIPTION OF REAL PROPERTY
The Land referred to herein is situated in the State of California, County of San Diego, Host of
Chula Vista, and described as follows:
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EXHIBIT B
INCLUSIONARY HOUSING DOCUMENTS
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EXHIBIT C
REGULATORY AGREEMENT
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RECORDING REQUESTED
AND WHEN RECORDED MAIL TO:
Jones Hall, A Professional Law Corporation
475 Sansome Street, Suite 1700
San Francisco, California 94111
Attention: Josh D. Anzel, Esq. THIS SPACE IS FOR RECORDERS USE ONLY
REGULATORY AGREEMENT AND
DECLARATION OF RESTRICTIVE COVENANTS
(Title of Document)
Per Government Code 27388.1 (a)(1) “A fee of $75 dollars shall be paid at the time of recording
of every real estate instrument, paper, or notice required or permitted by law to be recorded,
except those expressly exempted from payment of recording fees, per each single transaction
per parcel or real property. The fee shall not exceed two hundred twenty-five dollars ($225)”
Reason for Exemption:
☐ Exempt from fee per GC 27388.1 (a) (2); recorded concurrently “in connection with” a
transfer subject to the imposition of documentary transfer tax (DTT).
☐ Exempt from fee per GC 27388.1 (a) (2); recorded concurrently “in connection with” a
transfer of real property that is a residential dwelling to an owner-occupier.
☐ Exempt from fee per GC 27388.1 (a) (1); fee cap of $225.00 reached.
☐ Exempt from the fee per GC 27388.1 (a) (1); not related to real property.
Failure to include an exemption reason will result in the imposition of the $75.00 Building
Homes and Job Act Fee.
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RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
Jones Hall, A Professional Law Corporation
475 Sansome Street, Suite 1700
San Francisco, California 94111
Attention: Josh D. Anzel, Esq.
REGULATORY AGREEMENT AND
DECLARATION OF RESTRICTIVE COVENANTS
By and Between
CMFA SPECIAL FINANCE AGENCY
and
WILMINGTON TRUST, NATIONAL ASSOCIATION,
as Trustee
Dated as of ______ 1, 20212022
Relating to
CMFA Special Finance Agency
Essential Housing Revenue Bonds, Series 2021A-1
(The Residences at Escaya)
CMFA Special Finance Agency
Essential Housing Revenue Bonds, Series 2021A-2
(The Residences at Escaya)
and
CMFA Special Finance Agency
Subordinate Essential Housing Revenue Bonds, Series 2021B
(The Residences at Escaya)
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TABLE OF CONTENTS
Clause Page
Section 1. Definitions and Interpretation ................................................................................ 1
Section 2. Representations, Covenants and Warranties of the Owner .................................... 4
Section 3. Residential Rental Project ...................................................................................... 4
Section 4. Tenants; Income Requirements.............................................................................. 5
Section 5. Affordable Rental Requirements; Limitations on Rent Increases; Rent
Reductions 7
Section 6. Tax-Exempt Status of Bonds ................................................................................. 8
Section 7. Requirements of the Owner ................................................................................... 8
Section 8. Modification of Covenants .................................................................................... 9
Section 9. Indemnification ..................................................................................................... 9
Section 10. Consideration ....................................................................................................... 9
Section 11. Reliance ................................................................................................................ 9
Section 12. Transfer of the Project ........................................................................................... 9
Section 13. Term .................................................................................................................... 10
Section 14. Covenants to Run With the Land ......................................................................... 11
Section 15. Burden and Benefit ........................................................................................... 11
Section 16. Uniformity; Common Plan .................................................................................. 11
Section 17. Default; Enforcement ........................................................................................ 12
Section 18. Recording and Filing ......................................................................................... 12
Section 19. Governing Law; Venue ..................................................................................... 13
Section 20. Amendments; Waivers ..................................................................................... 13
Section 21. Notices ................................................................................................................ 13
Section 22. Severability ......................................................................................................... 14
Section 23. Multiple Counterparts .......................................................................................... 14
Section 24. Limitation on Liability ......................................................................................... 14
Section 25. Annual Reporting Covenant ................................................................................ 14
Section 1. Definitions and Interpretation ................................................................................ 1
Section 2. Representations, Covenants and Warranties of the Owner .................................... 4
Section 3. Residential Rental Project ...................................................................................... 4
Section 4. Tenants; Income Requirements.............................................................................. 5
Section 5. Affordable Rental Requirements; Limitations on Rent Increases;
Rent Reductions ............................................................................................................................. 7
Section 6. Tax-Exempt Status of Bonds ................................................................................. 8
Section 7. Requirements of the Owner ................................................................................... 8
Section 8. Modification of Covenants .................................................................................... 8
Section 9. Indemnification ...................................................................................................... 9
Section 10. Consideration ......................................................................................................... 9
Section 11. Reliance.................................................................................................................. 9
Section 12. Transfer of the Project ........................................................................................... 9
Section 13. Term ..................................................................................................................... 10
Section 14. Covenants to Run With the Land ......................................................................... 11
Section 15. Burden and Benefit .............................................................................................. 11
Section 16. Uniformity; Common Plan .................................................................................. 11
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Section 17. Default; Enforcement ........................................................................................... 11
Section 18. [Reserved] ............................................................................................................ 12
Section 19. Recording and Filing............................................................................................ 12
Section 20. Reserved ............................................................................................................... 12
Section 21. Governing Law; Venue ........................................................................................ 12
Section 22. Amendments; Waivers ......................................................................................... 13
Section 23. Notices ................................................................................................................. 13
Section 24. Severability .......................................................................................................... 14
Section 25. Multiple Counterparts .......................................................................................... 14
Section 26. Limitation on Liability ......................................................................................... 14
Section 27. Annual Reporting Covenant ................................................................................ 14
EXHIBIT A DESCRIPTION OF REAL PROPERTY
EXHIBIT B FORM OF INCOME CERTIFICATION
EXHIBIT C FORM OF CERTIFICATE OF CONTINUING PROGRAM COMPLIANCE
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1
REGULATORY AGREEMENT AND
DECLARATION OF RESTRICTIVE COVENANTS
THIS REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS
(as supplemented and amended from time to time, this “Regulatory Agreement”) is made and
entered into as of _______ 1, 20212022, by and between the CMFA SPECIAL FINANCE AGENCY,
a joint exercise of powers authority duly organized and existing under the laws of the State of
California, as issuer of the Bonds (as further defined herein) and as owner of the Project identified
herein (together with any successor to its rights, duties and obligations hereunder, the “Owner”), and
WILMINGTON TRUST, NATIONAL ASSOCIATION, a national banking association, as trustee
(together with its successors in trust and assigns, the “Trustee”).
W I T N E S S E T H:
WHEREAS, pursuant to Chapter 5 of Division 7 of Title 1 of the California Government Code
(the “Act”), the Owner proposes to issue its Essential Housing Revenue Bonds, Series 20212022A-
1 (The Residences at Escaya) (the “Series 20212022A-1 Bonds”), Essential Housing Revenue
Bonds, Series 20212022A-2 (The Residences at Escaya) (together with the Series 20212022A-1
Bonds, the “Series A Bonds”), and Subordinate Essential Housing Revenue Bonds, Series
20212022B (The Residences at Escaya) (together with the Series A Bonds, the “Bonds”) pursuant
to a Trust Indenture, dated as of _________ 1, 20212022 (as supplemented and amended from time
to time, the “Indenture”), between the Owner and the Trustee;
WHEREAS, a portion of the proceeds of the Bonds will be used to provide, in part, financing
for the acquisition of the 272-unit multifamily rental housing project known as The Residences at
Escaya, located on the real property site described in Exhibit A hereto (as further described herein,
the “Project”);
WHEREAS, to satisfy the public purposes for which the Bonds are authorized to be issued
under the Act, and in furtherance of certain specific public purposes of the Owner, previously
approved by the Owner’s Resolution No. 21-_______, which include supporting, preserving and
providing low income, median income and moderate income multifamily rental housing in areas in
which demand for such housing is not currently being adequately met, certain limits on the
occupancy of units in the Project need to be established and certain other requirements need to be
met;
NOW, THEREFORE, in consideration of the issuance of the Bonds by the Owner and the
mutual covenants and undertakings set forth herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Owner and the Trustee hereby agree
as follows:
Section 1. Definitions and Interpretation. Unless the context otherwise requires, the
capitalized terms used herein shall have the respective meanings assigned to them in the recitals
hereto, in this Section 1, or in the Master Glossary of Terms, dated as of _________ 1, 20212022.
“Administrator” means any administrator or program monitor appointed by the Owner to
administer this Regulatory Agreement, and any successor administrator appointed by the Owner.
“Area” means the Metropolitan Statistical Area or County, as applicable, in which the Project
is located, as defined by HUD.
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2
“Bonds” has the meaning given to it in the recitals hereto.
“Certificate of Continuing Program Compliance” means the Certificate to be filed by the
Owner with the Administrator, pursuant to Section 4(e) hereof, which shall be substantially in the
form attached as Exhibit C hereto or in such other comparable form as may be provided by the
Owner.
“City” means the City of Chula Vista, California.
“Closing Date” means _____________, 20212022, the date the Bonds are issued and
delivered to the initial purchaser thereof.
“Compliance Period” means the period beginning on the Closing Date and ending on the first
date on which there are no Bonds Outstanding.
“County” means the County of San Diego, California.
“Deed of Trust” means the Deed of Trust, Assignment of Leases and Rents, Security
Agreement, and Fixture Filing dated as of the Closing Date, by the Owner granting a lien on its fee
simple interest in the Property, subject to Permitted Encumbrances, to the Trustee for the benefit of
the holders from time to time of the Bonds, as the same may be modified, amended or supplemented
from time to time, or any deed of trust (or similar security instrument) containing a power of sale
clause reflecting a valid, perfected first priority lien on the fee interest in the Project delivered by the
Owner to secure the Owner’s obligations to a third-party lender.
“Gross Income” means the gross income of a person (together with the gross income of all
persons who reside with such person in one residential unit) as calculated in the manner prescribed
by Section 8 of the Housing Act.
“Housing Act” means the United States Housing Act of 1937, as amended, or its successor.
“HUD” means the United States Department of Housing and Urban Development.
“Income Certification” means a Tenant Income Certification and a Tenant Income
Certification Questionnaire in the form attached as Exhibit B hereto or in such other comparable form
as may be provided by the Owner.
“Low Income Tenant” means a tenant occupying a Low Income Unit.
“Low Income Unit” means any available unit if the aggregate Gross Income of all tenants
therein does not exceed eighty percent (80%) of median gross income for the Area, with adjustments
for family size. The determination of an available unit’s status as a Low Income Unit shall be made
by the Owner upon commencement of each lease term with respect to such unit, and annually
thereafter, on the basis of an Income Certification executed by each tenant.
“Management Agreement” means that certain Property Management Agreement, dated as
of the date hereof, by and among the Owner and the Manager.
“Manager” means _______________, and any other Person who is an assignee of the initial
Management Agreement.
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3
“Median Income Tenant” means a tenant occupying a Median Income Unit.
“Median Income Unit” means any available unit if the aggregate Gross Income of all tenants
therein does not exceed one hundred percent (100%) of median gross income for the Area, with
adjustments for family size. The determination of an available unit’s status as a Median Income Unit
shall be made by the Owner upon commencement of each lease term with respect to such unit, and
annually thereafter, on the basis of an Income Certification executed by each tenant.
“Moderate Income Tenant” means (i) a tenant occupying a Moderate Income Unit or (ii) an
Over Income Tenant if such tenant occupied an available unit on the effective date of this Regulatory
Agreement.
“Moderate Income Unit” means any available unit if the aggregate Gross Income of all tenants
therein does not exceed one hundred and twenty percent (120%) of median gross income for the
Area, with adjustments for family size. The determination of an available unit’s status as a Moderate
Income Unit shall be made by the Owner upon commencement of each lease term with respect to
such unit, and annually thereafter, on the basis of an Income Certification executed by each tenant.
“Over Income Tenant” means a tenant occupying an Over Income Unit.
“Over Income Unit” means any occupied unit in which the aggregate gross income of all
tenants therein exceeds one hundred twenty percent (120%) of median gross income for the Area,
with adjustments for family size.
“Project” means the 272-unit multifamily rental housing development to be located in the City
on the real property site described in Exhibit A hereto, consisting of those facilities, including real
property, structures, buildings, fixtures or equipment situated thereon, as it may at any time exist,
the acquisition of which facilities is to be financed, in whole or in part, from the proceeds of the sale
of the Bonds, and any real property, structures, buildings, fixtures or equipment acquired in
substitution for, as a renewal or replacement of, or a modification or improvement to, all or any part
of the facilities described in the Deed of Trust.
“Regulations” means the Income Tax Regulations of the Department of the Treasury
applicable under the Code from time to time.
“Regulatory Agreement” means this Regulatory Agreement and Declaration of Restrictive
Covenants, as it may be supplemented and amended from time to time.
“Rental Payments” means the rental payments paid by the occupant of a unit, excluding any
supplemental rental assistance to the occupant from the State, the federal government, or any other
public agency.
“Tax-Exempt” means with respect to interest on any obligations of a state or local
government, including the Bonds, that such interest is excluded from gross income for State of
California personal income and federal income tax purposes; provided, however, that such interest
may be includable as an item of tax preference or otherwise includable directly or indirectly for
purposes of calculating other tax liabilities, including any alternative minimum tax or environmental
tax, under the Code.
“TCAC” means the California Tax Credit Allocation Committee.
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4
“Transfer” means the conveyance, assignment, sale or other disposition of all or any portion
of the Project; and shall also include, without limitation to the foregoing, the following: (1) an
installment sales agreement wherein Owner agrees to sell the Project or any part thereof for a price
to be paid in installments; and (2) an agreement by the Owner leasing all or a substantial part of the
Project to one or more persons or entities pursuant to a single or related transactions.
Unless the context clearly requires otherwise, as used in this Regulatory Agreement, words
of any gender shall be construed to include each other gender when appropriate and words of the
singular number shall be construed to include the plural number, and vice versa, when appropriate.
This Regulatory Agreement and all the terms and provisions hereof shall be construed to effectuate
the purposes set forth herein and to sustain the validity hereof.
The titles and headings of the sections of this Regulatory Agreement have been inserted for
convenience of reference only and are not to be considered a part hereof and shall not in any way
modify or restrict any of the terms or provisions hereof or be considered or given any effect in
construing this Regulatory Agreement or any provisions hereof or in ascertaining intent, if any
question of intent shall arise.
The parties to this Regulatory Agreement acknowledge that each party and their respective
counsel have participated in the drafting and revision of this Regulatory Agreement. Accordingly, the
parties agree that any rule of construction to the effect that ambiguities are to be resolved against
the drafting party shall not apply in the interpretation of this Regulatory Agreement or any supplement
or exhibit hereto.
Section 2. Representations, Covenants and Warranties of the Owner.
(a) The Owner hereby incorporates herein, as if set forth in full herein, each of the
representations, covenants and warranties of the Owner contained in the Tax Certificate and the
Indenture relating to the Project.
(b) The Owner hereby represents and warrants that the Project is located entirely within
the City.
(c) The Owner acknowledges, represents and warrants that it understands the nature
and structure of the transactions contemplated by this Regulatory Agreement; that it is familiar with
the provisions of all of the documents and instruments relating to the Bonds to which it is a party or
of which it is a beneficiary; that it understands the financial and legal risks inherent in such
transactions.
Section 3. Residential Rental Project. For the term of this Regulatory Agreement, the
Owner hereby represents, covenants, warrants and agrees as follows:
(a) The Project will be owned and operated for the purpose of providing multifamily
residential rental property. The Owner will own, and cause the Project to be managed and operated,
as a project to provide multifamily residential rental property comprised of a building or structure or
several interrelated buildings or structures, together with any functionally related and subordinate
facilities, in accordance with such requirements as may be imposed thereby on the Project from time
to time. The Owner shall cause the Project to be maintained as a Class A property but no less than
the standard required by the Uniform Physical Conditions Standards promulgated by the Department
of Housing and Urban Development (24 CFR §5.705) and in a good, habitable and safe (so as to not
threaten the health or safety of the Project’s tenants or their invited guests) condition and repair
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(reasonable wear and tear excepted) and shall create and fund a Capital Expense Fund and shall
cause Capital Repairs to be made on an annual basis during the Compliance Period. Capital Repairs
shall include, without limitation, the following: carpet and drape replacement; appliance replacement;
exterior painting, including exterior trim; hot water heater replacement; plumbing fixtures
replacement, including tubs and showers, toilets, lavatories, sinks, faucets; air conditioning and
heating replacement; asphalt repair and replacement, and seal coating; roofing repair and
replacement; landscape tree replacement; irrigation pipe and controls replacement; sewer line
replacement; water line replacement; gas line pipe replacement; lighting fixture replacement;
elevator replacement and upgrade work; miscellaneous motors and blowers; common area furniture
replacement; and common area and exterior repainting.
(b) Except as otherwise approved by the Owner, all of the dwelling units in the Project
(except for the units set aside for resident managers or other administrative uses) will be similarly
constructed units, and each dwelling unit in the Project will contain complete separate and distinct
facilities for living, sleeping, eating, cooking and sanitation for a single person or a family, including
a sleeping area, bathing and sanitation facilities and cooking facilities equipped with a cooking range,
refrigerator and sink.
(c) None of the dwelling units in the Project will ever be used as a hotel, motel, dormitory,
fraternity house, sorority house, rooming house, nursing home, hospital, sanitarium, rest home or
trailer court or park; provided that the use of certain units for tenant guests on an intermittent basis
shall not be considered transient use for purposes of this Regulatory Agreement. Owner shall not
rent dwelling units for a term of 30 days or less, and shall use commercially reasonable efforts to
inform residents that short-term rentals of 30 days or less are prohibited.
(d) No part of the Project will at any time during the Compliance Period be owned by a
cooperative housing corporation, nor shall the Owner take any steps in connection with a conversion
to such ownership or use, and the Owner will not take any steps in connection with a conversion of
the Project to condominium ownership during the Compliance Period.
(e) All of the available units in the Project will be available for rental during the period
beginning on the date hereof and ending on the termination of the Compliance Period on a
continuous basis.
Section 4. Tenants; Income Requirements. The Owner shall comply, or shall cause the
Manager to comply, with the following requirements:
(a) During the Compliance Period, except for units occupied by residential managers, for
which no income or rent restrictions shall apply, the Owner shall use its best efforts to ensure that
the following income restrictions are met at all times:
(i) no less than thirty-three and 33/100 percent (33.33%) of the completed
residential units in the Project shall be Low Income Units;
(ii) no less than thirty-three and 33/100 percent (33.33%) of the completed
residential units in the Project shall be Median Income Units; and
(iii) the balance of the completed residential units in the Project shall be Moderate
Income Units;
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provided, that any unit remaining vacant for at least 30 consecutive days may be offered and leased
as a Low Income Unit, Median Income Unit or Moderate Income Unit without regard for the
requirements set forth in sub-paragraphs (i), (ii) and (iii) above. For the avoidance of doubt, any
vacant unit shall only be offered as a Low Income Unit, Median Income Unit or Moderate Income
Unit.
(b) No tenant shall be denied continued occupancy of a unit in the Project because, after
admission, the aggregate Gross Income of all tenants in the unit occupied by such tenant increases
to exceed the qualifying limit for the respective Low Income Unit, Median Income Unit or Moderate
Income Unit initially occupied by such tenant. However, if after a tenant’s initial occupancy of a Low
Income Unit, Median Income Unit or Moderate Income Unit, as applicable, the aggregate Gross
Income of tenants in such unit, as of the most recent determination thereof, exceeds that which is
defined for such unit occupied by the same number of tenants, the next available unit of comparable
or smaller size shall, subject to the discretion of the Owner and Manager as described in the next
succeeding paragraph, be rented (or held vacant and available for immediate occupancy by) in a
manner that would maintain the unit mix required by Section 4(a) hereof. For the avoidance of doubt,
this Section 4(b) shall apply to existing tenants occupying the Project on the Closing Date.
Notwithstanding any provision of this Regulatory Agreement to the contrary, the Owner shall
verify, or cause the Manager to verify, all tenant incomes at least annually and shall continually re -
balance the mix of household incomes by leasing vacant units to Low Income Tenants, Median
Income Tenants or Moderate Income Tenants as needed to meet the income set-aside requirements
set forth in this Section 4(a).
(c) For the Compliance Period, the Owner shall cause the Manager to obtain, complete
and maintain on file Income Certifications for each tenant, including (i) an Income Certification dated
immediately prior to the initial occupancy of such tenant in the unit and a second Income Certification
dated one year after the tenant’s initial move-in date, and (ii) thereafter, an annual verifiable self-
certification with respect to each tenant. The Owner shall, or shall cause the Manager to, provide
such additional information as may be required in the future by applicable rules, rulings, policies,
procedures, Regulations or other official statements now or hereafter promulgated, proposed or
made by the Department of the Treasury or the Internal Revenue Service with respect to Tax-Exempt
obligations. Upon request of the Administrator or the Trustee, copies of Income Certifications for
tenants commencing or continuing occupation of a residential unit shall be submitted to the
Administrator or the Trustee, as requested.
(d) The Owner shall cause the Manager to verify that the income information provided by
an applicant in an Income Certification is accurate by taking one or more of the following steps as a
part of the verification process: (1) obtain pay stubs for the three most recent pay periods, (2) obtain
an income tax return for the most recent tax year, (3) obtain a credit report or conduct a similar type
credit search, (4) obtain an income verification from the applicant’s current employer, (5) obtain an
income verification from the Social Security Administration and/or the California Department of Social
Services if the applicant receives assistance from either of such agencies, or (6) if the applicant is
unemployed and does not have an income tax return, obtain another form of independent verification
reasonably acceptable to the Owner.
(e) The Owner shall prepare and submit or cause the Manager to prepare and submit to
the Administrator not less than annually, commencing not less than one year after the Closing Date,
a Certificate of Continuing Program Compliance executed by the Owner in substantially the form
attached hereto as Exhibit C.
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(f) For the Compliance Period, all tenant leases or rental agreements shall be
subordinate to this Regulatory Agreement and the Deed of Trust. All leases shall contain clauses,
among others, wherein each tenant: (i) certifies the accuracy of the statements made by such tenant
in the Income Certification; (ii) agrees that the family income and other eligibility requirements shall
be deemed substantial and material obligations of the tenancy of such tenant, that such tenant will
comply promptly with all requests for information with respect thereto from the Owner or the
Administrator on behalf of the Owner, and that the failure to provide accurate information in the
Income Certification or self-certification or refusal to comply with a request for information with
respect thereto shall be deemed a violation of a substantial obligation of the tenancy of such tenant;
(iii) acknowledges that the Owner has relied on the statements made by such tenant in the Income
Certification and supporting information supplied by the tenant in determining qualification for
occupancy of a Low Income Unit, Median Income Unit or Moderate Income Unit, as applicable, and
that any material misstatement in such certification (whether or not intentional) will be cause for
immediate termination of such lease or rental agreement; and (iv) agrees that the tenant’s income is
subject to annual certification in accordance with Section 4(c) and that if upon any such certification
the aggregate Gross Income of tenants in such unit exceeds the applicable income limit under
Section 4(b), the unit occupied by such tenant may cease to qualify as a Low Income Unit, Median
Income Unit or Moderate Income Unit, as applicable, and such unit’s rent may be subject to increase.
(g) In reviewing and considering applications from prospective tenants, the Owner shall
provide a preference to households which include one or more persons who live, work, or have been
hired to work in the City, have graduated from a City high school, are employed by a public school
district in the City, and/or are employed as a first responder.
Section 5. Affordable Rental Requirements; Limitations on Rent Increases; Rent
Reductions. During the Compliance Period, except for units occupied by residential managers, for
which no income or rent restrictions shall apply, in addition to the other requirements set forth herein,
the Owner hereby agrees that it shall comply, or cause the Manager to comply, with the following:
(a) The Rental Payments for the Low Income Units paid by the tenants thereof shall not
exceed 35% of the Low Income limit for the San Diego Standard Metropolitan Area County, adjusted
for household size, as published annually by HUD and utilized by TCAC.
(b) The Rental Payments for the Median Income Units paid by the tenants thereof shall
not exceed 35% of the Median Income limit for the for the San Diego Standard Metropolitan
AreaCounty, adjusted for household size, as published annually by HUD and utilized by TCAC.
(c) The Rental Payments for the Moderate Income Units paid by the tenants thereof shall
not exceed 35% of the Moderate Income limit for the County for the San Diego Standard Metropolitan
Area, adjusted for household size, as published annually by HUD and utilized by TCAC.
(d) The Owner shall accept as tenants, on the same basis as all other prospective
tenants, qualified low-income persons who are recipients of federal certificates or vouchers for rent
subsidies pursuant to the existing program under Section 8 of the Housing Act.
For purposes of this Section 5, base rents shall be adjusted for household size using the
following assumptions:
Unit Size Assumed Occupancy
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studio 1
one-bedroom 2
two-bedroom 3
three-bedroom 4
four-bedroom 5
(e) The following limitations shall apply to annual rent increases for households
occupying available units in the Project:
(i) For a household qualifying as a Low Income Unit, a Median Income Unit, or a
Moderate Income Unit, as applicable, but for which annual rent payable is lower than the applicable
limit set forth in paragraph (a), (b) or (c) above, respectively, rent shall not be increased more than
4% annually and then only up to the applicable limit set forth in such paragraphs above. Tenants
shall be provided 90-days notice of said rent increase.
(ii) For a household qualifying as a Low Income Unit, a Median Income Unit, or a
Moderate Income Unit, as applicable, but for which annual rent payable exceeds the applicable limit
set forth in paragraph (a), (b) or (c) above, respectively, rent shall be decreased as soon as
practicable to the applicable limit set forth in such paragraphs above. Tenants shall be provided 90-
days notice of said rent decrease.
Except as set forth in Section 13 hereof, the covenants and conditions of this Regulatory
Agreement shall be binding upon successors in interest of the Owner.
Section 6. Tax-Exempt Status of Bonds. The Owner hereby represents, warrants and
agrees as follows:
(a) The Owner will not knowingly take or permit, or omit to take or cause to be taken,
as is appropriate, any action that would adversely affect the Tax-Exempt nature of the interest on
the Bonds and, if it should take or permit, or omit to take or cause to be taken, any such action, it will
take all lawful actions necessary to rescind or correct such actions or omissions promptly upon
obtaining knowledge thereof.
(b) The Owner will file of record such documents and take such other steps as are
necessary, in the written opinion of Bond Counsel filed with the Owner, in order to ensure that the
requirements and restrictions of this Regulatory Agreement will be binding upon all owners of the
Project, including, but not limited to, the execution and recordation of this Regulatory Agreement in
the real property records of the County.
Section 7. Requirements of the Owner. In addition to other requirements set forth herein
and to the extent not prohibited by the requirements set forth in Sections 4 through 6 hereof, the
Owner hereby agrees to comply with each of the requirements set forth in this Section 7, as follows:
(a) All tenant lists, applications and waiting lists relating to the Project shall at all times
be kept separate and identifiable from any other business of the Owner and shall be maintained in a
reasonable condition for proper audit.
(b) The Owner shall appoint the Administrator to administer this Regulatory
Agreement and to monitor performance by the Owner of the terms, provisions and requirements
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hereof. In the event that the Administrator resigns or is terminated, the Owner shall, following
consultation with the City, appoint a successor Administrator, experienced and capable, in the
judgment of the Owner, of performing the duties under the Project Administration Agreement. The
Owner shall comply with any reasonable request made by the Administrator to deliver to any such
Administrator any reports, notices or other documents required to be delivered pursuant hereto, and
to make the Project and the books and records with respect thereto available for inspection by the
Administrator. The fees and expenses of the Administrator shall be paid by the Owner.
Section 8. Modification of Covenants. The Owner and the Trustee hereby agree as
follows:
(a) To the extent any amendments to the Act, the Regulations or the Code shall, in the
written opinion of Bond Counsel filed with the Trustee and the Owner, retroactively impose
requirements upon the ownership or operation of the Project more restrictive than those imposed by
this Regulatory Agreement, and if such requirements are applicable to the Project and compliance
therewith is necessary to maintain the validity of, or the Tax-Exempt status of interest on the Bonds,
this Regulatory Agreement shall be deemed to be automatically amended to impose such additional
or more restrictive requirements.
(b) The Owner and the Trustee shall execute, deliver and, if applicable, file of record
any and all documents and instruments necessary to effectuate the intent of this Section 8.
Section 9. Indemnification. The Owner and the Trustee will be indemnified as required
by and pursuant to the Project Administration Agreement.
Section 10. Consideration. The Owner has agreed to issue the Bonds and to use the
proceeds thereof to, among other things, finance the acquisition of the Project. In furtherance of the
significant public benefits of the Project, the Owner has entered into this Regulatory Agreement and
has agreed to restrict the uses to which this Project can be put on the terms and conditions set forth
herein.
Section 11. Reliance. The Owner and the Trustee hereby recognize and agree that the
representations and covenants set forth herein may be relied upon by all persons, including but not
limited to the Administrator, interested in the legality and validity of the Bonds, in the exemption from
California personal income taxation of interest on the Bonds and in the Tax-Exempt status of the
interest on the Bonds. In performing their duties and obligations hereunder, the Owner and the
Administrator may rely upon statements and certificates of the tenants, and upon audits of the books
and records of the Owner pertaining to the Project. In addition, the Owner may consult with counsel,
and the opinion of such counsel shall be full and complete authorization and protection in respect of
any action taken or suffered by the Owner hereunder in good faith and in conformity with such
opinion.
Section 12. Transfer of the Project. For the Compliance Period, except as permitted by
the Indenture or the Public Benefit Agreement, the Owner shall not Transfer the Project, in whole or
in part, unless the following conditions are satisfied: (A) the receipt by the Owner and the Trustee of
evidence acceptable to the Owner and the Trustee that (1) the Owner shall not be in default
hereunder, if in effect (which may be evidenced by a Certificate of Continuing Program Compliance),
or the transferee reasonably undertakes to cure any defaults of the Owner; (2) the continued
operation of the Project shall comply with the provisions of this Regulatory Agreement; (3) all rights,
responsibilities and duties of the transferor under the Project Administration Agreement shall have
been assigned to the transferee, or the transferee shall enter into a new project administration
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agreement in the form of the current Project Administration Agreement; and (4) the person or entity
that is to acquire the Project does not have pending against it, and does not have a history of
significant and material building code violations or complaints concerning the maintenance, upkeep,
operation, and regulatory agreement compliance of any of its projects as identified by any local, state
or federal regulatory agencies; (B) the execution by the transferee of any document reasonably
requested by the Owner with respect to the assumption of the Owner’s obligations under this
Regulatory Agreement, including without limitation an instrument of assumption hereof and thereof,
and delivery to the Owner of an opinion of such transferee’s counsel to the effect that each such
document and this Regulatory Agreement are valid, binding and enforceable obligations of such
transferee, subject to bankruptcy and other standard limitations affecting creditor’s rights; (C) receipt
by the Owner of an opinion of Bond Counsel to the effect that any such Transfer will not adversely
affect the Tax-Exempt status of interest on the Bonds; (D) receipt by the Owner of all fees and/or
expenses then currently due and payable to the Owner.
It is hereby expressly stipulated and agreed that any Transfer of the Project in violation of
this Section 12 shall be null, void and without effect, shall cause a reversion of title to the Owner,
and shall be ineffective to relieve the Owner of its obligations under this Regulatory Agreement.
Nothing in this Section shall affect any provision of any other document or instrument between the
Owner and any other party which requires the Owner to satisfy certain conditions or obtain the prior
written consent of such other party in order to Transfer the Project. Upon any Transfer that complies
with this Regulatory Agreement, the Owner shall be fully released from its obligations hereunder to
the extent such obligations have been fully assumed in writing by the transferee of the Project.
The foregoing notwithstanding, the Project may be transferred pursuant to a foreclosure,
exercise of power of sale or deed in lieu of foreclosure or comparable conversion under the Deed of
Trust without the consent of the Owner or compliance with the provisions of this Section 12.
For the Compliance Period, the Owner shall not: (1) encumber any of the Project or grant
commercial leases of any part thereof (excluding any commercial or retail lease existing on the
Closing Date or entered into thereafter with respect to the commercial or retail components of the
Project that existed on the Closing Date, both occupied and vacant), or permit the conveyance,
transfer or encumbrance of any part of the Project, except for (A) encumbrances permitted under the
Deed of Trust, or (B) a Transfer in accordance with the terms of this Regulatory Agreement, in each
case upon receipt by the Owner of an opinion of Bond Counsel to the effect that such action will not
adversely affect the Tax-Exempt status of interest on the Bonds (provided that such opinion will not
be required with respect to any encumbrance, lease or transfer relating to a commercial operation
or ancillary facility that will be available for tenant use and is customary to the operation of multifamily
housing developments similar to the Project); (2) demolish any part of the Project or substantially
subtract from any real or personal property of the Project, except to the extent that what is
demolished or removed is replaced with comparable property or such demolition or removal is
otherwise permitted by the Deed of Trust; or (3) permit the use of the dwelling accommodations of
the Project for any purpose except rental residences.
Section 13. Term. This Regulatory Agreement and all and several of the terms hereof
shall become effective upon its execution and delivery, and shall remain in full force and effect for
the period provided herein and shall terminate as to any provision not otherwise provided with a
specific termination date and shall terminate in its entirety at the end of the Compliance Period.
The terms of this Regulatory Agreement to the contrary notwithstanding, the requirements of
this Regulatory Agreement shall terminate and be of no further force and effect in the event of
involuntary noncompliance with the provisions of this Regulatory Agreement caused by fire or other
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casualty, seizure, requisition, foreclosure or transfer of title by deed in lieu of foreclosure, change in
a federal law or an action of a federal agency after the Closing Date, which prevents the Owner from
enforcing such provisions, or condemnation or a similar event, but only if, within a reasonable period,
either the Bonds are retired or amounts received as a consequence of such event are used to provide
a project that meets the requirements hereof; provided, however, that the preceding provisions of
this sentence shall cease to apply and the restrictions contained herein shall be reinstated if, at any
time subsequent to the termination of such provisions as the result of the foreclosure or the delivery
of a deed in lieu of foreclosure or a similar event, the Owner or any related person (within the meaning
of Section 1.103-10(e) of the Regulations) obtains an ownership interest in the Project for federal
income tax purposes. The Owner hereby agrees that, following any foreclosure, transfer of title by
deed in lieu of foreclosure or similar event, neither the Owner nor any such related person as
described above will obtain an ownership interest in the Project for federal tax purposes.
Notwithstanding any other provision of this Regulatory Agreement, this Regulatory
Agreement may be terminated upon agreement by the Trustee and the Owner, upon receipt by the
Owner of an opinion of Bond Counsel to the effect that such termination will not adversely affect the
exclusion from gross income of interest on the Bonds for federal income tax purposes. Upon the
termination of the terms of this Regulatory Agreement, the parties hereto agree to execute, deliver
and record appropriate instruments of release and discharge of the terms hereof; provided, however,
that the execution and delivery of such instruments shall not be necessary or a prerequisite to the
termination of this Regulatory Agreement in accordance with its terms.
Section 14. Covenants to Run With the Land. Notwithstanding Section 1461 of the
California Civil Code, the Owner hereby subjects the Project to the covenants, reservations and
restrictions set forth in this Regulatory Agreement. The Trustee and the Owner hereby declare their
express intent that the covenants, reservations and restrictions set forth herein shall be deemed
covenants running with the land and shall pass to and be binding upon the Owner’s successors in
title to the Project; provided, however, that on the termination of this Regulatory Agreement said
covenants, reservations and restrictions shall expire. Each and every contract, deed or other
instrument hereafter executed covering or conveying the Project or any portion thereof shall
conclusively be held to have been executed, delivered and accepted subject to such covenants,
reservations and restrictions, regardless of whether such covenants, reservations and restrictions
are set forth in such contract, deed or other instruments.
Section 15. Burden and Benefit. The Trustee and the Owner hereby declare their
understanding and intent that the burdens of the covenants set forth herein touch and concern the
land in that the Owner’s legal interest in the Project is rendered less valuable thereby. Nothing in this
Regulatory Agreement expressed or implied is intended or shall be construed to confer upon, or to
gi e to, any person other than the Owner and the Trustee (acting exclusively on behalf of
Bondholders) any right, remedy or claim under or by reason of this Regulatory Agreement or any
covenant, reservation or restriction hereof, which shall be for the sole and exclusive benefit of the
Owner and the Trustee (acting exclusively on behalf of the Bondholders). There are no third-party
beneficiaries of this Regulatory Agreement.The Trustee and the Owner hereby further declare their
understanding and intent that the benefits of such covenants touch and concern the land by
enhancing and increasing the enjoyment and use of the Project by tenants, the intended beneficiaries
of such covenants, reservations and restrictions, and by furthering the public purposes for which the
Bonds were issued.
Section 16. Uniformity; Common Plan. The covenants, reservations and restrictions
hereof shall apply uniformly to the entire Project in order to establish and carry out a common plan
for the use of the site on which the Project is located.
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Section 17. Default; Enforcement. If the Owner defaults in the performance or observance
of any covenant, agreement or obligation of the Owner set forth in this Regulatory Agreement, and
if such default remains uncured for a period of 60 days after notice thereof shall have been given by
the Manager, the Controlling Party or the Trustee to the Owner, or for a period of 60 days from the
date the Owner should, with reasonable diligence, have discovered such default, then the Trustee
shall declare an “Event of Default” to have occurred hereunder; provided, however, that if the default
is of such a nature that it cannot be corrected within 60 days, such default shall not constitute an
Event of Default hereunder so long as (i) the Owner institutes corrective action within said 60 days
and diligently pursues such action until the default is corrected, and (ii) in the opinion of Bond
Counsel, the failure to cure said default within 60 days will not adversely affect the Tax-Exempt status
of interest on the Bonds.
Following the declaration of an Event of Default hereunder, the Owner shall have the right,
in its sole and absolute discretion, to replace the Manager and terminate the Property Management
Agreement in accordance with its terms, and the Trustee, subject to the terms of the Indenture, may
take any one or more of the following steps, in addition to all other remedies provided by law or
equity:
(a) by mandamus or other suit, action or proceeding at law or in equity, including
injunctive relief, require the Owner to perform its obligations and covenants hereunder or enjoin any
acts or things that may be unlawful or in violation of the rights of the Trustee hereunder;
(b) have access to and inspect, examine and make copies of all of the books and records
of the Owner pertaining to the Project; and
(c) take such other action at law or in equity as may appear necessary or desirable to
enforce the obligations, covenants and agreements of the Owner hereunder.
The Owner hereby agrees that specific enforcement of the Owner’s agreements contained
herein is the only means by which the Trustee may fully obtain the benefits of this Regulatory
Agreement made by the Owner herein, and the Owner therefore agrees to the imposition of the
remedy of specific performance against it in the case of any Event of Default by the Owner
hereunder.
The Trustee and the Owner hereby agree that cure of any Event of Default made or tendered
by the Manager shall be deemed to be a cure by the Owner and shall be accepted or rejected on the
same basis as if made or tendered by the Owner.
Section 18. [Reserved].
Section 1918. Recording and Filing. (a) The Owner shall cause this Regulatory Agreement
and all amendments and supplements hereto and thereto, to be recorded and filed in the real
property records of the County, and in such other places as the Owner may reasonably deem
necessary. The Owner shall pay all fees and charges incurred in connection with any such recording.
(b) The Owner and the Trustee will file of record such other documents and take such
other steps as are reasonably necessary, in the opinion of Bond Counsel, in order to ensure that the
requirements and restrictions of this Regulatory Agreement will be binding upon all owners of the
Project.
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(c) The Owner hereby covenants to include or reference the requirements and
restrictions contained in this Regulatory Agreement in any documents transferring any interest in the
Project to another person to the end that such transferee has notice of, and is bound by, such
restrictions, and, except in the case of a foreclosure or comparable involuntary conversion of the
Deed of Trust, whereby the Trustee becomes the owner of the Project, to obtain the agreement from
any transferee to abide by all requirements and restrictions of this Regulatory Agreement.
Section 20. [Reserved].
Section 2119. Governing Law; Venue. This Regulatory Agreement shall be construed in
accordance with and governed by the laws of the State of California applicable to contracts made
and performed in the State of California. This Regulatory Agreement shall be enforceable in the State
of California, and any action arising hereunder shall (unless waived by the Owner in writing) be filed
and maintained in the Superior Court of California, County of San Diego.
Section 2220. Amendments; Waivers. Except as provided in Sections 8(a) hereof, this
Regulatory Agreement may be amended only by a written instrument executed by the parties hereto
or their successors in title, and duly recorded in the real property records of the County, California,
and only upon (i) receipt by the Owner of an opinion from Bond Counsel that such amendment will
not adversely affect the Tax-Exempt status of interest on the Bonds and (ii) the written consent of
the Controlling Party, who shall receive a copy of any such amendment.
(a) Anything to the contrary contained herein notwithstanding, the Trustee and the
Owner hereby agree to amend this Regulatory Agreement to the extent required, in the opinion of
Bond Counsel, in order that interest on the Bonds remains Tax-Exempt. The parties requesting such
amendment shall notify the other parties to this Regulatory Agreement of the proposed amendment,
with a copy of such proposed amendment to Bond Counsel and a request that Bond Counsel render
to the Owner an opinion as to the effect of such proposed amendment upon the Tax-Exempt status
of interest on the Bonds. This provision shall not be subject to any provision of any other agreement
requiring any party hereto to obtain the consent of any other person in order to amend this Regulatory
Agreement.
(b) Any waiver of, or consent to, any condition under this Regulatory Agreement must
be expressly made in writing.
Section 2321. Notices. Any notice required to be given hereunder shall be made in writing
and shall be given by personal delivery, overnight delivery, certified or registered mail, postage
prepaid, return receipt requested, or by telecopy, in each case at the respective addresses specified
in the Indenture, or at such other addresses as may be specified in writing by the parties hereto.
Unless otherwise specified by the Administrator, the address of the Administrator is:
To Owner: CMFA Special Finance Agency
2111 Palomar Airport Road, Suite 320
Carlsbad, California 92011
Attention: Financial Advisor
Email: jstoecker@cmfa-ca.com
2022/03/15 City Council Post Agenda Page 213 of 277
14
With a copy to: HomeFed Corporation
1903 Wright Place, Suite 220
Carlsbad, California 92011
Attention: Vice President, Affordable Housing
The Administrator and the Owner may, by notice given hereunder, designate any further or
different addresses to which subsequent notices, certificates or other communications shall be sent.
Notice shall be deemed given on the date evidenced by the postal or courier receipt or other written
evidence of delivery or electronic transmission; provided that any telecopy or other electronic
transmission received by any party after 4:00 p.m., local time of the receiving party, as evidenced by
the time shown on such transmission, shall be deemed to have been received the following Business
Day.
Section 2422. Severability. If any provision of this Regulatory Agreement shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the remaining portions hereof shall
not in any way be affected or impaired thereby.
Section 2523. Multiple Counterparts. This Regulatory Agreement may be simultaneously
executed in multiple counterparts, all of which shall constitute one and the same instrument, and
each of which shall be deemed to be an original.
Section 2624. Limitation on Liability. Notwithstanding the foregoing or any other provision or
obligation to the contrary contained in this Regulatory Agreement, the liability of the Owner under
this Regulatory Agreement to any person or entity, including, but not limited to, the Trustee or the
Controlling Party and their successors and assigns, is limited to moneys available therefor under and
in accordance with the Indenture.
Section 2725. Annual Reporting Covenant. No later than January 31 of each calendar year
(commencing January 31, 20__), the Owner agrees to provide to the California Debt and Investment
Advisory Commission, by any method approved by the California Debt and Investment Advisory
Commission, the annual report information required by Section 8855(k)(1) of the California
Government Code. This covenant shall remain in effect until the later of the date (i) the Bonds are
no longer outstanding or (ii) the proceeds of the Bonds have been fully spent.
2022/03/15 City Council Post Agenda Page 214 of 277
[Signature Page – Regulatory Agreement and Declaration of Restrictive Covenants – The Residences at Escaya]
IN WITNESS WHEREOF, the Owner and the Trustee have executed this Regulatory
Agreement by duly authorized representatives, all as of the date first above written.
CMFA SPECIAL FINANCE AGENCY
By:
Name: Edward J. Becker
Title: Executive Director
2022/03/15 City Council Post Agenda Page 215 of 277
[Signature Page – Regulatory Agreement and Declaration of Restrictive Covenants – The Residences at Escaya]
WILMINGTON TRUST, NATIONAL ASSOCIATION,
as Trustee
By:
Name:
Title:
2022/03/15 City Council Post Agenda Page 216 of 277
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the
individual who signed the document to which this certificate is attached, and not the
truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA )
)
COUNTY OF _____________ )
On ___________________ before me, ____________________, Notary Public,
Personally appeared ___________________________
who proved to me on the basis of satisfactory evidence to be the
person(s) whose name(s) is/are subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon
behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State
of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature of Notary Public
2022/03/15 City Council Post Agenda Page 217 of 277
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the
individual who signed the document to which this certificate is attached, and not the
truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA )
)
COUNTY OF _____________ )
On ___________________ before me, ____________________, Notary Public,
Personally appeared ___________________________
who proved to me on the basis of satisfactory evidence to be the
person(s) whose name(s) is/are subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon
behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State
of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature of Notary Public
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A-1
EXHIBIT A
DESCRIPTION OF REAL PROPERTY
[TO COME]
2022/03/15 City Council Post Agenda Page 219 of 277
B-1
EXHIBIT B
FORM OF INCOME CERTIFICATION
Effective Date:
Move-In Date:
Household Size:
Floorplan:
Unit:
HOUSEHOLD COMPOSITION
Household Member Name Relationship Birthdate
1 Head
2
3
4
5
6
7
INCOME COMPOSITION (ANNUAL)
Household
Member
Employment /
Wages
Social Security /
Pension
Public
Assistance
Other
Income
1
2
3
4
5
6
7
TOTALS $ $ $ $
TOTAL INCOME $
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C-1
EXHIBIT C
FORM OF CERTIFICATE OF CONTINUING PROGRAM COMPLIANCE
Witnesseth that on this day of _____________, 20__, the undersigned, on behalf of the
CMFA SPECIAL FINANCE AGENCY (the “Owner”), does hereby certify with respect to the
multifamily rental housing development (the “Project”) that:
1. During the preceding year (i) such Project was substantially and continually in
compliance with the Regulatory Agreement and (ii) ____% of the units in the Project were
occupied by Low Income Tenants, ___% of the units in the Project were occupied by Median
Income Tenants ____% of the units in the Project were occupied by Moderate Income Tenants.
Set forth below are the unit numbers of Low Income Tenants, Median Income Tenants and
Moderate Income Tenants who commenced or terminated occupancy during the preceding
month.
Commenced Occupancy Terminated Occupancy
1 1.
2. 2.
3. 3.
4. 4.
5. 5.
6. 6.
7. 7.
8. 8.
9. 9.
10. 10.
11. 11.
12. 12.
13. 13.
14. 14.
15. 15.
16. 16.
17. 17.
18. 18.
19. 19.
20. 20.
Additional units that have commenced or terminated occupancy may be found in an additional
attached sheet
2. The units occupied by Low Income Tenants, Median Income Tenants and Moderate
Income Tenants are of similar size and quality to other units and are dispersed throughout the
Project. Attached is a separate sheet listing the number of each unit and indicating which units
are occupied by Low Income Tenants, Median Income Tenants and Moderate Income Tenants,
the size, the number of bedrooms of such units and the number of Low Income Tenants,
Median Income Tenants and Moderate Income Tenants who commenced occupancy of units
during the preceding month.
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C-2
The representations set forth herein are true and correct to the best of the undersigned’s
knowledge and belief.
Date: Owner:
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4136-5162-3473.2
24
EXHIBIT D
TIC FORM
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4136-5162-3473.2
25
EXHIBIT E
LEASE INFORMATION WAIVER
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Item 7.2
Attachment 1b
Draft City Workforce Housing PBA
CSCDA for CasaLago Eastlake
2022/03/15 City Council Post Agenda Page 225 of 277
OHS DRAFT
2/22/22
4136-5162-3473.4
SS 3-11-22
RECORDING REQUESTED BY
CSCDA Community Improvement Authority
WHEN RECORDED RETURN TO:
Orrick, Herrington & Sutcliffe LLP
405 Howard Street
San Francisco, CA 94105
Attention: Orlando Zaragoza
THIS DOCUMENT IS EXEMPT FROM RECORDING FEES PURSUANT TO SECTION 27383 OF THE
CALIFORNIA GOVERNMENT CODE
PUBLIC BENEFIT AGREEMENT
By and Between
CSCDA COMMUNITY IMPROVEMENT AUTHORITY
and
CITY OF CHULA VISTA
_________________________
Dated as of _____ 1, 2022
_________________________
Relating to
CSCDA COMMUNITY IMPROVEMENT AUTHORITY
ESSENTIAL HOUSING REVENUE BONDS
(CASALAGO EASTLAKE)
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4136-5162-3473.4
PUBLIC BENEFIT AGREEMENT
This PUBLIC BENEFIT AGREEMENT (“Agreement”) is dated as of _____ 1, 2022 by and
between the CSCDA COMMUNITY IMPROVEMENT AUTHORITY a joint exercise of powers
agency organized and existing under the laws of the State of California (including its successors
and assigns, “Owner”) and the CITY OF CHULA VISTA (“Host”).
BACKGROUND
WHEREAS, Owner proposes to issue Bonds (as hereinafter defined) to finance Owner’s
acquisition of that certain multifamily rental housing project (the “Project”) located at 2816 Cielo
Circulo, Chula Vista, California, (also referred to as “CasaLago Eastlake” or “CasaLago”) located
on the real property site described in Exhibit A hereto; and
WHEREAS, the Owner has executed a Regulatory Agreement and Declaration of
Restrictive Covenants between Owner and Wilmington Trust, National Association (“Bond
Trustee”), dated concurrently and recorded in the official records of San Diego County, California,
which imposes requirements upon the Project with respect to maximum income levels of tenants,
maximum rents payable by tenants, maintenance of the Project in accordance with industry
standards, and certain other matters (“Regulatory Agreement” is attached as Exhibit “B” and
hereby fully incorporated by reference into this Agreement) and
WHEREAS, in order for the Bonds, as defined below, to be issued Owner requires and is
requesting that Host enter into Joint Powers Agreement (“JPA”) with Owner; and
WHEREAS, as part of the JPA and Bond issuance, related property taxes on the Property
will be suspended, including property taxes due to the Host; and
WHEREAS, Owner and Bond Trustee will benefit by the Host’s approval of the JPA
because it will, inter alia, permit a Bond issuance to fund the acquisition of the Property and result
in the suspension of property tax on the Property during the term of this Agreement and Owner
and Bond Trustee agree that Host approval of the JPA is good, valuable, and sufficient
consideration; and
WHEREAS, as part of the JPA and Bond issuance, rents for units will have affordability
restrictions on the rental units, minus a manager’s unit, under the terms set forth in this Agreement;
and the attendant Regulatory Agreement; and
WHEREAS, as part of the JPA and Bond Issuance, the Host will have the right to cause the
sale of the Property, under the terms set forth herein and receive the sales proceeds as stated herein,
including an amount sufficient to recoup all suspended property taxes; and
WHEREAS, Owner and Trustee agree that the Host has an interest in the Property to ensure,
inter alia, that the middle-income housing affordability requirements are met and maintained; that
the Project is financially well run; that the Project is not so encumbered by debt or other obligations
that it cannot operate the Project or pay the Bonds or other Project Debt in a timely fashion; pay,
in a timely fashion, all other debts that are due; have sufficient equity, at the time the Host’s right
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4136-5162-3473.4
to sale is exercised or Owner’s Request for Conveyance is approved by Host, to pay the Host as
required under this Agreement; and that the Property is well maintained and operated.
AGREEMENT
In consideration of the mutual covenants herein contained, and such other good and valuable
consideration the receipt and sufficiency of which is hereby acknowledged, Owner and Host
mutually agree as follows:
ARTICLE 1 RIGHT TO CAUSE SALE
Section 1. Right to Cause Sale. Host shall have the right (“Sale Right”), in its sole
discretion, to cause Owner to sell the Property (as herein defined) upon payment by the purchaser
thereof (the “Purchaser”) of the applicable Sale Price (as herein provided) during the Sale Right
Term as provided for in Section 4 or following the Sale Right Term as provided for in Section 5
hereof, in each case, in compliance with and observance of all of the terms and conditions of this
Agreement.
Section 2. Definitions. Capitalized terms used in this Agreement shall have the
meanings assigned to them in this Section 2; capitalized terms used in this Agreement and not
defined in this Section 2 or elsewhere herein shall have the meanings assigned to them in the
Indenture (herein defined).
(a) “Bonds” – collectively, the (i) CSCDA Community Improvement Authority
Essential Housing Senior Lien Revenue Bonds, Series 2021A-1 (CasaLago Eastlake) (Social
Bonds), (ii) CSCDA Community Improvement Authority Essential Housing Senior Lien Revenue
Bonds, Series 2021A-2 (CasaLago Eastlake) (Social Bonds), (iii) CSCDA Community
Improvement Authority Subordinate Essential Housing Mezzanine Lien Revenue Bonds, Series
2021B (CasaLago Eastlake) (Social Bonds), and (iv) CSCDA Community Improvement Authority
Essential Housing Subordinate Lien Revenue Bonds, Series 2021C (CasaLago Eastlake), with
such other series and sub-series designations as may be set forth in the Indenture, originally issued
to finance Owner’s acquisition of the Project and related transaction costs.
(b) “Bond Trustee” – Wilmington Trust, National Association, or any successor
trustee under the Indenture.
(c) “Closing” – shall have the meaning set forth in Section 8 hereof.
(d) “Conveyance” – that transaction or series of transactions by which Owner shall
transfer, sell and convey any and all right, title or interest in and to the Property pursuan t to this
Agreement.
(e) “Extraordinary Costs and Expenses” – shall have the meaning set forth in the
Indenture.
(f) “Host Charge” shall have the meaning set forth in [Section 33(O)] hereof.
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4136-5162-3473.4
(g) “Indenture” – the Trust Indenture between Owner, as issuer, and Bond Trustee,
as trustee, pursuant to which the Bonds were issued.
(h) “Minimum Sale Price” –the lowest price at which the Property may be sold, as
described in Section 4(d) hereof.
(i) “Monitoring Fee” the annual monitoring fee payable by Owner to Host pursuant
to [Section 32 ] hereof.
(j) “Outstanding” – with respect to Bonds, as of any given date, all Bonds which
have been authenticated and delivered by the Bond Trustee under the Indenture, except: (i) Bonds
cancelled at or prior to such date or delivered to or acquired by the Bond Trustee at or prior to such
date for cancellation; (ii) Bonds deemed to be paid in accordance with Article [VIII] of the
Indenture; and (iii) Bonds in lieu of which other Bonds have been authenticated under the
Indenture.
(k) “Owner Indemnified Person” – Owner and each of its officers, governing
members, directors, officials, employees, attorneys, agents, and members.
(l) “Project” - the multi-unit multifamily rental housing development to be located
in the City of Chula Vista on the real property site described in Exhibit A hereto, consisting of
those facilities, including real property, structures, buildings, fixtures or equipment situated
thereon, as it may at any time exist, the acquisition of which facilities is to be financed, in whole
or in part, from the proceeds of the sale of the Bonds, and any real property, structures, buildings,
fixtures or equipment acquired in substitution for, as a renewal or replacement of, or a modification
or improvement to, all or any part of the facilities described in the Deed of Trust securing the
Bonds.
(m) “Project Administration Agreement” - the Project Administration Agreement
between Owner and Project Administrator for the Project, dated as of _______, 2022.
(n) “Project Administrator” – Opportunity Housing Group, Inc., a California
corporation, and its successors and assigns.
(o) “Project Debt” – any debt secured by the Project and incurred to finance or
refinance Owner’s acquisition of the Project and related transaction costs, including any portion
of the Bonds and any bonds, notes or other indebtedness incurred by Owner to improve the Project
or to refund the Bonds in whole or in part, approved by Host under the terms hereof, if required.
(p) “Property” –all of Owner’s right, title and interest (which includes fee simple title
to the real property) in and to all property and assets used in or otherwise related to the operation
of the Project, including, without limitation, all real property and interests in real property, all
tangible and intangible personal property including furniture, fixtures, equipment, supplies,
intellectual property, licenses, permits, approvals, and contractual rights of any kind or nature
together with the right to own and carry on the business and operations of the Project.
(q) “Property Manager” shall have the meaning set forth in Section [33(O)] hereof.
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4136-5162-3473.4
(r) “Regulatory Agreement” – the Regulatory Agreement and Declaration of
Restrictive Covenants by and between Owner and Bond Trustee, relating to operation of the
Project.
(s) “Sale Price” – the purchase price of the Property to be paid by the Purchaser upon
sale of the Property by Owner pursuant to Host’s Sale Right in compliance with Section 4 or
Owner’s Request for Conveyance in compliance with Section 5 hereof.
(t) “Sale Right” –the right of Host to cause Owner to sell the Property pursuant to
Section 1 hereof.
(u) “Sale Right Term” –the time period during which Host may exercise its Sale Right
hereunder pursuant to the terms of Section 4 hereof, commencing upon the fifteenth anniversary
of the issuance of the Bonds and terminating on the date upon which all Project Debt is retired, at
which point Host’s Sale Right under the terms of Section 5 hereof shall arise.
(v) “Transaction Costs” – to the extent not otherwise described herein, any costs or
expenses of any kind or nature associated with or incurred by Owner and/or Bond Trustee in
connection with the consummation of the Conveyance, regardless of whether such costs and
expenses are customarily borne by the seller or purchaser in any such transaction, including but
not limited to taxes, recording fees and other impositions, Owner’s and Bond Trustee’s legal and
other professional fees, fees for verification agents, bidding agents, escrow agents, custodians or
trustees, assumption fees, prepayment fees, the cost of the appraisal, brokers’ fees and expenses,
surveys, inspections, title commitments, title insurance premiums and other title-related fees, and
all amounts required for indemnification of Owner, Bond Trustee and Project Administrator.
(w) “Middle-Income Affordable Unit(s)” or “Middle-Income Units” – means all rental
units within the Property, except those that are on-site manager units. All Middle-Income
Affordable Units shall be subject to Article 3 that provides for, inter alia, rent restrictions as
provided in Section 22 hereof and shall only be occupied by income-eligible tenants as and to the
extent provided in the Regulatory Agreement.
Section 3. Effectiveness; Term and Termination. The Sale Right shall become and
remain effective during the Sale Right Term. Owner agrees that it will not enter into any agreement
to sell or otherwise transfer or convey any ownership interest in all or any part of the Property
during the Sale Right Term other than as may be allowed or required by the Indenture in the event
of default under the terms of the Indenture, without (i) the prior written approval or the specific
written request of the Host, and (ii) delivery of an Opinion of Bond Counsel to the Owner
substantially to the effect that such sale will not, in and of itself, adversely affect the exclusion of
interest on the Bonds from gross income for purposes of federal income taxation.
Section 4. Manner of Exercise of Sale Right.
(a) Host’s Notice. To exercise the Sale Right, Host shall provide a notice (an
“Exercise Notice”) to Owner (with a copy to the Project Administrator) at any time during the Sale
Right Term.
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4136-5162-3473.4
(b) Sale of Property to or as Directed by Host. Unless Host notifies Owner in writing
that it is withdrawing its Exercise Notice within fifteen (15) business days of delivering the
Exercise Notice under Section 4(a) hereof, Owner shall be obligated to use its best efforts to sell
good and marketable title to the Property within one hundred and twenty days (120) days
following receipt of the Exercise Notice or as soon as possible thereafter, at a price acceptable to
Host that is at or above the Minimum Sale Price (defined below) and otherwise on the terms set
forth in this Agreement. The time frame to sell the Property may extended by Host upon written
notice to Owner. The purchase and sale agreement shall be in commercially standard form
acceptable to Host in its reasonable discretion. Notwithstanding the foregoing, during the Sale
Right Term, Host may instead direct Owner to sell the Property to any party designated by Host,
or to Host itself, at a price designated by Host at or above the Minimum Sale Price, and Owner
shall follow such directions. Owner shall incur no monetary liability to any party as a result of or
otherwise in connection with the sale or failure to sell the Property as provided in this section.
Owner shall direct the Bond Trustee to cooperate in the foregoing as and to the extent necessary
or appropriate, and to the extent it is within the Owner’s legal authority so to direct.
(c) Owner’s Best Efforts to Sell. Owner shall exercise its best efforts in selling and
conveying good and marketable title to the Property. The obligation of Owner to sell and convey
the Property shall be on a best-efforts basis. Owner shall endeavor to sell the Property at a com-
mercially reasonable price, subject to subsection (d) of this Section, by such means as it shall
determine to be suitable for such purpose, and Owner shall incur no liability to any party as a result
of or otherwise in connection with the sale or failure to sell. Subject to subsection (d), nothing
herein shall require or prevent Owner selling the Property subject to the restrictions set forth in the
Regulatory Agreement or similar types of restrictions established by Owner with the approval of
Host. Owner shall direct the Bond Trustee in the foregoing as and to the extent necessary or
appropriate.
(d) Sale Price. The Sale Price for any sale of the Property under this Section 4 or
Section 5 shall be at least equal to the sum of the amounts set forth below (net of any adjustments
or prorations of the type described in Section 8(b)) (the “Minimum Sale Price”):
i. An amount sufficient to either prepay, redeem in whole or fully defease for
redemption on the earliest call date all Project Debt; plus
ii. Any fees or other amounts not identified in clause (i) that may be necessary
to affect the complete discharge of the Indenture and the complete release
from and discharge of any lien, mortgage, or other monetary encumbrance
on the Property; plus
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4136-5162-3473.4
iii. All amounts required to pay the Host for all property taxes that were
suspended during the term of this Agreement, including all amounts which
would have been collected for all the affected taxing entities, minus any
amounts paid to Host via the Host Fee, which amounts would be provided
solely to Host as part of the sale; plus
iv. Any unpaid Host Fee or Monitoring Fee, including accrued and unpaid
interest thereon, if any; plus
v. Any amounts due to Owner (including Owner Indemnified Persons, as
provided in the Indenture), the Bond Trustee, the Property Manager, the
Project Administrator, or any predecessor or successor, or any other Person
under any indenture, loan agreement, bond, note, or other instrument
relating to any Project Debt (including, without limitation, indemnification
amounts, Owner’s Extraordinary Costs and Expenses, recurrent and
extraordinary fees and expenses, and reimbursable costs and expenses of
any kind or nature); plus
vi. Transaction Costs; minus
Any funds held by or for Owner under the Indenture applied to the
retirement of Project Debt. Owner shall retain all moneys in the
Extraordinary Expense Fund and may, in addition retain such portion of
moneys in the Rebate Fund and in any other funds it deems reasonable as a
reserve against future expected costs and expenses of the type described in
subparagraph [(v.]. Prior to the closing of any Conveyance of the Property,
Owner shall provide to Host for Host’s review and approval an estimate of
each component of the proposed Minimum Sales Price, including a detailed
list of any and all fees and costs. Prior to the closing of a Conveyance,
Owner shall provide, or cause to be provided, a detailed accounting of the
actual amounts for such components. The cost of preparing such estimates
and accounting shall be Transaction Costs reimbursable to Owner.
At the election of Host, in its sole discretion, the Minimum Sale Price may be reduced by some or
all of the amounts otherwise owed to Host under [subparagraph (iii) and (iv)], above.
Section 5. Mandatory Conveyance after Retirement of Project Debt. Upon the
retirement of all Project Debt, Owner shall use its best efforts to effect a Conveyance to a third
party within one hundred and twenty days (120) or as soon as possible thereafter, subject to Section
4(d) hereof; provided, however, that Host, by notice to Owner within sixty (60) days after notice
from Owner that no Project Debt remains outstanding, may direct Owner to transfer the Property
to Host or any person designated by Host for a price determined by Host at or above the Minimum
Sale Price and Owner shall do so. Host may extend the aforementioned time frames by providing
written notice to Owner. Nothing herein shall require or prevent Owner selling the Property
subject to the restrictions set forth in the Regulatory Agreement or similar types of restrictions
established by Owner with the approval of Host.
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4136-5162-3473.4
Section 6. Surplus Cash; Surplus Conveyance Proceeds.
Upon any Conveyance of the Property, Owner shall apply the proceeds of such Convey-
ance (i) to redeem the Bonds then Outstanding, (ii) to prepay, redeem in whole or fully defease
any other Project Debt, and (iii) to pay any fees or other amounts listed in Section 4(d)(ii) – ([v]).
Any proceeds remaining following the foregoing payments (such remaining amounts hereinafter
referred to as “Surplus Conveyance Proceeds”) shall be transferred to Host and Host may use
such Surplus Conveyance Proceeds as it determines appropriate in its sole discretion. Owner
shall provide Host a full accounting of the distribution of such proceeds.
Section 7. Terms of Conveyance.
(a) The Conveyance shall be in the nature of a grant deed to Purchaser in which
Owner shall deliver one or more deeds, bills of sale, or other instruments of transfer without
recourse or warranty of any kind or nature (except as provided at Section 7(b) and 7(d)); provided
that Owner shall provide an ALTA owner’s policy of title insurance, the cost of which shall be a
Transaction Cost and at no cost to Owner. If Purchaser is either Host or Host’s designee, Owner
and the Purchaser shall enter into a purchase and sale agreement consistent with the terms of this
Agreement and in commercially reasonable form as approved by Owner and Host.
(b) The Property will be conveyed to Purchaser in AS IS CONDITION, WITH ALL
FAULTS, and without representations or warranties of any kind or nature as to the condition of
the Property; provided that Host may require disclosure by Owner, Property Manager and Project
Administrator of the physical conditions of the Property actually known by the persons employed
by those entities with principal responsibilities that encompass the physical operation and
maintenance of the condition of the Property. In addition, Owner, Property Manager and Project
administrator shall provide to Host or its designee the financial statements for the operation of the
Property for the immediately prior five (5) years, and all financial records pertaining to amounts
then due and owing at the close of escrow and thereafter. Host is not required to accept the property
in an “AS CONDITION WITH ALL, WITH ALL FAULTS.” Host may require a Due Diligence
period as set forth in Section 7(d) and may require that Owner cure issues identified in the Host’s
Due Diligence.
(c) There shall be no partial transfer and, upon consummation of the Conveyance,
Owner shall be fully divested of any and all right, title or interest in and to the Property.
(d) Notwithstanding Section 7(b), Host shall have right to conduct Due Diligence on
the Conveyance of the Property to the Host prior to any Conveyance as follows:
1. Host’s obligation to purchase the Property is expressly conditioned on Host’s approval of the
condition of title of the Property in accordance with the following:
(i) Owner shall provide the following: (1) a preliminary title report, together with
a legible copy of all Exceptions shown in the preliminary title report, including
each document referred to in the preliminary title report and (2) an Environmental
Assessment Report (“ESA”). The parties agree that the findings stated in the ESA
Report will serve as the baseline for the environmental condition of the Property
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4136-5162-3473.4
as of the Closing Date.
(ii) Host’s Approval of Preliminary Title Report. Host will have forty-five (45)
days after receipt to review the preliminary title report and to deliver written no
tice of any objection to the Exceptions and other matters disclosed therein (Title
Objection”) to Owner.
(iii) Permitted Exceptions. The following Exceptions may be approved by
Host, including but not limited to: (i) any lien for local real estate Taxes and
assessments not yet due or payable, including (without limitation) special Taxes und
er Gov. Code §§53311-53368.3 or installment assessments under Streets & High
ways Code §§85008887; (ii) the standard preprinted exceptions and exclusions of
the Title Company; (iii) any matters approved or deemed approved by Host
pursuant to this Section 7; and (iv) any matters which would be disclosed by an
accurate rate survey or physical inspection of the Property (collectively, “Permitted
Exceptions”).
(iv) Title Objections. With respect to any Title Objection, Owner will have thirty
(30) days after receipt of Host’s Title Objection to give notice to Host in writing,
stating either (i) the manner in which Owner will remove or cure such Title Objection or
(ii) that Owner will not remove or cure such Title Objection. If Owner
fails to deliver such notice within the time specified herein, Owner shall be
deemed to have elected not to remove or cure such Title Objection.
(v) Owner Elects Not to Cure. If Owner elects not to cure or remove a Title
Objection (or is deemed to have so elected), or Owner’s cure is not acceptable to
Host, then Host will have thirty (30) days thereafter to provide Owner with
written notice that Host (i) accepts the matters disclosed in the preliminary title
report, waive such Title Objection, and accept the Exception shown in the preliminary
title report as a Permitted Exception or (ii) is terminating the Conveyance to the
Host.
(vi) Additional Encumbrances. If any encumbrance or other Exception to title
arises or is discovered after the delivery of the preliminary title report, the party
discovering such additional encumbrance must promptly give written notice to the
other. No later than five (5) days after delivery of the notice of such additional
encumbrance, Host will deliver written notice to Owner specifying whether the
additional encumbrance is a Title Objection or a Permitted Exception. If Host
objects to the additional encumbrance, the parties will proceed in the same manner
as set forth above for Title Objections in Sections (d)(1)(iv)-(v).
2. Host’s obligation to purchase the Property is expressly conditioned on its approval, in its sole
discretion, of the condition of the Property and all other matters concerning the Property, includ-
ing without limitation economic, financial, and accounting matters relating to or affecting the
Property, its operations (including operating expenses), or its value, title (Section (d)(1)), and
the physical and environmental condition of the Property. Host will have one hundred eighty
(180) days after written notice that Owner is making a Conveyance of the property under the
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terms of this Agreement to Host (“Due Diligence Period”) to conduct such investigations as Host
may choose (“Due Diligence”) to determine whether this contingency is met. Host and Host’s
representatives will be given reasonable access to the Property during regular business hours for
the purpose of performing such Due Diligence.
3. On or before expiration of the Due Diligence Period, Host will deliver written notice to
Owner that it elects to proceed with the Conveyance of the Property to Host by Owner. Host
may extend the Due Diligence Period by providing notice to Owner.
Section 8. Closing.
(a) The closing of the Conveyance (“Closing”) shall take place, in the case of a
Conveyance pursuant to Section 4 hereof, not later than the one hundred and twentieth (120)
calendar day following Owner’s receipt of the Exercise Notice, or as soon as possible thereafter,
or a date designated by Host via written notice and in the case of a mandatory Conveyance pursuant
to Section 5 hereof, not later than the one hundred and twentieth day (120) calendar day or as soon
as possible thereafter or to a date designated by Host following the later of (i) the retirement of all
Project Debt, or (ii) Owner's receipt of Host’s notice of its election to cause a Conveyance to Host
or Host’s designee.
(b) Prorations. All general and special real property taxes and assessments, and rents
shall be prorated as of the Closing, with Purchaser responsible for all such items to the extent
arising or due at any time following the Closing and Owner responsible for all such items to the
extent arising or due prior to the Closing. General real property taxes shall be prorated at the time
of Closing based on the net general real property taxes for the year of Closing.
Section 9. Recording. This Agreement, and any amendment thereto, shall be recorded
with the recorder’s office of the County; provided, that upon termination of the term of this
Agreement, Host shall cooperate with Owner to remove any such recorded Agreement or
amendment thereto from title to the Property upon Owner’s reasonable request therefor and, in any
event, by no later than thirty (30) days after the expiration of the original term of this Agreement.
Section 10. Conflicts with Regulatory Agreement. In the event of any conflict between
the terms of the Regulatory Agreement and this Agreement, the specific terms and requirements
set forth in the Regulatory Agreement shall prevail.
Section 11. Maintenance of Membership. To the extent required in order to preserve
the Property’s exemption from property tax or to preserve the tax-exempt status of interest on the
Bonds, Host agrees to remain a member of Owner’s joint powers authority so long as any Bonds
remain Outstanding.
Section 11.5 Middle-Income Unit Restrictions. Host shall be made a third-party
beneficiary of the Regulatory Agreement insofar as necessary to enforce any tenant income
restriction or rent limitation of the Regulatory Agreement, subject to the terms thereof.
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Section 12. Assignment. Neither party to this Agreement may assign its interests,
obligations, rights and/or responsibilities under this Agreement without the prior written consent
of the other party.
Section 13. Tenant Displacement. Owner shall provide a minimum 120 days’ notice of
any pending Conveyance (right to sale or mandatory conveyance) to all tenants (or such shorter
amount of notice as may be permitted by Owner’s obligations to affect a Conveyance hereunder).
If a tenant is required to move from the Property, Owner shall provide such tenant household th e
greater of (a) the cash equivalent of three months’ rent as relocation assistance, or (b) the relocation
assistance required by then applicable state law or local law, provided that the costs thereof are
Transaction Costs and payable solely from the sale proceeds of the Property.
Section 13.5 Limitation on Liability. The Bonds will not be a debt, liability or obligation
of Host but, rather, solely indebtedness of the Owner, limited to the Trust Estate pledged and
available therefor under the Indenture. Under no circumstances shall Host be obligated to
(i) provide any financing to acquire or construct the Project or any refinancing of the Project;
(ii) approve any application or request for or take any other action in connection with any planning
approval, permit or other action necessary for the acquisition, construction, rehabilitation or
operation of the Project; or (iii) make any contribution or advance any funds whatsoever to the
Owner.
ARTICLE 2 PROTECTION OF PROJECT/PROPERTY
Section 14. No Delay in Bond Payments. Owner shall ensure that all required Bond
payments are timely made and not delayed as and to the extent required by the Indenture. Owner
shall not refinance or restructure the Bonds so that the amount due (including but not limited to
principal and interest) on the Bonds are increased or the payment period is extended without the
prior written approval of Host.
Section 15. Debt Service Coverage Ratio. Owner shall maintain a minimum debt
service coverage ratio as and to the extent required by the Indenture.
Section 16. No Equity Loans/Sale. Owner shall not encumber the Property with any
type of debt instrument using the Property as collateral of any type without the prior written
consent of Host. Owner may not sell all or any part of the Property without prior written consent
of Host. Owner shall provide the Host any and all information requested by the Host when
requesting consent as set forth in this Section 16.
Section 17. Reserved.
Section 18. Foreclosure on the Property. The Host acknowledges that this Agreement
is subordinate in lien priority to the Deed of Trust securing the Bonds, and that foreclosure of such
Deed of Trust will wipe out this Agreement by operation of law.
Section 19. Maintenance/Physical Condition of Property. Owner shall continually main-
tain the Property (including all residential units) as and to the extent required by the Indenture
and the Regulatory Agreement. Host shall have the right to inspect the Project from time to
time, including reasonable access into individual units from time to time, on reasonable notice
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and during normal business hours, with approval of the occupying tenants, in order to verify
compliance with the foregoing maintenance covenant. Further, each Workforce Affordable Unit
shall be requalified annually, as to the foregoing maintenance covenant, as part of the annual ten-
ant requalification process described in Section 26 below. Any deficiencies in the physical con-
dition of the Property or a Workforce Affordable Unit shall be corrected by Owner at Owner’s
expense within thirty (30) days of the identification of such deficiency by Host and delivery of
written notice of the same to Owner (unless such deficiency is not capable of being cured within
such thirty (30) day period, then such amount of time as Host determines is needed, not to ex-
ceed one hundred twenty (120) days, provided Owner commences cure within such thirty (30)
day period and continues to diligently pursue cure). Owner shall establish and fund the Operat-
ing Reserve Fund (as defined in the Indenture) in an amount as required by the Indenture to en-
sure adequate funds are available to pay for capital repairs as required to maintain the Property as
required by this Section.
Section 20. Reserved.
Section 21. Enforcement; Remedies.
(a) Standing; Equitable Remedies; Remedies Cumulative. Owner expressly agrees
and declares that Host or any successor public agency shall be the proper party and shall have
standing to initiate and pursue any and all actions or proceedings, at law or in equity, to enforce
all the provisions this Agreement and/or to recover damages, including compensatory damages,
for any act or omission constituting a default or failure to perform any of the terms of the Agree-
ment hereunder and which act or omission remains uncured following sixty (60) days’ written
notice to Owner by Host (or up to one hundred eighty (180) days after notice, if actions to cor-
rect the material default have been timely initiated and are, in the reasonable opinion of Host, be-
ing diligently pursued), notwithstanding the fact that such damages or the detriment arising from
such a default or failure to perform the terms of this Agreement that remains uncured as afore-
said may have actually been suffered by some other person or by the public at large. Further,
Owner expressly agrees that injunctive relief and specific performance are proper pre-trial and/or
post-trial remedies hereunder to assure compliance with this Agreement. The remedies set forth
in this Section are cumulative to any other remedies that may be had and not mutually exclusive,
except to the extent that their award is specifically determined to be duplicative by final order of
a court of competent jurisdiction.
(b) Excess Rents. If the default in question involves the collection of
rents in excess of the rents permitted hereunder, the amount of such compensatory damages shall
be the product of multiplying: (a) the number of months that the default in question has continued
until the time of trial by (b) the result of subtracting the rents properly chargeable hereunder for
the Affordable Units in question from the amount actually charged for those Affordable Units.
Owner and Host agree that it would be extremely difficult or impracticable to ascertain the precise
amount of actual damages accruing to Host as a result of such a default and that the foregoing
formula is a fair and reasonable method of approximating such damages. The Host shall be entitled
to seek and to recover damages in separate actions for successive and separate breaches which may
occur. Further, interest shall accrue on the amount of such damages from the date of the breach in
question at the rate of ten percent (10%) per annum or the maximum rate than allowed by law,
whichever is less.
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ARTICLE 3 MIDDLE-INCOME AFFORDABILITY REQUIREMENTS
Section 22. Middle-Income Affordable Unit Restrictions. The Project shall be rent
restricted as set forth in Section XXX of the Regulatory Agreement, which includes, but is not
limited to, the maximum amounts of rents that may be set and the percentages of units to be rented
as Low-Income Units, Median Income Units and Moderate-Income Units. Owner shall report to
Host annually or upon request any information requested by Host to ensure compliance with this
Section 22, including, but not limited the rents set per unit, the percentages of units to be rented
as Low-Income Units, Median Income Units and Moderate-Income Units, and unit distribution
within the Project. Owner shall not amend the Regulatory Agreement to increase the maximum
income levels or maximum rents of the Affordable Units, or to revise the percentages of units to
be rented as Low-Income Units, Median Income Units and Moderate-Income Units, without the
prior written approval of Host. Owner shall comply with such provisions of the Regulatory Agree-
ment.
Section 23. Occupancy by Eligible Tenants. During the term of this Agreement all
Workforce Units shall be occupied only by Eligible Tenants as set forth in Section XXX of the
Regulatory Agreement. For Affordable Units subject to the Inclusionary Housing Requirements,
they shall be subject to the Inclusionary Housing documents.
Section 24. Rent Adjustment. Rents may be increased (up to 4% annually) or de-
creased (to the applicable rent category) as set forth in Section XXX of the Regulatory Agreement.
Section 25. Workforce Marketing Plan Compliance; Selection of Residents.
(a) Marketing Plan. Owner shall, at a minimum, utilize the Host’s standardized man-
agement and affirmative fair marketing plan for rental of all of the Workforce Units. The affirm-
ative fair marketing plan, at a minimum, requires publicizing the availability of the Workforce
Affordable Units within the City, such as notices in any Host-sponsored newsletter, advertising in
local newspapers and notice in City offices, particularly in areas of the community and in media
forms to reach the targeted groups. In addition, within _______ days after closing, Owner shall
update the Project’s website to reflect the terms and conditions of this Agreement and any Regu-
latory Agreement that governs the occupancy requirements of the Project (affordability levels,
etc.). Owner shall ensure that all previous market rate advertising is updated to reflect that the
Project is now a work force housing project. This includes updating third party websites such as
rent café, apartments.com, apartment finder, etc.). As provided above at Section 23, all tenants of
a Workforce Affordable Unit shall meet the requirements to be an Eligible Tenant. The manage-
ment marketing plan shall be in conformance with the terms and standards set forth in this Agree-
ment. No preference may be used for the purpose or effect of delaying or otherwise denying
admission to the Property or unit based on the race, color, ethnic origin, gender, religion, disability,
or age of any member of an applicant household.
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(b) Affirmative Marketing. The Project will maintain a waiting list and follow the af-
firmative marketing procedures in compliance with HCD’s Affirmatively Furthering Fair Housing.
(c) No Discrimination. Owner shall not discriminate in renting units against voucher
holders including those receiving rental assistance from any local, federal, state, or non-profit
agency nor shall there be any form of discrimination or denial of use based on a Tenant’s affordable
housing rental status or income in their use of Project services, facilities, entrances, or amenities.
(d) Screening. Nothing herein shall restrict Owner from screening tenants through the
application of criteria which is lawful and customary in apartment management in San Diego
County and otherwise consistent with federal, state, and local regulations and restrictions related
to the financing for the Project. In reviewing and considering applications from prospective ten-
ants, the Owner shall provide a preference to households which include one or more persons who
live, work, or have been hired to work in the City, have graduated from a City high school, are
employed by a public school district in the City, and/or are employed as a first responder.
Section 26. Determination; Annual Requalification. Owner shall obtain from each
person to whom Owner leases a Workforce Affordable Unit a “Tenant Income Certification”
(“TIC”) in the form of Exhibit “C”, attached hereto (or such other reasonable form as Host may
from time to time adopt). Owner shall be entitled to rely on the TIC and supporting documents
thereto in determining whether a household is an “Eligible Tenant” as may be established in
Owner’s application review guidelines. Owner shall retain the TIC and supporting documents for
a period of not less than three (3) years after the applicant ceases to occupy a Workforce Affordable
Unit. A Workforce Affordable Unit occupied by an Eligible Tenant, shall be treated as an Eligible
Tenant until a recertification of such tenant’s income demonstrates that such tenant no longer qual-
ifies as an “Eligible Tenant.”
Owner is required to recertify existing Eligible Tenants for continuing eligibility within
ninety (90) days of the annual renewal of each tenant lease. Owner shall require all existing Eli-
gible Tenants to complete a Recertification TIC and review such TIC to determine eligibility for
occupancy of a Workforce Affordable Unit.
Section 27. Certification; Annual Recertification. Within ninety (90) days of execu-
tion of this PBA by all required Parties and annually each year during of the term of this Benefit
Agreement, Owner shall certify to the Host under penalty of perjury, utilizing such forms and
providing such backup documentation as requested by the Host.
Section 28. Increased Income of Tenants. Section X of the Regulatory Agreement
shall govern, where, upon recertification of the income of an Eligible Tenant of a Workforce Af-
fordable Unit, the Owner determines that such Tenant’s income exceeds the applicable income
restrictions.
Section 29. Additional Limitations on Tenants. The following restrictions shall also
be applicable to the Affordable Unit:
(a) Relationship with Owner, Bond Trustee, Property Manager and Project Adminis-
trator. The Workforce Affordable Unit shall not be occupied by or leased to Owner, Bond Trustee,
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Property Manager or the Project Administrator, or any individuals who are partners or shareholders
in Owner, Property Manager, Project Administrator or Bond Trustee or in any entity having an
interest in Owner, Bond Trustee, Property Manager or Project Administrator or in the Property,
officer, employee, agent, or consultant of the Owner, Bond Trustee, Property Manager or Project
Administrator or any relative thereof (by blood or marriage).
(b) Owners of Real Property. The Workforce Affordable Unit shall not be occupied
by or leased to any person or any household comprised of one or more persons who own real
property.
(c) Liquid Asset Limitation. The Workforce Affordable Unit shall not be occupied by
or leased to any person or household holding, directly or indirectly, liquid assets whose aggregate
value exceeds, at the time of determination of eligibility, sixty-five percent (65%) of the then-
current annual Area Median Income. As used herein, the term “liquid assets” refers to cash and
assets which are readily convertible to cash within a reasonable period, including but not limited
to savings and checking accounts, certificates of deposit of any term, marketable securities, money
market and similar accounts, mutual fund shares, and insurance policy cash values. The term
“liquid assets” shall not include retirement funds which are not readily accessible, or which cannot
be accessed by the buyer without the buyer incurring a penalty.
Section 30. Additional Lease Provisions/Annual Income Verification. Owner
agrees that it will require each Eligible Tenant to execute an Authorization for Release of Infor-
mation, in the form attached hereto as Exhibit “D.” Owner agrees that it will include the following
provision in all of its leases:
“Lessee agrees, upon written request from the Landlord or the City of Chula Vista
(“City”), to certify under penalty of perjury the accuracy of all information provided
in connection with the examination or reexamination of annual income of the ten-
ant’s household. Further, tenant agrees that the annual income and other eligibility
requirements are substantial and material obligations of the tenancy and that the
tenant will comply promptly with all requests for information with respect to the
tenancy from the Landlord and/or City. Further, tenant acknowledges that tenant’s
failure to provide accurate information regarding such requirements (regardless of
whether such inaccuracy is intentional or unintentional) or the refusal to comply
with the request for information with respect thereto, shall be deemed a violation
of this lease provision, and a material breach of the tenancy and shall constitute
cause for immediate termination of the tenancy.”
Section 31. Monitoring. It is contemplated that, during the term of this Agreement, the
Host will perform the following monitoring functions. Notwithstanding the following description
of the Host’s functions, Owner shall have no claim or right of action against the Host based on any
alleged failure to perform such function. In addition, the Owner shall cooperate with and utilize
such forms, software, websites, and third-party vendors as may be required by the Host. Host will
endeavor to complete the following:
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(a) Prepare and make available to Owner any general information that the Host pos-
sesses regarding income limitations and restrictions which are applicable to the Workforce Afford-
able Units;
(a) Review the documentation submitted by Owner in connection with the annual cer-
tification process for Eligible Tenants described in Section 26, above; and,
(b) Inspect the Affordable Units to verify that they are being maintained in accordance
with Section 19, above.
Section 32. Owner Required to Pay Occupancy Monitoring Fees. Owner, or Bond
Trustee on its behalf, shall pay to Host on each anniversary of the date hereof, commencing with
the first anniversary and terminating upon Conveyance, an annual monitoring fee of $ $27,755
with annual increases of three percent (3.00%). The annual monitoring fee shall be paid to Host
annually within thirty (30) days after Host provides a written invoice for the same. Amounts of
the monitoring fee not paid within thirty (30) days after deliver of written invoice for the same
shall bear interest at the per annum rate of 8.00%, compounded annually, from the date of the
invoice until paid. In addition, failure to timely pay such fees shall constitute a material default
under this Agreement.
ARTICLE 4 MISCELLANEOUS PROVISIONS
Section 33. Miscellaneous Provisions.
(a.) Notices. All notices provided for in this Agreement shall be in writing and shall be giv en
to Owner or Host at the address set forth below or at such other address as they individually
may specify thereafter by written notice in accordance herewith:
If to Owner: CSCDA Community Improvement Authority
1100 K Street, Suite 101
Sacramento, California 95814
Attention: Chair
With a copy to: Opportunity Housing Group, Inc.
550 Hartz Ave. Suite 200
Danville, California 94526
Attn: Lauren Seaver/Bradley Griggs
Email: lseaver@blakegriggs.com
Email: bgriggs@blakegriggs.com
If to Host: City of Chula Vista
276 4th Avenue, Building A
Chula Vista, California 91910
Attention: Housing Manager
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With Copy to: City of Chula Vista
276 4th Avenue, Building A
Chula Vista, California 91910
Attention: City Attorney
Such notices shall be deemed effective upon actual delivery or upon the date that any such delivery
was attempted and acceptance thereof was refused, or if mailed, certified return receipt requested,
postage prepaid, properly addressed, three (3) days after posting. These addresses may be changed
by any party by written notice to all other parties.
B. Consents and Approvals. All consents and approvals and waivers required or asserted
hereunder shall be in writing, signed by the party from whom such consent, approval, waiver, or
notice is requested.
C. Indemnity. Owner agrees to indemnify, defend, and hold harmless the City of Chula
Vista (“Host”) and any and all of its respective elected officials, members, officers, agents, serv-
ants, employees or volunteers (the “Indemnitees”) from and against all claims, liens, claims of
lien, losses, damages, costs, and expenses, whether direct or indirect, arising in any way from the
Bond issuance or sale, rental or operation of the Property and/or any of the units, including, without
limitation, Owner’s obligation to pay relocation assistance as provided in Section 13, or from the
default by Owner in the performance of its obligations under this Agreement; provided, however,
that Owner shall not be required to indemnify, defend or hold harmless any of the Indemnitees
from claims, losses, damages, costs and expenses related to the sole negligence or willful miscon-
duct of the Indemnitees. Owner’s indemnity obligations hereunder shall survive the termination
of this Agreement.
D. Covenants to Run With the Land. Owner agrees that all of its obligations hereunder
shall constitute covenants, which shall run with the land and shall be binding upon the Property
and upon every person having any interest therein at any time and from time to time during the
term of this Agreement. Further, Owner agrees that, if a court of competent jurisdiction determines
that the obligations set forth herein do not qualify as covenants running with the land, they shall
be enforced as equitable servitudes.
E. Reserved.
F. Pronouns. Where appropriate to the context, words of one gender include all genders,
and the singular includes the plural and vice versa.
G. Amendments. This Agreement may not be modified except in a written instrument
signed by Host and Owner.
H. Complete Agreement; Benefits. This Agreement together with all schedules and ex-
hibits attached hereto and made part thereof supersedes all previous agreements, understandings
and representations made by or between the parties hereto. This Agreement shall inure solely and
exclusively to the benefit of the Owner and Host, and no other party shall have any right, remedy
or claim under or by reason of this Agreement. There are no third-party beneficiaries of this Agree-
ment.
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I. Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of California, without regard to conflicts of law principles. All claims of
whatever character arising out of this Agreement, or under any statute or common law relating in
any way, directly or indirectly, to the subject matter hereof or to the dealings between Owner and
any other party hereto, if and to the extent that such claim potentially could or actually does involve
Owner, shall be filed and maintained in the Superior Court of California, County of San Diego,
California. By executing and delivering this Agreement, each party hereto irrevocably: (i) accepts
generally and unconditionally the exclusive jurisdiction and venue of such court; (ii) waives any
defense of forum non-conveniens; and (iii) agrees not to seek removal of such proceedings to any
court or forum other than as specified above. The foregoing shall not be deemed or construed to
constitute a waiver by Owner of any prior notice or procedural requirements applicable to actions
or claims against or involving governmental units and/or political subdivisions of the State of Cal-
ifornia that may exist at the time of and in connection with such matter.
J. Legal Construction. In case any one or more of the provisions contained in this Agree-
ment shall for any reason be held by a court of competent jurisdiction to be invalid, illegal, or
unenforceable in any respect, such invalid provision shall be deemed severable, and shall not affect
the validity or enforceability of any other provisions of this Agreement, all of which shall remain
fully enforceable.
K. Term. This Agreement shall terminate upon the Conveyance of the Property as set
forth in either Sections 4 or 5, in the event of a foreclosure, or upon the earlier conveyance of the
property pursuant to a remedy for default under the Indenture.
L. Captions. The captions used in this Agreement are solely for convenience and shall not
be deemed to constitute a part of the substance of the Agreement for purpose of its construction.
M. Property Management. The Owner shall comply with the terms of the Indenture
and the Regulatory Agreement concerning property management.
N. Property Maintenance Report. The Owner shall comply with the terms of the Inden-
ture and the Regulatory Agreement concerning property maintenance reporting and shall provide
Host with copies of any such reports upon request.
O. Host Charge. Owner, or Bond Trustee on its behalf, shall pay to Host, subject to
Section 14(a) hereof, commencing within 120 days of execution of this Agreement, continuing
every year anniversary thereafter, and terminating upon Conveyance, an annual host charge of
$200,000 with annual increases of two percent (2.00%). Amounts of the Host Fee not paid within
thirty (30) days after delivery of written invoice for the same shall bear interest at the per annum
rate of 8.00%, compounded annually, from the date of the invoice until paid. Should a host charge
be determined to be improper in any manner or if Owner does not timely pay the Host Charge,
Host, among its remedies, many require Owner to provide additional Workforce Housing units at
greater affordability levels, as directed by Host.
P. Reserved.
Q. Additional Documents. The parties each agree to sign any additional documents,
which are reasonably necessary to carry out this Agreement or to accomplish its intent.
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R. Counterparts. This Agreement may be executed in any number of counterparts and
each of such counterparts shall for all purposes be deemed to be an original.
S. Cost Reimbursement.
(1) At the closing for the sale of the Bonds, Owner agrees to reimburse Host for all of its
documented costs incurred in connection with Host’s actual, third party costs incurred for the
review and analysis of this Agreement and preparations for Owner’s financing and acquisition of
the Property
(2) In addition, Owner agrees to reimburse Host for all costs and fees, including reasonable
attorney’s fees, arising from an audit of Host by any state or federal agency due to Host’s
participation in the Project for reasons other than the gross negligence, fraud, willful misconduct,
malfeasance or material violation of any law of the Host.
T. Conflicts. For sake of clarity, Jones Hall, A Professional Law Corporation (“Bond
Counsel”) represents the Owner in the matters covered by this Agreement and does not represent
or owe any attorney-client or similar duty to Host with respect to any such matters.
[SIGNATURE PAGE TO FOLLOW]
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set forth
above.
CSCDA COMMUNITY IMPROVEMENT
AUTHORITY
By:
Authorized Signatory
CITY OF CHULA VISTA
By:
Maria Kachadoorian
City Manager
Approved as to form:
_________________
City Attorney
Signature Page to Public Benefit Agreement
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A Notary Public or other officer completing this certificate verifies only the identity of the
individual who signed the document to which this certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
State of California )
County of ______________________ )
On _________________________, before me, ,
(insert name and title of the officer)
Notary Public, personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
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EXHIBIT A
LEGAL DESCRIPTION OF REAL PROPERTY
The Land referred to herein is situated in the State of California, County of San Diego, Host of
Chula Vista, and described as follows:
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EXHIBIT B
REGULATORY AGREEMENT
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EXHIBIT C
TIC FORM
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EXHIBIT D
LEASE INFORMATION WAIVER
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Attachment 2
The Residences Workforce Housing Application 12/13/21
https://cvapps.chulavistaca.gov/WebLink/browse.aspx?startid=241952
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Via Electronic Mail
To: Tiffany Allen, Director
Stacey Kurz, Housing Manager
Jose Dorado, Senior Management Analyst
Development Services Department
CITY OF CHULA VISTA
From: Tara Matthews, Principal
Mark Sawicki, Director
Rosa Romero, Associate
Samantha Wu Rose, Research Assistant
RSG, INC.
Date: March 8, 2022
SUBJECT: WORKFORCE HOUSING PROGRAM PROPOSAL -
RESIDENCES AT ESCAYA PROJECT
The City of Chula Vista (“City”) City Council (“City Council”) adopted a policy for a "Workforce
Housing" program that serves Moderate Income Rental Households via Resolution No. 2021-199.
California Municipal Finance Authority (“CMFA”), a Joint Powers Authority ("JPA"), and HomeFed
Corporation (“HomeFed”), also referred to as the Sponsor (“Sponsor”), submitted a proposal
pursuant to this program for the Residences at Escaya Project (“Project”). Section II.C. of the
Resolution states that "a third party shall be retained to analyze the financial projections, bond
fees, property tax revenues, and other financial terms and conditions of the proposal." RSG, Inc.
(“RSG”) performed a financial evaluation of the proposal and supporting materials, and our
analysis and findings are detailed in the following narrative for City Council consideration.
BACKGROUND
Middle-Income/Workforce Housing Programs
There is currently limited Federal, State, or local subsidies or programs to produce or preserve
the growing shortfall of below market rate rental housing for moderate and middle-income
households, which are those earning from 80% to 120% of area median income (“AMI”). To date,
affordable housing programs in California have almost exclusively focused on providing housing
for lower-income households, and State and federal funding sources are almost exclusively
targeted to households at or below 60% of AMI. This has left a “missing middle,” comprised of
households that earn too much to qualify for traditional affordable housing programs but not
enough to afford market rate housing.
In the last several years, three different entities have developed similar Middle-Income or
Workforce Housing Programs, for the purpose of issuing tax-exempt bonds to acquire market rate
apartment buildings and convert them into income- and rent-restricted units for households
2022/03/15 City Council Post Agenda Page 252 of 277
Tiffany Allen, Stacey Kurz, and Jose Dorado
CITY OF CHULA VISTA
Residences at Escaya Project - Workforce Housing Program Review
March 8, 2022
Page 2
earning between 61% and 120% of AMI. The three entities include CMFA, California Statewide
Communities Development Authority (CSCDA), and the California Community Housing Agency
(CalCHA). Each entity was formed as a JPA pursuant to California Government Code Sections
6500-6599.
For the JPA to be granted the authority to serve as the issuer of the bonds for the Project, it is
necessary for the City to become a member of the JPA. Cities, counties, and housing authorities
become non-voting members of the JPA by adopting a Resolution and executing the JPA
Agreement. The city authorizes the JPA to issue bonds at no cost or liability to the city. The Joint
Exercise of Powers Agreement provides that the JPA is a public entity, separate and apart from
each member executing such agreement. The debts, liabilities and obligations of the JPA do not
constitute debts, liabilities or obligations of the members executing such agreement. The debt
service on the bonds used to acquire property is supported solely from project revenues and
receipts. To date, more than two dozen cities across the State have joined one or more of the
three JPAs and have approved similar Middle-Income Housing Program acquisition/conversion
transactions, including in South Gate, Carson, Anaheim, Long Beach, Glendale, Pleasant Hill,
Dublin, Livermore, Fairfield, and Santa Rosa.
Every project acquired by the JPA becomes exempt from property tax. The JPA records a
Regulatory Agreement that restricts rents to be affordable for households at different maximum
income-limit mixes between 80% and 120% of AMI. If there are existing tenants of an acquired
property who income-qualify, their rents are restricted. For non-qualifying tenants, they may
remain in place at market rate. As units turnover, they become income- and rent-restricted for the
next tenant. Annual rent increases are capped at 4%.
The Regulatory Agreement period is for up to 35 years while the Project is under JPA ownership
and the bonds are outstanding. Through its right to repurchase, a city can opt to extend the
affordability restrictions beyond the transaction period and/or convey the property to an entity that
can operate it as rent-restricted affordable housing. Alternatively, the city also has the option to
allow the property to return to market rate rents and thus convey it for a higher market value.
Under the terms of the Public Benefit Agreement, the JPA grants all financial upside to the
underlying member jurisdiction. Between years 15 and 35, the city has a right to purchase the
property for the amount of outstanding debt. (This right could be lost, however, if bondholders
ever foreclosed on the property.) If the city declines to purchase, the JPA must sell the property
and distribute the net proceeds to the city.
Residences at Escaya Project
The Residences at Escaya is a 272-unit apartment complex situated on 9 acres within the Otay
Ranch Community in eastern Chula Vista. Built in 2019, its 14 3-story buildings contain 141 one-
bedroom, 111 two-bedroom, and 20 three-bedroom units, and amenities such as a fitness center,
swimming pool, clubhouse, hiking trails, and dog park. The current owner is Village of Escaya
Apartments LLC, an affiliate of HomeFed (the Sponsor).
2022/03/15 City Council Post Agenda Page 253 of 277
Tiffany Allen, Stacey Kurz, and Jose Dorado
CITY OF CHULA VISTA
Residences at Escaya Project - Workforce Housing Program Review
March 8, 2022
Page 3
SUMMARY OF KEY FINDINGS
Based on our analysis, below is a summary of RSG’s key findings:
• The Project is highly leveraged under the financial structure of the Workforce Housing
program, with a debt to value of 119% following acquisition. The issuance of $160 million
in bonds will entirely fund the acquisition ($135 million), reserve accounts ($15 million),
and payment of transaction, JPA and Sponsor fees ($13 million). CMFA will be the owner,
but without an equity investment or residual interest.
• Based on RSG's projections, the Project will need to rely on reserves to pay debt service
for the first seven years, is not expected to begin repaying principal on the Series A bonds
until Year 10, and will not achieve a Net Operating Income ("NOI") to debt service
coverage ratio of 1.2x until Year 15.
• Following conversion of all units to restricted rents, the Project would provide minimal
rental savings compared to current in-place rents but about $500,000 in annual savings
to estimated market rent in the first year. This is partly due to an existing covenant that
restricts 30 units for Moderate Income households. The rent savings will grow over the life
of the Project as market rents and restricted rents continue to diverge over time. As
another reference point, initial rents at Escaya would average $2,463, as compared to the
proposed initial rents at CasaLago of $2,810.
• CMFA would share with the City 25% of the $500,000 in bond issuance fees it receives at
closing. In addition, CMFA would share an equal amount via its affiliated foundation to
fund local charities designated by the City, reducing its upfront fee to $250,000.
• The City is estimated to be currently receiving about $103,000 in property tax from the
Project based on its pre-acquisition assessed value. The Sponsor has proposed to provide
the City with an equivalent "Host City Charge" to mitigate the revenue loss after purchase
by the JPA, since it will be exempt from paying ad valorem property taxes. If not for the
exemption, the new assessed value from acquisition would result in property taxes to the
City of about $144,000 in the first year.
• RSG projects that by Year 15, when the City has the option to purchase the asset, the
estimated Project value of $166 million would not provide adequate proceeds to fully
reimburse the other taxing entities for their cumulative foregone property tax, as is
contemplated by the Public Benefit Agreement with CMFA. If the City were to "equitably
share" the proceeds with other taxing entities, it may realize an overall negative net fiscal
impact of about $244,000 in present value 2022 dollars.
• RSG projects that by Year 35, approximately $47 million in bond debt would still be
outstanding, but the Project value would have grown to $222 million. The City would be
able to reimburse the other taxing entities for their cumulative foregone property taxes,
and still retain $114 million. The projected net fiscal impact to the City would be about $39
million in present value 2022 dollars.
2022/03/15 City Council Post Agenda Page 254 of 277
Tiffany Allen, Stacey Kurz, and Jose Dorado
CITY OF CHULA VISTA
Residences at Escaya Project - Workforce Housing Program Review
March 8, 2022
Page 4
• The City incurs minimal costs, liabilities, or administrative responsibilities in connection
with membership in the CMFA JPA or participation in the Workforce Housing Program.
The City is not the bond issuer and provides no funding or credit enhancement to the
transaction. The acquisition bonds do not diminish the City’s issuing capacity and are
backed solely by the Project revenues. On this basis, participation creates a relatively low
risk and high return opportunity for the City.
• However, there is the potential that the Project would become unable to meet debt service
due to lower rents, higher operating costs, or other unforeseen events. Ultimately, if the
bondholders needed to foreclose on the asset to satisfy outstanding debt, the Regulatory
Agreement would be terminated and the rent restrictions would be lifted. Rents could then
be increased under the maximum State limits, eventually returning to market level rents.
DETAILED FINDINGS
Income Limits and Program Rents
The Workforce Housing program provides reduced affordable rents to qualifying households with
incomes at or below 80% (Low) to 120% (Moderate) of AMI based on the Department of Housing
and Urban Development (“HUD”) for the County of San Diego. The Sponsor is proposing that the
Project will have an allocation of income- and rent-restricted units as follows:
• 33.3% of the units for households below 80% AMI,
• 33.3% of units from 81% to 100% AMI, and
• 33.3% of units from 101% to 120% AMI.
The Project has an existing covenant that restricts 30 units to Moderate Income households and
sets the rents for these units at no greater than 30% x 110% of the 120% income limit for that unit
size. The Project's proposed Regulatory Agreement states that the initial and ongoing maximum
rents for the 242 converted units will be restricted to not exceed 35% of the qualifying income
limits for each unit size and income category. The respective qualifying income limits are stated
in Table 1 below:
Table 2 details the proposed initial Project Rents for the Project. Most of the units are being set
at rents lower than the maximum (35% of qualifying income) amounts allowed by the Regulatory
Agreement. Initial Project Rents range from 23% to 35% of the qualifying income, as shown in
Table 3. By starting with lower initial rents, particularly at the 120% AMI level, the Sponsor is
Unit Type Household Size 80% AMI 100% AMI 120% AMI
1-bedroom 2 person $77,600 $97,000 $116,400
2-bedroom 3 person $87,280 $109,100 $130,920
3-bedroom 4 person $96,960 $121,200 $145,440
Table 1: Project Income Limits
2022/03/15 City Council Post Agenda Page 255 of 277
Tiffany Allen, Stacey Kurz, and Jose Dorado
CITY OF CHULA VISTA
Residences at Escaya Project - Workforce Housing Program Review
March 8, 2022
Page 5
building in some assurance that the scheduled rents will be achieved, and have room to grow
modestly over time, without being impacted by the maximum rents allowed under the income
limits or by market rent.
Under the Regulatory Agreement, annual rent increases for all income-qualifying households
would be capped at no more than 4%, which is greater protection for tenants than provided under
Assembly Bill (“AB”) 1482, the recently adopted State tenant protection legislation, which limits
rent increases to the change in the Consumer Price Index (“CPI”) plus 5%. Furthermore, eligible
households will only have their rent increased up to the 35% limit.
Based on information provided by HomeFed, an independent appraiser, and RSG market
research, asking market rents in the city are in the following range and averages:
• 1-bedroom: $1,414 to $2,577 avg: $2,354
• 2-bedroom: $1,815 to $3,219 avg: $2,974
• 3-bedroom: $2,520 to $3,819 avg: $3,554
According to HomeFed, the Project rents will range from 5% to 10% below market, and up to 7%
below the current in-place rents, but are on par with in-place rents on average resulting in minimal
annual “rental savings” in the first year compared to the current in-place rents. However, the initial
rents represent about a $500,000 "savings" compared to market rents. Rental savings will only
grow over time because Project rent increases will be limited to 4% per year (and no greater than
35% of the qualifying income limits) while market rents can increase at whatever rate the market
commands. As another point of comparison, the average rents proposed at Escaya are about
$350 lower than those proposed at CasaLago.
Unit Type Total Units 80% AMI 100% AMI 120% AMI Total/Avg
1-bedroom 98 $2,043 $2,156 $2,270 $2,156
2-bedroom 154 $2,380 $2,562 $2,697 $2,546
3-bedroom 20 $2,799 $3,477 $3,786 $3,354
Total/Avg 272 $2,289 $2,483 $2,623 $2,465
Number of Units 91 91 90 272
Table 2: Project Initial Maximum Monthly Rents
Unit Type 80% AMI 100% AMI 120% AMI
1-bedroom 31.6%26.7%23.4%
2-bedroom 32.7%28.2%24.7%
3-bedroom 34.6%34.4%31.2%
Table 3: Project Rents as a Percentage of Income Limits
2022/03/15 City Council Post Agenda Page 256 of 277
Tiffany Allen, Stacey Kurz, and Jose Dorado
CITY OF CHULA VISTA
Residences at Escaya Project - Workforce Housing Program Review
March 8, 2022
Page 6
Operating Expenses
The operating expenses assumed by HomeFed for the Project are based on an evaluation by the
firm Greystar, who has been and will continue to be the contracted property management firm for
the Project. Greystar has extensive experience managing over 700,000 multifamily units,
including 280 properties in Southern California with over 60,000 units. RSG compared these
estimated expenses with the projected expenses that the independent appraiser prepared and
found that Greystar’s overall estimate was similar. The expenses grow by 3% per annum, which
is a reasonable assumption.
Host Fee
In conformance with the City's Workforce Housing Policy, HomeFed has included a "Host City
Charge" among the operating expenses. The Host City Charge is intended to replace the foregone
property tax revenue from the Project after acquisition by CMFA, which is tax-exempt as a
government entity. HomeFed has assumed an annual Host City Charge equivalent to the current
City share of property tax received, which RSG estimates to be about $103,000. The Host City
Charge increases by 2% per annum to match the expected growth from property tax revenue. It
should be noted that the proposed purchase price of the Project site is $135,000,000 and, without
the property tax exemption, the new assessed value would yield a property tax of approximately
$144,000.
Monitoring Fee
HomeFed did not include an annual monitoring fee in its pro forma projections. This is not an
explicit requirement of the City's Workforce Housing Policy. However, it would be a reasonable
request of the Sponsor to help defray City staff costs for monitoring the Sponsor/Project
Administrator's compliance with the Public Benefit and Regulatory Agreements.
Reserves
The Project will fund initial reserve accounts totaling about $15 million, which would be used to
pay debt service and fees in the first six to seven years until there is sufficient NOI, as well as any
potential need to cover operating expenses or capital improvements. The reserve accounts are
shown below in Table 4:
2022/03/15 City Council Post Agenda Page 257 of 277
Tiffany Allen, Stacey Kurz, and Jose Dorado
CITY OF CHULA VISTA
Residences at Escaya Project - Workforce Housing Program Review
March 8, 2022
Page 7
The types and amounts of reserve accounts are based on standards established by the bond
market and are fairly consistent across deals. Appropriate sizing of the reserves is important for
the bond buyers and one of the key reasons they are comfortable with purchasing the bonds. As
discussed further below under Financial Projections, RSG evaluated the debt service reserves
and found them to be reasonable and adequate to provide protection if NOI is lower than
projected.
The Senior Debt Service Reserve is the equivalent of one year of interest on the Series A bonds.
This reserve is held for the entire period that the bonds are outstanding, regardless of how much
principal has been repaid over time. Both the Capitalized Interest and Coverage Reserves are to
be released to the Project once NOI exceeds debt service by 20%. HomeFed projects this would
occur by Year 12, although RSG projects it may not be achieved until Year 15.
The Operating Reserve is equivalent to three months of operating expenses. This reserve is held
for the entire period the Series A bonds are outstanding.
The Capital Reserves of $408,000 are equal to $1,500 per unit. There were no upfront
improvements identified in a third-party Property Condition Report prepared by Partner
Engineering & Science, Inc. so this balance would be available for unforeseen items and future
capital improvements. In addition, the Project pro forma includes an annual deposit of $81,600
($300 per unit) into the Capital Reserve for ongoing and future improvements. The annual deposit
amount escalates by 3% per year in the pro forma and in Year 16 is bumped up to a fixed $1000
per unit per annum. RSG finds this and the other Reserve amounts to be reasonable and
adequate.
Fees
There are significant transaction costs for a conversion to Workforce Housing, including costs
related to the issuance of the bonds and to the Sponsor for arranging the deal, as shown in Table
5 below. Fees that are paid at closing to the bond underwriters, and a premium to bondholders
(known as "original issue discount"), are collectively projected to total $7.5 million. Fees for the
Senior Debt Reserve $6,334,840
Capitalized Interest $6,199,788
Coverage Reserve $1,266,968
Debt Service Reserves subtotal $13,801,596
Operating Reserves $425,156
Capital Reserves $408,000
Extraordinary Expense Fund $500,000
Total All Reserves $15,134,753
Table 4: Project Reserves Accounts
2022/03/15 City Council Post Agenda Page 258 of 277
Tiffany Allen, Stacey Kurz, and Jose Dorado
CITY OF CHULA VISTA
Residences at Escaya Project - Workforce Housing Program Review
March 8, 2022
Page 8
bond issuances are estimated by HomeFed at 3% of the bond par amount (of which CMFA is
assumed to receive $500,000). The premium paid to bondholders (known as "original issue
discount") is projected to total $3.2 million. This latter amount is derived by the difference in the
assumed bond coupon of 4% and the assumed yield on the bonds of 4.25%. This appears to be
an appropriate hedge to account for the recent rise in interest rates and yields in the bond market.
CMFA Fees
CMFA would receive a portion of the bond issuance fees, which it would cap at $500,000. Unlike
the other JPAs, CMFA shares 25% of all issuance fees directly with its member communities, so
the City could expect to receive an estimated $125,000 at closing. In addition, CMFA will make a
grant equal to 25% of the issuance fee to the California Foundation for Stronger Communities
(“CFSC”) to fund charities designated by the City. A portion of the annual fees received by the
CMFA will also be directed to charitable activities within California communities.
CMFA would also receive a $150,000 annual fee during the Project term, with no escalation.
HomeFed Fees
HomeFed would receive no upfront fee payment, which is atypical for Workforce Housing
proposals. This fee would have been provided to compensate the Sponsor for identifying and
negotiating to purchase the Project. In this case, HomeFed is the current owner and is selling its
equity interest in exchange for its new role as Sponsor/Project Administrator.
HomeFed would be granted a Series B bond in the amount of $5 million. The interest on this bond
is 10% per annum ($500,000 per year) and payment is subordinated and deferred during the first
five to six years while there is insufficient cash flow. The principal and deferred interest are not
paid until all Series A bonds have been repaid. This Series B bond is meant to replicate developer
equity since under the terms of the Workforce Housing program, all of the residual equity interest
will accrue to the City after payment of the bonds. This subordinated Series B bond is intended to
Original Issue Discount 3,199,094$
Costs of Issuance (Net of CMFA)4,251,130$
Bond Costs 7,450,224$
CMFA JPA Issuance Fees (at Closing)1 500,000$
HomeFed Fees (at Closing)-$
HomeFed Series B Bond 5,000,000$
Total Sponsor/Agency Fees 5,500,000$
Total Project Fees 12,950,224$
1 CMFA will share 25% with the City, and donate another 25% to charities.
This would reduce the fee it retains to $250,000.
Table 5: Project Fees
2022/03/15 City Council Post Agenda Page 259 of 277
Tiffany Allen, Stacey Kurz, and Jose Dorado
CITY OF CHULA VISTA
Residences at Escaya Project - Workforce Housing Program Review
March 8, 2022
Page 9
create long-term alignment for the Sponsor to manage the asset properly and generate cash flow
so that senior bonds can be paid.
In addition, HomeFed will receive an annual Asset Management Fee for its ongoing role as Project
Administrator starting at $290,500 per year, with no escalation indicated in the pro forma. This
fee is intended to cover staff costs for administration of the asset including preparation of all
reporting, oversight of the property manager and regulatory agreement, compliance with all terms
of the indenture, etc.
These fees are similar across all Workforce Housing projects and are intended to conform with
the amount of fees generated in other complex, asset-secured bond issuances of this type. For
context, RSG compared these fees to a sample of six affordable housing tax-credit equity
financed transactions in and around the greater San Diego market area. The total dollar amount
of developer fee for the Project is 2.5x greater than the average tax credit project, but on a per
unit basis is half the average for these affordable housing projects. The Admin Fee is 5x greater
than the average tax credit project, but only 28% greater on a per unit basis.
Acquisition Cost
The Sponsor proposes to acquire the property at a market value of $135,00,000. This is consistent
with an independent appraisal that determined the fair market "as is" value to be $140,600,000.
The current assessed value of the Project is $107,549,574, which would imply that the market
value has grown by more than 9% per year on average since construction three years ago.
Financial Projections
The Sponsor provided a pro forma with a multiyear cash flow projection for the 35-year estimated
life of the Series A bonds. The Project Rents are assumed to increase by 3% per year and most
of the operating expenses are projected to increase by a 3% inflation factor as well (the annual
fees to CMFA and HomeFed remain fixed).
Under these projections, the Project needs to rely on Reserves to cover Series A bond debt
service in the first six years and does not reach a 1.2x debt service coverage ratio until Year 12.
There is insufficient cash flow to begin paying principal on the Series A bonds until Year 9.
However, as NOI grows over the long term, the potential value of the asset eventually grows large
enough to be greater than the outstanding debt after about Year 12.
As part of our evaluation, RSG prepared an adjusted version of the Sponsor's pro forma. In
particular, we applied more conservative rent growth assumptions to the multiyear cash flow
projection. A review of AMI growth in San Diego County over the past 10, 15, and 20 years
indicates that 2.5% is a more reasonable assumption for rent growth since it is capped by the
change in AMI. In fact, in four out of the last ten years, AMI did not increase at all, and from 2010
to 2011 it actually declined. Figure 1 below shows the historical variation in AMI increases.
2022/03/15 City Council Post Agenda Page 260 of 277
Tiffany Allen, Stacey Kurz, and Jose Dorado
CITY OF CHULA VISTA
Residences at Escaya Project - Workforce Housing Program Review
March 8, 2022
Page 10
RSG assumed no increase in AMI-based rents for the first year and a 2.5% increase on average
thereafter. After these adjustments to the assumptions, the Project's NOI would be insufficient to
cover the Series A bond debt service until Year 8, and a 1.2x debt service coverage does not
occur until Year 15. The Project is unable to make any principal payments on the Series A bonds
until Year 11. By Year 15, the value of the asset would exceed the outstanding bond debt, based
on the projected NOI with the restricted rents in place. This implies that, if the City were to exercise
its right in Year 15 to acquire the asset from CMFA for the amount of debt, it would generate only
modest surplus proceeds. However, over the longer 35-year term of the projections, the bond
debt is substantially reduced and the potential residual value to the City grows commensurately.
Distribution of Sales Proceeds
As part of the Public Benefit Agreement to be executed between the City and CMFA, during the
period that is 15 years after issuance of the acquisition bonds through Year 35, the City can
exercise a right to cause CMFA to sell the Project to the City or its designee for the amount of all
outstanding debt. This right to purchase allows the City to control the asset and retain the equity
value of the Project. If the City has not exercised the right to purchase before all Project debt is
retired, CMFA shall sell the Project within 90 days at a commercially reasonable price.
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%200120022003200420052006200720082009201020112012201320142015201620172018201920202021Figure 1: AMI Percent Change 2001-2021
Percent Change Average
2022/03/15 City Council Post Agenda Page 261 of 277
Tiffany Allen, Stacey Kurz, and Jose Dorado
CITY OF CHULA VISTA
Residences at Escaya Project - Workforce Housing Program Review
March 8, 2022
Page 11
Following a sale, CMFA shall apply sales proceeds to prepay, redeem, or defease all outstanding
Project debt, pay any fees, amounts due, and transaction costs. The remaining funds ("Surplus
Proceeds") shall be transferred to the City and, under the terms of the Public Benefit Agreement,
the City is expected to "equitably share (within Host’s reasonable discretion) such Surplus
Conveyance Proceeds with the other taxing agencies in the County so as to reimburse such
taxing agencies for any foregone property tax revenue." The City would retain any Surplus
Proceeds in excess of these distributions.
According to projections prepared by HomeFed, Surplus Proceeds from a future sale are
projected to be more than $27 million by Year 15, or $223 million by Year 35. (Future sales value
is calculated based on a 5% capitalization rate applied to future NOI in Year 15, and a more
conservative 6% cap rate by Year 35.) After reimbursements to the other taxing entities for
cumulative foregone property taxes, the City would be projected to receive about $7 million by
Year 15, or $163 million by Year 35.
However, RSG's more conservative projections indicate lower future Project values. RSG projects
Surplus Proceeds would be only about $7 million by Year 15 but will grow to $174 million by Year
35. If the City "equitably shared" the proceeds with the other taxing entities based on foregone
tax shares in Year 15, it would net proceeds of about $217,000. However, by Year 35, the Surplus
Proceeds would allow the City to reimburse the other taxing entities and still retain about $114
million. In 2022 present value dollars (using a discount rate of 3% per year), this would be equal
to $40 million.
It should be noted that both the HomeFed and RSG projections reflect a value based on the
assumption that the income- and rent-restrictions would continue beyond the period that the
CMFA Regulatory Agreement would apply to the Project. The City can maintain the affordability
restrictions by executing a new regulatory agreement upon re-conveyance and recording it
against the property.
Summary Projected Fiscal Impact
As mentioned above regarding the Project fees, CMFA would share with the City 25% of the bond
issuance fees it receives at closing. CMFA would cap its fee at $500,000, which means the City
could expect to receive $125,000 after closing.
Following acquisition of the Project by CMFA, the property will be exempt from paying the ad
valorem property tax (1%) because it would be government-owned. Any direct levies or special
taxes and assessments, including local government and school bonds, would still be collected.
Therefore, the City would have a loss of annual property taxes for up to 35 years, beginning at
approximately $103,000 in the first year, which is the amount the General Fund would receive if
the Project were a taxable, privately-owned, market-rate apartment complex. However, the
Sponsors have agreed to remit an annual Host City Charge to mitigate the loss of property tax
starting at $107,000 in Year 1 and increasing at 2% per year. If not for the tax exemption, the City
may have received about $144,000 in property tax based on the new assessed value from the
acquisition. The net cumulative loss of property tax revenue to the City is estimated to be about
$646,000 through Year 15 and about $1.9 million through Year 35 (or $508,000 and $1.1 million,
respectively, in present value 2022 dollars).
2022/03/15 City Council Post Agenda Page 262 of 277
Tiffany Allen, Stacey Kurz, and Jose Dorado
CITY OF CHULA VISTA
Residences at Escaya Project - Workforce Housing Program Review
March 8, 2022
Page 12
As part of the Public Benefit Agreement, the City will have the right to cause a sale of the Project
after Year 15 and before Year 35 (or when the bonds are fully repaid, if earlier), and the City will
receive all net surplus proceeds after payment of all outstanding debt, transaction costs, and other
required distributions. Using RSG's more conservative projections, if the City "equitably shared"
proceeds with the other taxing entities, it would receive minimal net proceeds if it caused a sale
by Year 15. However, the City may yield about $114 million if the Project is sold in 35 years, even
after reimbursing the other taxing entities for their cumulative foregone property taxes of $60
million. The net proceeds to the City are estimated at $40 million in present value 2022 dollars.
As shown in Table 6 below, under RSG's modified projections, the City would receive a negative
net fiscal impact of about $244,000 if the Project were sold in Year 15 (in present value 2022
dollars). However, by Year 35 the net fiscal benefit would be about $39 million (in present value
2022 dollars). The projected sale proceeds by Year 35 would far exceed the projected cumulative
foregone property tax.
Other Considerations
The City incurs no costs, liabilities, or administrative responsibilities in connection with
membership in the CMFA JPA or participation in the Workforce Housing Program (other than staff
and consultant time to review and approve the transaction and documentation). The City is not
the bond issuer and provides no funding or credit enhancement to the transaction. The acquisition
bonds do not diminish the City’s issuing capacity and are backed solely by the Project revenues.
On this basis, participation creates a relatively low risk and high return opportunity for the City.
If Project Sold in Year 15
In 2022 Dollars 1
(Present Value)Year 1 Year 1-15
25% of CMFA fee shared with City 125,000$ -$ -$
Foregone Property Tax (1,967,090)$ (144,492)$ (2,498,760)$
Host City Charge 1,458,875$ 107,161$ 1,853,183$
Projected Surplus Proceeds2 139,560$ -$ 217,430$
Projected Net Fiscal Impact (243,655)$
1 based on a 3% discount rate for future years
2 assumes "equitable" share of proceeds with other taxing entities
If Project Sold in Year 35
In 2022 Dollars 1
(Present Value)Year 1 Year 1-35
25% of CMFA fee shared with City 125,000$ -$ -$
Foregone Property Tax (4,179,756)$ (144,492)$ (7,223,802)$
Agency reimbursement 3,099,878$ 107,161$ 5,357,468$
Projected Net Surplus Proceeds3 40,341,754$ -$ 113,516,148$
Projected Net Fiscal Impact 39,386,877$
3 assumes proceeds shared with other taxing entities
Table 6: Fiscal Impact Summary
2022/03/15 City Council Post Agenda Page 263 of 277
Tiffany Allen, Stacey Kurz, and Jose Dorado
CITY OF CHULA VISTA
Residences at Escaya Project - Workforce Housing Program Review
March 8, 2022
Page 13
However, there is potential that the Project is unable to meet debt service due to lower rents,
higher operating costs, or other unforeseen events. Ultimately if the bondholders needed to
foreclose on the asset to satisfy outstanding debt, the Regulatory Agreement would be terminated
and the rent restrictions would be lifted and rents could be increased under State limits, eventually
back up to market rents.
2022/03/15 City Council Post Agenda Page 264 of 277
Attachment 4
CasaLago Eastlake Workforce Housing Application 12/3/21
https://cvapps.chulavistaca.gov/WebLink/browse.aspx?startid=241952
2022/03/15 City Council Post Agenda Page 265 of 277
Via Electronic Mail
To: Tiffany Allen, Director
Stacey Kurz, Housing Manager
Jose Dorado, Senior Management Analyst
Development Services Department
CITY OF CHULA VISTA
From: Tara Matthews, Principal
Mark Sawicki, Director
Rosa Romero, Associate
Samantha Wu Rose, Research Assistant
RSG, INC.
Date: March 4, 2022
SUBJECT: WORKFORCE HOUSING PROGRAM PROPOSAL -
CASALAGO EASTLAKE APARTMENTS PROJECT
The City of Chula Vista (“City”) City Council (“City Council”) adopted a policy for a "Workforce
Housing" program that serves Moderate Income Rental Households via Resolution No. 2021-199.
California Statewide Communities Development Authority (“CSCDA”), a Joint Powers Authority
("JPA"), and Opportunity Housing Group (“OHG”), also referred to as the Sponsor (“Sponsor”),
submitted a proposal pursuant to this program for the CasaLago Eastlake Apartments Project
(“Project”). Section II.C. of the Resolution states that "a third party shall be retained to analyze
the financial projections, bond fees, property tax revenues, and other financial terms and
conditions of the proposal." RSG, Inc. (“RSG”) performed a financial evaluation of the proposal
and supporting materials, and our analysis and findings are detailed in the following narrative for
City Council consideration.
BACKGROUND
Middle-Income/Workforce Housing Programs
There is currently limited Federal, State, or local subsidies or programs to produce or preserve
the growing shortfall of below market rate rental housing for moderate and middle-income
households, which are those earning from 80% to 120% of area median income (“AMI”). To date,
affordable housing programs in California have almost exclusively focused on providing housing
for lower-income households, and State and federal funding sources are almost exclusively
targeted to households at or below 60% of AMI. This has left a “missing middle,” comprised of
households that earn too much to qualify for traditional affordable housing programs but not
enough to afford market rate housing.
In the last several years, three different entities have developed similar Middle-Income or
Workforce Housing Programs, for the purpose of issuing tax-exempt bonds to acquire market rate
2022/03/15 City Council Post Agenda Page 266 of 277
Tiffany Allen, Stacey Kurz, and Jose Dorado
CITY OF CHULA VISTA
CasaLago Eastlake Apartments Project - Workforce Housing Program Review
March 4, 2022
Page 2
apartment buildings and convert them into income- and rent-restricted units for households
earning between 61% and 120% of AMI. The three entities include CSCDA, California Municipal
Finance Authority (CMFA), and the California Community Housing Agency (CalCHA). Each entity
was formed as a JPA pursuant to California Government Code Sections 6500-6599.
For the JPA to be granted the authority to serve as the issuer of the bonds for the Project, it is
necessary for the City to become a member of the JPA. Cities, counties, and housing authorities
become non-voting members of the JPA by adopting a Resolution and executing the JPA
Agreement. The city authorizes the JPA to issue bonds at no cost or liability to the city. The Joint
Exercise of Powers Agreement provides that the JPA is a public entity, separate and apart from
each member executing such agreement. The debts, liabilities and obligations of the JPA do not
constitute debts, liabilities or obligations of the members executing such agreement. The debt
service on the bonds used to acquire property is supported solely from project revenues and
receipts. To date, more than two dozen cities across the State have joined one or more of the
three JPAs and have approved similar Middle-Income Housing Program acquisition/conversion
transactions, including in South Gate, Carson, Anaheim, Long Beach, Glendale, Pleasant Hill,
Dublin, Livermore, Fairfield, and Santa Rosa.
Every project acquired by the JPA becomes exempt from property tax. The JPA records a
Regulatory Agreement that restricts rents to be affordable for households at different maximum
income-limit mixes between 80% and 120% of AMI. If there are existing tenants of an acquired
property who income-qualify, their rents are restricted. For non-qualifying tenants, they may
remain in place at market rate. As units turnover, they become income- and rent-restricted for the
next tenant. Annual rent increases are capped at 4%.
The Regulatory Agreement period is for up to 35 years while the Project is under JPA ownership
and the bonds are outstanding. Through its right to repurchase, a city can opt to extend the
affordability restrictions beyond the transaction period and/or convey the property to an entity that
can operate it as rent-restricted affordable housing. Alternatively, the city also has the option to
allow the property to return to market rate rents and thus convey it for a higher market value.
Under the terms of the Public Benefit Agreement, the JPA grants all financial upside to the
underlying member jurisdiction. Between years 15 and 35, the city has a right to purchase the
property for the amount of outstanding debt. (This right could be lost, however, if bondholders
ever foreclosed on the property.) If the city declines to purchase, the JPA must sell the property
and distribute the net proceeds to the city.
CasaLago Eastlake Apartments Project
The CasaLago Eastlake Apartments is a 427-unit townhouse style property situated on 30 acres
near the Otay Reservoir in eastern Chula Vista. Built in 2013, it includes 79 one-bedroom, 183
two-bedroom, and 165 three-bedroom units, and amenities such as a fitness center, two
swimming pools, and dog park. The current owner is John Hancock Life Insurance Company, and
there is a Letter of Intent to sell the asset to the Sponsor, who will assign the purchase agreement
to CSCDA, contingent on approval of the City to join the JPA and approve a Public Benefit
Agreement allowing the conversion to Workforce Housing.
2022/03/15 City Council Post Agenda Page 267 of 277
Tiffany Allen, Stacey Kurz, and Jose Dorado
CITY OF CHULA VISTA
CasaLago Eastlake Apartments Project - Workforce Housing Program Review
March 4, 2022
Page 3
SUMMARY OF KEY FINDINGS
Based on our analysis, below is a summary of RSG’s key findings:
• The Project is highly leveraged under the financial structure of the Workforce Housing
program, with a debt to value of 117% following acquisition. The issuance of $324 million
in bonds will entirely fund the acquisition ($279 million), reserve accounts ($29 million),
and payment of transaction, JPA and Sponsor fees ($18 million). CSCDA will be the
owner, but without an equity investment or residual interest.
• Based on RSG's projections, the Project will need to rely on reserves to pay debt service
for the first seven years, is not expected to begin repaying principal on the Series A bonds
until Year 11, and will not achieve a Net Operating Income ("NOI") to debt service
coverage ratio of 1.2x until Year 15.
• Following conversion of all units to restricted rents, the Project is estimated to provide a
rental savings of more than $3 million annually compared to market rents, according to
the Sponsor. This amount will only grow over the life of the Project as market rents and
restricted rents continue to diverge over time. However, the Sponsor has assumed some
of the initial rents will be higher than current income limit restrictions allow, on the
expectation that the AMI limits will grow by at least 3% when announced later this year.
• The City currently receives about $170,000 in property tax from the Project based on its
pre-acquisition assessed value. The Sponsor has proposed to provide the City with a
"Host City Charge" of $200,000 to mitigate tax revenue losses after purchase by the JPA,
since it will be exempt from paying ad valorem property taxes. If not for the exemption, the
new assessed value based on the acquisition price would result in property taxes to the
City of about $302,000 in the first year. Over the 35-year life of the bonds, this tax gap
would total approximately $5.2 million, or about $3 million in 2022 present value dollars.
• RSG projects that by Year 15, when the City has the option to purchase the asset, the
estimated Project value of $302 million would not provide adequate proceeds to repay the
outstanding debt of more than $325 million.
• RSG projects that by Year 35, over $151 million in bond debt would still be outstanding,
but the Project value would have grown to $487 million. The City would be able to
reimburse the other taxing entities for their cumulative foregone property taxes, and still
retain $211 million. The projected net fiscal benefit to the City of a sale in Year 35 would
be about $72 million in present value 2022 dollars.
• The City incurs minimal costs, liabilities, or administrative responsibilities in connection
with membership in the CSCDA JPA or participation in the Workforce Housing Program.
The City is not the bond issuer and provides no funding or credit enhancement to the
transaction. The acquisition bonds do not diminish the City’s issuing capacity and are
backed solely by the Project revenues. On this basis, participation creates a relatively low
risk and high return opportunity for the City.
2022/03/15 City Council Post Agenda Page 268 of 277
Tiffany Allen, Stacey Kurz, and Jose Dorado
CITY OF CHULA VISTA
CasaLago Eastlake Apartments Project - Workforce Housing Program Review
March 4, 2022
Page 4
• However, there is the potential that the Project would become unable to meet debt service
due to lower rents, higher operating costs, or other unforeseen events. Ultimately, if the
bondholders needed to foreclose on the asset to satisfy outstanding debt, the Regulatory
Agreement would be terminated and the rent restrictions would be lifted. Rents could then
be increased under the maximum State limits, eventually returning to market level rents.
DETAILED FINDINGS
Income Limits and Program Rents
The Workforce Housing program provides reduced affordable rents to qualifying households with
incomes at or below 80% (Low) to 120% (Moderate) of AMI based on the Department of Housing
and Urban Development (“HUD”) for the County of San Diego. The Sponsor is proposing that the
Project will have an allocation of income- and rent-restricted units as follows:
• 33.3% of the units for households below 80% AMI,
• 33.3% of units from 81% to 100% AMI, and
• 33.3% of units from 101% to 120% AMI.
The Project's Regulatory Agreement states that the proposed initial and ongoing maximum rents
will be restricted to not exceed 35% of the qualifying income limits for each unit size and income
category. The respective qualifying income limits are stated in Table 1 below:
Table 2 details the proposed initial Project Rents for the Project. Most of the units are being set
at rents lower than the maximum (35% of qualifying income) amounts allowed by the Regulatory
Agreement. The Sponsor's Initial Project Rents range from 23% to 36% of the qualifying income,
as shown in Table 3. By starting with lower initial rents, particularly at the 120% AMI level, the
Sponsor is building in some assurance that the scheduled rents will be achieved, and have room
to grow modestly over time, without being impacted by the maximum rents allowed under the
income limits or by market rent. The initial rents at the 80% AMI level are exceeding the program
limit as a consequence of the Sponsor assuming that AMI limits that are set by HUD will increase
by at least 3% effective April 1, 2022. As noted later herein, as part of its analysis, RSG analyzed
the cash flow of the Project assuming initial rents that conform with current income limits and grow
more modestly.
Unit Type Household Size 80% AMI 100% AMI 120% AMI
1-bedroom 2 person $77,600 $97,000 $116,400
2-bedroom 3 person $87,280 $109,100 $130,920
3-bedroom 4 person $96,960 $121,200 $145,440
Table 1: Project Income Limits
2022/03/15 City Council Post Agenda Page 269 of 277
Tiffany Allen, Stacey Kurz, and Jose Dorado
CITY OF CHULA VISTA
CasaLago Eastlake Apartments Project - Workforce Housing Program Review
March 4, 2022
Page 5
Under the Regulatory Agreement, annual rent increases for all income-qualifying households
would be capped at no more than 4%, which is greater protection for tenants than provided under
Assembly Bill (“AB”) 1482, the recently adopted State tenant protection legislation, which limits
rent increases to the change in the Consumer Price Index (“CPI”) plus 5%. Furthermore, eligible
households will only have their rent increased up to the 35% limit.
Based on information provided by OHG, an independent appraiser, and RSG market research,
asking market rents in the city are in the following range and averages:
• 1-bedroom: $1,414 to $2,577 avg: $2,354
• 2-bedroom: $1,815 to $3,219 avg: $2,974
• 3-bedroom: $2,520 to $3,819 avg: $3,554
According to OHG, the Project rents will range from 17% to 23% below the current in-place rents
and will be about 19% below in-place rents on average. Using those per unit rent differences,
multiplied by the distribution of units across the three income limits, OHG calculated the total
annual “rental savings” to be more than $3 million annually in the first year compared to current
market rents. This rental savings amount will only grow over time because Project rent increases
will be limited to 4% per year (and no greater than 35% of the qualifying income limits) while
market rents can increase at whatever rate the market commands.
Operating Expenses
The operating expenses assumed by OHG for the Project are based on an evaluation by the firm
Greystar, who will be the contracted property management firm. Greystar has extensive
experience managing over 700,000 multifamily units, including 280 properties in Southern
California with over 60,000 units. RSG compared these estimated expenses with the projected
expenses that the independent appraiser prepared and found that Greystar’s overall estimate was
more conservative. The expenses grow by 3% per annum, which is a reasonable assumption.
Unit Type Total Units 80% AMI 100% AMI 120% AMI Total/Avg
1-bedroom 79 $2,240 $2,250 $2,259 $2,250
2-bedroom 183 $2,622 $2,842 $2,849 $2,771
3-bedroom 165 $2,913 $3,210 $3,245 $3,123
Total/Avg 427 $2,664 $2,875 $2,893 $2,810
Number of Units 143 142 142 427
Table 2: Project Initial Maximum Monthly Rents
Unit Type 80% AMI 100% AMI 120% AMI
1-bedroom 34.6%27.8%23.3%
2-bedroom 36.0%31.3%26.1%
3-bedroom 36.1%31.8%26.8%
Table 3: Project Rents as a Percentage of Income Limits
2022/03/15 City Council Post Agenda Page 270 of 277
Tiffany Allen, Stacey Kurz, and Jose Dorado
CITY OF CHULA VISTA
CasaLago Eastlake Apartments Project - Workforce Housing Program Review
March 4, 2022
Page 6
Host Fee
In conformance with the City's Workforce Housing Policy, OHG has included a "Host City Charge"
among the operating expenses. The Host City Charge is intended to replace the foregone
property tax revenue from the Project after acquisition by CSCDA, which is tax-exempt as a
government entity. OHG has assumed an initial Host City Charge of $200,000, which is roughly
based on the property's existing assessed value of $156 million and the City's tax share of 10.9%
of the 1% ad valorem property taxes. The Host City Charge would increase by 2% per annum to
match the expected growth from property tax revenue. It should be noted that the proposed
purchase price of the Project site is approximately $277 million and, without the property tax
exemption, the new assessed value would yield a property tax of approximately $302,000.
Monitoring Fee
OHG has also proposed to pay an annual monitoring fee to the City beginning in year 1 of
$27,755. This fee is intended to defray City staff costs for monitoring the Sponsor/Project
Administrator's compliance with the Public Benefit and Regulatory Agreements. Although OHG
stated the fee would be increased by 3% annually, RSG noted that it was only being increased
by 2% in the pro forma submitted for review.
Reserves
The Project will fund initial reserve accounts totaling $29 million, which would be used to pay debt
service and fees in the first six to eight years until there is sufficient NOI, as well as any potential
need to cover operating expenses or capital improvements. The reserve accounts are shown
below in Table 4:
According to OHG, the types and amounts of reserve accounts are based on standards
established by the bond market and are fairly consistent across deals. Appropriate sizing of the
reserves is important for the bond buyers and one of the key reasons they are comfortable with
Senior Debt Service Reserve $12,735,600
Capitalized Interest $6,367,800
Coverage Reserve $2,547,120
Debt Service Reserves subtotal $21,650,520
Operating Reserves $1,377,875
Admin & Authority Fees Reserve $2,664,344
Operating and Fees Reserves $4,042,219
Capital Reserves $3,000,000
Extraordinary Expense Fund $500,000
Total All Reserves $29,192,739
Table 4: Project Reserve Accounts
2022/03/15 City Council Post Agenda Page 271 of 277
Tiffany Allen, Stacey Kurz, and Jose Dorado
CITY OF CHULA VISTA
CasaLago Eastlake Apartments Project - Workforce Housing Program Review
March 4, 2022
Page 7
purchasing the bonds. As discussed further below under Financial Projections, RSG evaluated
the debt service reserves and found them to be reasonable and adequate to provide protection if
NOI is lower than projected.
The Senior Debt Service Reserve is the equivalent of one year of interest on the Series A bonds.
This reserve is held for the entire period that the bonds are outstanding, regardless of how much
principal has been repaid over time. Both the Capitalized Interest and Coverage Reserves are to
be released to the Project once NOI exceeds debt service by 20% for two consecutive 12 month
periods. OHG projects this would occur by Year 11, although RSG projects it may not be achieved
until Year 15.
The Operating Reserve is equivalent to three months of operating expenses. This reserve is held
for the entire period the Series A bonds are outstanding. The Admin & Authority Fees Reserve
will be used to pay the Sponsor fees in the first six to eight years. RSG also projects this reserve
could be completely exhausted with more modest rent growth than OHG is assuming.
The Capital Reserves of $3 million include $1.9 million for upfront improvements identified in a
third-party Property Condition Report prepared by Partner Engineering & Science, Inc. This is
equivalent to $7,025 per unit. Since the property is now eight years old, this implies the owner
would have needed to set-aside approximately $878 per year to fund improvements. Assuming
all up-front improvements are made, the Capital Reserve would retain an upfront balance of $1.1
million (or $2.576 per unit) for unforeseen items and future capital improvements. In addition, the
Project pro forma includes a deposit of $700 per unit per year into the Capital Reserve for ongoing
and future improvements. RSG finds this and the other Reserve amounts to be reasonable and
adequate.
Fees
There are significant transaction costs for a conversion to Workforce Housing, including costs
related to the issuance of the bonds and to the Sponsor for arranging the deal, as shown in Table
5 below. Fees that are paid at closing to the bond underwriters, and a premium or discount to
bondholders (to adjust from the coupon rate to a market yield), are collectively projected to total
$5.9 million. The bond issuance is assumed at a coupon rate of 4% interest with the bonds being
sold at par value.
2022/03/15 City Council Post Agenda Page 272 of 277
Tiffany Allen, Stacey Kurz, and Jose Dorado
CITY OF CHULA VISTA
CasaLago Eastlake Apartments Project - Workforce Housing Program Review
March 4, 2022
Page 8
CSCDA Fees
CSCDA would receive a fee equivalent to 1% of the bond issuance amount, not to exceed $2
million. CSCDA will also receive a $150,000 annual fee during the Project term, with no escalation.
OHG Fees
OHG would receive a fee payment of $2.75 million at closing of the acquisition. According to OHG,
this fee is comparable to an acquisition fee standard of 1% that could be earned on a typical
market-rate acquisition.
OHG will also be granted a Series B bond in the amount of $6 million in exchange for assigning
its market-rate Purchase and Sale Agreement for the asset to CSCDA. Per OHG, this is meant to
replicate developer equity since, under the terms of the Workforce Housing program, after
payment of the bonds all of the residual equity interest will accrue to the City. This subordinated
bond creates a long-term incentive for the Sponsor to manage the asset properly and generate
cash flow so that senior bonds can be paid. The interest on this bond is 10% per annum
($600,000 per year) and payment is subordinated and deferred during the first five to seven years
while there is insufficient cash flow. The principal and deferred interest are not paid until all Series
A bonds have been repaid.
In addition, OHG will receive an Asset Management Fee for its ongoing role as Project
Administrator starting at $213,500 ($500 per unit) in the first year and increasing by 3% per year.
Per OHG, this fee covers staff costs for administration of the asset including preparation of all
reporting, oversight of the property manager and regulatory agreement, compliance with all terms
of the indenture, etc.
According to OHG, the fee structure in the program is designed to incentivize conversion of market
rate assets to Workforce Housing, as well as to create long-term alignment of interest for the
Sponsor/Project Administrator. These fees are similar across all Workforce Housing projects and
are intended to conform with the amount of fees generated in other complex, asset-secured bond
issuances of this type. For context, RSG compared these fees to a sample of six affordable
Original Issue Premium (6,141)$
Costs of Issuance (Net of CSCDA)5,873,000$
Bond Costs 5,866,859$
CSCDA Issuance Fees (at Closing)2,000,000$
OHG Fees (at Closing)2,750,000$
OHG Series B Bond 6,000,000$
Total Sponsor/Agency Fees 10,750,000$
Total Project Fees 16,616,859$
Table 5: Project Fees
2022/03/15 City Council Post Agenda Page 273 of 277
Tiffany Allen, Stacey Kurz, and Jose Dorado
CITY OF CHULA VISTA
CasaLago Eastlake Apartments Project - Workforce Housing Program Review
March 4, 2022
Page 9
housing tax-credit equity financed transactions in and around the greater San Diego market area.
Although the total dollar amount of fees for the Project are three to four times larger on average,
on a per unit basis they are about 2/3 less than the average for these affordable housing projects.
Acquisition Cost
The Sponsor proposes to acquire the property at a market value of around $277 million. This is
consistent with an independent appraisal that determined the fair market "as is" value to be
$277,200,000. The current assessed value of the Project is $155,854,147, which would imply that
the market value has grown by more than 9% per year on average since construction eight years
ago.
Financial Projections
The Sponsor provided a pro forma with a multiyear cash flow projection for the 35-year estimated
life of the Series A bonds. The Project Rents are assumed to increase by 3% per year and most
of the operating expenses are projected to increase by a 3% inflation factor as well (the Host City
Charge, monitoring fee, bond admin expenses, and direct assessment all grow by only 2% and
the capital reserve deposit is fixed at $298,901 per year).
Under these projections, the Project needs to rely on Reserves to cover Series A bond debt
service in the first five years and does not reach a 1.2x debt service coverage ratio until Year 11.
There is insufficient cash flow to begin paying principal on the Series A bonds until Year 8.
However, as NOI grows over the long term, the potential value of the asset eventually grows large
enough to be greater than the outstanding debt after about Year 12.
As part of our evaluation, RSG prepared an adjusted version of the Sponsor's pro forma. In
particular, we applied more conservative rent growth assumptions to the multiyear cash flow
projection. A review of AMI growth in San Diego County over the past 10, 15, and 20 years
indicates that 2.5% is a more reasonable assumption for rent growth since it is capped by the
change in AMI. In fact, in four out of the last ten years, AMI did not increase at all, and from 2010
to 2011 it actually declined. Figure 1 below shows the historical variation in AMI increases.
2022/03/15 City Council Post Agenda Page 274 of 277
Tiffany Allen, Stacey Kurz, and Jose Dorado
CITY OF CHULA VISTA
CasaLago Eastlake Apartments Project - Workforce Housing Program Review
March 4, 2022
Page 10
RSG assumed no increase in AMI-based rents for the first year and a 2.5% increase on average
thereafter. RSG also assumed that the conversion from in-place market-based rents to Project
Rents would occur by the second year, versus over three years as OHG assumed. (The Sponsor
has indicated verbally that on other Workforce Housing conversions the replacement of market
rate tenants with qualified tenants has been occurring faster than projected.) In addition, RSG
increased the capital reserve deposit by the same 3% inflation factor as other expenses, rather
than a fixed amount for 35 years.
After RSG made adjustments to the assumptions, the Project's NOI would be insufficient to cover
the Series A bond debt service until Year 8, and a 1.2x debt service coverage does not occur until
Year 15. The Project is unable to make any principal payments on the Series A bonds until Year
11. Also concerning is that the value of the asset in Year 15, based on the projected NOI with the
restricted rents in place, is less than the outstanding Series A bond debt. This implies that, if the
City were to exercise its right in Year 15 to acquire the asset from CSCDA for the amount of debt,
it would experience a loss. However, over the longer 35-year term of the projections, the bond
debt is substantially reduced and the potential residual value to the City grows commensurately.
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%200120022003200420052006200720082009201020112012201320142015201620172018201920202021Figure 1: AMI Percent Change 2001-2021
Percent Change Average
2022/03/15 City Council Post Agenda Page 275 of 277
Tiffany Allen, Stacey Kurz, and Jose Dorado
CITY OF CHULA VISTA
CasaLago Eastlake Apartments Project - Workforce Housing Program Review
March 4, 2022
Page 11
Distribution of Sales Proceeds
As part of the Public Benefit Agreement to be executed between the City and CSCDA, during the
period that is 15 years after issuance of the acquisition bonds through Year 35, the City can
exercise a right to cause CSCDA to sell the Project to the City or its designee for the amount of
all outstanding debt. This right to purchase allows the City to control the asset and retain the
equity value of the Project. If the City has not exercised the right to purchase before all Project
debt is retired, CSCDA shall sell the Project within 90 days at a commercially reasonable price.
Following a sale, CSCDA shall apply sales proceeds to prepay, redeem, or defease all
outstanding Project debt, pay any fees, amounts due, and transaction costs. The remaining funds
("Surplus Proceeds") shall be transferred to the City and, under the terms of the Public Benefit
Agreement, the City is expected to share the Surplus Proceeds, in its sole discretion, with the
other taxing agencies in the County as partial or full reimbursement for their foregone property
tax revenues. The City would retain any Surplus Proceeds in excess of these distributions.
RSG's projections indicate Surplus Proceeds would be negative by Year 15 but will grow to $334
million by Year 35. After reimbursements to the other taxing entities for foregone property taxes,
the City would be projected to receive about $211 million by Year 35. In 2022 present value dollars
(using a discount rate of 3% per year), this would be equal to $75 million.
It should be noted that the projections reflect a value based on the assumption that the income-
and rent-restrictions would continue beyond the period that the CSCDA Regulatory Agreement
would apply to the Project. The City can maintain the affordability restrictions by executing a new
regulatory agreement upon re-conveyance and recording it against the property.
Summary Projected Fiscal Impact
Following acquisition of the Project by CSCDA, the property will be exempt from paying the ad
valorem property tax (1%) because it would be government-owned. Any direct levies or special
taxes and assessments, including local government and school bonds, would still be collected.
Therefore, the immediate fiscal impact would be the loss of annual property taxes for up to 35
years, beginning at approximately $302,000 in the first year, which is the amount the General
Fund would receive if the Project were a taxable, privately-owned, market-rate apartment
complex. However, the Sponsors have agreed to remit an annual Host City Charge to mitigate
the loss of property tax starting at $200,000 and increasing at 2% per year. The net cumulative
loss of property tax revenue to the City is estimated at about $1.8 million through Year 15 and
about $5.2 million through Year 35 (or $1.5 million and $3 million, respectively, in present value
2022 dollars).
However, as part of the Public Benefit Agreement, the City will have the right to cause a sale of
the Project after Year 15 and before Year 35 (or when the bonds are fully repaid, if earlier), and
the City will receive all net surplus proceeds after payment of all outstanding debt, transaction
costs, and other required distributions. Using RSG's more conservative projections, the City would
not receive any net proceeds if it caused a sale by Year 15, because the debt would still exceed
the Project value. However, the City may yield about $211 million if the Project is sold in 35 years,
2022/03/15 City Council Post Agenda Page 276 of 277
Tiffany Allen, Stacey Kurz, and Jose Dorado
CITY OF CHULA VISTA
CasaLago Eastlake Apartments Project - Workforce Housing Program Review
March 4, 2022
Page 12
even after reimbursing the other taxing entities for their cumulative foregone property. The net
proceeds to the City are estimated at $75 million in present value 2022 dollars.
As shown in Table 6 below, under RSG's modified projections, the City would receive a negative
net fiscal impact of about $1.5 million if the Project were sold in Year 15 (in present value 2022
dollars). However, by Year 35 the net fiscal benefit would be almost $72 million (in present value
2022 dollars). The projected sale proceeds by Year 35 would far exceed the projected cumulative
foregone property tax.
Other Considerations
The City incurs no costs, liabilities, or administrative responsibilities in connection with
membership in the CSCDA JPA or participation in the Workforce Housing Program (other than
staff and consultant time to review and approve the transaction and documentation). The City is
not the bond issuer and provides no funding or credit enhancement to the transaction. The
acquisition bonds do not diminish the City’s issuing capacity and are backed solely by the Project
revenues. On this basis, participation creates a relatively low risk and high return opportunity for
the City.
However, there is potential that the Project is unable to meet debt service due to lower rents,
higher operating costs, or other unforeseen events. Ultimately if the bondholders needed to
foreclose on the asset to satisfy outstanding debt, the Regulatory Agreement would be terminated
and the rent restrictions would be lifted and rents could be increased under State limits, eventually
back up to market rents.
If Project Sold in Year 15
In 2022 Dollars1
(Present Value)Year 1 Year 1-15
Foregone Property Tax (4,113,678)$ (302,169)$ (5,225,534)$
Host City Charge 2,658,035$ 200,000$ 3,392,008$
Projected Net Surplus Proceeds -$ -$
Projected Net Fiscal Impact (1,455,643)$
If Project Sold in Year 35
In 2022 Dollars1
(Present Value)Year 1 Year 1-35
Foregone Property Tax (8,740,916)$ (302,169)$ (15,106,780)$
Agency reimbursement 5,720,710$ 200,000$ 9,932,204$
Projected Net Surplus Proceeds 75,019,716$ 211,095,162$
Projected Net Fiscal Impact 71,999,510$
1 based on a 3% discount rate for future years
Table 6: Fiscal Impact Summary
2022/03/15 City Council Post Agenda Page 277 of 277