HomeMy WebLinkAboutReso 2022-198RESOLUTION NO. 2022-198
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE AFFORDABLE HOUSING
TRANSFER AGREEMENT FOR OTAY RANCH VILLAGE 8
EAST BETWEEN THE CITY AND HOMEFED OTAY LAND II,
LLC
WHEREAS, the Housing Element of the City of Chula Vista’s General Plan contains an
affordable housing policy which requires that residential development with fifty (50) or more
dwelling units provide a minimum of 10% of the total dwelling units for low- and moderate-
income households, one-half of these units (5% of the total project) being designated to low-
income and the remaining five percent (5%) to moderate-income households; and
WHEREAS, HomeFed Village III Master, LLC and Flat Rock Land Company, LLC
(collectively, “Village 3 Owner”) own the property known as Otay Ranch Village 3, Parcels R-6,
R-19 and R-20 of Otay Ranch; and
WHEREAS, on June 15, 2021, the City approved the Tentative Subdivision Map CVT-20-
0004 for Otay Ranch Village 3 R-19 (“R-19 Tentative Map”) by Resolution No. 2021-123 and
Tentative Subdivision Map CVT-20-0005 for Otay Ranch Village 3 R-6 and R-20 (“R-6 and R-20
Tentative Map”) by Resolution Number 2021-124 which included Condition No. 10 and 15
respectively, requiring that the Village 3 Owner enter into an amended Balanced Communities
Affordable Housing Agreement (“Amended Village 3 Agreement”); and
WHEREAS, the Village 3 Owner is required to build an additional 38 units consisting of
19 low-income housing units and 19 moderate income housing units (“Remaining Village 3
Affordable Housing Obligation”) based upon 10% of the total number of residential units of 1,638
within Village 3; and
WHEREAS, in satisfaction of the condition the Village 3 Owner desires to transfer the
Remaining Village 3 Affordable Housing Obligation to Otay Ranch Village 8 East, owned by
HomeFed Otay Land II, LLC (“Village 8 East Owner”); and
WHEREAS, consistent with Policy 3.4 of the City’s Housing Element of the General Plan,
the City has determined that the unique conditions for the development of Village 3 provide an
unreasonable hardship for the new construction of units within said Village in light of such factors
as the difficulty in integrating due to significant price and product disparity; and
WHEREAS, as set forth in the Village 3 SPA Plan, the Village 3 Affordable Housing
Obligation may be deferred to a future village or location within Otay Ranch Planning owned by
Village 3 Owner or its affiliate; and
WHEREAS, it is the intent of Village 8 East Owner and the City, by execution of the
Transfer Agreement, to allow the transfer of the Remaining Village 3 Affordable Housing
Obligation for 19 low-income housing units and 19 moderate-income housing units (“Transferred
Affordable Housing Obligation”) to the development of Otay Ranch Villages 8 East, Owner of
which is an affiliate of Village 3 Owner; and
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Resolution No. 2022-198
Page No. 2
WHEREAS, on February 18, 2020, the City approved the Village 8 East Sectional
Planning Area (SPA) Plan amendment by Resolution No. 2020 -036 and the Village 8 East
Tentative Subdivision Map for Chula Vista Tract No. 13-03 b y Resolution No. 2020-037, of
which Condition Number 7 requires the Village 8 East Owner to enter into an Affordable Housing
Agreement with the City prior to approval of Village 8 East Owner’s first Final Map for Village 8
East; and
WHEREAS, the SPA Plan currently provides for the construction of approximately 3,276
total dwelling units within Village 8 East, with a requirement for five percent of these units being
designated for low -income households and five percent for moderate-income households,
consisting of 328 affordable units ; and
WHEREAS, the City finds that the public interest would be served by allowing the
Remaining Village 3 Affordable Housing Obligation to be produced or operated within Village 8
East based upon: (1) proximity to public transit; (2) proximity to employment; (3) proximity to
services and entertainment; and (4) proximity to the proposed University, which would provide
access to university services for the residents and affordable units for students and faculty.
Additionally, the provision of the Transferred Affordable Housing Obligation within the Property
will not be significantly detrimental to achieving balanced residential communities and will
provide at a minimum the equivalent number of required affordable units with comparable rent
and occupancy restrictions; and
WHEREAS, the Village 8 East Owner and City wish by this Agreement to assure the
satisfaction of the Village 3 Transferred Affordable Housing Obligation, on the terms described in
the Affordable Housing Transfer Agreement for the 38 units, increasing the Village 8 East
affordable housing obligation to 366 units consisting of 183 low-income units and 183 moderate-
income units.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it approves the Transfer Agreement between the City and HomeFed Otay Land II, LLC, to
authorize the transfer of 38 affordable units from Village 3 to Village 8 East, in substantially the
form presented, with such minor modifications as may be required or approved by the City
Attorney, a copy of which shall be kept on file in the Office of the City Clerk, and authorizes and
directs the City Manager to execute same.
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Resolution No. 2022-198
Page No. 3
Presented by Approved as to form by
Laura C. Black, AICP Glen R. Googins
Interim Director of Development Services City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 23rd day of August 2022 by the following vote:
AYES: Councilmembers: Cardenas, Galvez, McCann, and Casillas Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: Padilla
Mary Casillas Salas, Mayor
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2022-198 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 23rd day of August 2022.
Executed this 23rd day of August 2022.
Kerry K. Bigelow, MMC, City Clerk
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