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Home My WebLink AboutAgenda Packet 2006/05/09 I declare under penalty of perjury that I am employed by the City of Chula Vista in the , , I Office of the City Clerk and that I posted th~' I ~ ument on the bulletin board according L~~_: .$0;m:~~:ed~ f~~7srA 1f~/ Stephen C. Padilla, Mayor Patricia E. Chavez, CounciJmember David D. Rowlands, Jr., City Manager John McCann, CounciJmember Ann Moore, City Attorney Jerry R. Rindone, Council member Susan Bigelow, City Clerk Steve Castaneda, Council member May 9,2006 6:00 P.M. Council Chambers City Hall 276 Fourth Avenue CALL TO ORDER ROLL CALL: Councilmembers Castaneda, Chavez, McCann, Rindone, and Mayor Padilla PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE SPECIAL ORDERS OF THE DAY · PRESENTATION OF A PROCLAMATION BY MAYOR PADILLA TO GARY HUMMEL OF ELKS LODGE NO. 2011, PROCLAIMING MAY 7 THROUGH MAY 13, 2006 AS YOUTH WEEK · PRESENTATION OF A PROCLAMATION BY MAYOR PADILLA TO LOU EL-KHAZEN, DEPUTY BUILDING OFFICIAL, PROCLAIMING MAY 7 THROUGH MAY 13, 2006 AS CALIFORNIA BUILDING SAFETY WEEK . PRESENTATION OF A PROCLAMATION BY MAYOR PADILLA TO POLICE CHIEF EMERSON PROCLAIMING WEDNESDAY, MAY 10, 2006 AS PEACE OFFICERS MEMORIAL DAY · INTRODUCTION BY RODERICK REINHART, CULTURAL ARTS AND FUND DEVELOPMENT MANAGER, OF THE 2006 GAYLE MCCANDLISS ARTS AWARDS RECIPIENTS · PRESENTATION BY MARY WALSHOK, UCSD ASSOCIATE VICE CHANCELLOR, PUBLIC PROGRAMS, SAN DIEGO DIALOG, REGARDING THE CROSSBORDERSTUDY · DID YOU KNOW...ABOUT ALL THE NEW PARKS IN CHULA VISTA? Presented as Item 10 on this agenda by Jack Griffin, Director of General Services. CONSENT CALENDAR (Items 1 through 8) The Council will enact the Consent Calendar staff recommendations by one motion, without discussion. unless a Councilmember. a member of the public, or City staff requests that an item be removed for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed immediately following the Consent Calendar. I. APPROVAL OF MINUTES of April 25, 2006. Staff recommendation: Council approve the minutes. 2. WRITTEN CORRESPONDENCE Letter of resignation from Katherine Magallon, Member of the Design Review Committee. Staff recommendation: Council accept the resignation and direct the City Clerk to post the vacancy in accordance with the Maddy Act. 3. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FISCAL YEAR 2006/2007 CONTRACT BETWEEN THE CITY OF CHULA VISTA AND THE CHULA VISTA CHAMBER OF COMMERCE FOR THE PROVISION OF CHULA VISTA CONVENTION AND VISITORS BUREAU PROMOTIONAL SERVICES, AND VISITOR AND TRANSIT INFORMATION SERVICES Since 1995, the City has contracted annually with the Chula Vista Chamber of Commerce to provide Convention and Visitors Bureau services. According to Council Policy No. 230-01, the Council annually considers a budget and related contract with the Chamber of Commerce for the provision of Chula Vista Convention and Visitor Bureau Promotion Services, and Visitor and Transit Information Services at the Chula Vista Visitor Information Center and Chamber of Commerce main office. (Community Development Director/ Assistant City Manager) Staff recommendation: Council adopt the resolution. 4. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE RE-SUBDIVISION MAP OF PORTIONS OF CHULA VISTA TRACT NO. 92-02A, ROLLING HILLS RANCH SUB-AREA III "A" MAP NO. 14756 AND NEIGHBORHOOD 9A, MAP NO. 14855 Adoption of the resolution approves a re-subdivision map to adjust lot lines for one open space lot of Map 14756 and nine adjacent residential lots of Map 14855 within Rolling Hills Ranch. (Acting Engineering Director) Staff recommendation: Council adopt the resolution. Page 2 - Council Agenda http://www.chulavistaca. gOY May 9, 2006 5. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE FORMAL CONSULTANT SELECTION PROCESS AND APPROVING THE FIRST AMENDMENT TO AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND TRC REAL ESTATE ADVISORS DBA SULLIVAN GROUP REAL ESTATE ADVISORS FOR MARKET ABSORPTION SERVICES FOR THE FORMATION OF COMMUNITY FACILITIES DISTRICTS WITHIN THE CITY OF CHULA VISTA PURSUANT TO THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 TRC Real Estate Advisors DBA Sullivan Group Real Estate Advisors has provided market absorption services for the City's Community Facilities District (CFD) formation for the last three years. It is recommended that the consultant selection process for these services be waived in the interest of providing continuity within the financing team, and that the first amendment to the agreement be approved. (Acting Engineering Director) Staff recommendation: Council adopt the resolution. 6. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A PARCEL MAP FOR THE VILLAGE WALK AT EASTLAKE PROJECT In September 2005, the Design Review Committee approved the Eastlake Village Walk that consists of 13.3 acres of commercial land. Due to the irregular shape of the site, the proposed structures encroach an existing sidewalk easement, which is no longer needed. Approval of the parcel map abandons the sidewalk easement. (Acting Engineering Director, Planning & Building Director) Staff recommendation: Council adopt the resolution. 7. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA TRANSFERRING UNCLAIMED MONIES IN THE AMOUNT OF $38,489 FROM THE CASH BOND DEPOSIT FUND TO THE GENERAL FUND The City currently has unclaimed monies in the Cash Bond Deposit Fund. This money was deposited by the Police Department in accordance Government Code Section 50050. According to Government Code provisions, money that remains unclaimed for three years may become the property of the City after certain noticing requirements are met. (police Chief) Staff recommendation: Council adopt the resolution. 8. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $10,722 FROM SWEETWATER UNION HIGH SCHOOL DISTRICT FOR PARTICIPATION IN EMERGENCY RESPONSE AND CRISIS MANAGEMENT EXERCISES, AND APPROPRIATING $4,395 TO PERSONNEL SERVICES AND $6,327 TO SUPPLIES AND SERVICES IN THE FISCAL YEAR 2006 POLICE DEPARTMENT BUDGET BASED UPON UNANTICIPATED REVENUES (4/5THS VOTE REQUIRED) Page 3 - Council Agenda http://www.chulavistaca.gov May 9, 2006 The Sweetwater UnIon High School DIstrict received a grant for Emergency Response and Crisis Management. The Police Department participated in traIning exercises with Sweetwater Union High School District to prepare for incidents involving weapons of mass destruction, an earthquake, active shooter(s), a fire or a terrorist act. These training exercises helped famlliarize both organizations with each other's methods and procedures to deal with these emergency events. The department will receive $10,722 reimbursement for staff time and equipment costs associated with this training. (Police Chief) Staffrecommendation: Council adopt the resolution. ITEMS REMOVED FROM THE CONSENT CALENDAR PUBLIC COMMENTS Persons speaking during Public Comments may address the Council on any subject matter within the Council's jurisdiction that is not listed as an item on the agenda. State law generally prohibits the Council from taking action on any issue not included on the agenda, but, if appropriate, the Council may schedule the topic for future discussion or refer the matter to staff. Comments are limited to three minutes. PUBLIC HEARING The following item was advertised as a public hearing as required by law. If you wish to speak on the item, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. 9. CONSIDERATION OF ACCEPTANCE AND APPROPRIATION OF FISCAL YEAR 2005/2006 STATE COPS SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND (Continued trom May 2, 2006) The Police Department was awarded $313,889 through the Supplemental Law Enforcement Services Fund (SLESF). These State funds were allocated to the Police Department for purposes required by the Citizens' Option for Public Safety (COPS) Program. Acceptance and appropriation of these funds requires a public hearing per stipulations of the State COPS Program. (Police Chief) Staff recommendation: Council conduct the public hearing and adopt the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $313,889 FROM THE STATE COPS SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND, AND APPROPRIATING FUNDS THEREFOR (4/5THS VOTE REQUIRED) Page 4 - Council Agenda http://www.chulavistaca.gov May 9, 2006 ACTION ITEMS The items listed in this section of the agenda will be considered individually by the Council, and are expected to elicit discussion and deliberation. if you wish to speak on any item, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. 10, REPORT REGARDING THE CITY'S EFFORTS TO DEVELOP NEW PARK FACILITIES THROUGHOUT THE CITY The General Services Department, Public Works Operations Department and the Recreation Department have focused their efforts on the largest park development period that the City has ever seen. In addition to the three core departments, virtually every other department in the City has participated to some extent in this unprecedented park development program. (General Services Director, Public Works Operations Director, Recreation Director) Staffrecommendation: Council accept the report, 1 L CONSIDERATION OF THE ISSUANCE OF SPECIAL TAX BONDS FOR COMMUNITY FACILITIES DISTRICT 07-1 AND APPROVAL OF DOCUMENTS AND ACTIONS IN CONNECTION WITH THE ISSUANCE OF THOSE BONDS Adoption of the resolution authorizes the issuance of the second series of special tax bonds for CFD-07 - I in the amount of approximately $16,845,000; and approves the form for certain documents related to the issuance of the bonds including a First Supplemental Bond Indenture, Bond Purchase Agreement and Preliminary Official Statement. (Acting Engineering Director) Staff recommendation: Council adopt the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO, 07-1 (OTAY RANCH VILLAGE ELEVEN), AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF A SECOND SERIES OF BONDS OF THE DISTRICT, APPROVING THE FORM OF FIRST SUPPLEMENTAL BOND INDENTURE, BOND PURCHASE AGREEMENT, PRELIMINARY OFFICIAL STATEMENT AND OTHER DOCUMENTS RELATED TO THE ISSUANCE OF THE BONDS, AND AUTHORIZING CERTAIN ACTIONS IN CONNECTION WITH THE ISSUANCE OF THE BONDS 12, CONSIDERATION OF THE DRAFT HOUSING ELEMENT UPDATE OF THE CITY OF CHULA VISTA GENERAL PLAN FOR THE 2005-2010 PLANNING PERIOD AND AUTHORIZATION TO CIRCULATE DOCUMENT TO THE STATE OF CALIFORNIA FOR REVIEW AND COMMENT The California State Legislature has mandated that all cities and counties prepare a Housing Element as part of the comprehensive General Plan, Staff has prepared a draft Housing Element update for the 2005-2010 planning period, (Assistant City Manager/Community Development Director) Page 5 - Council Agenda http://www.chulavistaca.gov May 9, 2006 Staff recommendation: Council authorize the circulation of the Draft Housing Elcment Update of the General Plan for the 2005-2010 planning period to the public and the State of Cali fomi a for review and comment. OTHER BUSINESS 13. CITY MANAGER'S REPORTS 14. MAYOR'S REPORTS Citizen feasibility committee discussion regarding San Diego Chargers. 15. COUNCIL COMMENTS John McCann: Citizen feasibility committee discussion regarding San Diego Chargers. CLOSED SESSION Announcements of actions taken in Closed Session shall be made available by nOon on Wednesday following the Council Meeting at the City At/orney 's office in accordance with the Ralph M. Brown Act (Government Code 54957.7). 16. CONFERENCE WITH LEGAL COUNSEL REGARDING SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(b) . One case ADJOURNMENT to the Regular Meeting on May 16, 2006 at 6:00 p.m. in the Council Chambers. In compliance with the AMERJCANS WITH DISABILITIES ACT The City of Chula Vista requests individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service request such accommodation at least forty-eight hours in advance for meetings and five days for scheduled services and activities. Please contact the City Clerk for specific information at (619) 691-5041 or Telecommunications Devicesfor the Deaf(TDD) at (619) 585-5655. California Relay Service is also available for the hearing impaired. Page 6 - Council Agenda http://www .chula vistaca. gOY May 9, 2006 Taide Pereyra 1128 Alpine Ave Chula Vista Ca, 91911 To: Ann Moore, City Attorney 276 Fourth Ave Chula Vista, Ca. May 9, 2006 From: Taide Pereyra Re: Conflict of interest between the City of Chula Vista, 1986 to 2006, and the San Diego Country Club Golf Course. I, Taide Pereyra, a citizen and resident of the City of Chula Vista hereby formally request that the City Attorney, Ann Moore, conduct an investigation regarding the following items. 1. Conflict of Interest between the City of Chula Vista and the San Diego Country Club Golf Course: a. Use of HUD funding in any form that would benefit the San Diego Country Club Golf Course. b. Use of low income statutes to gain any benefits regarding city funded programs, projects or taxes exceptions by the San Diego Country Club Golf Course. c. Public disclosure of any privileges or gifts granted to, or received by any, or all members of the city council and engineers(Planning Department) from the San Diego Country Club Golf Course. d. Public disclosure of any membership, ownership(corporate or private) or invested interest in the San Diego Country Club Golf Course by any members of the city councilor engineers(Planing Department). e. Public disclosure of any and all exceptions granted to the San Diego Country Club Golf Course regarding city codes; specifically frontage fees, installation of sidewalks, barbed wire fencing, installation and operation of cellular antennas. Please forward a confirmation letter of receipt regarding this letter of investigation by May 23rd, 2006. A monthly letter regarding the progress of this investigation will be expected on a monthly bases. Sincerely yours, p/2r- Taide Pereyra CC: HUD City Council San Diego Union Tribune Chula Vitas Star EI Latino May 5,2006 To: Assistant Planner Brian B. Catacutan and the City of Chula From: Taide Pereyra, 1128 Alpine Avenue, Chula Re: Cricket Wireless Antennas (PCC-06-065) Vista 91911 I, Taide Pereyra, present to Mr. Catacutan and the City of Chula Vista these signatures requesting that the installation and operation of the Cricket Wireless antennas be denied and/or postponed until all required frontage fees have been paid and installation of sidewalks on the north side of Naples Street, between Tobias Dr. and First Avenue, be completed. All residents and business 8stablishments in the area have been required to follow these two city codes before receiving any permit. I ask that this be the same for the San Diego Country Club Golf Course. If the city selects to waive these requirements I ask to be sent a written explanation as to why such exceptions were granted. t c",'! i .; , , . \. MAY , 1.-. L_~E!, - :) Luub PETITION to stop the installation and operation of the Cricket Wireless antennas (PCC-06-065) until the following has been complet~d:A 1. Payment of the require frontage fees by the San Di&g'b/fG'bl'f" Course, 2. Installation of sidewalks on the ndJAJ'h.., " side of Naples Street, between Tobias Drive and First Av~nu~, adj acent to the San Diego Golf Course. \ 1-- . ********************************************************~~~~~~~* pri;t Na~e ~atu~e . Address 1. nob,A/(h 60/lzak-zo ;/A/.d 4/}.,<"4 _ dJ~ wy e l/ 2. J3-J;~J3 Aulq 73,JII~7S:f30..LJ... ~?~1A., cJd @.(/ 3._JU 54. ~i2.d{){H) ~ Ii . ~;--- ..V><;~ tJ~1 C.;. 9/91/ /. G. t.A 1" , e:(2..I2.2z. ~ /\Vk cv 9/7!/ .-----:J 4'. fl- F A.e L 5. ;--1 (/~4 v~f+-?' ~ C'>r.J,JJd '-TO b ~ nS b~, Q , $, (j 13.fYlajra..Ve.&P()YrCl. tn1~ _ tvl-/-. J)an~ Rd CV, 1JCJe ~~C~ _1S~tc.-;t3C.V 'if'lIS ~ - ,$1055C.U q Ie( r; 14. A\!~o.ndra. Q/Qfl<e.- 16. l:cJIV A 'MU f D(7- c. V '1('1// ....L -. .~ .~_r. I I PETITION to stop the installation and operation of the Cricket Wireless antennas (PCC-06-065) until the following has been co~pl~~e~;<h 1. Payment of the require frontage fees by the San Die~~~~l~"Course, 2. Installation of sidewalks on the no~ side of Naples Street, between Tobias Drive and First Avenue,' , adjacent to the San Diego Golf Course. ,'.... ****************************** **************************~******* P' Name Si at re Addre~s . 1. (l/9/9/) 2. .It. h:tAu {{a/V(> 1. 3. ~ 'It/n . tJlYi ~~ _ (J,r~n (}v. 4. ~. 8. .. Ad/ ::t ~~0Stv!)~ _~,~. 11 A ~ --.elf; r'L Ik- " / 5. 0-0......"""-- 6. 9oJ,...;c..',CI SCAn tc~Y)'^- 7. -:k::.k lM\V<" c;-::; lo..--L6-<1p-iO U&:1LG l~txk, , .....-~W-"_.. - " .'-'t;;; ~W' J (:A't','A LC' < ~. 12. /~ C;;/ g;.t'-?.?/ _E..41f'H.i>.-v '119// D. C'i4!'-fJ: ~..n-1 ..~",; "IV 'l1'l'f 14.~~ ~U7I;VE.4t/ 9/9/1 . __Aklh~ i/jv7/'1/1 ;stft"LtO ~o~o. '1:. ('Fr.!?//< A ~c~~ 16.l1da"ti2-~.H~/iQi"t6< 11~VP~._ . (/4i{.eJ/.'l/Cf/; 11.\CA'<:\~ 1'en:'1~ ~""IT/pl~ ~ C, (j, 9/1// I c=- 9. _ CPt fVL~ AUt. ~LPINC' b-Vf- . , DRAFT '" MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA April 25, 2006 6:00 P.M. A Regular Meeting of the City Council of the City of Chula Vista was called to order at 6:11 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Councilmembers: Castaneda, Chavez, McCann, and Rindone ABSENT: Councilmembers: Mayor Padilla ALSO PRESENT: City Manager Rowlands, City Attorney Moore, and City Clerk Bigelow PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE SPECIAL ORDERS OF THE DAY . OATH OF OFFICE: William E. Hieronimus, Board of Appeals and Advisors City Clerk Bigelow administered the oath to Mr. Hieronimus, and Councilmember Rindone presented him with a certificate of appointment. · PRESENTATION BY MAYOR PADILLA OF A PROCLAMATION TO JIM THOMAS, SENIOR VOLUNTEER PATROL, PROCLAIMING APRIL 25, 2006 AS SENIOR VOLUNTEER PATROL APPRECIATION DAY IN THE CITY OF CHULA VISTA Deputy Mayor McCann read the proclamation, and Councilmember Rindone presented it to Mr. Thomas. . PRESENTATION BY MAYOR PADILLA OF A PROCLAMATION TO DIANE GAS WIRTH, AREA SALES MANAGER FOR SECURE HORIZONS OF PACIFICARE, PROCLAIMING APRIL 22, 2006 AS "UNITED WE PAINT DAY" Deputy Mayor McCann read the proclamation, and Councilmember Rindone presented it to Ms. Gaswirth. . PRESENTATION BY MAYOR PADILLA OF A PROCLAMATION TO MARY MOWRY, MEMBER OF THE BOARD OF DIRECTORS, PARKINSON'S DISEASE ASSOCIATION OF SAN DIEGO, PROCLAIMING APRIL 2006 AS "NATIONAL PARKINSON'S DISEASE AWARENESS MONTH" Deputy Mayor McCann read the proclamation, and Councilmember Rindone presented it to Ms. Mowry. / T1 f:~, S1Q DRAFt SPECIAL ORDERS OF THE DAY (contmued) . DID YOU KNOW...ABOUT THE CITIZENS' POLICE ACADEMY? Presented by Captain Gary Wedge Police Chief Emerson introduced Captain Wedge, who provided a brief presentation on the Citizens' Police Academy. CONSENT CALENDAR (Items 1 through 4) Councilmember Rindone stated that he would abstain trom voting on the April 4, 2006 minutes, since he was not present at the meeting; and on Item 2A, his request for an excused absence. Deputy Mayor McCann stated that he would abstain trom voting on Item 2B, his request for an excused absence. 1. APPROVAL OF MINUTES of March 28, March 30, and April 4, 2006. Staff recommendation: Council approve the minutes. 2. WRITTEN CORRESPONDENCE A. Request trom Councilmember Rindone for an excused absence trom the Council Meeting of April 4, 2006. Staff recommendation: Council excuse the absence. B. Request trom Councilmember McCann for an excused absence from the Bi- National City Council Meeting held March 30, 2006. Staff recommendation: Council excuse the absence. C. Letter of resignation from Dan Horn, member of the Planning Commission. Staff recommendation: Council accept the resignation and direct the City Clerk to post the vacancy in accordance with the Maddy Act. 3. RESOLUTION NO. 2006-120, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING CITY DEPARTMENTS, WORKING WITH THE PURCHASING DIVISION, TO ACQUIRE UNIFORMS, INCLUDING RENTAL, LAUNDERING, PICK-UP, AND DELIVERY FROM PRUDENTIAL OVERALL SUPPLY ON AN AS-NEEDED BASIS, PER TERMS AND CONDITIONS OF COUNTY OF SAN DIEGO RFB 885 WITH PRUDENTIAL OVERALL SUPPLY FOR THE DURATION OF RFB 885, SUBJECT TO AVAILABILITY OF FUNDS Page 2 - Council Minutes http://www.chulavistaca.gov April 25, 2006 , "'j: } DRAFT CONSENT CALENDAR (continued) Between ISO and 200 City employees from various bargaining groups are provided uniforms. Chula Vista has an opportunity to participate in a cooperative program with the County of San Diego for a uniform service contract with Prudential Overall Supply at favorable terms and pricing. (Finance Director) Staffrecommendation: Council adopt the resolution. 4 A. RESOLUTION NO. 2006-121, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT WITH YACOEL PROPERTIES AND AUTHORIZING THE REIMBURSEMENT OF COSTS ASSOCIATED WITH THE DESIGN AND CONSTRUCTION OF A PORTION OF THE AUTO PARK SEWER (A COMPONENT OF THE SALT CREEK TRUNK SEWER) B. RESOLUTION NO. 2006-122, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE TRANSFER OF A PORTION OF THE FUNDS IN THE AMOUNT OF $83,202.80, PREVIOUSLY ALLOCATED FOR THE CONSTRUCTION OF THE AUTO PARK SEWER TO THE DEPOSIT ACCOUNT FOR "THE CROSSINGS" PROJECT (DE2002) Yacoel Properties recently completed the installation of 540 lineal feet of eight-inch PVC (of a portion of the Auto Park sewer) as part of The Crossings development. The Auto Park trunk sewer line was originally planned and budgeted for as part of the Salt Creek trunk sewer project (SW219). However, since this portion of the trunk line traversed The Crossings project and would have required trenching through their new facilities, the City and the developer reached an initial understanding that the developer would construct said portion of the trunk sewer and be reimbursed from the City's original project funds (upon authorization by the Council). The project has been completed, and the developer is now seeking reimbursement for costs associated with the project. (Acting Engineering Director) Staffrecommendation: Council adopt the resolutions. ACTION: Councilmember McCann moved to approve staff s recommendations and offered the Consent Calendar, headings read, texts waived. The motion carried 4-0, except on the April 4, 2006 minutes and Item 2A, which carried 3-0-1 with Councilmember Rindone abstaining; and Item 2B, which carried 3-0-1 with Deputy Mayor McCann abstaining. ITEMS REMOVED FROM THE CONSENT CALENDAR There were none. Page 3 - Council Minutes http://www.chulavistaca.gov April 25, 2006 ~.. , !\ DRAFT PUBLIC COMMENTS Richard Shannon requested additional beat patrol officers in eastern Chula Vista, citing increased population to justify the building and staffing of a police substation. Councilmember Chavez suggested that Mr. Shannon consider attending the Citizens Police Academy and also the Public Safety Committee meeting tomorrow. Steven Pavka, who recently addressed the Council regarding his neighbors' car being towed from in front of their home, reported that Police Lieutenant Coulson visited his neighbors and assured them that there would be no repercussions, showing great patience and skill. Mr. Pavka then thanked the Council, City staff and the Police Department for their excellent handling of the matter. Dan Sherman, representing Sunbow tenants, read the following questions and comment into the record: "Question 1 - Was it not a conflict of interest for Steve Castaneda to purchase a unit while employed as a City Councilmember? Question 2 - Is it not also a conflict of interest for the City Council to perhaps now renege on its agreement to provide relocation assistance to current residents in order to protect Mr. Castaneda's original decision, which was based on the appearance of a conflict of interest? In my opinion, Mr. Castaneda should relinquish his property right at Sunbow Villas so that the tenants will not be penalized for his conduct and he will be cleared of the appearance of a conflict of interest." He further stated that he hoped any appearance of a conflict of interest was just that, an appearance, and that Sunbow residents would have an agreement through the City for such things as relocation assistance, a $3,000 discount ifthey are purchasing a unit, and the right to purchase a unit. Eleanor Zertuche stated that she had been a resident at Sunbow Villas but was forced to leave. She asked why Councilmember Castaneda was still living in the complex and given concessions when many others had been forced to move out. Deputy Mayor McCann noted that he had a request to speak from Councilmember Chavez and first recognized City Attorney Moore. City Attorney Moore advised that the Council make no comments on the Sunbow matter since it was not noticed on the agenda for discussion and since there are a number of issues yet to be resolved. She clarified that there were a number of issues raised the last time this item was discussed, legal issues, including an allegation of a potential violation of 1090. Because of that, the matter has been referred to the Attorney General's Office, and she advised the Council not to discuss the item until a reply has been received. Councilmember Chavez expressed frustration in that she would like to ask the speakers questions in order to fully understand the whole situation and their plight. City Attorney Moore reiterated that she had advised the Council not to discuss the matter. Councilmember Chavez replied that her only question was why the tenants were asked to move. She also expressed concern that issues come before the Council, cannot be discussed on the dais and then end up becoming a huge ordeal. She also commented that Councilmembers had not been informed that Councilmember Castaneda lived in the complex until it was too late. She then asked Ms. Zertuche why she had been forced to move. Page 4 - Council Minutes http://www.chulavistaca.gov April 25, 2006 DRAFT PUBLIC COMMENTS (continued) Deputy Mayor McCann and Councilmembers Castaneda and Rindone left the dais at this point in the meeting. Ms. Zertuche responded that many residents were forced to move so that the units could be remodeled and turned into condominiums. Residents were given a certain deadline; she had been granted only a two-week extension. Councilmember Chavez expressed frustration in not being able to help the residents. She asked if there were a timeline to receive a response trom the Attorney General and also asked for a report so everyone would know the facts. City Manager Rowlands stated that he and City Attorney Moore had met with the owners of the project based on Council direction. He then asked City Attorney Moore to elaborate. City Attorney Moore stated that the last time the item was on the agenda, she had advised the Council not to provide any comment due to an issue raised regarding 1090. In order to err on the safe side, she believed it was prudent to pull the item and send it to the Attorney General's office for a ruling on the 1090 issue that was raised by the tenants. Her office is in the process now of finalizing that letter, and another letter has already been sent to the Fair Political Practices Commission. She advised that the item not be discussed until comments or answers have been received from these agencies, especially tonight, since it was not agendized. Councilmember Chavez asked how long it would take to receive a response trom the agencies. City Attorney Moore responded that there is no statutory time in which to respond but that she would ask for a response as soon as possible. Deputy Mayor McCann and Councilmembers Castaneda and Rindone returned to the dais at this time. Rosa Estrada, Sunbow tenant, asked the Council for assistance in ensuring that the owner does everything he has promised, including moving assistance and 60-day notice, since she is being forced to move with her small children. She also stated that the tenants should not have to suffer because a Councilmember lives there. Roxanne Auer, representing Sunbow tenants, clarified that Ms. Zertuche had lived in Phase 2, along with Councilmember Castaneda. Phases I and 2 had 89 tenants when the project was purchased; 18 were transferred to Phases 3 and 4; and 71 moved out altogether. Tenants were given 60-day notices to move or face eviction. As of January, Councilmember Castaneda is the only one still living in Phase 2. She then asked where Councilmember Castaneda actually lives, since she had records showing a J Street address, and the Registrar of Voters has him listed on Center Street. She asked the City Attorney what remedies were actually being reviewed. Page 5 - Council Minutes http://www.chulavistaca.gov April 25, 2006 ~ 't '1 f.;' DRAFT PUBLIC HEARINGS 5. CONSIDERATION OF ESTABLISHMENT OF THE BAYFRONT UTILITY UNDERGROUND DISTRICT TO UNDERGROUND OVERHEAD 138 KV ELECTRICAL TRANSMISSION LINES (TIE LINE 13815) AND SUPPORTING STRUCTURES ALONG THE CHULA VISTA BA YFRONT On March 21,2006, the Council approved Resolution No. 2006-087 and ordered a public hearing be held to determine whether the public health, safety and general welfare require the formation of a utility undergrounding district to underground the 138 kV electrical transmission lines and supporting structures. SDG&E allocation funds would be used to cover the cost of the proj ecl. The terms for the performance of this work were outlined in the Memorandum of Understanding between the City and SDG&E dated October 12, 2004. (Acting Engineering Director) Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and at the time specified in the notice. Deputy Mayor McCann opened the public hearing and recognized Acting Director of Engineering Browder, who stated she and staff were present to answer questions. There being no members of the public wishing to speak, Deputy Mayor McCann closed the public hearing. ACTION: Councilmember McCann offered Resolution No. 2006-123, heading read, text waived: RESOLUTION NO. 2006-123, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING THE BA YFRONT UTILITY UNDERGROUND DISTRICT TO UNDERGROUND OVERHEAD 138 KV ELECTRICAL TRANSMISSION LINES (TIE LINE 13815) ALONG THE CHULA VISTA BAYFRONT AND SUPPORTING STRUCTURES BETWEEN TOWER 189507 AND TOWER 188701, INCLUDING TOWER 188701 The motion carried 4-0. ACTION ITEMS 6. CONSIDERATION OF A RESOLUTION AUTHORIZING THE RE-OPENING OF OLD FIRE STATION 3 TO PROVIDE ADDITIONAL FIRE AND EMERGENCY MEDICAL SERVICES TO THE COMMUNITY The Fire Department has recommended the re-opening of old Fire Station 3, located at 266 East Oneida Street, as interim Fire Station 9. This station would be staffed on a 24- hour basis by moving the engine company ITom current Fire Station 3. The current Fire Station 3 would be staffed with the Light and Air Rescue Truck that would be fully staffed and put into service. The opening of interim Fire Station 9 would enable the Fire Department to maximize the usage of available resources and enhance services to the community. (Fire Chief) Page 6 - Council Minutes http://www.chulavistaca.gov April 25, 2006 DRAFT ACTION ITEMS (continued) Fire Chief Perry provided an overview of the staff report. He then introduced Captain Harry Muns and Captain Robert Hi]], who described the Fire Department rescue program,recently renamed US&R 53 (Urban Search & Rescue) in order to align with state guidelines. Councilmember Castaneda asked that the neighbors around Station 3 be notified that the station wi]] reopen. ACTION: Councilmember Rindone offered Resolution Nos. 2006-124 and 2006-125, headings read, texts waived: A. RESOLUTION NO. 2006-124, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE FIRE DEPARTMENT TO RE-OPEN OLD FIRE STATION 3, LOCATED AT 266 EAST ONEIDA STREET, AS INTERIM FIRE STATION 9 TO PROVIDE ADDITIONAL FIRE AND EMERGENCY MEDICAL SERVICES TO THE COMMUNITY, AND AMENDING THE FISCAL YEAR 2006 FIRE DEPARTMENT BUDGET, APPROPRIATING $55,056.55 FOR THE PURCHASE OF EQUIPMENT AND MATERIALS REQUIRED TO COMMENCE STATION OPERATIONS (4/5THS VOTE REQUIRED) B. RESOLUTION NO. 2006-125, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING A NEW CAPITAL IMPROVEMENT PROJECT, PS164, ENTITLED "INTERIM FIRE STATION #9 IMPROVEMENTS," AMENDING THE FISCAL YEAR 2006 CAPITAL IMPROVEMENT BUDGET, APPROPRIATING $27,851 FOR IMPROVEMENTS REQUIRED FOR RE-OPENING THE STATION The motion carried 4-0. 7. CONSIDERATION OF LEGISLATNE POSITIONS ON 2005/2006 BILLS INVOLVING SCHOOL PEDESTRIAN-BICYCLIST SAFETY PROGRAMS Staff requested Council consideration of legislative positions on 2005/2006 bills involving pedestrian and bicyclist safety programs in and around school zones. Assembly Bills 1324 (Vargas) and 2465 (De La Torre) would offer local governments new types of traffic-calming programs for school zones. (Assistant City Manager/Community Development Director) Principal Community Development Specialist Lee presented the staff report. ACTION: Councilmember Chavez offered Resolution No. 2006-126, heading read, text waived: Page 7 - Council Minutes http://www.chulavistaca.gov April 25, 2006 DRAFT ACTION ITEMS (continued) RESOLUTION NO. 2006-126, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VIST A ADOPTING LEGISLATIVE POSITIONS ON 2005/2006 LEGISLATION INVOLVING SCHOOL PEDESTRIAN-BICYCLIST SAFETY PROGRAMS: AB 1324 (V ARGAS) AND AB 2465 (DE LA TORRE) The motion carried 4-0. OTHER BUSINESS 8. CITY MANAGER'S REPORTS There were none. 9. MAYOR'S REPORTS There were none. 10. COUNCIL COMMENTS Councilmember Rindone reported that he had met with Terry Amsler of the Institute for Local Government, who was working on a grassroots campaign for community dialogue, a critical issue as we start to examine ways to gain community input, particularly with the Chula Vista Redevelopment Corporation. Councilmember Rindone congratulated the many volunteers of the Chula Vista Mounted Police on their awards reception Friday evening. He also commented that he had attended most meetings of the Northwest Civic Association, a good group, and expressed appreciation to staff for attending and noting comments and concerns of community members. He then congratulated the recent retirees trom the Fire Department. Councilmember Rindone reported that E Street, between Third Avenue and Loves BBQ Restaurant, has excessive damage and potholes, especially in one of the center lanes, and he asked staff to review the situation. He also asked when repairs were last done, who did it, and if anyone had legal responsibility, since it is a gateway to the City. Councilmember Chavez thanked Community Development for assistance in getting the community and City involved in dialoguing. She also reported concern about making a turn trom Minot onto E Street because parked cars on both sides ofE Street block visibility. She then announced that a workshop would be held Thursday for the mobilehome park community and invited all to attend. On a personal note, she extended congratulations on a 70th wedding anniversary to family friends. Page 8 - Council Minutes http://www.chulavistaca.gov April 25, 2006 DRAFT COUNCIL COMMENTS (continued) Councilmember Castaneda made a referral to the safety committee to look at bicycling and skateboarding around schools and also in neighborhoods. He noted that helmets are being worn in eastern Chula Vista, but not in western Chula Vista. There is a need get aggressive about enforcing helmet laws throughout the City, not just around schools, and to inform kids of those laws. Deputy Mayor McCann commented that perhaps the City could work with community service groups to provide helmets. Councilmember Rindone stated that this Sunday, the Downtown Business Association will host the annual Cinco de Mayo Festival trom 10:00 a.m. to 5:00 p.m. on Third Avenue, and he encouraged families and community members to attend. Additionally, he stated that he had attended services for Mable Norton, who was the registrar at the Chula Visa Adult School for 25 years, and he asked that the meeting be adjourned in her memory. CLOSED SESSION II. CONFERENCE WITH LEGAL COUNSEL REGARDING SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(b) One Case No reportable action was taken on this item. CLOSED SESSION (continued) 12. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE 54957.6 Agency designated representatives: David D. Rowlands, Jr., Marcia Raskin Employee organization: International Association of Fire Fighters No reportable action was taken on this item. ADJOURNMENT At 9: 15 p.m., Deputy Mayor McCann adjourned the meeting in memory of Mrs. Mabel Norton to the Regular Meeting on May 2, 2006 at 4:00 p.m. in the Council Chambers. - ~~ -o.~/i /) . --:;:=-- , i ~ 1.0 ~ Susan Bigelow, MMC, City Clerk Page 9 - Council Minutes http://www.chulavistaca.gov April 25, 2006 C . T. Ople~...~_} ~~"" C)-er t.S Mayor J olm McCillm Jerry llindone Steve Castaneda Patty Chavez COlmcil Aides ~ * Zaneta Encarnacion Allison Rolfe Constituent Filing Natalie Flores :1>. HERE I G N Tom Oriola tJa\i!sla,CA91913 Fax (619) 934-4524 Efias.rs .. " ('; r.: ")f)n0 :", t., i L_'..J J April 25, 2006 RECEIVED Honorable Mayor and City Council 276 4th Avenue Chula Vista, CA 91910 Re: Notice of Voluntary Resignation This letter is to inform the honorable Mayor, Steve Padilla, and the members of the City Council of my intent to resign my post of Vice Chair of the Design Review Committee. I would request that my resignation be implemented as soon as possible, with a preferred departure date of May 29, 2006. My decision to resign is solely based on the increasing demands and responsibilities of my interior design business. My tenure on the Design Review Committee has been a rewarding and valuable personal and professional experience. It has been a pleasure serving alongside my knowledgeable and competent colleagues on this committee. Best Regards, ./ .,...._....-----.r'. ----'"= -\/1 , --- 00 ~ ~=i -<-< :D 00 ~ fT1 ,""TI (j mC") fT1 :X>::J: N ::O::c:: 00 < ""C- oJ> -u J1l -n<: W 0 -r.;:;; W 0-!. C":"" 0\ , -_..~.__._-- ~-:::::::.:-:1:~-..-. ~.~ Katherine Magallon Principai 2- '7 PAGE 1, ITEM NO.: --:/ MEETING DATE: 05/09/06 CITY COUNCIL AGENDA STATEMENT ITEM TITLE: RESOLUTION OF THE CITY COUNCIL APPROVING THE FY 2006 - 2007 CONTRACT BETWEEN THE CITY OF CHULA VISTA AND THE CHULA VISTA CHAMBER OF COMMERCE FOR THE PROVISION OF CHULA VISTA CONVENTION AND VISITORS BUREAU PROMOTIONAL SERVICES, AND VISITOR AND TRANSIT INFORMATION SERVICES. ASSISTANT CITY Mf\.JlfAGER/COMMUNITY DEVELOPMENT DIRECTOR fP.\\ ~('D CITY MANAGER ;; I /, 1J SUBMITTED BY: REVIEWED BY: 4/5THS VOTE: YES D NO 0 BACKGROUND In 1994, in conjunction with considerotion of the scheduled rote increose in the Transient Occuponcy Tax (TOT), Council received 0 request from the Chamber of Commerce ond Chula Vista Motel Association to creote 0 Convention and Visitors Bureou. Similor bureaus serve North County, Carlsbad, East County, and the San Diego metropolitan area. Since 1995, the City has contracted annually with the Chula Vista Chamber of Commerce (Chamber), to provide Convention and Visitors Bureau services. According to Council Policy #230-01, the Council considers a budget and related contract with the Chamber for the provision of Chula Vista Convention and Visitors Bureau Promotion Services, and Visitor and Transit Information Services at the Chula Vista Visitor Information Center and Chamber of Commerce Main Office. RECOMMENDATION That Council adopt the resolution approving the FY 2006 - 2007 contract between the City of Chula Vista and the Chula Vista Chamber of Commerce for the provision of Chula Vista Convention and Visitors Bureau Promotion Services, and Visitor and Transit Information Services at the Chula Vista Visitor Information Center and Chamber of Commerce Main Office. BOARDS/COMMISSIONS RECOMMENDATION Not applicable. 3-1 PAGE 2, ITEM NO.: MEETING DATE: 3 05/09/06 DISCUSSION Backaround The City Council adopted a Council policy (#230-01, see Attachment "A") ta suppart a Chula Vista Convention and Visitors Bureau (CVConvis) at its March 21, 1995 meeting. Convention and Visitors bureaus typically conduct advertising campaigns, produce brochures, attend trade shows, and operate tourist-oriented facilities to promote the City. The focus of the Chula Vista bureau, as established in 1995, is to promote Chula Vista destinations, including the U.S. Olympic Training Center, entertainment venues, golf, Yacht Harbor, local motels, restaurants, shopping, and special events such as Celebrate Chula Vista and Taste of the Arts. CYConvis also pramotes Chula Vista during major conventions and events in the region, which in the past has included the Super Bowl and World Series. Also, at the March 21, 1995 meeting, Council approved increasing the TOT rate from 8% to 10% and approved a draft budget for CVConvis. The funds to operate CYConvis were included in the approved City budget for fiscal year 1995-96, subiect to negotiation of a contract with the Chamber. The last contract was approved by Council in 2002, and has subsequently been extended, via contract amendments, through June 2006. On a related subject, the City has had a contract with the Chamber since 1994, for operation of the Visitor Center at the Bayfront/E Street Trolley Station and the provision of general visitor and transit information at both that location and the Chamber's main office'. Since opening in 1986, the Visitor Center has had four commercial operators, none of whom were able to operate the center at a profit. In late 1994, after considering four proposals to run the Visitor Information Center, the Council approved a contract with the Chamber, which has been extended annually, via contract amendments, through FY05. Since its opening in 1986, the City has paid the costs of utilities, exterior maintenance, building repairs, major improvements and landscaping. The Center serves a daily average of more than 200 people who request visitor and transit information. The major focus of the Visitor Center is to provide mass transit information and ticket sales to trolley and bus riders, promote visitor-serving attractions and businesses in the City, and to provide accurate information to visitors concerning Chula Vista and the San Diego region including Tijuana and Baja California, Mexico. With the limited retail opportunities at the Visitor Center plus the main focus on providing service to the tourist and transit riders, an annual subsidy for the operation is required. Part of the Strategic Plan (see Attachment B) developed by the Chamber for CVConvis and the Visitor Center is to identify other revenue opportunities, as well as other goals and objectives for the Center. 1 The Bayfront/E Street Trolley Station is jointly owned and operated by the City of Chula Vista and the Metropolitan Transit System (MTS). The site includes the Visitor Center, which has been administered by the City under a separate agreement. 3-2 PAGE 3, ITEM NO.: MEETING DATE: 3 05/09/06 Terms The terms of this one-year contract is similar to the terms in the previous contract with the Chamber for CVConvis services, and Visitor and Transit Information Services. The City and the Chamber shall have two one-year consecutive options to extend the agreement, for a maximum of two years. The Chamber will provide the following services: . Promote and market the City and the City's visitor destinations, meeting facilities, tourism, and related businesses (see Operating Rules, Attachment C) . Respond to inquiries obout transit; provide transit information about trolley and bus schedules, routes, prices and stops; and sell transit passes . Provide information about Chula Vista (e.g. major hotels/motels, restaurants, shopping), Son Diego County visitor attractions, Southern California, and Northern Baja, Mexico . Provide general information about the City, including City maps and brochures . Operate the Visitor Center between 8:00 a.m. - 4:30 p.m. on weekdays and 8:30 a.m. - 4:00 p.m. on weekends and holidays Fundinq The Council approved 2-year City budget includes $193,014 in funding dedicated to the Chamber for Chula Vista Convention and Visitor Bureau activities, Visitor Center operations and to provide Chamber Information Services at the main office. Included in the annual figure is the $13,376 that the City pays the Chamber for general information services. Visitor Center Maintenance - City In addition to the CVConvis and Visitor Center budget allocation per the proposed contract, the City also funds the maintenance of the Visitor Center. These maintenance costs are included in the Chula Vista T ransifs FY 2006-07 budget for the Bayfront/E Street Trolley Station and are the City's responsibilities. Staff and the Chamber are committed to maintaining and operating a safe and responsive Visitor Center. The image of the City is very important and the Chamber is committed through this contract to promote a positive, friendly and responsive image as desired by the City. FISCAL IMPACT Funds in the amount of $193,014 have been identified from the City's General Fund in the Community Development Department and Chula Vista Transit/MTS Budget for fiscal year 2006- 07, as approved and adopted within the City two-year budget on June 21, 2005, for casts associated with the scope of work. Sufficient funds in the amount of $148,014 are allocated in Community Development Department's budget, and $45,000 in the Bayfront/E Street Trolley Station (CV T ransit/MTS) budget to fund the Contract with the Chamber. The contract will provide 3-3 . PAGE 4, ITEM NO.: MEETING DATE: ~ 05/09/06 Convention and Visitors Bureau Promotional Services and Visitor and Transit Information Services for FY 2006-07. AnACHMENTS . Attachment A - Council Policy #230-01 Attachment B - CONVIS Strategic Plan Attachment C - Operating Rules Prepared by: Gustava Perez; Senior Community Development Specialist; Community Development Department J,\COMMDEV\STAFF.REP\2006\CONVIS 2006-2007 Stoff Report.doc 3-4 ATTACHMENT A' COUNCIL POUCY CITY OF CHULA VISTA SUBjECI': SUPPORT POR A OM.A VISTA VISrrORS AND CONVEN'l'10N BUREAU, StJBJEcr TO ANNUAL APPROVAL OF A BUDGET AND RELATED CON'I1Vt.CT POLICY NUMBER 230-01 EFFECI'IVE DATE PAGE 07.01.95 1 OF 2 ADOPI'ED BY: Resolution No. 17843 I DATED: 03-21-95 BACI<GROUND paztic:WarJy given the immmrnt opeclng of the Olympic: Training Center in Ch1l1a VISta, the City desires to promote tourism and the at: 's visitor-otiClted amac:tioa.s md fac:iJities. Vuitor promotion aIId luading has also been discussed in the context of callriderl.nZ whether to abate the Transient Occupancy Tax (T.O.T.) OD April 1, 1995 from 10% to III! amoWlt not less !han B'III. PURPOSE . The pmpose of this poHey is to provide ,mdetines for the amoWlt and use of Vl.SitOr.l and COGventioe Pr=otioe Funds. . POliCY 1. During the annual blldget proo:$S, the City Couudl will consider the adoption of. Chula Vista VISi1cm and Convention PtamotiDtl Budget for the following fisc:a1 year. It shaJl be the policy of the City th..t the Vuiton aod Convention Promotion ~udget shoUld be funded from Genera] Fund SO\l1"CIS other that1 the T.O.T., in an amount adduS3ed in paragraphs 2 and 3 below. III implementing this policy. the T.O.T. revenues collected may be a measure of the amoUtlt of the appropriaticm. wt lIot the saurce of funds csed for the appropriation. 2. It is the poliey of the aty CoundI to direct staff to ptepare a ptoposed FV 1995-96 Vaiton md Convetltion Ptamotion Budget, for Council's consideration during iu FY 95.96 wdgel delibenticms. in an amount of $1S0,OOO. 3. For FY 19915-97 Qld the three consecutive fiscal ye.:u:s thereafter. it shall be the policy of the City Council tD direct staff to prepare proposed VL!itan md Convention Promotion Budgets, for CoundI's considontion in its mmual !..ad,llt deliberations, in amounts measured by the amoullt of T.O... revenue collected in the most tec:et1t l-yur period for which data is thOlt available (typic:aJly April tIuough March) based on the follawing guidelines: - lftb.e &DD.ual T.O.T. rneeue is $1.5 million Df leu, the propoud Visitors and Convenucm Promotioll Budget would ~ an amount equivalClt to 10% 01 the T.O.T. revenue collected. If the annual T.O.T. RVelnle is mare than $1.5 million and less than $2.s miUiOA, the ptoposed VlSiten and Conveation Ptamotion Budget would be $150.000 plUS an amOtltl.t eC{1livl1ent to 5% 01 the T.O.T. revenue in e;o:ceSs of $1.5 million. Thi:I JUideline would mIlS result in I muimUtll proposed annual VlSitots md Convention PrDmotion. Budget of $200,000. . 3-5 . = COUNCIL POLICY CITY OF CHULA VISTA JJECT: SUPPORT FOR A arutA vr5rA VISIrORS AND OONVENl'ION BUREAU, SUBJEcr TO ANNUAl. APPR.OVAl. OF A BUDGET AND J\I.LA'IED OONTRAcr POUCY NUMBER 23<1-01 EFFECI'IVE DATE PAGE 07-01.95 2 OF 2 )P'TJ!;U BY: ResofutiOD No. 17843 I DATED: 03-21.95 . If the anJ1ual T.O. T. revenue uceed$ S2.5 milIioa, the proposed VJSiton md Conveadoa Promotion Budget wou1d be '200,000. The City would !hea rniew this ColUlcil Policy, iac1uctin, disc:ussins it with the Cham bet of Commerce md the Chula VISta Morel Auodatioa, to dere:mine whether the policy should be ntYisecl to provide 11I2)' additioaall'lideliaes for proposed VlSirors and Coagelltion Promotion fuad..inS heyond the $200,000 maximum proposed mmual am =t prOvided In this policy. The Chula VIsta Chamher of Commerce IInd the Chula VISta Motel Associaaoa. are fcmnlng a Ollila VISta Visiton and Convention Bureau, and representatives ot those asencies IInd the City will be Involved in fonnulatint a proposed VJSiron and ConYelltion Promotion Budget to be coaridered hy the Cty Council eaQ lisc.al year. It a anticipated that 10m. projects induciae! in the VISitors aud Con'llelltiOA Promotion Budget will COIItiaue ro be administered by the City or be for services lor which the City has prev:i"""ly contracted with the Chamber of Commerce. It is also anticipated that a signific:anr portion (probably the majcxity) of the VlSitQn and ConYellooD ProlllotiOll Sud,er will be lor sped1ied services for which the City will U&CI>Ce an amluaI one-year contract with the ":hamber of Commerce. on behalf of the VlSiton and Convention Bureau. The Chamber will provide juarterly repons to the City to be specified in the annual contract, Inciucli.nJ appropriate acco=tin, data. . Thb poBcy shan be set for review approzimate1y five yean after its adoption dat.. Tblt rniew should incl'llde. but I10t be limited to, the appropriateaess of c:ootinlling .to establish VlsItors and Conventiou Promotioa budgets in relationship Co the _oUJU of T.O.T. revenue collected, the ,wde1it1es for such relationships, and the appropriateness of the Chamber 01 Commerce continuing to act as the contrac:t:ing arm of the VISitors and Con".l1Ii.on Bun:au compand to other orpnizaoonaI arrangem ants such as the establlshmem: of a staI1d..alOlle V'lSiton and Convention Bureall- , 3-6 ATTACHMENT B Chula Vista Convention & Visitors Bureau Strate!!ic Plan Mission: The Chula Vista Convention & Visitors Bureau focuses on deveJoping Chula VISta as a destination city by generating and promoting tourism, wlriJe expanding and attracting visitors to our community. Vision: It is our vision to create a Visitor Centor office that represents and International Visitor Information Center using the latest in technology and an interactive environment, to welcome and assist guests from allover the world. Goal: Partner with The City of Chula Vista to create a visitor center in a central, visible, high traffic, street level, accessible location in the City of Chula Vista. Provide a site for public outreach for the community of Chula Vista and our visitors. Create an atmosphere which promotes our city as a great place to live, worle. and play...Catch the Spirit! We want visitors to: . Select Chula Vista & San Diego County as a destination; . Feel welcomed, informed and educated so they take full advantage of Chula Vista attractions, accommodations, dining and shopping, as well as current scheduled entertainment, activities and events; . Treat the Visitor Information Center (VIC) as an attraction- the window to the rest of their stay- a destination in itself . Maintain or lengthen the duration of their stay; . Say "WOW!" & consequently promote the City of Chula Vista through positive word-of-mouth; . Return to Chula Vista and its attractions often. Objectives: I. The ultimate objective is to ensure that the Chula Vista Visitor Information Center (VIC) and Chula Vista Conv.ntion & Visitors Bureau (CONVIS) supports and promote Chula Vista's sales and marketing .fforts by responding to visitor inquiries in a professional, friendly, accurate and timely manner. Th. VIC and CONVIS will render valuable information services to visitors from around the world and project a positive image while representing the City of Chula Vista, San Diego County & Port of San Diego. 2. To maximize attendance at all of the attractions, accommodations and activities in Chula Vista and San Diego County by providing pertinent information via the latest in multi-media technology as well as through La Jol1a & San Diego Official Visitor Guides, brochures, maps and promotional materials for guests visiting the Chula Vista VIC and Chula Vista CONVIS. 3. That the VIC becomes the primary resource for Chula Vista in ardor to assist and support local attractions, concierges, etc. 4. To maximize revenue generation through retail sal.s, attraction and tour ticket saI.., restaurant reservations and sponsorship opportunities; and optional services such as acc.ss to the Internet and e-mail, phone card vending machine, trav.1 books, visitor sundries and souvenirs. 5. To further support a team ofvolunteers by continuing to develop a formal volunteor program that includ.s recruitm.nt, traming, scheduling and motivating community volunteers to assist with information dissemination in a friendly and unbi....d manner and in a variety of foreign languages. 6. Collaborate with the City of Chula Vista, the Chula Vista Chamber of Comm.rce and CONVIS for multimedia coverage to further mark.t the City of Chula Vista, i.e. press, radio, television, magazin.s and promotional material. 3r7 Chula Vista CONVIS Strategic Plan In order to successfully achieve the VISion, Goals and Objectives listed above, there are three categories which must be addressed. 1. Iuternal space needs 2. Extemallocation needs 3. Resources 1. INTERNAL SPACE NEEDS: walk-in center 1200 sq. t't. Puhlic Space: . Reception area . Signage in sevcra.llanguages and for people with various disabilities . Counter space . Professionally designed information and intozpretive displays for the City of Cbula Vista, San Diego County, Port. . Pleasing grapbics that depict the City of Cbula Vista and San Diego County . Interactive displays, videos, !dosks with information and scenes reo Chula Vista and San Diego County . . State of the art information retrieval systems (example, CD's with headphones and/or video screens to viewllisten to information of Chula Vista; (virtual reality) . Internet access for visitors to send/receive e-mail . Retail sales area and gift shop . Postage st3mp vending machine . Attraction & tour ticket sales area . Brochure distribution racks . Public phones,including one for the hearing impaired (TDD) . Regional locator map and public transportation map displayed for viewing . Wall space and bacldit display space to lease for advertising purposes . Thematic decor, ambiance to coordinate with Chula Vista and San Diego Convis advertising and promotional themes- carry out the Chula Vista ~brancl. " . Welcoming decor- banners, flags, displays, mpas, light and bright, a visual experience, ~We're glad you are here" . Accessible features for travelers with disabilities . Public restrooms for each gender, families and people with disabilities as well as daily custodisl services (this will depend on location and public restrDCms in the area) Behind the Scenes . Office space for SllP.ervisor and staff with bookcases, file cabinets, computers, phones and desk space for volunteers . Space for office machines: fax, copier, postage machine, printers, typewriters, telephone and voice mail equipment . Wiling for computers, internet, phone lines . Storage for visitor guides, brochures, office supplies, promotional items, retail items, cleaning equipment, light bulbs, historical records . Break room- with refrigerator, microwave, toaster oven, coffee, sink, lockers for ~ water cooler . Restrooms for staff . Coat rack . Cash register and built in safe . Phone system that interfaces with Chula Vista CONVIS . Appropriate heating and air conditioning ,. 2 3-8 ChuIa Vista CONVIS Strategic PIan 2. EXTERNAL LOCATION NEEDS: . Central Chula Vista location . Access to public transportation . GrolD1d floor, street lcve~ drive by access . Attractive architectural design . Parking areal ammgements for staff & volunteers . Severa115 minute ftcc parking places for visitors wanting to "run in & pick up a guide" and lor metered and validated parking areas . F~e and front entrance facing major strcet- =tly E Street . Neon signs and directional signs (in scvera1languages or international symbol signs) ftom ftccways and major arteries, to attract visitors to Visitor Center (and subsequently, Chula Vista businesses) . W ell lit - create sense of "safety" for area . 24-hour security . 24 hour information available via direct dial phones on exterior of visitor center and or elcctronic visitor information kiosk . Area for leased coffee cart operation Revenue Sources! Customer Service! Retail Sales . Sell tour and attraction tickets . Sell Chula Vista t-slUrts, sweatshirts, caps, bags, logo items . Sell transit ticket! passes . Museum tickets! Balboa Park passport . Souvenirs . Sundries, film, suntan lotion . Postcards, videos . Maps . Souvcmr peDllY machine with Chula Vista and San Dicog scenes . Phone card vending machine . Sell sponsorship space . Multilingual stafi; guides, information resources . Accommodation and/or restaurant reservation service . Advertising panel with dedicated phone lines for self service reservations and info . Mexican insurance lease space . Services! business center o Public phones- including for the deaf o Place to sit and go through information they have gathered o Change machine o Stamps o Access to internet and to puck up their e-mail o Cmrency exchange lease space 3. CONVISI VIC RESOURCES: . Bilingual staffwith a combined total of 15 years of visitor center experience . Establish a volunteer program with dedicated, kn9wledgeable, trained volunteers . Establish a motel association to bring together moteVhotel owners and managers and the City of Chula Vista Police Department and City Code enforcement to work on raising the bar (work on increasing AAA ratings) . Proven methods of information dissetnination . Recognized "hospitality training" programs for high school, college . Region~ national and international marketing opportunities 3~ Chula Vista CONVIS Strategic Plan FUNDING AND MANAGEMENT RECOMMENDATIONS: I. The City of Chula Vista and Downtown Business Association PBID and sponsors share operating and staffing costs. 2. Cost recovery revenue is obtained through the channels listed previollSly. 3. Chula Vista CONVIS and the City of Chula Vista work together to obtain a major corporate sponsor (i.e. Airlines, American Express Travel, etc) . 4. The Center be managed and operated by the Chula Vista Chamber of Coll1II1erce The Chula Vista Visitor Information Center (VIC) plays a crucial role within and for our City. In many instances they are the first and fina! link in Chula Vista's Marketing Plan- service to the Visitor. By utilizing San Diego's aggressive advertising campaign, we will attract the visitor and then responsible for ATTACHMENT C CHULA VISTA CONVENTION AND VISITORS BUREAU A DIVISION OF THE CHULA VISTA CHAMBER OF COMMERCE OPERATING RULES: 1. ORGANIZATION: This division shall be known as the Chula Vista Convention and Visitors Bureau ("CONVlS") and Visitor I nformation Center ("VIC") and shall be an integral part of the Chula Vista Chamber of Commerce (the "Chamber"), according to our Bylaws subject to the contractual relationship between the City of Chula Vista and the Chula Vista Chamber of Commerce which is incorporated under the laws of the State of California. 2. THE MISSION STATEMENT: The Chula Vista Convention and Visitors Bureau focuses on developing Chula Vista as a destination city by generating and promoting tourism, while expanding and attracting visitors to our community. 3. THE CREED: The Chula Vista Convention and Visitors Bureau is organized for the purpose of marl<eting Chula Vista as a viable tourist destination for the benefit of the community. 4. SUBCOMMITT'EE: The Board of Directors of the Chamber shall appoint a subcommittee to guide this division and advise the CONVIS AND VIC Generai Manager, who shall be the chair. It shall be governed according to the general rules of the Chamber pertaining to appointment and operation of committees. The subcommittee members need not be Chamber members. At least seventy-fIVe percents of the members shall have employment or interest in the entertainment, tourism or hotel industries. The Public Information Coordinator of the City of Chula Vista shall be an eX-<Jfflcio member of the subcommittee. The recommendations of the Subcommittee shall be advisory only, subject to the approval of the Board of Directors of the Chamber. 5. GENERAL MANAGER: The division's day to day operations shall be conducted by the CONVIS AND VIC General Manager who shall be an employee of the Chamber. The General Manager shall be advised by the Subcommittee and shall report directly to the Cham ber Board of Directors. 6. FUNDS: All money paid to CONVIS and VIC shall be placed in a general operating fund under the Chamber's name but separate from the Chamber's other accounts. Money subscribed or contributed for a special purpose is to be placed in a separate account for such purpose. The Chula Vista Chamber of Commerce CEO and either the Treasurer of the Chamber or another Member of the Chamber Executive Committee must sign disbursements of the funds of CONVlS if the Treasurer is not available. Executive Committee and Chula Vista Chamber of Commerce CEO must approve expenditures over $2000 in advance. 7. BUDGET: The CONVIS General Manager and the Chamber Finance Committee shall review and generate/negotiate the budget of estimated expenses for the fiscal year as received from the City of Chula Vista, and submit it to the Chamber Board of Directors as part of the budget of the Chamber. 8. ANNUAL AUDIT. The accounts of CONYIS shall be examined annually in coordination with the Chamber's annual audit and shall under the supervision of the Vice President Finance and Audit Committee, according to Section 5A INTERNAL AUDIT COMMITT'EE. 3-11 (Resolution) WHEREAS, The Chula Vista Chamber of Commerce has contracted with the City of C,huJa Vista to operate the Chula Vista Convention and Visitors Bureau and Visitor Information Center. The City of Chula Vista makes an annual contribution of funds to the Chu!a Vista Chamber of Commerce to fund the operation of the Chula Vista Convention and Visitors Bureau and VISitor Information Center. . The City of Chula Vista has requested that the Chula Vista Chamber of Commerce reflect in its organizational minutes the administrative procedures for operation of the Chula Vista Convention and Visitors Bureau and Visitor Information Center. The Board of Directors has considered this mater and has determined that the best approach is to make the Chula Vista Convention and Visitors Bureau a division of the Chula Vista Chamber of Commerce with its own General Manager reporting directly to the Chula Vista Chamber of Commerce CEO and tei the Board of Directors and a subcommittee providing guidance and supervision, subject to oversight of the Board of Directors. RESOLVED, that the Chula Vista Convention and Visitors Bureau shall be a division of the Chula Vista Chamber of Commence with its own General Manager reporting directly to the Chula Vista Chamber of Commerce CEO and the Board of Directors and a subcommittee providing guidance and supervision, subject to oversight of the Board of Directors. RESOLVED FURTHER, that the operating rules appearing in that certain document hereto attached entitled Chula Vista Convention and Visitors Bureau Operating Rules' are adopted as and for operating rules of the Chula Vista Convention and Visitors Bureau Corporation and Visitor Information Center. .' 3-12 RESOLUTION NO. 2006- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FY 2006-2007 CONTRACT BETWEEN THE CITY OF CHULA VISTA AND THE CHULA VISTA CHAMBER OF COMMERCE FOR THE PROVISION OF CHULA VISTA CONVENTION AND VISTORS BUREAU PROMOTIONAL SERVICES AND VISITOR AND TRANSIT INFORMATION SERVICES, AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT WHEREAS, the City of Chula Vista ("City") desires to have visitor and transit information available upon request, without cost, to persons entering the City from the Visitor Information Center located on the southeast corner of"E" Street and the Interstate 5; and WHEREAS, the Chula Vista Chamber of Commerce ("Chamber") occupies a unique public service position in the City and has provided general informational and promotional services to the public-at-large for many years; and WHEREAS, the Chamber is experienced and staffed in a manner such that it can provide convention and visitor promotion services ("Promotion Services") and visitor and transit information services ("Information Services"); and WHEREAS, the Chamber has been providing the City with Promotion Services and Information Services pursuant to separate agreements through fiscal year 2005-06; and WHEREAS, the Chamber has a CONVIS Strategic Plan ("Strategic Plan") which establishes goals and objectives for providing convention and visitor promotion services and visitor and transit information services; and WHEREAS, the City desires to continue providing Information Services and Promotion Services pursuant to a single agreement for the provision of these two types of services, based on the Strategic Plan, and on performance measures to gauge success in providing these services; and WHEREAS, the City's approved budget for fiscal year 2006-07 includes $193,014.00 in funding dedicated to the Chamber for these services. NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Chula Vista approves the Agreement between the City and the Chula Vista Chamber of Commerce to provide Promotion Services and Information Services for Fiscal Year 2006-07, a copy of which shall be kept on file in the City Clerk's office. BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista waives the formal consultant selection process. 3-13 BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista authorizes the Mayor of the City of Chula Vista to execute the Agreement on behalf of the City of Chula Vista. PRESENTED BY APPROVED AS TO FORM '.,-f~tL ~ Ann Moore City Attorney Dana M. Smith Assistant City Manager/Community Development Director J:\COMMDEV\RESOS\2006\CV Chamber of Commerce 2005.2006.doc 3-14 THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL ',-I'~{L~~ Ann Moore City Attorney Dated: S-( Ii <J Cr I AGREEMENT WITH CHULA VISTA CHAMBER OF COMMERCE FOR CV CONVENTION AND VISITOR'S BUREAU 3-15 Parties and Recital Pagels) Agreement between City of Chula Vista and CHULA VISTA CHAMBER OF COMMERCE ("Chamber") for Chula Vista Convention and Visitors Bureau Promotion Services and Visitor and Transit Information Services at the Chula Visitor Information Center and Chamber of Commerce Main Office. This agreement ("Agreement"), dated (add date) for the purposes of reference only, and effective as of the date last executed unless another date is otherwise specified in Exhibit A, Paragraph 1 is between the City-related entity as is indicated on Exhibit A, paragraph 2, as such ("City"), whose business form is set forth on Exhibit A, paragraph 3, and the entity indicated on the attached Exhibit A, paragraph 4, as Consultant, whose business form is set forth on Exhibit A, paragraph 5, and whose place of business and telephone numbers are set forth on Exhibit A, paragraph 6 ("Chamber"), and is made with reference to the following facts: Recitals Whereas, the City desires to have visitor and transit information available upon request, without cost, to persons entering the City and desiring same, from the Visitor Information Center located on the southeast corner of "E" Street and the Interstate 5 (hereinafter "Center") at an address commonly known as 750 "E" Street, and from the Chamber of Commerce office, 233 Fourth Avenue, Chula Vista (hereinafter "Main Office"); and Whereas, the Chamber occupies a unique public service position in the City and has provided general informational and promotional services to the public at large for many years; and Whereas, the Chamber hereby warrants and represents that it is experienced and staffed in a manner such that it can provide the convention and visitor promotion services (hereinafter "Promotion Services") and visitor and transit information services (hereinafter "Information Services") as herein required in accordance with the terms and conditions of this Agreement; and Whereas, the City and Chamber have been party to separate agreements for: Convention and Visitors Bureau Promotion Services Page 1 3-16 from FY 1997-98 as extended through amendments to FY 2005-06, a copy of which is on file with the City Clerk as Document No. CO 97- 079, (hereinafter -Existing CONVIS Contract") and for Visitor and Transit Information Services from FY 1994-95 as extended through amendments to FY2005-06, a copy of which is on file with the City Clerk as Document No. CO 94-121, (hereinafter -Existing Information Contract"); and Whereas, the Chamber has a CONVIS Strategic Plan (hereinafter -Strategic Plan") which establishes goals and objectives for providing convention and visitor promotion services and visitor and transit information services; and Whereas, the City and Chamber desire to continue a single agreement for the provision of these two types of services, based on said Strategic Plan, and on performance measures to gauge success in providing said services. Whereas, Chamber warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Chamber to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; (End of Recitals. Next Page starts Obligatory Provisions.) Page 2 3-17 Obligatory Provisions Pages NOW, THEREFORE, BE IT RESOLVED that the City and Chamber do hereby mutually agree as follows: 1. Chamber Duties A. General Duties Chamber shall perform all of the services described on the attached Exhibit A, Paragraph 7, entitled "General Duties"; and, B. Scope of Work and Schedule In the process of performing and delivering said "General Duties", Chamber shall also perform all of the services described in Exhibit A, Paragraph 8, entitled" Scope of Work and Schedule", not inconsistent with the General Duties, according to, and within the time frames set forth in Exhibit A, Paragraph 8, and deliver to City such Deliverables as are identified in Exhibit A, Paragraph 8, within the time frames set forth therein, time being of the essence of this agreement. The General Duties and the work and deliverables required in the Scope of Work and Schedule shall be herein referred to as the "Defined Services". Failure to complete the Defined Services by the times indicated does not, except at the option of the City, operate to terminate this Agreement. C. Reductions in Scope of Work City may independently, or upon request from Chamber, from time to time reduce the Defined Services to be performed by the Chamber under this Agreement. Upon doing so, City and Chamber agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. D. Additional Services In addition to performing the Defined Services herein set forth, City may require Chamber to perform additional consulting services related to the Defined Services ("Additional Services"), and upon doing so in writing, if they are within the scope of services offered by Chamber, Chamber shall perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 11 (C), unless a separate fixed fee is Page 3 3-18 otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. E. Standard of Care Chamber, in performing any Services under this agreement, whether Defined Services or Additional Services, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. F. Insurance Chamber represents that it and its agents, staff and subconsultants employed by it in connection with the Services required to be rendered, are protected against the risk of loss by the following insurance coverages, in the following categories, and to the limits specified, policies of which are issued by Insurance Companies that have a Best's Rating of "A, Class V" or better, or shall meet with the approval of the City: Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 9. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 9, combined single limit applied separately to each project away from premises owned or rented by Chamber, which names City as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("Primary Coverage"), and which treats the employees of the City in the same manner as members of the general public ("Cross-liability Coverage") . Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 9, unless Errors and Omissions coverage is included in the General Liability policy. G. Proof of Insurance Coverage. (1) Certificates of Insurance. Chamber shall demonstrate proof of coverage herein required, prior to the commencement of services required under this Agreement, by delivery of Certificates of Insurance demonstrating same, and further indicating that the policies may Page 4 3-19 not be canceled without at least thirty (30) days written notice to the Additional Insured. (2) Policy Endorsements Required. In order to demonstrate the Additional Insured Coverage, Primary Coverage and Cross-liability Coverage required under Chamber's Commercial General Liability Insurance Policy, Chamber shall deliver a policy endorsement to the City demonstrating same, which shall be reviewed and approved by the Risk Manager. H. Security for Performance. (1) Performance Bond. In the event that Exhibit A, at Paragraph 19, indicates the need for Chamber to provide a Performance Bond (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Chamber shall provide to the City a performance bond in the form prescribed by the City and by such sureties which are authorized to transact such business in the State of California, listed as approved by the United States Department of Treasury Circular 570, http://www.fms.treas.qov/c570, and whose underwriting limitation is sufficient to issue bonds in the amount required by the agreement, and which also satisfy the requirements stated in Section 995.660 of the Code of Civil Procedure, except as provided otherwise by laws or regulations. All bonds signed by an agent must be accompanied by a certified copy of such agent's authority to act. Surety companies must be duly licensed or authorized in the jurisdiction in which the Project is located to issue bonds for the limits so required. Form must be satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Performance Bond", in said Paragraph 19, Exhibit A. (2) Letter of Credit. In the event that Exhibit A, at Paragraph 19, indicates the need for Chamber to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit"), then Chamber shall provide to the City an irrevocable letter of credit callable by the City at their unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Chamber is Page 5 3-20 in breach of the terms of this Agreement. The letter of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit", in said Paragraph 19, Exhibit A. (3) Other Security In the event that Exhibit A, at Paragraph 19, indicates the need for Chamber to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Chamber shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. I. Business License Chamber agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 2. Duties of the City A. Consultation and Cooperation City shall regularly consult the Chamber for the purpose of reviewing the progress of the Defined Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this agreement. The City shall permit access to its office facilities, files and records by Chamber throughout the term of the agreement. In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibit A, Paragraph 10, and with the further understanding that delay in the provision of these materials beyond 30 days after authorization to proceed, shall constitute a basis for the justifiable delay in the Chamber's performance of this agreement. B. Compensation Upon submitted Paragraph receipt of a properly prepared billing from Chamber to the City periodically as indicated in Exhibit A, 18, but in no event more frequently than monthly, on Page 6 3-21 the day of the period indicated in Exhibit A, Paragraph 18, City shall compensate Chamber for all services rendered by Chamber according to the terms and conditions set forth in Exhibit A, Paragraph 11, adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, subj ect to the requirements' for retention set forth in paragraph 19 of Exhibit A, and shall compensate Chamber for out of pocket expenses as provided in Exhibit A, Paragraph 12. All billings submitted by Chamber shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amount due and payable thereunder is proper, and shall specifically contain the City's account number indicated on Exhibit A, Paragraph 18 IC) to be charged upon making such payment. 3. Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibit A, Paragraph 13, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 4. Term. This Agreement shall terminate when the Parties have complied with all executory provisions hereof. 5. Liquidated Damages The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 14. It is acknowledged by both parties that time is of the essence in the completion of this Agreement. It is difficult to estimate the amount of damages resulting from delay in performance. The parties have used their judgment to arrive at a reasonable amount to compensate for delay. Failure to complete the Defined Services within the allotted time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess of the time specified for the completion of the respective work Page 7 3-22 assignment or Deliverable, the Chamber shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 14 ("Liquidated Damages Rate"). Time extensions for delays beyond the Chamber's control, other than delays caused by the City, shall be requested in writing to the City's Contract Administrator, or designee, prior to the expiration of the specified time. Extensions of time, when granted, will be based upon the effect of delays to the work and will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work. 6. Financial Interests of Chamber . A. Chamber is Designated as an FPPC Filer. If Chamber is designated on Exhibit A, Paragraph 15, as an "FPPC filer", Chamber is deemed to be a "Chamber" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 15 of Exhibit A, or if none are specified, then as determined by the City Attorney. B. Decline to Participate. Regardless of whether Chamber is designated as an FPPC Filer, Chamber shall not make, or participate in making or in any way attempt to use Chamber's position to influence a governmental decision in which Chamber knows or has reason to know Chamber has a financial interest other than the compensation promised by this Agreement. C. Search to Determine Economic Interests. Regardless of whether Chamber is designated as an FPPC Filer, Chamber warrants and represents that Chamber has diligently conducted a search and inventory of Chamber's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Chamber does not, to the best of Chamber's knowledge, have an economic interest which would conflict with Chamber's duties under this agreement. Page 8 3-23 D. Promise Not to Acquire Conflicting Interests. Regardless of whether Chamber is designated as an FPPC Filer, Chamber further warrants and represents that Chamber will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. E. Duty to Advise of Conflicting Interests. Regardless of whether Chamber is designated as an FPPC Filer, Chamber further warrants and represents that Chamber will immediately advise the City Attorney of City if Chamber learns of an economic interest of Chamber's which may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. F. Specific Warranties Against Economic Interests. Chamber warrants and represents that neither Chamber, nor Chamber's immediate family members, nor Chamber's employees or agents ("Chamber Associates") presently have any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defined Services, or in any property within 2 radial miles from the exterior boundaries of any property which may be the subject matter of the Defined Services, ("Prohibited Interest"), other than as listed in Exhibit A, Paragraph 15. Chamber further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Chamber or Chamber Associates in connection with Chamber's performance of this Agreement. Chamber promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Chamber agrees that Chamber Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this Agreement, except with the written permission of City. Chamber may not conduct or solicit any business for any party to this Agreement, or for any third party which may be in conflict with Chamber's responsibilities under this Agreement, except with the written permission of City. Page 9 3-24 7. Hold Harmless Chamber shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys fees) arising out of or alleged by third parties to be the result of the negligent acts, errors or omissions or the willful misconduct of the Chamber, and Chamber's employees, subcontractors or other persons, agencies or firms for whom Chamber is legally responsible in connection with the execution of the work covered by this Agreement, except only for those claims, damages, liability, costs and expenses (including without limitations, attorneys fees) arising from the sole negligence or sole willful misconduct of the City, its officers, employees. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the active or passive negligent acts or omissions of the Chamber , its employees, agents or officers, or any third party. With respect to losses arising from Chamber's professional errors or omissions, Chamber shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys fees) except for those claims arising from the negligence or willful misconduct of City, its officers or employees. Chamber's indemnification shall include any and all costs, expenses, attorneys fees and liability incurred by the City, its officers, agents or employees in defending against such claims, whether the same proceed to judgment or not. Chamber's obligations under this Section shall not be limited by any prior or subsequent declaration by the Chamber. Chamber's obligations under this Section shall survive the termination of this Agreement. 8. Termination of Agreement for Cause If, through any cause, Chamber shall fail to fulfill in a timely and proper manner Chamber's obligations under this Agreement, or if Chamber shall violate any of the covenants, Page 10 3-25 agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Chamber of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Chamber shall, at the option of the City, become the property of the City, and Chamber shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Chamber's breach. 9. Errors and Omissions In the event that the City Administrator determines that the Chambers' negligence, errors, or omissions in the performance of work under this Agreement has resulted in expense to City greater than would have resulted if there were no such negligence, errors, omissions, Chamber shall reimburse City for any additional expenses incurred by the City. Nothing herein is intended to limit City's rights under other provisions of this agreement. 10. Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to Chamber of such termination and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. In that event, all finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by City as provided in this paragraph, Chamber shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination. Chamber hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 11. Assignability The services of Chamber are personal to the City, and Chamber shall not assign any interest in this Agreement, and Page 11 3-26 shall not transfer any interest in the same (whether by assignment or novation), without prior written consent of City. City hereby consents to the assignment of the portions of the Defined Services identified in Exhibit A, Paragraph 17 to the subconsultants identified thereat as "Permitted Subconsultants". 12. Ownership, Publication, Reproduction and Use of Material . All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Chamber in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. 13. Independent Contractor City is interested only in the results obtained and Chamber shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Chamber's work products. Chamber and any of the Chamber's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and Chamber shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 14. Administrative Claims Requirements and Procedures No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by Page 12 3-27 the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, Chamber shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 15. Attorney's Fees Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to a judgment against the other for an amount equal to reasonable attorney's fees and court costs incurred. The "prevailing party" shall be deemed to be the party who is awarded substantially the relief sought. 16. Statement of Costs In the event that Chamber prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Chamber shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. 17. Miscellaneous A. Chamber is not authorized to Represent City Unless specifically authorized in writing by City, Chamber shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever. B. Chamber is not a Real Estate Broker and/or Salesman If the box on Exhibit A, Paragraph 16 is marked, the Chamber and/or their principals is/are licensed with the State of California or some other state as a licensed real estate broker or salesperson. Otherwise, Chamber represents that neither Chamber, nor their principals are licensed real estate brokers or salespersons. C. . Notices Page 13 3-28 . All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. D. Entire Agreement . This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. , E. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F. Governing Law/Venue This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement" shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. [end of page. next page is signature page.] Page 14 3-29 Signature Page to Agreement between City of Chula Vista and Chula Vista Chamber of Commerce to provide Chula Vista Convention and Visitors Bureau Promotional Services and Visitor and Transit Information Services at the Chula Visitor Visitor Information Center and Chamber of Commerce Main Office IN WITNESS WHEREOF, City and Chamber have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: 200 City of Chula Vista Attest: by: Stephen Padilla, Mayor Susan Bigelow, City Clerk Approved as to form: Ann Moore, City Attorney Dated: Chula Vista Chamber of Commerce ~' B~ '.::/' ,-,,-c'~ ~ Lisa Cohen, CEO Exhibit List to Agreement (X ) Exhibit A. Page 15 3-30 Exhibit A to Agreement between City of Chula Vista and Chamber of Commerce 1. Effective Date of Agreement:___Fill-in date, or "Date Agreement Last Executed" 2. City-Related Entity: (X) City of Chula Vista, a municipal chartered corporation of the State of California () Redevelopment Agency of the City of Chula Vista, a political subdivision of the State of California () Industrial Development Authority of the City of Chula Vista, a () Other: [insert business form] , a ("City") 3. Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 4. Chamber: Chula Vista Chamber of Commerce 5. Business Form of Chamber: ( ) Sole Proprietorship ( ) Partnership (X) Corporation 6. Place of Business, Telephone and Fax Number of Chamber: 233 Fourth Avenue Chu1a Vista, California 91910 Voice Phone (619) 420-6602 Page 16 3-31 Fax Phone (619) 420-1269 7. General Duties: CHULA VISTA CONVENTION AND VISITORS BUREAU The general purpose of this duty shall be to promote the City of Chula Vista and Chula Vista visitor destinations, meeting facilities, tourism and related businesses ("Promotion Services") . The Chamber will include in its operations a division known as the Chula Vista Convention and Visitors Bureau ("Bureau") to provide Promotion Services. This division will conduct advertising and marketing campaigns for the Bureau and have an advisory committee, appointed by the Chamber Board. The City shall be a member of said committee. Advisory participation on this committee shall be open to all interested parties, regardless of membership in the Chamber. Said open participation shall not preclude fund raising activities or fees for member and/or patron listings. VISITOR AND TRANSIT INFORMATION SERVICES AT THE CENTER The Chamber shall also provide Information Services, as more particularly described in this Agreement at the Center and Main Office for the benefit of the City of Chula Vista, the South Bay Region and visitors to the County. The Chamber has a duty to operate the Center and provide public services as specified in this Agreement. Al though portions of this Agreement have certain aspects of a lease, the parties agree that this is primarily a services agreement and it is not a lease. 8. Scope of Work and Schedule: A. Detailed Scope of Work: Duties Applying to Both Informational and Promotional Services Pursuant to City Council Policy #230-01 as approved 3/21/95, the Chamber agrees to provide the following services as part of its Informational and Promotional services. (1) In general. The Chamber shall respond to all walk-in, phone and mail inquiries received making reasonable and appropriate requests for information by the Chamber from individuals, Page 17 3-32 . groups, businesses, news media, etc., and persons referred by the City. Responses shall be accurate, complete, cooperative and promote goodwill on behalf of the City. Responses shall be made in a timely manner. Walk-in and phone inquiries shall be responded to as they are received unless additional research is required. Mail inquiries shall be responded to wi thin three (3) working days after the receipt of such inquiries, unless extensive research is required. (2) Staffing The Chamber shall employ qualified competent staff who are neatly dressed and courteous at all times. The Chamber shall be encouraged, but not required, to schedule a minimum of two employees to provide Center services - although, an adequate number of personnel must be scheduled so that Permitted Commercial Activities do not significantly interfere with the primary responsibili ty of providing Information Services. The Chamber shall also provide an adequate number of personnel who are qualified and competent at the Main Office to provide Information Services during Main Office business hours. (3) Training The Chamber shall provide adequate training to ensure that personnel are able to respond to inquiries about transit and areas of interest from members of the public and to promote visitor-serving attractions and facilities in Chula Vista. The Chamber shall also provide adequate safety training, as determined by the City, to ensure that personnel safely maintain the Center. a . Extensive Knowledge. Center, Main Office, and CONVIS staff must have extensive knowledge of and be capable of disbursing complete and accurate information about the following: i. Chula Vista - including but not limited to, street locations, major hotels / motels, restaurants, visitor attractions, government offices, Chula Vista Nature Center, and major shopping areas. ii. Transit information including but not Page 18 3-33 limited to, Trolley schedules, prices, and stops, and Chula Vista Transit bus schedules and routes. iii. San Diego County visitor attractions including, but not limited to Sea World, San Diego Zoo and Wild Animal Park, Horton Plaza, airport, Gaslamp Quarter, Mission Bay, beaches and other attractions, along with applicable admission prices, hours of operation and directions. b. Adequate knowledge. Center, Main Office, and CONVIS staff must have an adequate general knowledge of and be capable of dispensing general information about the following: i. Northern Baj a, Mexico including but not limited to major highways, cities, insurance requirements, major hotels/motels, restaurants, shopping areas, major visitor attractions, and written information from governmental agencies regarding duty and visa regulations. ii. Southern California including but not limited to major highways, cities and visitor attractions. c. Visitor Services. Chamber shall provide information (e.g. locations, schedules, directions, applicable ~ees), on topics including, but not limited to the following: Community clubs and organizations - Local events parades, displays, seasonal promotions Chula Vista Nature Center U.S. Olympic Training Center Coors Amphitheatre Knott's Soak City Street Information directions, locations, closures, detours, etc. Lodging facilities Transit - Airports and Trains - Medical, Professional and real estate offices Page 19 3-34 - Business Referrals - Meeting Rooms Government services/officials and referrals to appropriate departments Churches and other places of worship Schools, including colleges and universities - Museums, historical and cultural sites - Mexico - information on tourist cards, parking, etc. Tourist attractions - Recreational sites, parks, picnic areas, and beach information - Newspaper and local publications - RV parking/mobile home parks Chula Vista demographics (e.g. population, housing) d. Chula Vista Promotion. In an effort to promote Chula Vista, the Chamber shall always provide information on those businesses, facilities, and attractions in Chula Vista which pertain to the person's inquiry. The Chamber shall also suggest businesses, facilities or attractions which the Chamber believes may be of interest to a visitor. (4) City Image Enhancement The City, as a public entity, is concerned about the image portrayed and services provided by the Chamber and its personnel. The City shall have the right to inform in writing, the Chamber of actions by the Chamber or the Chamber's personnel, which do not conform with the image the City desires to have portrayed. This includes providing complete and accurate Promotion Services and Information Services and presenting a neat, clean, responsive, and friendly image of the City. The Chamber shall take all necessary steps to ensure that its actions project the image desired by the City as directed from time to time. (5) Standard Information The Chamber shall develop and utilize standardized packages of information for responding to general inquiries about Chula Vista as a visitor destination and for new or potential residents of the City. Such packages shall be maintained with current information and Page 20 3-35 shall meet with the approval of the City. The packages may be used, but shall not be deemed solely adequate, for inquiries, making reasonable, specific requests for information not routinely included in the packages. (6) Referrals - Other Agencies For inquiries beyond the expertise of the Chamber, referrals may be made to more appropriate entities. A tally of the number of inquiries referred to other entities, including date of inquiry, type of inquiry (walk-in, phone or mail), entity referred to, and subject of in~uiry shall be recorded and reported in the quarterly summary to the City. The Chamber will provide the name and address of the person or business making the inquiry, if appropriate. (7) Referrals Businesses Responses to inquiries shall show no preferential treatment to Chamber members or any other group or indi vidual persons or businesses. Wherever possible, however, referrals to businesses shall be made to businesses in the City of Chula Vista. Referrals shall be rotated among businesses qualified to provide the service or services requested. The Chamber shall coordinate with the City's Community Development Department on responses to significant business relocation inquiries. (8) Customer Feedback During a specified period of this Agreement (as determined by the City and Chamber) the Chamber shall develop and make available to the public unstamped response cards addressed to the City's Community Development Department to obtain feedback on the quality of information provided. Each response to mail inquiries shall include such a card. All cards returned to the Chamber shall be forwarded to the City's Community Development Department. (9) Information The Chamber shall exercise care in ensuring the Center has new, pertinent information as it arises, such as Page 21 3-36 special events, lists of visitor-oriented businesses and attractions. As part of this effort, the Chamber shall include the Center on the Chamber's mailing list. Furthermore, the Chamber shall keep updated information at the Center and the Main Office and maintain a website containing said information (~WebsiteH). (10) Free Services The .Chamber shall not charge the public a fee for providing services unless specifically approved in writing by the City. City maps will be sold to the City at cost, and sold at the Center and Main Office for no more than cost plus 15% to the general public. Notwithstanding this prohibition, fees charged by credit card companies for may be passed along to the purchaser. . (II) Sample Survey The Chamber shall conduct a sample survey over a two-week period that covers all of the hours and days that the Visitor Center is open to determine who is using the Visitor Center and for what reason. The answers/results from the survey shall be provided to the City. Promotion Services and the Chula Vista Convention and Visitors Bureau (I) Marketing and Promotion Chamber shall hire adequate marketing staff (~CONVIS staff H) to coordinate an advertising and marketing campaign for the Chula Vista Convention and Visitors Bureau (~BureauH). In addition, CONVIS staff will oversee Center operations and the sale and display of advertising therein. Incidental Chamber support and liaison by CONVIS staff would be anticipated by this Agreement, with such support and liaison being in conjunction with, but not detracting from, the performance of primary CONVIS staff responsibilities. For illustrative purposes, duties of a proposed General Manager of CONVIS are attached as Exhibit B. Chamber shall ensure that CONVIS staff do not have any conflict of interest that would negatively impact its provision of Promotion and Information Services. Page 22 3-37 (2) San Diego CONVIS membership Chamber shall maintain Convention and Visitors Vista and/or Chula Vista membership in the San Diego Bureau for the City of Chula Convention and Visitors Bureau. (3) Distribution of Visitor Brochure and Nature Center Brochure. Chamber shall distribute and place Brochures specified by the City at all major brochure racks in San Diego County, including but not limited to those at airports, cruise ship terminals, bus and train stations, hotels, motels, visitor centers and convention centers. (4) Design and Printing of Brochures At City's request, Chamber shall design and print the brochures, flyers, and/or other publications that focus on promoting Chula Vista and its attractions - such as general visitor brochures or folders, calendar of events, dining and lodging guide, attraction coupon and golf course flyer. The Chamber shall exercise its best efforts to have the costs for the design and/or printing of these publications (i. e. dining and lodging guide) fully or partially reimbursed by the promoted attractions. Any deficit in production costs shall be paid for by Chamber. (5) Advertising Notwithstanding the printing and designing of brochures, Chamber shall spend at least $25,000 of the compensation awarded under this Agreement for advertising. Advertising design, content and placement shall focus on promoting Chula Vista and Chula Vista attractions within the region and maintaining primarily a visitor and/or convention orientation. Target media may include but are not limited to: regional magazines, recreational vehicle or auto club publications, motel room event and attraction listings, San Diego CONVIS publications, etc. Advertisements shall be placed in at least three tourist- oriented publications and the response/success of those advertisements communicated to the City. For any ad placement or series of placements in the same publication for which the total price shall exceed $6,000, said placement shall be subject to review and approval by the Page 23 3-38 City's Contract Administrator. . The Chamber shall also be encouraged to engage in cooperative advertising campaigns, with participation by the City and by local visitor-oriented businesses. The maximum City and Chamber participation via this Agreement in any such cooperative advertising shall be 60% of the cost of advertising production and placement. The other 40% of advertising expenses shall be borne by the local participants. Such cooperative advertising shall be open to all visitor-oriented Chula Vista businesses, regardless of membership in the Chamber. For those items that would entail graphic or display design (e.g. Advertising, Visitor Brochure, Chula Vista display at the u.S. Olympic Training Center, etc.), the Chamber shall work with City on initial design concepts and obtain the prior written design approval of the Ci ty' s Community Development Department and Office of Communications. Said approval shall be in addition to any other required design review or other discretionary City approvals. (6) Specific Promotional Activities As part of this Agreement, the Chamber shall also perform these specific promotional activities: a. Hold at least three meetings per year for the operators of hotels and motels in Chula Vista. Adequate written notice of the time, place and subject matter of these meetings shall be provided (at least 30 days prior to such event). At these meetings, the Chamber and lodging providers will work on develop marketing strategies and communicate ways to improve their businesses and stature within the community. b. At least twice per year, organize FAM (familiarization) tours to the City's major attractions (e. g., Olympic Training Center, Coors Amphitheatre, Knott's Soak City, the Chula Vista Nature Center, three golf courses, etc.) for San Diego CONVIS members, meeting/convention planners, and concierges from around the County. c. Promote and market the City and the following Page 24 3-39 visitor-serving attractions shows: at industry trade i. Restaurants ii.Shopping iii. Arts and cultural activities iv. Golf v. Local history vi. Libraries vii. Parks and recreation facilities viii.Entertainment venues Information Services - Visitor Information and Transit Center (750 E Street) The Chamber shall operate a first-class Visitor Information Center according to the following standards for the term of this Agreement as same may be from time to time extended. (1) Hours of Operation The Chamber shall operate the Center at least eight and one-half hours per day on weekdays and seven and one-half hours per day on weekends and holidays. Operating hours shall be 8:00 am to 4:30 pm on weekdays and 8:30 am to 4: 00 pm on weekends, subject to amendment by separate wri tten Agreement of the Chamber and City Contract Administrator. The Center may be closed on Easter Sunday, Thanksgiving Day, Christmas Day and New Year's Day. The Center may also close early on Christmas Eve and New Years' Eve, at the Chamber's discretion. (2) Transit Passes The Chamber will make available for sale to the public, transit passes issued by the Metropolitan Transit System (MTS) and Chula Vista Transit. The Chamber will also make change for transit fares as requested by the public to the extent feasible. (3) Precedence of Services Commercial activities, promotion and/or referrals shall not interfere with the Chamber's ability to provide free, reliable, complete and true information in response to requests from public users of the Center. Page 25 3-40 (4) Signage The Chamber may be required to post a "Free Visitor Information" sign at each of the three entrances to the Center or at the counter. Size and design of the sign will meet with the approval of the City. The cost of . supplying and installing any such signs(s) shall be borne by the City. (5) The Chamber is prohibited from erecting or creating any signs on the Center that are visible from the outside or in any area within the jurisdiction of the City without prior written approval of the City. Interior signage or advertising is subject to the City's approval. (6) Display Advertising The Chamber shall be permitted to sell display advertising space, which shall be limited to the Dura Trans Board. Display advertising on surfaces other than windows is limited to those areas indicated on the Design Layout as herein defined and as it may be modified with the City's Approval. (7) Wall Space Except as provided herein or otherwise approved by the City, interior and exterior wall space will be posted only with public service information consistent with material identified in this Agreement. Display material supplied or approved by the City designed to promote visitor attractions in Chula Vista may also be posted on walls. (8) Information Counter Display of retail merchandise on the information counter top shall not significantly interfere with its ability to be seen and used for providing Information Services. Display or additional retail merchandise behind the counter shall present a neat, uncluttered appearance. (9) Pay Phone The Chamber shall be required to maintain at least one public pay phone at the Center. Page 26 3-41 (10) Restroom Access Due to health and safety concerns there are no public restrooms at the Center, although the City reserves the right to allow MTS and Chula Vista Transit bus drivers to have access to the Center's restrooms, with said access only being through the exterior restroom doors. Exterior doors to the rest rooms shall be locked when not being utilized by Center or transit employees. Interior doors opening into the restrooms shall be locked when the Center is closed - i.e., transit employees will only be provided keys to the exterior doors. (11) Compliance with the Law Operation of the Center shall comport with all local, state, and federal laws and regulations, including but not limited to, those provisions of the Chula Vista Municipal Code ("CVMC") relating to the sale of adult materials (as defined in CVMC s 19.04.007) and the County of San Diego Health Department's regulations relating to food sales and consumption. (12) Center Design Layout The Chamber agrees to maintain the current layout of the Center ("Design Layout") which includes a color scheme, theme, lighting, and physical location of furniture, fixtures and equipment such as tables, chairs, racks, shelves, vending machines, display advertisements, etc. The City will work with the Chamber and a space designer (to be provided by the City) to make any changes to the Design Layout necessary for improving Americans with Disabilities Act (ADA) access, improving City image, and improving Information Services and retail revenue. Approval will be subject to all City rules and regulations, including but not limited to Design Review. City may terminate any use in the interior of the Center or layout of the interior facilities, which it finds objectionable; and the Chamber is prohibited from use or decoration of the exterior areas without the advance written approval of the City. The Chamber shall not make any structural improvements or changes to the Center except in accordance with the Design Layout, which has been reviewed and approved by Page 27 3-42 the City. The Chamber's operation of the Center will conform to the approved Design Layout. Any changes to the approved Design Layout must have prior approval of the City. The Chamber shall maintain displays in the Center, including, but not limited to, the following: a. One bulletin board of community acti vi ties of a size and design acceptable to the City. The Chamber shall insure that current information concerning upcoming special events wi thin Chula Vista are displayed at all times. b. Display map of the City of Chula Vista; c. Display stand of scenes of Chula Vista; d. Display space on the information counter for brochures designated by the City about Chula Vista attractions. The Chamber will further provide space for transit brochures designated by the City in a location mutually agreeable to the parties; and e. At least one fully stocked brochure rack in the lobby area of the Center containing brochures, which provide information on the major visitor attractions in Chula Vista and San Diego County. (13) Maintenance, Repairs, Utilities and Improvements of the Center: a. Regular Maintenance The Chamber shall operate the Center in a safe and reasonable manner. The Chamber shall be responsible for keeping the interior and exterior of the Center free of trash and in good order and condition. This includes, but is not limited to, the vending machine area and private rest rooms . Cleanliness, repair and maintenance shall be done to the City's satisfaction. Restrooms will be cleaned at least once per day. The Chamber shall provide restroom supplies such as Page 28 3-43 toilet paper and paper towels. The Chamber shall be responsible for all costs and supplies necessary for the proper cleaning of the interior of the Center, including graffiti removal that does not require painting, and minor maintenance such as replacing interior light bulbs. The Chamber shall be responsible for the professional cleaning of the interior floors and vending machine area floor at least once every three months using professional equipment and/or personnel. The Chamber shall be responsible for maintenance of the exterior advertising panels, steam cleaning of the exterior patios and walkways of the Center when needed, trash pick-up and removal, and exterior ashtray cleaning. b. Facility Repairs The City shall be responsible for repairing and maintaining the exterior of the Center. This responsibility extends to, but is not limited to, the interior, the roof, exterior walls, landscaping, and exterior graffiti removal. The City shall be responsible for repairing and maintaining all permanent interior improvements to the Center. Said improvements shall include, but not limited to, plumbing, utility systems, windows, fixtures, painting, and wall coverings. c. Emergency Repairs The City authorizes the Chamber to make emergency repairs of up to $500 for items the City is responsible for repairing and maintaining. Emergency repairs include but are not limited to broken windows and roof leaks. The City will reimburse the Chamber for reasonable costs up to $500 for such necessary emergency repairs within sixty (60) days of submitting an invoice to the City's Contract Administrator. d. Negligence Page 29 3-44 Notwithstanding the foregoing subsections, the Chamber will be responsible for all repairs required as a result of negligence of the Chamber or the Chamber's employees. Costs of said repairs shall not be deemed ~Applicable Operating Expenses." e . Utilities The City shall be responsible for all water, sewer, and electricity utility costs associated with the use of the Center, including the restrooms. The Chamber shall be responsible for all trash disposal, alarm service and telephone costs. Telephone billing records and long distance charges shall be subject to review and audit by the City. f. Improvements and Personal Property; Title upon Termination Unless otherwise provided in writing by both parties, all improvements to the Center shall be the responsibility of the City, and upon termination of this Agreement, all improvements to the Center (regardless of who performed improvement), all inventory and all personal property remaining on the Center shall be deemed to be the property of City. (14) Right to Inspect Operations The City Contract Administrator shall have the right to enter the Center, inspect same and review the operations of the Chamber under this Amended Agreement at any time during the term of this Agreement. (15) Evaluation of Visitor Center Location Chamber and City shall meet to evaluate the location of the Visitor Center and make a recommendation to the City Manager by January 1, 2007. Information Services - Chamber's Main Office (223 Fourth Avenue) and Off-Site In recognition of the fact that not all services can be solely performed at the Center, due primarily to the walk-in oriented Page 30 3-45 business attracted to the Chamber's Main Office, the Chamber shall continue to provide limited General Information Services for the City at its Main Office. The Chamber shall also continue to represent the City at selected trade shows, work with the City's economic development staff to obtain materials and displays, as appropriate, and represent the City at selected special events to promote the City to visitors and enhance its regional image. (1) Main Office Services - Hours of Operation Chamber staff shall be available to provide Main Office Services Monday through Friday from 9:00 am to 5:00 pm, except for New Year's Day, Martin Luther King Day, President's Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, the day after Thanksgiving Day and Christmas Day. Holidays cited above falling on a Saturday will be observed on Friday. When a holiday occurs on Sunday, it will be observed on the following Monday. (2) Consolidation of Services Where possible and practical, the Chamber shall endeavor to consolidate Main Office service with that provided at the Center. Efforts to consolidate shall include, but not be limited to, White Pages listing of the Center phone number and site as the Chamber's "General Information/Tourism" contact and review of phone and mail handling procedures. Performance Meetings and Minor Amendments to Agreement The Chamber and City shall meet on at least a quarterly basis to review items including, but not limited to: quarterly reports, scope of services, hours of operation, permitted commercial activities, Design Layout, and scope and consolidation of Main Office Services. The Chamber and City Contract Administrator may, in a separate addendum to this Agreement, amend the scope of services or operating conditions relating to: form and content of quarterly reports, hours of operation, permitted commercial acti vi ties and Design Layout. Any other changes shall be Page 31 3-46 subject to a formal written amendment approved by the City Council. B. Date for Commencement of Chamber Services: (x) Same as Effective Date of Agreement ( ) Other: C. Dates or Time Limits for Delivery of Deliverables: June 30, 2007 D. Date for completion of all Chamber services: June 30, 2007 9. Insurance Requirements: (x) Statutory Worker's Compensation Insurance (x) Employer's Liability Insurance coverage: $1,000,000. (xl Commercial General Liability Insurance: $1,000,000. () Errors and Omissions insurance: None Required (included in Commercial General Liability coverage) . Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability coverage) . . 10. Materials Required to be Supplied by City to Chamber: A. Duty to Make Center Available for the Use and Occupancy of the Chamber City agrees to make the Center available to the Chamber in order to provide the Information Services and Promotion Services herein required, and to conduct such other collateral uses herein permitted, which availability shall be to the exclusion of all other commercial uses of the Center. The Chamber has no independent right to occupy the Center except to provide its duties outlined in this Agreement. B. Duty to Allow the Chamber to Conduct Certain Commercial Activities (1) Permitted Commercial Activities On the terms and conditions including accordance with the herein specified, approved Design Page 32 3-47 Layout, the Chamber shall have the right, and City shall permit the Chamber, to conduct the following commercial activities or sales at the Center: - Transit tickets and passes Phone Cards - ATM Services Pay Phone Services "Chula Vista": T-shirts, Hats; Bumper Stickers; Key Chains; Buttons; Pens; Pencils; and Postcards Film, Flashbulbs and Batteries - Maps/ Guide Books - Mexican Auto Insurance - Newspapers and Magazines Travelers Checks/American Express services Soft Drinks/ Coffee - Candy/ Gum/ Ice Cream/Snack Foods Sunglasses Suntan Lotion/Chap Stick/First Aid items - such as pain relief medicines Postage Stamps Kleenex/pocket Combs Lottery Tickets Tour and Excursion Tickets - Video/ vending machines Display advertising space as permitted herein The sale of products or services not listed above is subject to the City's approval. Such approval shall not be unreasonably withheld, but shall be consistent with the approved Design Layout. 11. Compensation: A. (x) Single Fixed Fee Arrangement. For performance of all of the Defined Services by Chamber as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: $193,014.00, payable as follows: Promotion Services & Center Information Services: $179,638.00; payable in quarterly increments of $44,909.50. Main Office Information Services: $13,376.00; payable in Page 33 3-48 quarterly increments of $3,344.00. Single Fixed Fee Amount may be higher or lower depending upon the following: If Gross Sales exceed Applicable Operating Expenses during any fiscal year, twenty-five percent (25%) of said net profits shall be remitted to the City. For purposes of computing net losses, any monies received from the San Diego County Community Enhancement Program or the San Diego Unified Port District for the Visitor Center or Chula Vista Convention and Visitors Bureau would be counted as Visitor Center revenues. For purposes of computing net profits, monies received from the San Diego County Community Enhancement Program or the San Diego Unified Port District for the Visitor Center Chula Vista Convention and Visitors Bureau would not be counted as Visitor Center revenues. 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The Page 34 3-49 practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. B. ( ) Phased Fixed Fee Arrangement. For the performance of each phase or portion of the Defined Services by Consultant as are separately identified below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase. 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. C. () Hourly Rate Arrangement Page 35 3-50 For performance of the Defined Services by Consultant as herein required, City shall pay Consultant for the productive hours of time spent by Consultant in the performance of said Services, at the rates or amounts set forth in the Rate Schedule hereinbelow according to the following terms and conditions: (1) Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the Defined Services herein required of Consultant for $ including all Materials, and other "reimbursables" ("Maximum Compensation") . (2) ( ) Limitation without Further Authorization on Time and Materials Arrangement . At such time as Consultant shall have incurred time and materials equal to ("Authorization Limit"), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City. Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. Rate Schedule . Category of Employee of Consultant Name Hourly Rate Hourly rates may increase by 6% for services rendered after [month], 19 ,if delay in providing services is caused by City. Page 36 3-51 12. Materials Reiwbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: (x) None, the compensation includes all costs. Reports, not to exceed $ Copies, not to exceed $ Travel, not to exceed $ Printing, not to exceed $ Postage, not to exceed $ Delivery, not to exceed $ Long Distance Telephone Charges, not to exceed $ Other Actual Identifiable Direct Costs: not to exceed $ , not to exceed $ Cost or Rate 13. Contract Administrators: City: Gustavo Perez, Senior Community Development Specialist, City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 (619) 476-2300 Chamber: Lisa Cohen, CEO, Chula Vista Chamber of Commerce 233 Fourth Avenue Chula Vista, CA 91910 (619) 420-6602 14. Liquidated Damages Rate: ( ) $ per day. (x) Other: None 15. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (x) Not Applicable. Not an FPPC Filer. Page 37 3-52 FPPC Filer Category No.1. income. Investments and sources of Category No.2. Interests in real property. Category No. property and regulatory, department. Category No.4. Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property. 3. Investments, interest in real sources of income subject to the permit or licensing authority of the Category No.5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. Category No.6. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the Category No.7. Business positions. ( ) List "Consultant Associates" interests in real property within 2 radial miles of Project Property, if any: 16. ) Consultant is Real Estate Broker and/or Salesman 17. Permitted Subconsultants: As approved in advance by the City and corresponding to the terms of this Agreement. Sub-contractors may provide: Mexican Insurance Indoor AIM Machine Page 38 3-53 Pay Phone Soft drink and snack vending machines Any revenues derived from these contracts shall be include the totals for Gross Sales. If physical changes to the Center, Design Layout or grounds are needed to accommodate these types of sub-contractors, the Chamber must receive written approval in advance from the City. 18 Bill Processing: A) Consultant's Billing to be submitted for the following period of time: ( ) Monthly (x) Quarterly Paid in advance. For FY Second Quarter; beginning October 1, 2005: For FY Third Quarter; beginning January 1, 2005: For FY Fourth Quarter; beginning April 1, 2005: Other: $48,253.50 $48,253.50 $48,253.50 $48,253.50 B) Day of the Period for submission of Consultant's Billing (x) First of the Month ( ) 15th Day of each Month ( ) End of the Month ( ) Other: C) City's Account Number: 05500-6401 19 Security for Performance ) Performance Bond, $ ( ) Letter of Credit, $ (x) Other Security: Type: In lieu of providing a security deposit or bond, the Chamber hereby agrees that compensation for it services provided under this Agreement may be withheld in payment for, and in proportion to, a~y repair or maintenance work required as a result of Chamber's failure to maintain the Center in accordance with Exhibit A, Paragraph 9, section C(13). Amount: $ Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their Page 39 3-54 option, either the following "Retention Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: Retention Percentage: % Retention Amount: $ Retention Release Event: ( ) Completion of All Consultant Services Other: . Page 40 3-55 COUNCIL AGENDA STATEMENT ~ Item ' Meeting Date 05/09/06 ITEM TITLE: Resolution Approving the Resubdivision Map of portions of Chula Vista Tract ,No. 92-02A, Rolling Hills Ranch Subarea III "A" Map No. 14756 and Neighborhood 9A, Map No. 14855 SUBMITTED BY: Acting Director ofEngineering+~ /1 -ef) City Manager rI 1 r- t' A. (4/5ths Vote: Yes_No..K) REVIEWED BY: On March 2, 2004, by Resolution No. 20043-067, Council approved Final Map No. 14756 for Chula Vista Tract No. 92-02A, Rolling Hills Ranch, Subarea III "A" Map and on August 3, 2004, by Resolution No. 2004-260, Council approved Final Map No. 14855 for Chula Vista Tract No. 92-02A, Rolling Hills Ranch, Subarea III, Neighborhood 9A. Tonight, Council will consider the approval of a resubdivision map to adjust lot lines for one open space lot of Map 14756 and nine adjacent residential lots of Map 14855. RECOMMENDATION: That Council adopt the resolution. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable DISCUSSION: Rolling Hills Ranch Neighborhood 9A is located within the southwesterly portion Rolling Hills Ranch Subarea III, which is north of Proctor Valley Road and between the Auld Golf Course and the Bella Lago Subdivision. In January 2006, McMillin Quintessa LLC, submitted a request to the City to adjust the lot lines of nine residential lots and one open space lot within Rolling Hills Ranch Neighborhood 9A. The request to slightly adjust the lot lines was due to proposed grading modifications in the area to provide better use of the lots. The resubdivision map, pursuant to Government Code 66499.20112, is proposed in lieu of a lot line adjustment plat since the Subdivision Map Act only allows a maximum of four lots to be adjusted with the plat process (see Attachment 1). The approval of the resubdivision map will not increase the number of lots within Rolling Hills Ranch. The Engineering and the Planning and Building Departments have reviewed the resubdivision map and found it to be in substantial conformance with the Tentative Map for Rolling Hills Ranch, approved by Resolution 2003-199 on May 13, 2003. 4-1 Page 2, Item 4- Meeting Date 05/09/06 Council approved the Supplemental and Subdivision Improvement Agreements for the Final Map of Rolling Hills Ranch, Subarea III, Neighborhood 9A Chula Vista Tract No. n-02A on August 3, 2004. These agreements are binding upon successors, run with the property and are therefore not being revised for this resubdivision map. Oven Space The proposed resubdivision map reconfigures an open space lot and has a net reduction of 0.247 acres (3.181 acres - 2.934 acres). The resulting lot still satisfies the development's open space requirement. Approval of the resubdivision map will also constitute the abandonment of the existing irrevocable offer of dedication (IOD) over the open space lot and offer a new IOD for the reconfigured open space lot. FISCAL IMPACT: None to the City. The Developer has paid all costs associated with the proposed Resubdivision Map Attachments: Attachment I: Plat - Resubdivision Map of a Portion of City Of Chula Vista Tract No. n-02A, Rolling Hills Ranch, Subarea III Attachment 2: Developer's Disclosure Statement File No. RH249F (J:\Engineer\AGENDA\CAS2006\05-09-06\CAS Resubdivisio4JUf!-9A v. 2.doc) A IT ACHMENT \ CHULA VISTA TRACT NO. 92-02A ROLLING HILL RANCH SUBAREA ill 'A' MAP AND NEIGHBORHOOD 9A RESUBDIVISION --- !'ii!; I ~ LOTS TO BE RESUBDIVIDED ~ ;;; <:::> I ~t3~ .2:~<o ~~: ~ ....(/);:<:::; C,.)~..... G ~.....::::c) ....::t: 2: :<t: g::~~o., [Q~~~ ;:,.: C3 :::> :JC;:(/) :::> tJ . HUNSAKER ~f~~~~TES L-~__ f ;:j <:::> I ~tJ~ .2:~<o ~~: ~ .... (/) :""= ::; ~~:::: . ~::t: .....0 .... :<t:2: g::~~c.. ~S~~ \ ;:":0:::> \\ :JC;:(/) ~ ~ 8E\C,.) ~~ I I I B ~c 1G", ......... Str.c ENmEItIHC s.. ~ c:. 'J2121 SUlVE'fflC F't1(a5I)SSa..451>>. FXfasa)5.Se.1414 Y R:\<JJ78\,tMap\AX N9A CITY O>f'I1lAY .DWG{ 1275jJuI-08-2004:lxI8 - we 1941-81 4-3 ~ 8 '" 8 o - 8 "' " . ~ W ..J -< U '" c o City of Chula Vista Disclosure Statement ATTACHMENT 2. Pursuant to Council Policy 101-0 I, prior to any action upon matters that will require discretionary action by the Council, Planning Commission and all other official bodies of the City, a statement of disclosure of certain ownership or fmancial interests, payments, or campaign contributions for a City of Chula Vista election must be filed. The following information must be disclosed: I. List the names of all persons having a financial interest in the property that is the subject of the application or the contract, e.g., owner, applicant, contractor, subcontractor, material supplier. 1'1t--t1II/,/\/ {?jlttJ !It !/~ g#"I..; L L. G 2. If any person* identified pursuant to (I) above is a corporation or partnership, list the names of all individuals with a $2000 investment in the business ( corporation/partnership) entity. 3. If any person * identified pursuant to (I) above is a non-profit organization or trust, list the names of any person serving as director of the non-profit organization or as trustee or beneficiary or trustor of the trust. 4. Please identify every person, including any agents, employees, consultants, or independent contractors you have assigned to represent you before the City in this matter. ~ ~-~-VS'.r4'" .z;-,./ 6" 601~''''.A/'''''''''' ~"'/AJ7 L,jf!;_~Y J;;~~"'M Gr4d 5. Has anyperson* associated with this contract had anyfmancial dealings with an official * * of the City of Chula Vista as it relates to this contract within the past 12 months. Yes_ No~ buy AS4.Yp 4-4 City of Chula Vista Disclosure Statement If Yes, briefly describe the nature ofthe financial interest the official"" may have in this contract. 6. Have you made a contribution of more than $250 within the past twelve (12) months to a current member of the Chula Vista City Council? No X Yes _ If yes, which Council member? 7. Have you provided more than $340 (or an item of equivalent value) to an official"" of the City ofChu1a Vista in the past twelve (12) months? (This includes being a source of income, money to retire a legal debt, gift, loan, etc.) Yes _ No X If Yes, which official"" and what was the nature of item provided? Date: 74~h ( ~~ Signature of c01tractor/ Applicant ~ ---/ . _I ".'1-\. I"~ ,r/~",V Print or type name of Contractor/Applicant " Person is defmed as: any individual, firm, co-partnership, joint venture, association, social club, rratemal organization, corporation, estate, trust, receiver, syndicate, any other county, city, municipality, district, or other political subdivision, -or any other group or combination acting as a unit. "" Official includes, but is not limited to: Mayor, Council member, Planning Commissioner, Member of a board, commission, or committee of the City, employee, or staff members. J:\Attomey\forms\disclosure statement 3 -6-03 4-5 . .\ RESOLUTION NO. 2006- APPROVING THE RESUBDIVISION MAP OF PORTIONS OF CHULA VISTA TRACT NO. 92-02A, ROLLING HILLS RANCH SUBAREA III "A" MAP NO. 14756 AND NEIGHBORHOOD 9A, MAP NO. 14855 WHEREAS, Rolling Hills Ranch Subarea III is generally located east of Coastal Hills Drive and north of Proctor Valley Road; and, WHEREAS, the Resubdivision Map consists of I lettered lot and 9 numbered lots with a total area of 6.734 acres, 1 lettered lot within Final Map No. 14756 and nine numbered lots within Final Map No. 14855 and reflects the lot line adjustments made within the properties of McMillin Rolling Hills Ranch, L.L.C. and McMillin, Quintessa L.L.C., respectively; and, WHEREAS, the Developer proposed the lot line adjustments within their properties to accommodate grading modifications along the back of the properties; and, WHEREAS, the Resubdivision Map has been reviewed by the Engineering and the Planning and Building Departments and found to be in substantial conformance with the Tentative Map approved by Resolution 2003-199 on May 13, 2003. NOW, THEREFORE BE IT RESOLVED that the City Council of the City Of Chula Vista hereby fmds that the certain map survey entitled Chula Vista Tract No. 92- 02A, Rolling Hills Ranch, Resubdivision Subarea III Neighborhood 9A, more particularly described as follows: "Being a resubdivision of lot "s" of Chula Vista Tract No. 92-02A, Rolling Hills Ranch, Subarea III "A" Map, Map No. 14756 and lots 13 through 21, of Chula Vista Tract No. 92-02A, Rolling Hills Ranch, Subarea III, Neighborhood 9A Map No. 14855, all being in the City Of Chula Vista, County of San Diego, State of California, Filed in the Office of the County Recorder of said San Diego County, State of California." Total Gross Area: 6.734 Acres Lettered Lots: 1 Numbered Lots: 9 4-6 Resolution No. 2005- Page 2 The Resubdivision Map is made in the manner and form prescribed by the provisions of the Subdivision Map Act No. 66499.20 Y>; and that said map and resubdivision of land shown thereon is hereby approved and accepted. Presented by Approved as to form by . Leah Browder Deputy Director of Engineering 4-7 COUNCIL AGENDA STATEMENT r~ Item ,"--' Meeting Date 05/09/06 ITEM TITLE: Resolution Waiving the fOTIllal consultant selection process and approving the First Amendment to an Agreement between the City of Chula Vista and TRC Real Estate Advisors DBA Sullivan Group Real Estate Advisors For Market Absorption Services for the FOTIllation of Community Facilities Districts within the City ofChula Vista Pursuant to the Mello-Roos Community Facilities Act of 1982, SUBMITTED BY: Acting Director of Engineering'-+p City Manager if ~ V ~ (4/5ths Vote: Yes_NoXj REVIEWED BY: IRC Real Estate Advisors DBA Sullivan Group Real Estate Advisors has provided the City Market Absorption Services for CFD fOTIllation for the last three years. It is recommended that the City's consultant selection process for the Market Absorption Services be waived in the interest of providing continuity within the financing team and that First Amendment to the Agreement with TRC Real Estate Advisors DBA Sullivan Group Real Estate Advisors be approved. RECOMMENDATION: That Council adopt the Resolution. BOARDS/COMMISSIONS RECOMMENDATION: N/A. DISCUSSION: The City began using the Mello Roos Act to fund infrastructure with Community Facilities Districts (CFDs) in 1997. These CFDs sell bonds to fund infrastructure improvements and use the special tax to pay back the bondholders over 30 years. Due to the inherent complexities in this type offmancing, the City has historically utilized the same or primarily the same team of consultants; however each contract amendment is evaluated individually considering past consultant perfoTIllance, total contract amounts to date and current situational demands. On August 2004, the Council waived the consultant selection process and The Meyers Group was hired to perfoTIll market absorption services for all future CFDs in the City. The principal proj ect manager for City's projects left The Meyers Group for employment with TRC Real Estate Advisors DBA Sullivan Group Real Estate Advisors. Based on the desire to have continuity within the financing team at that time, and the lack of project specific experience remaining in The Meyers Group, the City terminated the agreement with The Meyers Group on April 12, 2005 and on June 23, 2005, the City Purchasing Agent approved an Agreement with TRC Real Estate Advisors DBA Sullivan Group Real Estate Advisors for Market Absorption Services for the FOTIllation of two Maintenance CFDs: Otay Ranch Village II Second Bond Sale and San Miguel Ranch Second Bond Sale ("Agreement") totaling $30,000. Tonight, the Council will consider a First Amendment adding an additional $30,000 to the Agreement for two CFDs for Otay Ranch Village 7. 5-1 Page 2 itemS Meeting Date 05/09/06 The Consultant was selected based on the quality of expertise, experience, and previous similar work performed in association with the City's formation ofCFDs in other parts of Eastern Chula Vista. The City desires to amend the Agreement and retain the Consultant to complete the Market Absorption Services for the Formation of CFDs for two additional CFDs: Otay Ranch ViIIage 7 (Otay Ranch Company) and Otay Ranch ViIIage 7 (McMiIIin Company). FISCAL IMPACT: AIl costs for this Agreement are payable from developer deposits. There is no impact to the General Fund. Attachments: Exhibit I - Agreement TRC Real Estate Advisors DBA Sullivao Group Real Estate Advisor Group Exhibit 2 - First Amendment to the Agreement between City of Chula Vista aod TRC Real Estate Advisors DBA Sullivan Group Real Estate Advisors 1:\Eng1neeMGENDA\CAS2006\OS-09-06\CAS for Sullivan Group Agreement 2006 v.2.doc 5-2 EXHIBIT 1 Parties and Recital Page(s) Agreement between City of Chula Vista and TRC Real Estate Advisors DBA Sullivan Group Real Estate Advisors For Market Absorption Services for the Formation of comnunity Facilities Districts within the City Of Chula Vista pursuant to the Mello-Rocs community Facilities Act cf 1982 This agreement ('Agreement'), dated June 23, 2005 for the purposes of reference only, and effective as of the date last executed unless another date is otherwise specified in Exhibit A, Paragraph 1 is between the City-related entity as is indicated on Exhibit A, paragraph 2, as such ('city'), whose business form is set forth on Exhibit A, paragraph 3, and The Sullivan Group Real Estate Advisors the entity indicated on the attached Exhibit A, paragraph 4, as Consultant, whose business form is set forth on Exhibit A, paragraph 5, and whose place of business and telephone numbers are set forth on Exhibi t A, paragraph 6 (" Consul tant" ), and is made with reference to the following facts: Recitals Whereas, the City is desirous of retaining a firm to complete market absorption studies for development projects in Chula Vista as further defined in Exhibit B of this Agreement; and Whereas, the consultant selection process was waived and The Meyers Group was hired to perform market absorption studies via Reso 2004-281; and, Whereas, the principal project manager for city's projects left The Meyers Group for employment with the Sullivan Group Real Estate Advisors; and Whereas, based on the desire to have continuity within the financing team, and the lack of project specific experience within The Meyers Group (Subsequently renamed Hanley Wood Market Intelligent) The City terminated the agreement with the Meyers Group on April 12, 2005; and, Whereas, Consultant was selected based on the quality of expertise, experience, and previous similar work performed in association with the City's formation of Community Facilities Districts in other parts of Eastern Chula Vista; and, Page 1 5-3 Whereas, Consultant warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Consultant to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement. (End of Recitals. Next Page starts Obligatory Provisions.) Page 2 5-4 Obligatory provisions Pages NOW, THEREFORE, BE IT RESOLVED that the City and Consultant do hereby mutually agree as follows: 1. Consultant's Duties A. General Duties Consultant shall perform all of the services described on the attached Exhibit A, Paragraph 7, entitled "General Duties'; and, B. Scope of Work and Schedule In the process of performing and delivering said "General Duties" , Consultant shall also perform all of the services described in Exhibit A, Paragraph 8, entitled" Scope of Work and Schedule', not inconsistent with the General Duties, according to, and within the time frames set forth in Exhibit A, Paragraph 8, and deliver to City such Deliverables as are identified in Exhibit A, Paragraph 8, within the time frames set forth therein, time being of the essence of this agreement. The General Duties and the work and deliverables required in the Scope of Work and Schedule shall be herein referred to as the 'Defined Services". Failure to complete the Defined Services by the times indicated does not, except at the option of the City, operate to terminate this Agreement. C. Reductions in Scope of Work City may independently, or upon request from Consultant, from time to time reduce the Defined Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. D. Additional Services In addition to performing the Defined Services herein set forth, City may require Consultant to perform additional consulting services related to the Defined Services ('Additional Services"), and upon doing so in writing, if they are within the scope of services offered by Consultant, Consultant shall perform same on a time and materials basis at the rates set forth in the 'Rate Schedule' in Exhibit A, Paragraph 11 (C), unless a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid upon completion milestones shown on Exhibit B. All additional services shall be approved in writing by the Page 3 5-5 City Manager with a revised Exhibit B setting forth maximum compensation limits. E. Standard of Care Consultant, in performing any Services under this agreement, whether Defined Services or Additional Services, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. F. Insurance Consultant represents that it and its agents, staff and subconsultants employed by it in connection with the Services required to be rendered, are protected against the risk of loss by the following insurance coverages, in the following categories, and to the limits specified, policies of which are issued by Insurance Companies that have a Best's Rating of "A, Class V" or better, or shall meet with the approval of the City: Statutory Worker's Compensation Liability Insurance coverage in the attached Exhibit A, Paragraph 9. Insurance and Employer's amount set forth in the Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 9, combined single limit applied separately to each project away from premises owned or rented by Consultant, which names City as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("Primary Coverage"), and which treats the employees of the ci ty in the same manner as members of the general public ("Cross-liability Coverage"). Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 9, unless Errors and Omissions coverage is included in the General Liability policy. G. Proof of Insurance Coverage. (1) Certificates of Insurance. consultant shall demonstrate proof of coverage herein required, prior to the commencement of services required under this Agreement, by delivery of Certificates of Insurance demonstrating same, and further indicating that the pOlicies may not be canceled without at least thirty (30) days written notice to the Additional Insured. Page 4 5-6 (2) pOlicy Endorsements Required. In order to demonstrate the Additional Insured Coverage, Primary Coverage and Cross-liability Coverage required under Consultant's Commercial General Liability Insurance Policy, Consultant shall deliver a policy endorsement to the City demonstrating same, which shall be reviewed and approved by the Risk Manager. H. Security for Performance. (1) Performance Bond. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Performance Bond (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Consultant shall provide to the City a performance bond by a surety and in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Performance Bond", in said Paragraph 19, Exhibit A. (2) Letter of Credit. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit"), then Consultant shall provide to the City an irrevocable letter of credit callable by the City at their unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Consultant is in breach of the terms of this Agreement. The letter of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit", in said Paragraph 19, Exhibit A. (3) Other Security In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Consultant shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. I. Business License Page 5 5-7 -- ---------+---_. Consultant agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 2. Duties of the City A. Consultation and Cooperation City shall regularly consult the Consultant for the purpose of reviewing the progress of the Defined Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this agreement. The City shall permit access to its office facilities, files and records by Consultant throughout the term of the agreement. In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibit A, Paragraph 10, and with the further understanding that delay in the provision of these materials beyond 30 days after authorization to proceed, shall constitute a basis for the justifiable delay in the Consultant's performance of this agreement. B. Compensation Upon receipt of a properly prepared billing from Consultant submitted to the City periodically as indicated in Exhibit A, Paragraph 18, but in no event more frequently than monthly, on the day of the period indicated in Exhibit A, Paragraph 18, City shall compensate Consultant for all services rendered by Consultant according to the terms and conditions set forth in Exhibit A, Paragraph 11, adjacent to the governing compensation relationship indicated by a 'checkmark' next to the appropriate arrangement, subject to the requirements for retention set forth in paragraph 19 of Exhibit A, and shall compensate Consultant for out of pocket expenses as provided in Exhibit A, Paragraph 12. All billings submitted by Consultant shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amount due and payable there under is proper, and shall specifically contain the City's account number indicated on Exhibit A, Paragraph 18 (C) to be charged upon making such payment. 3. Administration of Contract Each party designates the individuals ('Contract Administrators") indicated on Exhibit A, Paragraph 13, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 4. Term. Page 6 5-8 This with all whichever Agreement shall terminate when executory provisions hereof date occurs sooner. the Parties have complied or on August 24, 2007, 5. Liquidated Damages The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 14. It is acknowledged by both parties that time is of the essence in the completion of this Agreement. It is difficult to estimate the amount of damages resulting from delay in performance. The parties have used their judgment to arrive at a reasonable amount to compensate for delay. Failure to complete the Defined Services within the allotted time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess of the time specified for the completion of the respective work assignment or Deliverable, the consultant shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 14 ('Liquidated Damages Rate"). Time extensions for delays beyond the consultant's control, other than delays caused by the City, . shall be requested in writing to the City's Contract Administrator, or designee, prior to the expiration of the specified time. Extensions of time, when granted, will be based upon the effect of delays to the work and will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work. 6. Financial Interests of Consultant A. Consultant is Designated as an FPPC Filer. If Consultant is designated on Exhibit A, Paragraph 15, as an "FPPC filer", Consultant is deemed to be a . Consultant , for the purposes of the political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 15 of Exhibit A, or if none are specified, then as determined by the City Attorney. B. Decline to Participate. Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant. s position to influence a governmental decision in which Consultant knows or has reason to Page 7 5-9 know Consultant has a financial interest other than the compensation promised by this Agreement. C. Search to Determine Economic Interests. Regardless of whether consultant is designated as an FPPC Filer, Consultant warrants and represents that Consultant has diligently conducted a search and inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this agreement. D. Promise Not to Acquire Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. E. Duty to Advise of Conflicting Interests. Regardless of whether consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney of City if Consultant learns of an economic interest of Consultant's, which may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated there under. F. Specific Warranties Against Economic Interests. Consultant warrants and represents that neither Consultant, nor Consultant's immediate family members, nor Consultant's employees or agents ("Consultant Associates") presently have any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defined Services, or in any property within 2 radial miles from the exterior boundaries of any property which may be the subject matter of the Defined Services, ('prohibited Interest"), other than as listed in Exhibit A, Paragraph 15. Consultant further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates in connection with Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Page B 5-10 -- ---, - -..- - --- ..---- Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this Agreement, except with the written permission of City. Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party, which may be in conflict with Consultant's responsibilities under this Agreement, except with the written permission of City. 7. Hold Harmless Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys fees) arising out of or alleged by third parties to be the result of the negligent acts, errors or omissions or the willful misconduct of the Consultant, and Consultant's employees, subcontractors or other persons, agencies or firms for whom Consultant is legally responsible in connection with the execution of the work covered by this Agreement, except only for those claims, damages, liability, costs and expenses (including without limitations, attorneys fees) arising from the sole negligence or sole willful misconduct of the City, its officers, employees. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the active or passive negligent acts or omissions of the Consultant, its employees, agents or officers, or any third party. wi th respect to losses arising from Consultant's professional errors or omissions, Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys fees) except for those claims arising from the negligence or willful misconduct of City, its officers or employees. Consultant's indemnification shall include any and all costs, expenses, attorneys fees and liability incurred by the City, its officers, agents or employees in defending against such claims, whether the same proceed to judgment or not. Consultant's obligations under this Section shall not be limited by any prior or subsequent declaration by the Consultant. Consultant's obligations under this Section shall survive the termination of this Agreement. 8. Termination of Agreement for Cause Page 9 5-11 . If, through any cause, Consultant shall fail to fulfill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to consultant of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the City, and Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Consultant's breach. 9. Errors and Omissions In the event that the City Administrator determines that the Consultants' negligence, errors, or omissions in the performance of work under this Agreement has resulted in expense to City greater than would have resulted if there were no such negligence, errors, omissions, Consultant shall reimburse City for any additional expenses incurred by the City. Nothing herein is intended to limit City's rights under other provisions of this agreement. 10. Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to Consultant of such termination and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. In that event, all finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by City as provided in this paragraph, Consultant shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination. Consultant hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 11. Assignability The services of Consultant are personal to the City, and Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or novation), without prior written consent of City. Page 10 5-12 City hereby consents to the assignment of the portions of the Defined Services identified in Exhibit A, Paragraph 17 to the subconsultants identified thereat as .permitted Subconsultants.. 12. Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. Any reuse by City on any project other than the project for which such materials were originally intended shall be at the City's sole risk. 13. Independent Contractor City is interested only in the results obtained and Consultant shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. Ci ty maintains the right only to rej ect or accept Consultant's work products. Consultant and any of the Consultant's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 14. Administrative Claims Requirements and Procedures No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference Page 11 5-13 as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. faith terms Upon request by City, Consultant shall meet and confer in good with City for the purpose of resolving any dispute over the of this Agreement. 15. Attorney's Fees Should a dispute arising out of this Agreement result in litigation, it ~s agreed that the prevailing party shall be entitled to a judgment against the other for an amount equal to reasonable attorney's fees and court costs incurred. The 'prevailing party" shall be deemed to be the party who is awarded substantially the relief sought. 16. Statement of Costs In the event that Consultant prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Consultant shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. 17. Miscellaneous . A. Consultant not authorized to Represent City Unless specifically authorized in writing by City, Consultant shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever. B. Consultant is Real Estate Broker and/or Salesman . If the box on Exhibit A, paragraph 16 is marked, the Consultant and/or their principals is/are licensed with the State of California or some other state as a licensed real estate broker or salesperson. Otherwise, Consultant represents that neither Consultant, nor their principals are licensed real estate brokers or salespersons. C. Notices All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid. registered or certified, with return receipt Page 12 5-14 requested, at the addresses identified herein as the places of business for each of the designated parties. D. Entire Agreement This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. E. Capacity_of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F. Governing Law/Venue This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. [end of page. next page is signature page.] Page 13 5-15 ... -..-..-----. -----_.. Signature Page to Agreement between City of Chula Vista and The Sullivan Group Real Estate Advisors For Market Absorption Services for the Formation of Community Facilities Districts within the City Of Chula Vista Pursuant to the Mello-Roos Community Facilities Act of 1982 IN WITNESS WHEREOF, City and Consultant have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: 1/1]- f 200l. City of Chula Vista by: John Coggi ~: - ~~~- Susan Bigelow, ~ty Clerk /I~ Approved as to form: F~ -? IS( - Dated: 05 The Sullivan Group Real Estate Advisors By: P.eh.v1-'~l Name: ~ f. D~.J.Je-K1 Title: ~1-l1O~ ,,9. Exhibit List to Agreement Page 1 4 5-16 . ,.\. Exhibit A to Agreement between City of Chula Vista and Sullivan Group Real Estate Advisors 1. Effective Date of Agreement: (X) Upon City's notification to start for each CFD. 2. City-Related Entity: (X) City of Chula Vista, a municipal chartered corporation of the State of California Redevelopment Agency of the City of Chu1a Vista, a political subdivision of the State of California () Industrial Development Authority of the City of Chula Vista, a () Other: [insert business form] , a ( "City") 3. Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 4. Consultant: Sullivan Group Real Estate Advisors 5. Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership (X) Corporation 6. Place of Business, Telephone and Fax Number of Consultant: 777 South Pacific Coast Highway, Suite 100 Solana Beach, CA 92075 Voice Phone (858) 792-8276 Fax phone (858)792-8944 Page 15 5-17 7. General Duties: Consultant shall prepare market absorption reports for the formation of proposed Community Facilities Districts (CFD's) in conformance with the City of Chula Vista's Statement of Goals and policies regarding the establishment of Community Facilities Districts, adopted by Council by Resolution 98-255 and as amended from time to time. The proposed CFD's for the purpose of this agreement are generally described in Exhibit B. 8. Scope of Work and Schedule: A. Detailed Scope of Work 1. Materials Review and Locational Assessment: Review all relevant materials compiled by City to date relative to the Project such as site plans, previous market studies, pertinent development agreements, etc. Information on the infrastructure improvements planned in the Project area will be analyzed in terms of impact on anticipated development in the area. 2. Definition of Comcetitive Market Area: Consultant shall determine the most appropriate competitive market area for each product type proposed for the subject Project. Determination will be made based on existing and planned transportation routes, natural and man-made geographic boundaries, patterns of housing and commercial growth, historical market perceptions, etc. 3. Economic and Demoarachic Overview: Consultant shall compile pertinent demographic data for the San Diego County and South Bay area and analyze in the context of future development such as that proposed at the proj ect. Data to be compiled will include population and household growth trends, employment growth and distribution, household income levels, age distribution, etc. Data will be utilized to help determine anticipated future demand potential for residential and commercial property in the San Diego County market area and in the South Bay market area in particular. 4. Historical Residential Market Data: Consultant shall compile relevant historical data on the San Page 16 5-18 - Page 17 Diego County and South Bay market area for-sale housing markets. Key residential market factors to be examined will include such things as new detached home sales and inventory trends, sales and inventory by price range, sales rates by price range, building permit issuance, resale market trends, etc. 5. Active Residential proiect Overview: Consultant shall survey residential projects (detached) in the Proj ect' s relevant market area (largely the South Bay) . Project information will include market orientation, number of units planned, offered and sold, product types, square footage range, base price ranges, premiums, incentives, amenities, buyer and/or tenant profile, absorption rate, etc. As part of this analysis, Consultant shall evaluate recent price changes and an absorption analysis will be conducted for the sell-out of active projects. 6 . Mas ter planned Communi tv Case Studies: A selected number of similar large-scale residential projects in the San Diego County market area shall be analyzed by the Consultant. Survey will focus on key characteristics (size, setting, product array, unit and pr ice ranges, communi ty ameni ties. buyer profiles), sales performance (yearly sales, marketing characteristics), and other comments. Survey will be used to identify the annual absorption potential and market capture of the San Diego County housing market achieved by other well-segmented master planned communities and will be used to assess sales and market capture projections. 7. Pro'Oosed proiect Summarv and Detailed proiect Buildout: Consultant shall compile and analyze information on the most relevant and major planned and proposed residential and commercial developments in the competitive market area for the Project. To the extent available. detailed information will be presented for each project (units. timing, pricing, etc. ) . This analysis will cover all projects in various stages of the approval process in the South Bay market area. Consultant shall prepare a market- dri v~m buildou t proj ection for the proposed large- scale South Bay residential projects for use in reconciling annua~ supply and demand projections. 8. Demand Analvsis: Consultant shall conduct a statistical demand analysis to quantify the future demand potential for each type of development proposed for the Project (for-sale residential and 5-19 commercial property). Demand will be based on a combination of statistical and judgmental methodologies, and will result in annual demand projections over the relevant time frame of the subj ect proj ect. 9. Conclusions: Consultant shall analyze all of the above information and draw conclusions relative to current and future market trends and assess the potential for the development and absorption of residential uses as proposed for the Project. 10. Absorotion proiection: Based on the above analysis, Consultant shall provide written recommendations with regard to anticipated absorption of the proposed residential development in the Project. Absorption estimates will take into account such things as expected market trends, community positioning, infrastructure timing, etc. Absorption estimates will cover the anticipated period to build- out of the community on a quarterly or annual basis (format to be determined with appraiser) . 11. Consultant will attend all coordination meetings as needed and work with the project appraiser to ensure the most accurate results. 12. Consultant the City) Projection will provide check prints (as required by of the Market Analysis and Market for comments at the coordination meetings. 13. Consultant will provide to the City 2 bound and 10 unbound copies of the Market Analysis and Market Projection upon completion. 14. Consultant will provide an electronic version of the absorption study in a format acceptable to City so that the City can make the report available to the underwriter or other party. 15. Consultant will work with the Project owners to obtain the following: Detailed information on current business plan projections for the development (absorption, product pricing and lot or land values), as well as details on proposed residential, timing, phasing, etc). B. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement Page 18 5-20 ) Other: C. Dates or Time Limits for Delivery of Deliverables: Upon written request by the City Engineer, a draft market absorption report and a final market absorption report for a CFD described in Exhibit B, which include all tasks identified in B.a above, shall be delivered to the City on or before the dates specified the request. D. Date for completion of all Consultant services: The date specified in writing by the City Engineer when requesting a report for a particular CFD. In no event shall the report be completed more than 6 weeks after the City Engineer directs Consultant to commence preparation of the report. 9. Insurance Requirements: (X) Statutory Worker's Compensation Insurance (X) Employer's Liability Insurance coverage: $1,000,000. (X) Commercial General Liability Insurance: $1,000,000. (X) Auto Liability Insurance: $1,000,000. (X) Errors and Omissions insurance: None Required (included in Commercial General Liability coverage) . () Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability coverage) . (X) Professional Liability Insurance: Per Claim: $1,000,000 Aggregate: $1,000,000 10. Materials required to be supplied by City to Consultant: A. Make available maps, records, plans, documentation provided by CFD applicant. B. Schedule project meetings, Council meetings and hearings as required by the Government Code. and any 11. Compensation: A. () Single Fixed Fee Arrangement. Page 19 5-21 For performance of all of the Defined Services by Consultant as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: . Milestone or Event or Deliverable Amount or Percent of Fixed Fee 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans, which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shal~ designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. B. (X) Phased Fixed Fee Arrangement. For the performance of each phase or portion of the Defined Services by Consultant as are separately identified in Exhibit "BO, Page 20 5-22 City shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase. Phase Fee for Said Phase 1. See Exhibit UB" $ $ $ 2. 3 . 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans, which must be returned to the City if the phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payrnen t . C. () Hourly Rate Arrangement For performance of the Defined Services by Consultant as herein required, City shall pay Consultant for the productive hours Page 21 5-23 of time spent by Consultant in the performance of said Services, at the rates or amounts set forth in the Rate Schedule herein below according to the following terms and conditions: (1) () Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that fOr each Project listed in Exhibit B Consultant will perform all of the Defined Services herein required of Consultant for the amount shown in Exhibit B's column labeled "Maximum Compensation" including all Materials, and other "reimbursables' ('Maximum Compensation"). There is no surplus or deficit carryover between individual Projects. (2) ( ) Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to ('Authorization Limit"), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City. Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. Rate Schedule 12. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: (X) None, the compensation includes all costs. () Reports, not to exceed $ () Copies, not to exceed $ () Travel, not to exceed $ () Printing, not to exceed $ () Postage, not to exceed $ () Delivery, not to exceed $ () Long Distance Telephone Charges, Cost or Rate Page 22 5-24 ---.----.---- --- not to exceed $ () Other Actual Identifiable Direct Costs: not to exceed $ , not to exceed $ 13. Contract Administrators: City: Sohaib Al-Agha, City Engineer Consultant: Peter Dennehy, Managing Director 14. Liquidated Damages Rate: N/A $ per day. Other: 15. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (X) Not Applicable. Not an FPPC Filer. ( ) FPPC Filer Category No.1. Investments and sources of income. Category No.2. Interests in real property. Category No. property and regulatory, department. 3. Investments, interest in real sources of income subject to the permit or licensing authority of the Category No. and sources development, sale of real 4. Investments in business entities of income which engage in land construction or the acquisition or property. () Category No.5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. Category No.6. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. Page 23 5-25 Category No.7. Business positions. ( ) List "Consultant Associates" interests in real property within 2 radial miles of Project Property, if any: 16. ) Consultant is Real Estate Broker and/or Salesman 17. Permitted Subconsultants: NONE 18 Bill Processing: A. Consultant's Billing to be submitted for the following period of time: ) Monthly ) Quarterly X ) Other: Based on Deliverables of Exhibit B B. Day of the Period for'submission of Consultant's Billing: (X) First of the Month ( ) 15th Day of each Month ( ) End of the Month ( ) Other: C. City's Account Number: will be assigned for each CFD. 19 Security for Performance Performance Bond, $ Letter of Credit, $ Other Security: Type: Amoun t : $ ) Retention. If this space is checked, then notwithstanding other provu~ons to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their option, either the following 'Retention Percentage" or 'Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: ( ) Retention Percentage: ___% Page 24 5-26 Page 25 Retention Amount: $ Retention Release Event: Completion of All Consultant Services Other: 5-27 . Exhibit 'B' Nil.stone/Phase Project (See Section 8, Scope Fe. for Phaee Receipt No. of Work) Village 11 Deliverable 1 (Draft $7,500 Second Bond Sale Absorption Report) Deliverable 2 (Final $7,500 Absorption Report) San Miguel Ranch Deliverable 1 (Draft $7,500 02-0139161 Second Bond Sale Absorption Report) Deliverable 2 (Final $7,500 02-0139161 Absorption Report) Total $30,000 J:\Engineer\LANDDEV\CFD's\CFD2001_1\2PTY aqr_sullivan Group Real Estate Advisors db fixedfe. v2.doc Page 26 5-28 RESOLUTION NO. 2006- RESOLUTION OF THE CITY COUNCIL OF CHULA VISTA WAIVING THE FORMAL CONSULTANT SELECTION PROCESS AND APPROVING THE FIRST AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND TRC REAL ESTATE ADVISORS DBA SULLIVAN GROUP REAL ESTATE ADVISORS FOR MARKET ABSORPTION SERVICES FOR THE FORMATION OF COMMUNITY FACILITIES DISTRICTS WITHIN THE COMMUNITY FACILITIES DISTRICTS WITHIN THE CITY OF CHULA VISTA PURSUANT TO MELLO-ROOS COMMUNITY FACILIES ACT OF 1982. WHEREAS, on August 2004, the Council waived the consultant selection process and the Meyers Group was hired to perform market absorption services for all future Community Facilities Districts ("CFDs") in the City pursuant to Resolution 2004-281; and, WHEREAS, based on the desire to have continuity within the financing team, and the lack ofproject specific experience within The Meyers Group; the City terminated the agreement with the Meyers Group on April 12, 2005; and, WHEREAS, the City Purchasing Agent on June 23, 2005 approved the Agreement "Original Agreement" with TRC Real Estate Advisors DBA Sullivan Group Real Estate Advisors ("Consultant") for Market Absorption Services for the Formation of Maintenance Community Facilities Districts for two CFDs: Otay Ranch Village II Second Bond Sale & San Miguel Ranch Second Bond Sale totaling $30,000; and, WHEREAS, staff recommends that the City's consultant selection process for the market absorption services be waived in the interest of providing continuity within the financing team; and, WHEREAS, the City desire to retain the Consultant to complete the Market Absorption Services for the Formation of Community Facilities Districts for two additional CFDs: Otay Ranch Village 7 (Otay Ranch Company) and Otay Ranch Village 7 (McMillin Company); and, WHEREAS, Consultant was selected based on the quality of expertise, experience, and previous similar work performed in association with the City's formation of CFDs in other parts of Eastern Chula Vista. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista waives the consultant selection process and approves the First Amendment to the Agreement with TRC Real Estate Advisors DBA Sullivan Group Real Estate Advisors for Market Absorption Services for the Formation of Community Facilities Districts within the City Of Chula Vista pursuant to the Mello-Roos Community Facilities Act of 1982, a copy of which shall be kept on file in the Office of the City Clerk. 5-29 BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is authorized to execute the First Amendment to the Agreement with IRC Real Estate Advisors DBA Sullivan Group Real Estate Advisors for Market Absorption Services for the Formation of Community Facilities Districts within the City of Chula Vista pursuant to the Mello-Roos Community Facilities Act of 1982 on behalf of the City of Chula Vista. Presented by Approved as to form by \-!~ IJ-. ~ Ann Moore City Attorney Leah Browder Acting Director of Engineer H:\ENOINEER\RESOSlResos2006\04-11-06lResofor First-Amendment to SuI/ivan Group Agreement.doc 5-30 THE ATTACHED AGREEJ\;ffiNT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALL Y SIGNED UPON APPROVAL BY THE CITY COUNCIL '-I~-<u tL k~ Ann Moore City Attorney Dated: S /3/0 v , FIRST AJ\1ENDJ\;ffiNT TO THE AGREEJ\;ffiNT WITH TRC REAL ESTATE ADVISORS DBA SULLIVAN GROUP REAL ESTATE ADVISORS 5-31 FIRST AMENDMENT to the Agreement between City ofChula Vista and TRC Real Estatc Advisor.! DBA Sullivan Group Real Estate Advisors For Ma~ket Absorption Se~;ces for the Formation of Community Facilities Distrh:ts within the City Of Chola VISta Pursuant to the MellD-Roo:! Community Facilities Act of 1982 This First Amendment ("First Amendment") is en!~d into effecdve as of 3 d.. May 2006 by and between the City ofChula Vista ("City") and TRC Real Estate Advisors DBA Sullivan Group Rea] Estate Advisors ("Consultant") with refe",nce to the following facts: RECTT ALS WHEREAS, on August 2004, the Coundl waived the consultant selection process and the Meyers Group was hired to perform market absorption services for aU future CommUJ'lity Facilities Districts ("CFD's") in the City purnuant to Resolution number 2004-281; and, WHEREAS, based on the desire to have condnuity within the finandngteam, and thc lack of project specific experience within The Meyers Group, the City terminated the agreement with the Meyers Group on April 12, 2005; and, WHEREAS. the City PlJIChasing Agen! on June 23, 2005 approved the Agreement "Original Agreement" with TRC Rea] Estate Advisors DBA Sullivan Group Real Estate Advisor.! for Market Absorption Services for the Formation of Community Facilities Districts faT two CFD's: Otay Ranch Village II Second Bond Sale & San Miguel Ranch Second Bond Sale totaling $30,000; aud., WHEREAS, the City desires to retain the Consullant to complete the market Absorption SC1"Ilices for the Formation ofComrnuniry Facilities Districts fortwo additional CFD's: Otay Ranch ViJlage 7 (OIay Ranch Company) and Otay Ranch Village 7 (McMillin Company); and, WHEREAS, Consultant was selected based on the quality of expertise, experience, and p1'Cvious similar work performed in association with thc City's formation ofCFD's in othcrparts of Eastern Chula Vista. NOW, THEREFORE, the parties agree to amend the Original Agreement as follows: L Add Exhibit B- L 2. Section 12 ofExbibit A, Material Reimbursement Arrangement, is deleted in its entirety and replaced with the followi ng: ~nn/ loo'a E9ust 5-32 L GL6G6SG8se as:,t 9aaG',a'^~A . . 12. The City shall pay Consuhant fot the cost of out of pocket expenses incurred by the Consultant in the performance of services pursuant to this Amendment to Agreement between the City ofChula Vista and TRC Real Estate Advisor.! DSA. Sullivan Group Real Estate Advisors for Market Absorption Services for the Fotmation of Community Facilities Districts within the City ofChula Vista Pursuant to the Mello- Roos Community Facilities Act of 1982 in an Amount not to exceed $500.00 per District. AII other terms and provisions of the Agrc=ent remain in full force and effect. IN WUNESS WHEREOF, City and Consultant have executed this Amendment to the Agreement indicating that they have read and understood all the provisions of the Amendment to the Agreement, and indicate their full and complete consent to its terms: CITY OF CHULA VISTA Attest: by: Stephen C. Padilla, Mayor Susan Bigelow, City Clerk Approved as to form: Ann Moore, City Attorney Dated: . The Sullivan Group Real Estate Advisors Sy:P~~.~ Name: p~ !::..J.:eN~~ Title: >>~"" "p. Exhibit List to Agreement (X) E,.Jribit KB_I" J:\zngineer\AGENDA\AgrBsman~.\Sullivan Group-~.t Amandment.doc 5-33 ...,.,,., I """''''''':: C'O ,"co,", 7i~7~C70ca nC~C'T ann7'C'n"XWW -~ . Exhibit 'B-1' Project Milestone/Phase Fee for Phase Receipt No. (See Section 8, Scope of Work) Otay Ranch Village 7, Deliverable I (Draft Absorption $7,500 McMillin Company Report) Deliverable 2 (Final Absorption $7,500 Report) Otay Ranch Village 7, Deliverable I (Draft Absorption $7,500 Otay Ranch Company Report) Deliverable 2 (Final Absorption $7,500 Report) Total $30,000 5-34 COUNCIL AGENDA STATEMENT ; Item f~ Meeting Date OS/09/06 ITEM TITLE: Resolution approving a parcel map for the Village Walk at Eastlake Proj ect. Acting Director OfEngineering~~. Director of Planning and Buildin /.(/ City Manager // {...-L Pi!. (4/S'h'Vote:Yes:_No:l) SUBMITTED BY: REVIEWED BY: On September 2005, the Design Review Committee (DRC) approved the Eastlake Village Walk at the southern comer of Eastlake Parkway and Miller Drive that consists of 13.3 acres of commercial land. Due to the irregular shape of the site, the proposed structures encroach within an existing sidewalk easement along Eastlake Parkway. However, this sidewalk easement is no longer needed, since the sidewalk will be located completely within the existing right-of-way. Approval of the parcel map will abandon this sidewalk easement. RECOMMENDATION: That Council adopt a resolution approving the parcel map for the Village Walk at Eastlake Project. BOARDS/COMMISSIONS RECOMMENDATIONS: Not applicable. DISCUSSION: The Village Walk at Eastlake ("Village Walk") Project is a 13.3-acre commercial site, located at the southern comer of Eastlake Parkway and Miller Drive (see Exhibit "A"). The site consists of portion of Parcel I and Parcels 2, 3, 4, 5, "A", and "B" of Parcel Map No. 19489 (see Exhibit "B"). In November 1987, per Document No. 87-620941 (see Attachment I), Eastlake Development Company, the original owner of the land, granted to the City ofChula Vista an easement for sidewalk purposes located at the westerly side of Eastlake Parkway starting from Otay Lakes Road and ending adjacent to the future State Route 125 ("SR- 125"). The intent of the sidewalk easement was to allow the sidewalk to meander along Eastlake Parkway. With the construction of SR-125 and the overpass along Eastlake Parkway, the grade separation constraints no longer physically allow for a meandering sidewalk (Per Caltrans' Plans for SR-125, L-7, Segment 3C). The owner of the site, VWE, LLC, requested the abandonment of the sidewalk easement and agreed to relocate the sidewalk within the existing right-of-way. Staff concurs that (;; -I Page 2, Item Meeting Date & 05/09/06 the sidewalk easement is no longer necessary and recommends approval of the parcel map. The abandonment of this easement is being made pursuant to Government Code Section 66499.20Yz. FISCAL IMPACT: The costs related to the processing of the request for approval of the parcel map and the abandonment of the sidewalk easement are being paid by the Developer. Exhibit "A": Site of Village Walk at Eastlake Project Exhibit "8": Sheet 3 of Parcel Map No. 19489, showing the existing easement for sidewalk granted to the City ofChula Vista on November 4, 1987 as File No. 87-620941 of Official Records. Attachment 1: Grant of Easement for Sidewalk Purposes, Document No. 87-620941. 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''\ t,~ .-ti~:;", ~ 'i ~:--------;'--;:;~;;~--:;;;;;;~:;~~' ~__~>-:'''~,;/'/' ~':rF- ~;~~~~;~'::.:~":'"''- __u ~\ -j, - ,- "'l' :; k;-~ "'-""'--' '''-'t''~;'~:&'C-r-^';.-:_~>,' }~ ~ -. % 1" "'''', "..." ,: ", , I., I' I , j, I) "~I I t". \~ . ,<.. t~ , ,Co ~ \<;: ~ ~ll \ ~~, \. <0 \ ~ \~ ' "' " 1\- ,,____- ____-~:c!c-'~i/- _/ . ::;..~'- , , , it W i ,I " .5t~1 ." o',':i~r 1;.':- !~'.. /irf t'.~ \ l:z ~,:~,\,;} .. , o . . o ^ . " - ~ ~ iI :1 " a ~ t;; J:I ~ t:; "- I , I I ~I ~~ II" ,. :i Igf ~ !j~ h~ ~II~ :I; j: :t J:I!:~ ~ ~i!~ it ~EeORDlblG REQU~!;fW ,.~v . oND MAll TO: . .''':';.2073 ~~ i .AtTACHMENT 1 62094/ /f' .",.~ V'~'/ "/ l'~j I :.. r:.,:~'1 c:~ ~ " ~ lc:::: :c-;. r- ! ,.- : ;.:->:; : [.. '~. (,; , I I i I:' .- " " -" C . / /0 ! - t- o-' /< ............... //).l -::' A ~ / - . t' 'J ~~"/ <. '..... -~-L' !S:Ji ~:av -l~ ~!111: 42 I,Y'~i .\ 1..1.1 J 1-" I GRANT OF EASEMENT - FOR SIDEWALK PURPO~UNi Y iilUi"IJf~ FOR A VALUABLE CONSIDERATION, receipt of which is hereb~ acknowledged, the undersigned dO/does hereby grant to the City of ChulaYOF~ Vista, in the County of San Diego, State of California, an easement and right-of-way for, and the right to construct, replace, remove, or modify a public sidewalk in, upon, over and across that certain real property situated in the City of Chula Vista, County of San Diego, State of California, and more particularly described as follows: (See Attached Legal Description) together with the right to enter upon and to pass and repass over and _ along said easement and right-of-way and to deposit tools, implements and other materials thereon by said City of Chula Vista, its officers, agents and employees and by any contractor, his agents and employees engaged by said City, whenever and wherever necessary for the purposes above set forth. WITNESS , . " ( I hand , ' ,7 this /~;',L-/iday of (. /... I. " " /. ~- / 1987. /- EASTLAKE DEVELOPMENT GENERAL PARTNtfSHIP BY: DAVID j" INC., GENER PARTN COMP~NY, A CALIFORNIA A CALIFORNIA CORPORATION, BY: BY: BY: A CALIFORNIA CORPORATION, BY: BY: I ~ ,,:. (' I rb-5 . ". 2074 STATE OF CALIFORNIA COUNTY OF SAN DIEGO ] ] $S, ] '.r F/ On this / / day of ." /, I ...., ,',' T ,1987, b.f.... ,", tho IJIIdlrsi!..., a Notary Public i. a.. f... said Slat., ""slHlillly ap,..ai'vtl DKI 5I'IIfbS,/JIII!'5o.aIlY u... 10 .. ... """"" to II .. till Dosis of satisfact...y ..idl.c. I. be ","_porsOR .ho .IKul.. tho .ithi. i.struunt as tho Vito Prosid..t of IJAIIIEl V, DC., a Calif....ia corporalion, a part.... of EA5Ilfi(E IaElIFIEIIT COii'iiHf, the part1llll'ship thai exacut.d tho .ilhi. ioslr.....t, aid ad...I..!ed "'.. that 511Ch corporali.. fXlCUl.d tho sa.. as such parta.r a.d that such partoorship IXacubd tho sa... WI~ II' hald aid officia! 51111. . e' KATHlEENA.ARNOlD '4(.41~:' I ' I , ,/ '/.,'I' fIII1....PVIUC.cu_ PfttNCIPAlOFfllCEIIt SAN OIECIOCOUHn' .,r-_14$n1.11t1t ~ STATE OF CALIFORNIA ] ] 55, COUNTY OF SAN DIEGO ) III tbiSr/'?tl"da~ ~'~d"r' (,' { ,1987,.fan! _, tho UldIII'Si,.ed, a llatary Public i. lid far said Stab, ,.,.slHlill y appoared I I" porSOlaI y knOll to II or pr.... to II .. tho basis of satisfact...y ..id..co to be tho plll'soallho ...cuted tho .ithi. i.slr....t as tho Vico Prosidnt of DAVm V, PIC., a Calif....ia carporati.., a ,arl.... of EASTlME IaElII'IEIIT CIIfINIT, tho part.lII'ship that .xecubd tho .i Ihi. i.slr_.t, alii ach..led!ed to _ thai such c...poratiaa ,xICutlll tho 5aIII as such part.... a.d lhat such parl.~ .xICul.. tho sa... M IY ha.. a.d officjal sNI~ v....'jCIAl5~L i~ " / (' ,I, ~./ ,( .' . KATHlEEN A. ARNOLD "'~.. < I I . I (,' ,r. ., , ' IIRAI'-":,~ ary "bllt --.. ... SAN DlfGO COUNTY . ,. ~ 13 ;'.:J/ ---~- . b-b . v. 207:) EASTLAKE PARKWAY SIDEWALK EASEM;.,~T DEDICATION Being a portion of Parcel 2 in the City of Chula Vista, County of San Diego, State of California, according to Parcel Map No. 13883, as filed in the office of the County Recorder of the County of San Diego, said portion more particularly described as follows: Parcel 'B' Beginning at the most Westerly corner of Chula Vista Tract No. 84-7, Unit No.1, Map No. 11509, filed in the office of the County Recorder of said County of San Diego, said point also being on the Westerly Right of Way of Eastlake parkway as dedicated on said Map No. 11509, said point also being on a 1200.00 foot radius curve concave Southwesterly, thence Southeasterly along the arc of said curve through a central angle of 53"01'03" a distance of 1110.40 feet, thence South 14"23'42" East 412.56 feet to the beginning of a tangent 2050.00 foot radius curve concave Northeasterly, thence Southeasterly along the arc of said curve through a central angle of 03"26'27" a distance of 123.11 feet to the beginning of a reverse 170.00 foot radius curve concave Southwesterly, thence Southeasterly along the arc of said reverse curve through a central angle of 07"19'42" a distance of 21.74 feet, thence South 10"30'27" East 39.98 feet, to the beginning of a tangent 190.00 foot radius curve concave Northeasterly, thence Southeasterly along the arc of said curve through a central angle of 09"57'05" a distance of 33.00 feet to the beginning of a compound 2060.00 foot radius curve concave Northeasterly, thence Southeasterly along the arc of said compound curve through a central angle of 03"45'11" a distance of 134.94 feet, thence South 24"12'43" East 18.99 feet to the beginning of a tangent 20.00 foot radius curve concave Northwesterly, thence Southwesterly along the arc of said curve through a central angle of 90"00'00" a distance of 31.42 feet to a point on the Northerly Right of Way of Otay Lakes Road as dedicated on said Map No. 13883, thence leaving said Northerly Right of Way North 24"12'43" West 10.00 feet to the beginning of a non-tangent 10.00 foot radius curve concave Southwesterly a radial line to said beginning bears South 24"12'43" East, thence Northeasterly along the arc of said curve through a central angle of 90"00'00" a distance of 15.71 feet, thence North 24"12'43" West 18.99 feet to the beginning of a tangent 2070.00 foot radius curve concave Northeasterly; thence Northwesterly along the arc of said curve through a central angle of 03"45'11" a distance of 135.59 feet, to the beginning of a compound 200.00 foot radius curve concave Northeasterly, thence Northwesterly along the arc of said compound curve through a central angle of 09"57'05" a distance of 34.74 feet; thence North 10"30'27" West 39.98 feet to the beginning of a tangent 160.00 foot radius curve concave -} '"\.... I I -' <?' , -,.-, --.. .-.-.----. ~~-7 . V'~ 2076 Southwesterly; thence Northwesterly along the arc of said curve through a central angle of 07019'42" a distance of 20.46 feet to the beginning of a reverse 2060.00 foot radius curve concave Northeasterly: thence Northwesterly along the arc of said reverse curve through a central angle of 03026'27" a distance of 123.71 feet; thence North 14023'42" West 412.56 feet to the beginning of a tangent 1190.00 foot radius curve concave Southwesterly; thence Northwesterly along the arc of said curve through a central angle of 90045'47" a distance of 1885.10 feet; thence South 74050'31" West 38.01 feet; thence North 15009'29" West 10.00 feet; thence North 74050'31" East 38.01 feet to the beginning of a tangent 1200.00 foot radius curve concave Southerly; thence Easterly along the arc of said curve through a central angle of 37044'44" a distance of 790.54 feet to the point of Beginning. - e,J ,f / , d...---.. to -/ ., . . RESOLUTION NO. 2006- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A PARCEL MAP FOR THE VILLAGE WALK AT EASTLAKE PROJECT WHEREAS, the Village Walk at Eastlake ("Village Walk") Project is a 13.3-acre commercial site, located at the southern corner of Eastlake Parkway and Miller Drive. The site consists of portion of Parcel I and Parcels 2,3,4,5, "A", and "B" of Parcel Map No. 19489; and, WHEREAS, on November 1987, per Document No. 87-620941, Eastlake Development Company, the original owner of the land, granted to the City ofChula Vista an easement for sidewalk purposes located at the westerly side of Eastlake Parkway starting from Otay Lakes Road and ending adjacent to the future State Route 125 ("SR- 125"). The intent of the sidewalk easement was to allow the sidewalk to meander along East1ake Parkway; and, WHEREAS, with the construction of SR-125 and the overpass along Eastlake Parkway, the grade separation constraints no longer physically allow for a meandering sidewalk; and, WHEREAS, the owner of the site, VWE, LLC, has requested the abandonment of the sidewalk easement and has agreed to relocate the sidewalk within the existing right of way; and, WHEREAS, City staff is recommending the approval of the parcel map for the Village Walk at East1ake and the abandonment of the sidewalk easement encumbering mentioned site. NOW, THEREFORE, BE IT RESOLVED, that the sidewalk easement described in Document No. 87-620941 encumbering a portion of Parcel 1 and Parcels 2, 3, 4, 5, "A", and "B" of Parcel Map No. 19489 (also known as the Village Walk at East1ake) is no longer necessary and that the abandonment of said easement complies with the Subdivision Map Act, Section 66499.20Yz. BE IT FURTHER RESOLVED, that the City Council of the City of Chula Vista approves the parcel map for the Village Walk at Eastlake project and the City Clerk is authorized and directed to endorse upon said parcel map and that abovementioned sidewalk easement is abandon as stated in this resolution. ~-q Resolution No. 2006- Page 2 BE IT FURTHER RESOLVED that the Resolution shall not become effective unless and until the filing of the Parcel Map. . Presented by Approved as to form by . Leah Browder Acting Director of Engineering ~ Ann Moore {~City Attome J:\Engineer\LANDDEV\Projects\Eastlake VCN\Village Walk @ Eastlake\Resolution_ Village Walk @ Eastlake.doc WO #. EP334 (:; ~/ 0 COUNCIL AGENDA STATEMENT Item: Meeting Date: -7 , 5/9/06 ITEM TITLE: RESOLUTION TRANSFERRING UNCLAIMED MONIES IN THE AMOUNT OF $38,489 FROM THE CASH BOND DEPOSIT FUND TO THE GENERAL FUND, REVIEWED BY: Chief of pOlicen , ~ rJ .YK City Manager ,I y' (4/5ths Vote: Yes_ NoXJ SUBMITTED BY: The City currently has unclaimed monies in the Cash Bond Deposit Fund. These monies were deposited by the Police Department in accordance with Government Code sections 50050 et seq. According to Government Code section 50050, money that remains unclaimed for three years may become the property of the City after certain notice requirements are met. RECOMMENDATION: That Council adopts the resolution transferring unclaimed monies in the amount of $38,489 from the Cash Bond Deposit Fund to the General Fund. BOARDS/COMMISSIONS RECOMMENDATION: N/A DISCUSSION: Monies deposited into the Cash Bond Deposit Fund primarily include cash confiscated during arrests that has remained unclaimed. Pursuant to Government Code section 50050, money that remains unclaimed for three years may become the property of the City after certain notice requirements are met. Government Code Section 50052 provides that if no claim is made for the monies after proper notification as required by Government Code section 50050, the unclaimed money may become the property of the City on a designated date not less than 45 days nor more than 60 days after the first publication of the notice. The City gave public notice of the unclaimed monies in the Star News on March 10 and 17,2006. The amount of $38,489 is now eligible for transfer to the General Fund. FISCAL IMPACT: This transfer will result in $38,489 of revenues into the General Fund. 7-/ RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA TRANSFERRING UNCLAIMED MONIES IN THE AMOUNT OF $38,489 FROM THE CASH BOND DEPOSIT FUND TO THE GENERAL FUND. WHEREAS, the City currently has unclaimed monies in the amount of $38,489 in the Cash Bond Deposit Fund; and WHEREAS, these unclaimed monies primarily includes cash confiscated during arrests that remained unclaimed for over three years; and WHEREAS, according to Government Code Section 50050, money that remains unclaimed for three years may become the property of the City after certain notice requirements are met; and WHEREAS, Government Code Section 50051 states that the unclaimed money may become the property of the City on a designated date not less than 45 days nor more than 60 days after the first publication of the notice; and WHEREAS, the City gave public notice of these unclaimed monies in the Star News on March 10 and 17,2006; and WHEREAS, the amount of $38,489 is now eligible for transfer to the General Fund. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve the transfer of unclaimed monies in the amount of $38,489 from the Cash Bond Deposit Fund to the General Fund. Approved as to form by: Ri ard P. Emerson Police Chief '.~'Lh * Y -[, l ~ Ann Moore City Attorney 7-2 COUNCIL AGENDA STATEMENT Item: Meeting Date: Y: 05/09/2006 ITEM TITLE: RESOLUTION ACCEPTING $10,722 FROM SWEETWATER UNION HIGH SCHOOL DISTRICT FOR PARTICIPATION IN EMERGENCY RESPONSE AND CRISIS MANAGEMENT EXERCISES AND APPROPRIATING $4,395 TO PERSONNEL SERVICES AND $6,327 TO SUPPLIES AND SERVICES IN THE FY06 POLICE DEPARTMENT BUDGET BASED UPON UNANTICIPATED REVENUES. r) _ Chief of PoliceL__ // )('1 R City Manager 'j! ;\F'- V (4/5ths Vote: YeslLNo _) SUBMITTED BY: REVIEWED BY: The Sweetwater Union High School District received a grant for Emergency Response and Crisis Management. The Police Department participated in training exercises with the Sweetwater Union High School District to prepare for incidents involving weapons of mass destruction, an earthquake, active shooter(s), a fire or a terrorist act. These training exercises helped familiarize both organizations with each other's methods and procedures to deal with these emergency events. The department will receive $10,722 reimbursement for staff time and equipment costs associated with this training. RECOMMENDATION: That Council accepts $10,722 from Sweetwater Union High School District for participation in emergency response and crisis management exercises and appropriating $4,395 to personnel services and $6,327 to supplies and services in the FY06 police department budget based upon unanticipated revenues. BOARDS/COMMISSIONS RECOMMENDATION: N/A DISCUSSION: The Sweetwater Union High School District was awarded the Emergency Response Crisis Management Grant. The Emergency Response and Crisis Management grant calls for Sweetwater Union High School District administrators, staff and students to train with public safety personnel in a crisis situation. 8-1 During the first phase of simulated active shooter scenarios, administrators, staff and students rehearsed lockdown procedures while School Resource Officers responded to the emergency crisis. School Resource Officers engaged and removed all threats. School Resource Officers used and evaluated new safety equipment in the process of evacuating injured students to a triage area. Chula Vista Fire and the American Medical Response provided simulated first aid and emergency transports to local hospitals. Once injured students were evacuated, students on lock down carried out evacuation procedures and walked orderly to a pre-designated "Safe Zone" for parental reunification. Parents arriving to pick up their children after school were directed to the "Safe Zone" area to symbolize reunification with family members. . During the second phase of this training, two armed students took over a classroom with two students and proceeded to barricade themselves while holding the students hostage. SWAT and the Crisis Negotiations Team were called out to negotiate with the barricaded suspects. During this scenario, SWAT and the Crisis Negotiations Team exercised multiple hostage and suspect surrenders. Eastlake High School Theater Arts participated and simulated students who were running frantic, scared and confused. Forensic students processed the crime scene for evidence. All entities debriefed to assess improving safety procedures, multi-agency emergency responses and tactical strategies. In all, the exercise was a success and received significant news media coverage. A training video is under production that will highlight the procedures that should be followed during an incident of this nature and the lessons learned from this exercise. FISCAL IMPACT: The cost to participate in this exercise is completely offset by grant revenues resulting in no impact to the General Fund. Below is a breakdown of costs and revenue offsets: "' " Staff Overtime $4,395.00 $4,395.00 Exercise Equipment $1,439.00 $1,439.00 Video Production $3,500.00 $3,500.00 Miscellaneous Items $1,092.76 $1,092.76 Training $295.00 $295.00 TOTAL $10,722.00 $10,722.00 8-2 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $10,722 FROM SWEETWATER UNION HIGH SCHOOL DISTRICT FOR PARTICIPATION IN EMERGENCY RESPONSE AND CRISIS MANAGEMENT EXERCISES AND APPROPRIATING $4,395 TO PERSONNEL SERVICES AND $6,327 TO SUPPLIES AND SERVICES IN THE FY06 POLICE DEPARTMENT BUDGET BASED UPON UNANTICIPATED REVENUES. WHEREAS, the Police Department in cooperation with the Sweetwater Union High School District, Chula Vista Fire Department and American Medical Response, participated in an exercise which simulated an "active shooter" scenario at a local high school; and WHEREAS, the Sweetwater Union High School District had received grant funding to offset the full costs of holding the training exercise; and WHEREAS, a portion of the grant funds were designated to offset the staff costs, equipment costs and the cost to produce a training video based on the event which will be used throughout the school district to train teachers, staff and emergency service personnel; and WHEREAS, the Chula Vista Police Department received reimbursement for expenses to participate in the event in the amount of $10,722 from Sweetwater Union High School District. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby accept $10,722 from the Sweetwater Union High School District for participation in Emergency Response and Crisis Management exercises and appropriate $6,327 to FY 2006 Police Department Supplies and Services budget and $4,395 to the Personnel Services budget. by: Approved as to form by: ichard P. Emerson Police Chief 'h\}.'j ~\\ \\\u.fr& \\ 'Ann Moore City Attorney 8-3 COUNCIL AGENDA STATEMENT Item: 0) Meeting Date: 5/9/06 ITEM TITLE: PUBLIC HEARING: TO NOTICE ACCEPTANCE AND APPROPRIATION OF FY 2005/2006 STATE COPS SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND. RESOLUTION ACCEPTING $313,889 FROM THE STATE COPS SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND AND APPROPRIATING FUNDS THEREFORE. REVIEWED BY: Chief of pOliceV City Manager {~]7~ (4/5ths Vote: YeslLNo _) SUBMITTED BY: The Police Department has been awarded $313,889 through the Supplemental Law Enforcement Services Fund (SLESF). These state funds were allocated to the Police Department for purposes required by the Citizens' Option for Public Safety (COPS) Program. Acceptance and appropriation of these funds requires a public hearing per stipulations of the State COPS Program. RECOMMENDATION: That Council: . Conduct the public hearing and accept $313,889 from the state COPS Supplemental Law Enforcement Services Fund; . Appropriate said $313,889 to the SLESF grant fund; · Appropriate $313,889 to the fiscal year 2006 Police Department Personnel Services and Supplies & Services budget as a reimbursement from the SLESF grant fund. BOARDS/COMMISSIONS RECOMMENDATION: The state appropriation requires a Regional Oversight Committee's approval of the funds prior to disbursement. In accordance, the Supplemental Law Enforcement Oversight Committee (SLEOC) was established in San Diego County. The Committee is comprised of the County of San Diego Sheriff, the County of San Diego CAO, a regional City Manager and the District Attorney. The Committee will review the City of Chula Vista's expenditure plan upon approval by the Council of the City of Chula Vista. 9-1 . Page 2,ltem: Meeting Date: I 5/9/06 BACKGROUND: During FY 1996/1997, the state appropriated funds for local law enforcement services per AS 3229, Chapter 134, Statutes of 1996. In accordance with this Legislation, the state has appropriated funds annually to local law enforcement agencies. The City of Chula Vista's proportionate share of these funds for FY 2005/2006 is $313,889. These funds are to be deposited in the City's Supplemental Law Enforcement Services Fund (SLESF Grant Fund) and used for law enforcement personnel and equipment needs as prescribed by the original legislation (AS 3229). These funds must be used to supplement existing funds and cannot replace, or supplant, funds that have already been appropriated for the same purpose. A twenty-five percent (25%) in-kind contribution is required for these funds. The in-kind contribution will be staff time associated with procurement of equipment and training of personnel. The allocation of future funds is subject to annual state budget deliberations. DISCUSSION: The Police Department recommends using the Supplemental Law Enforcement Services Fund (SLESF) for personnel and supplies costs related to the expansion of police services, as stipulated by the Citizens' Option for Public Safety (COPS) Program. The Department proposes to use $300,000 of the funds for personnel overtime and PERS retirement costs. This appropriation is in conjunction with the adjustments requested during the March 28 Council meeting. The Department requested an initial appropriation of $1,700,000 on March 28, with a note that SLESF funds will also be used to address the personnel overage and minimize the impact to the General Fund. The Department is now requesting to approve an additional $300,000 in overtime and retirement costs to completely align with actual usage. The remaining $13,889 of the SLESF funds will be used to purchase safety equipment to meet the operational needs of the Police Department. As the City continues to grow, additional resources are needed to provide the continued level of quality service to the community. FISCAL IMPACT: There is no net impact to the General Fund. Acceptance of the grant will result in an appropriation of $313,889 to the fiscal year 2006 Police Department budget, which will be used for personnel costs and police safety equipment. 9-2 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $313,889 FROM THE STATE COPS SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND AND APPROPRIATING FUNDS THEREFORE. WHEREAS, the Police Department has been awarded $313,889 through the Supplemental Law Enforcement Services Fund; and WHEREAS, these state funds were allocated to the Police Department for purposes required by the Citizen's Option for Public Safety Program; and WHEREAS, the City Council held a public hearing on May 9, 2006, to notice use of the state COPS Supplemental Law Enforcement Services Fund in the amount of $313,889 for personnel and supplies costs related to the expansion of police services; and WHEREAS, $300,000 will be appropriated to the fiscal year 2006 Police Department Personnel Services budget as a reimbursement from the SLESF grant; and WHEREAS, the remaining $13,889 will be appropriated to the fiscal year 2006 Police Department Supplies and Services budget as a reimbursement from the SLESF grant. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby accept $313,889 from the state COPS Supplemental Law Enforcement Services Fund, appropriate said funds to the SLESF grant fund, and appropriate $313,889 to the fiscal year 2006 Police Department budget as a reimbursement from the SLESF grant fund. Dc~ Richard P. Emerson Police Chief Approved as to form by: ~~~ Ann Moore /~ City Attorney 9-3 COUNCIL REPORT ITEM 1.- MEETING DATE: Mav 9,2006 ITEM TITLE: Report updating the City Council on the City's efforts to develop new park facilities throughout the City Director of General Services ~~. Director of Public W~erations Director ofRecreatio~ , City Manager f~ PK (4/5ths Vote: YES_NO L) SUBMITTED BY: REVIEWED BY: RECOMMENDATION: That Council accept the report, BOARD/COMMISSION RECOMMENDATION: N/A DISCUSSION: In the fall of 2002, the City Manager provided what was then called the Office of Building and Park Construction a simple direction, That direction was "Get parks built", Since that time, the Office of Building and Parks Construction, its successor, the General Services Department, the Public Works Operations Department and the Recreation Department have focused their efforts on the largest park development period that the City has ever seen, In addition to the three core departments, virtually every other department in the City has participated to some extent in this unprecedented park development program. Shortly after the above direction, the City determined to move away from the "turn key" method of park design and construction and to take on that effort itself. The turn key process involved the development community actually contracting for all portions of the project and turning the park over to the City when the park was complete. This methodology was varied in its level of success. City staff believed after a few turn key projects were completed that the City's internal designlbuild process was worth trying with respect to the parks, especially in light of the major recreational facilities that were being sited in three of the city's new parks. In early 2003, the City notified the affected developers that the City henceforward would be undertaking all elements of the new park developments with the exception of five parks that were then already started under the turn key method. This change applied to all four of the major community parks as well as the three recreational facilities and future neighborhood parks. The following provides a list of projects undertaken, the important milestones for each and their current status. 10-1 Veterans Park Type of Park: Location/Development: Master Plan Approved: Design Build Contract Approved: GMP Established: Project Completed: Project Cost: Acreage: Buildings: Special Features: Funding Sources: Salt Creek Park Type of Park: Location/Development: Master Plan Approved: Design Build Contract Approved: GMP Established: Project Completed: Project Cost: Acreage: Buildings: Special Features: Funding Sources: Montevalle Park Type of Park: Location/Development: Master Plan Approved: Design Build Contract Approved: GMP Established: Project Completed: Project Cost: Acreage: Buildings: Special Features: Funding Sources: ITEM I 0 MEETING DATE: Mav 9. 2006 CommunitylNeighborhood Sunbow December 4, 2002 May 27,2003 July 20, 2004 May 20, 2006 (Recreation center opened on 1/3/06) $8,951,564 12.0 acres 16,000 square foot recreation center, restrooms Walk of Honor, skate element, rock climbing wall PAD Fees and Public Facilities Development Impact Fees Community Eastlake Trails/Eastlake Vistas February 4, 2003 November 4, 2003 March 22, 2005 June 3, 2006 $15,518,532 24 acres 21,000 square foot recreation center, restrooms Multiple bridge structures, speed soccer rink, tennis courts PAD Fees and Public Facilities Development Impact Fees Community Rolling Hills Ranch/Eastlake Woods January 21,2003 December 16, 2003 March 22, 2005 June 10,2006 $14,762,800 29 acres 21,000 square foot recreation center, restrooms Universally accessible playground, off-leash dog area PAD Fees and Public Facilities Development Impact Fees 10-2 Mountain Hawk Park Type of Park: LocationlDevelopment; Master Plan Approved: Design Build Contract Approved: GMP Established: Project Completed: Proj ect Cost: Acreage: Buildings: Special Features: Funding Sources: Harborside Park Type of Park: LocationlDevelopment: Master Plan Approved: Design Build Contract Approved: GMP Established: Project Completed: Project Cost: Acreage: Buildings: Special Features: Funding Sources: Mount Mi!!Uel Park Type of Park: LocationlDevelopment: Master Plan Approved: Design Build Contract Approved: GMP Established: Project Completed: Project Cost: Acreage: Buildings: Special Features: Funding Sources: ITEM \0 MEETING DATE: Mav 9, 2006 Neighborhood Eastlake Vistas February 10, 2004 July 13, 2005 April 12, 2005 June 3, 2006 $4,320,330 13 acres Restrooms Amphitheatre, water element, integrated children's story. PAD Fees Neighborhood Oxford Street April 20, 2004 October 5,2004 May 17, 2005 April 29, 2006 $4,300,000 (includes $2.2 million to acquire property) 5.2 Restrooms Outdoor classroom, first new park in western CV in 25 years. Western Chula Vista Infrastructure Financing Program Community San Miguel Ranch February 10, 2004 Expected in June 2006 Expected in January 2007 Expected in April of2008 $6,235,000 (estimate) 19 acres Restrooms, Scorekeeper Three field softball wheel, connection to regional trail PAD Fees 10-3 Santa Venetia Park Type of Park: LocationlDevelopment: Master Plan Approved: Design Build Contract Approved: GMP Established: Project Completed: Proj ect Cost: Acreage: Buildings: Special Features: Funding Sources: Windinl! Walk Park Type of Park: LocationlDevelopment: Master Plan Approved: Design Build Contract Approved: GMP Established: Project Completed: Project Cost: Acreage: Buildings: Special Features: Funding Sources: Horizon Park Type of Park: LocationlDevelopment: Master Plan Approved: Design Build Contract Approved: GMP Established: Project Completed: Proj ect Cost: Acreage: Buildings: Special Features: Funding Sources: ITEM \0 MEETING DATE: Mav 9. 2006 Neighborhood Otay Ranch Village 6 May 27, 2003 N/A (Developer Turn Key) N/ A (Developer Turn Key) May 2005 $2,616,870 7.0 acres Restroom Alternative playground equipment, skate element PAD Fees Neighborhood Otay Ranch Village Eleven July 22, 2003 N/A (Developer Turn Key) N/ A (Developer Turn Key) Expected by September of 2006 $2,300,000 7.0 acres Restroom Skate element, tennis court, adjoins elementary school PAD Fees Neighborhood Otay Ranch Village One West June 17,2003 N/ A (Developer Turn Key) N/A (Developer Turn Key) Expected by September of2006 $1,500,000 5.3 acres Restrooms Adjoins elementary school, council nng with poetry embedded in concrete PAD Fees 10-4 -=-- Harvest Park Type of Park: LocationlDevelopment: Master Plan Approved: Design Build Contract Approved: GMP Established: Project Completed: Proj ect Cost: Acreage: Buildings: Funding Sources: Santa Cora Park Type of Park: LocationlDevelopment: Master Plan Approved: Design Build Contract Approved: GMP Established: Project Completed: Project Cost: Acreage: Buildings: Special Features: Funding Sources: Sunset View Park Type of Park: LocationlDevelopment: Master Plan Approved: Design Build Contract Approved: GMP Established: Project Completed: Proj ect Cost: Acreage: Buildings: Special Features: Funding Sources: ITEM ID MEETING DATE: Mav 9. 2006 Neighborhood Otay Ranch Village One December 4, 2001 N/A (Developer Turn Key) N/A (Developer Turn Key) March 2004 $1,390,000 6.8 acres Restrooms, Full size multi -purpose field PAD Fees Neighborhood Otay Ranch Village Five December 15, 1998 N/ A (Developer Turn Key) N/ A (Developer Turn Key) December 4, 2003 $1,383,800 5.7 acres None Play slope, tennis and basketball courts PAD Fees Neighborhood Eastlake Greens May I, 2001 N/A (Developer Turn Key) N/A (Developer Turn Key) March 2005 $4,133,410 10.0 acres Restrooms Roller Hockey Rink, Subterranean Water Tanks PAD Fees 10-5 ITEM 10 MEETING DATE: Mav 9. 2006 SUMMARY Location/ Cost (in Recreation Park Acreage Facility Square Development millions) Foota e Veterans Sunbow 12.0 $8.9 Salt Creek Eastlake Trails 24.0 $15.5 MontevalIe Rollin Hills Ranch 29.0 $14.8 Harborside Oxford Street 5.2 $4.3 Mountain Hawk Eastlake Vistas 13.0 $4.3 Mount San Mi uel San Mi uel Ranch 19.0 $6.2 est. Santa Venetia Ota Ranch Villa e 6 7.0 $2.6 Windin Walk Ota Ranch Villa e 11 7.0 $2.3 Horizon Ota Ranch Villa e 1 West 5.3 $1.5 Harvest Ota Ranch Villa e 1 6.8 $1.4 Santa Cora Ota Ranch Villa e 5 5.7 $1.4 Sunset View Eastlake Greens 10.0 $4.1 As the departments responsible for carrying out the clear direction provided, we are very proud of the efforts that our staffs have given to these projects. We would also like to recognize the significant efforts and assistance that were provided by our Design Build Teams and the developers. The Design Builders we have partnered with on our projects include Rudolph and Sletten, Inc., Erickson-Hall Construction Co., PCL Construction Services, Inc. and Douglas E. Barnhart, Inc. The developers that have worked with us or delivered the turn key projects include the Otay Ranch Company, the Eastlake Company, Brookfield-Shea, the McMillin Company, and Proctor Valley West Partners. FISCAL IMPACT: N/A M:\General Services\GS Administration\Council Agenda\Park Development Report\Parks development report jg 424.doc 10-6 Item II Meeting Date 05-09-06 COUNCIL AGENDA STATEMENT ITEM TITLE: Resolution ofthe City Council of the City ofChula Vista, acting in its capacity as the legislative body of Community Facilities District No. 07-1 (Otay Ranch Village Eleven), authorizing and providing for the issuance of the second series of bonds of such Community Facilities District, Approving the Form of the First Supplemental Bond Indenture, Bond Purchase Agreement, Preliminary Official Statement and other documents related to the issuance of the bonds and authorizing certain actions in connection with the issuance of such bonds. SUBMITTED BY: Acting Director ofEngineering~ Director of Finance [yL / 1;7 fi/ City Manager jt ./,"'- f 1\ (4/5ths Vote: Yes_NolO REVIEWED BY: On November 11, 2003 the City Council held the public hearing to consider forming and establishing Community Facilities District No. 07-1 (CFD-07-1). Following the public hearing, the City Council adopted Resolution No. 2003-461 forming and establishing CFD-07 - I for the purpose of providing for the financing and acquisition for certain authorized public facilities. The City Council also adopted Resolution No. 2003-462 determining the necessity for CFD-07-1 to incur a bonded indebtedness not to exceed $45,000,000 and calling a special election to submit separate propositions to the qualified electors of CFD-07-1 to authorize the levy of special taxes within this district, to authorize the district to incur a bonded indebtedness and to establish an appropriations limit for the district. On November 18, 2005, City Council heard the election results, which declared that 100% of the votes cast were in favor of each of these ballot propositions. The City Council subsequently adopted Ordinance No. 2940 authorizing the levy of special taxes within CFD-07-I. On April 20, 2004 the City Council approved the Acquisition and Financing Agreement for CFD No. 07-1 and authorized the issuance of the first series ("2004 Bonds") of Special Tax bonds for CFD No. 07-1. The 2004 Bonds were issued in the aggregate principal amount of $28,050,000 on May 20, 2004 of which $24,053,253 was allocated to pay the costs to acquire or construct authorized public improvements. To date approximately 60% of 2004 Bonds construction proceeds have been reimbursed to Brookfield Shea for eligible public facilities or set aside to finance the construction of traffic enhancement improvements, TDIF improvements or PFDIF improvements. Tonight, Council will consider the authorization of the issuance of the second series ("2006 Bonds") of special tax bonds for CFD-07-1 in an aggregate principal amount not to exceed $16,845,000 and the approval of the form for certain documents related to the issuance of the bonds including a First Supplemental Bond Indenture, Bond Purchase Agreement and Preliminary Official Statement. 11-1 Page 2, Item--1L Meeting Date 5-09-06 RECOMMENDATION: That Council: . . Adopt the Resolution authorizing the issuance of the 2006 Bonds, approving the form of the First Supplemental Bond Indenture, Bond Purchase Agreement, Preliminary Official Statement and other documents for Community Facilities District No. 07-1 and authorizing certain actions in connection therewith. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: Backe:round . As noted previously this second series of bonds is the last piece ofthe overall financing strategy for Brookfield Shea - Otay Ranch Village Eleven. With the maximum authorization set at $45 million, this second bond sale is currently capped at $16.9 million which is expected to be used as follows: $4.4 million is slated to be reimbursed to the developer for eligible public facilities, another $9.3 million to be allocated for TDIF Fees facilities, $1.2 million in non-impact fee related facilities and the remaining for the funding of the reserve fund for the 2006 Bonds and the payment of costs of issuance and district administration. The reimbursable facilities are reviewed via a detailed audit program by McGill Martin Self, Inc (MMS) and the City for compliance with adopted policies. To date MMS has completed four audits for $13.7 million, which has been reimbursed to Brookfield Shea as part of the 2004 Bond proceeds. At build-out the Brookfield Shea development will consist of 25 residential planning areas built in three Phases, there will be some I, I 0 I single family detached "fee simple" units, 1,203 single family attached and detached "condominium" units, and a I O-acre mixed use site encompassing 43 attached residential units and ground floor retail commercial, four neighborhood parks, two Community Purpose Facility sites and two school sites (elementary and middle schools). To date the developers have constructed and sold some 956 single-family homes within CFD-07-1. The Mello-Roos Community Facilities Act of 1982 is a fmancing mechanism for funding the acquisition or construction of public infrastructure improvements from the proceeds of Community Facilities Districts bonds, which are repaid from an annual special tax collected from the property owner's within the district. There is no direct cost to the City. CFD-07-I is primarily an acquisition district wherein the developer constructs certain eligible public improvements and the City acquires them upon completion with funds derived solely from the sale of bonds. District Boundaries Exhibit I illustrates the boundaries ofCFD-07-1. The two major builders - Brookfield, Shea or the combined entity, Brookfield Shea Otay LLC, were the original owners of all of the parcels within CFD-07 -I. Since the formation CFD-07 -I approximately 956 homes have been sold to and are owned by individual homeowners. The developers, or members of the developers, own the remainder of the property within CFD-07 -I. The Brookfield Shea Otay Ranch Village Eleven project area is bounded 11-2 Page 3, Item \ 1 Meeting Date 5-09-06 on the south and east by Hunte Parkway, a curving arterial from south to northeast, the north edge is formed by Olympic Parkway and to the west is the extension of the Eastlake Parkway. The Improvements The developer has financed facilities with the 2004 Bonds, Phases I and II. The 2006 Bond sale would finance a portion of the remaining Phase II facilities and all of Phase ill as noted below. See Exhibit 1B for Phasing. . Hunte Parkway - Phases II and III . Eastlake Parkway - Phases II and III . Hidden Path Drive - Phase II . Windingwalk Street - Phases II and III . Discovery Falls Drive - Phases II and III . Birch Road - Phase III . Exploration Falls Drive - Phase III . Crossroads Street - Phases II and III . Otay Lakes Road Widening - East H Street to Telegraph Canyon Road In addition to the above public improvements, a portion of2004 Bond proceeds was allocated for the Telegraph Canyon Road Traffic Enhancement Project, which improved the traffic capacity approaching 1-805 from the east. Also, a portion ofthe bonding capacity will be used to pay for other eligible public facilities to be financed by any of the Development Impact Fee Programs required to be paid as a condition of approval of the development of the property within the proposed boundaries of CFD-07 - I. With the first bond sale of$28,050,000 and an estimated $16,845,000 for the second series of bonds show that the maximum tax revenue (using the proposed taxes) from all the taxable properties would support a total bonded indebtedness for both series of bonds of approximately $45 million (assuming a 5.5% interest rate and a 30-year term on the bonds). The projected principal amount of$45 million will finance approximately (for both the 2004 Bonds and 2006 Bonds) $39 million in facilities (i.e., grading, landscaping, streets, utilities, drainage, sewer, etc). The remaining $6 million will be allocated to funding the reserve fund, capitalized interest, district formation and bond issuance costs. The actual amount to be financed by CFD-07 -I would depend upon a number of factors including final interest rate on the 2006 Bonds, market conditions and the value to lien ratio. This second bond sale will be approximately $16.9 million. Special Tax Report A copy ofthe Special Tax Report, dated October I, 2003 for CFD No. 07-1 for OtayRanch Village Eleven prepared by the Special Tax Consultant, MMS, is on file, and available for public review in the City Clerk's Office. 11-3 Page 4, Item II Meeting Date 5-09-06 Value to Lien Ratio Bruce W. Hull & Associates conducted an appraisal (January 15, 2006) on the property. Exhibit2 illustrates the aggregate of the bond sales totaling $44,895,000 which will result in an overall value to lien ratio of 16.26: I which significantly exceeds the minimum aggregate 4:1 value to lien ratio criteria. . One Mixed Use (MU-I) parcel for which a final subdivision map had not been filed did not initially meet the required 4: 1 value to debt ratio. This Mixed Use property had a value to debt ratio of 2.05:1. This value to debt ratio was less than 4:1 is due to a combination of factors. The current Undeveloped Property Special Tax Rate (temporary until building pe=its are pulled) used to calculate the Special Tax applicable to this parcel prior to the issuance ofbuildingpe=its is $20,737 per acre. Upon the issuance of building pe=its for this parcel the Assigned Special Tax Rate would have been applied to this parcel and would have been approximately half of the current Undeveloped Property Special Tax Rate. Also, the appraiser did not assign a value to the residential portion ofthe Mixed Use property because no entitlements have been approved. Under the City's Goals and Policies for the use of community facility districts, a letter of credit could have been provided to enhance the property value. However, since these bonds are proposed to be issued on a parity with the 2004 special tax bonds issued for CFD 07-1, the preconditions to the issuance of such parity bonds must also be satisfied. The parity bond requirements include a requirement that each parcel within CFD 07-1 have a value to debt ratio of 4: I but does not pe=it the use of a letter of credit or other credit enhancement to cure a value to debt deficiency. In order to address this situation, Brookfield Shea has processed and recorded on April 28, 2006 Document # 2006-0300433, a consolidation plat which combines the MU-I parcel with the R-19 parcel to fo= one distinct legal parcel which will now have a value to debt ratio of 4.47:1. The resulting value to debt ratio satisfies the requirements of both the City's Goals and Policies and the preconditions to the issuance of parity bonds. Resolution There is only one resolution that, if adopted, will accomplish the following: Authorizing the issuance oflimited obligation bonds, pursuant to the Mello-Roos Act in a principal amount not to exceed $16,950,000. Tbe final bond sale amount will be known once the interest on the bonds is dete=ined at bond sale. In addition, the resolution approves the fo= ofthe following documents: . · The Preliminary Official Statement (Exhibit 3): describing the Community Facilities District and type of bonds, including te=s and conditions thereof, for the bondholders. · The First Supplemental Bond Indenture (Exhibit 4 ): between the City and the Fiscal Agent, US Bank Trust National Association, that sets forth the te=s and conditions relating to the issuance and sale of the 2006 Bonds. · The Bond Purchase Agreement (Exhibit 5): The Bond Purchase Contract authorizes the sale of bonds to the designated Underwriter (Stone & Youngberg LLC). Tbe underwriter's discount for this negotiated sale is not to exceed 1.75% of the total bond amount that 11-4 Page 5, Item Meeting Date 5-09-06 !I translates into a fee not to exceed $294.788 based on a bond issue size of not to exceed $16,950,000. . Continuing Disclosure Agreement: between the City and NBS Government Finance Group, as dissemination agent, pursuant to whom the City is required to disclose certain [mancial information on an annual basis regarding the CFD-07-1 and certain significant events. These disclosures include but are not limited to: Special tax delinquencies Bond calls Events reducing density or causing modifications Other events reflecting financial difficulties ofCFD-07-I It should be noted that Council would only be approving the form of the aforementioned documents. The proposed resolution authorizes the Director of Finance to approve the final form and to execute such documents on behalf ofthe City following review by and consultation with the City Attorney, Bond Counsel, and Financial Consultant. No additions or changes in the documents are permitted which would result in the annual interest rate on the 2006 Bonds to exceed 5.75 %. Future Actions The issuance of the 2006 Bonds is anticipated in June of 2006. The acquisition of selected public improvements will be audited only after 100% of the project is deemed complete. FISCAL IMPACT: The City's General Fund receives 1% of the bond sale amount in accordance with the CFD Policy for the use of the City's bonding capacity. The developer has deposited money to fund the finance team and consultant formation costs, and City costs in accordance with the approved Reimbursement Agreement. The City will receive the benefit of the full cost recovery for staff time involved in district formation and administration activities. Staff anticipates that most of the CFD-07-I administration will be contracted out. Attachments: Exhibit IA: Exhibit IB: Exhibit 2: Exhibit 3: Exhibit 4: Exhibit 5: Recorded Boundary Map for CFD-07-I Phasing Map Estimated Value to Lien Ratios Based on Appraisal Preliminary Official Statement for CFD-07-I First Supplemental Bond Indenture for CFD-07-I (Series "B" Bonds) Bond Purchase Agreement for CFD-07-I J:\EngineerIAGENDA\CAS2006\05-09-06\CAS CFD-07-I. WD-4-20-06(MMS 5-2-06) and WD revision. doc 11-5 ....... I ,..... o . o Z I-z o~ - w 0 O:::.....J <.9 I- ~ ~ (f) c:J ~ _ <t: rJ) u...o.....J u.<( o .....J Oz (j) fl'\ > >- a:: WV,I >- ~2 ""w <t: :J- u.. o~ CX) 0 (j) <( I- <{ g ~rJ) LL ~ ~ >-:::.::: 0 I- g ~ _ a:: u Z~ :J ~ ~ o o ~ 0>- '--u VJ- ~o:: wtn ro- :::;0 =>VJ zw~ ....IF I w~f". uuo ~ <{ . <{,--O Cl. 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'" 00 - E 4} ~ a .p 3 c (:; 00 " C "'0 =._ oUi.a 00 ~ _ 0.9 0 .c _ c a ~.~ c:: 0 ~ [;>~~ E .- ~- 00 - '" ~ 0 0 ".;::.E C'" ._ '" A 8 s.g ~ u _ ~ :: 15 ~ ~ ~ 4) S"O'o .c ~ ~ f- - - S 0 -,CIJ- C _ 0 Eo ~.- .- - "0 ~ C. c..- uo..2 ~ C ~ - ~- o c c ._ 0 .2] ~ tJ ~ "0 0.0.."'5 E.;!J ;: O.c ~ u _ ~ 0-- :: ~ ~ u {; "'" :2 i3 ~ o u 0 (I) C::.- ~ ~ .~ ~ e.::! .~ S ~ ~.~ ~ ..c "" ~ -0 o if: ~ C 0 C - ._ 4)..c '" "0 U - C 0 C:::J 00 8 ..-5 a E:.a '';::~ :::: ~ C E -; .- - C C ..a I.;; 0 C .- .- c '0 v'-'- .c"O"O ;:: 1:::-1: ~ ~ 0 c > "-' ~ ~ 2 C"O '" E'~ c:: E 'E ";;; .s o.~ CIJ E.'::: -; B ~ ._ ~ u U - ~ 1.+::CIJ ..-~ o.~ i3 CS-:S ~ O.......~ ._ 0 E ~ ~ :.=.s~ ~ ~ 00 0::5>. -~"';:: g .c ~ ~ l-.;:.o Stradling Yarra Carlson & Rauth Draft of May 3, 2006 PRELIMINARY OFFICIAL STATEMENT DATED MAY _' 2006 NEW ISSUE - BOOK-ENTRY-ONLY NO RATING In the opmion of Best Best & Krieger LLP, Bond Counsel, based on an analysis of existing laws, regulations, rulings and court decisions, and assuming, among other matters, compliance with certain covenants, interest on the 2006 Bonds is excludedfrom gross income for ftderal income tax purposes under Section 103 of the Internal Revenue Code of 1986 and is exempt from State of California personal income taxes. In the further opinion of Bond Counsel, interest on the 2006 Bonds is not a specific preference item for purposes of federal individual or corporate alternate minimum taxes, although Bond Counsel observes that such interest is included in adjusted current earnings in calculating federal corporate alternative minimum taxable income. Bond Counsel expresses no opinion regarding any other federal or state income tax consequences relating to the ownership or disposition of or the accrual or receipt of interest on, the 2006 Bonds. See "TAX MATTERS" herein. $16,845,000. CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 07-1 (OTAY RANCH VILLAGE ELEVEN) 2006 SPECIAL TAX BONDS Dated: Date of Delivery Due: September 1, as shown on the inside page The City of Chula Vista Community Facilities District No. 07"1 (Otay Ranch Village Eleven) 2006 Special Tax Bonds (the "2006 Bonds") are being issued and delivered to finance various public improvements needed to develop property located within Community Facilities District No. 07"1 (Otay Ranch Village Eleven) (the "District"). The District has been formed by and is located in the City ofChula Vista (the "City"), County of San Diego, California. The 2006 Bonds are authorized to be issued pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (Sections 53311 et seq. of the Govemment Code of the State of California), and pursuant to a Bond Indenture dated as of May I, 2004, by and between the District and U.S. Bank National Association, as fiscal agent (the "Fiscal Agent"), as supplemented and amended by the First Supplemental Bond Indenture dated as of May 1, 2006 by and between the District and the Fiscal Agent The 2006 Bonds are special, limited obligations of the District and are payable solely from revenues derived from certain annual Special Taxes (as defmed herein) to be levied on and collected from the owners of the taxable property within the District and from certain other funds pledged under the Indenture, all as further described herein. The Special Taxes are to be levied according to the rate and method of apportionment approved by the City Council of the City and the qualified electors within the District. See "SOURCES OF PAYMENT FOR THE BONDS-Rate and Method of Apportionment." The 2006 Bonds are payable on a parity with the District's 2004 Special Tax Bonds originally issued and outstanding in the aggregate amount of $28,050,000. The City Council of the City is the legislative body of the District. The 2006 Bonds are issuable in fully registered form and when issued will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York ("DTC"). Individual purchases may be made in principal amounts of $5,000 and integral multiples thereof and will be in book-entry form only. Purchasers of 2006 Bonds will not receive certificates representing their beneficial ownership ofthe 2006 Bonds but will receive credit balances on the books of their respective nominees. The 2006 Bonds will not be transferable or exchangeable except for transfer to another nominee of DTC or as otherwise described herein. Interest on the 2006 Bonds will be payable on September 1, 2006 and semiannually thereafter on each March 1 and September 1. Principal of and interest on the 2006 Bonds will be paid by the Fiscal Agent to DTC for subsequent disbursement to DTC Participants who are obligated to remit such payments to the beneficial owners of the 2006 Bonds. See "THE 2006 BONDS-Description of the 2006 Bonds" herein. Neither the faith and credit nor the taxing power of the City, the County of San Diego, the State of California or any political subdivision thereof is pledged to the payment of the 2006 Bonds. Except for the Special Taxes, no other taxes are pledged to the payment of the 2006 Bonds. The 2006 Bonds are special, limited tax obligations of the District payable solely from Net Special Taxes and other amounts held under the Indenture as more fully described herein. The 2006 Bonds are subject to optional redemption, extraordinary mandatory redemption and mandatory sinking fund redemption prior to maturity as set forth herein. See "THE 2006 BONDS-Redemption of Bonds" herein. CERTAIN EVENTS COULD AFFECT THE ABILITY OF THE DISTRICT TO PAY THE PRINCIPAL OF AND INTEREST ON THE 2006 BONDS WHEN DUE. THE PURCHASE OF THE 2006 BONDS INVOLVES SIGNIFICANT RISKS, AND THE 2006 BONDS ARE NOT SUITABLE L~ESTMENTS FOR ALL INVESTORS. SEE THE SECTION OF THIS OFFICIAL STATEMENT ENTITLED "SPECIAL RISK FACTORS" FOR A DISCUSSION OF CERTAIN RISK FACTORS THAT SHOULD BE CONSIDERED, IN ADDITION TO THE OTHER MATTERS SET FORTH HEREIN, IN EVALUATING THE INVESTMENT QUALITY OF THE 2006 BONDS. This cover page contains certain information for general reference only. It is not intended to be a summary of the security or tenns of this issue. Investors are advised to read the entire Official Statement to obtain information essential to the making of an informed investment decision. MATURITY SCHEDULE (See Inside Cover Page) The 2006 Bonds are offered when, as and if issued and accepted by the Underwriter, subject to approval as to their legality by Best Best & Krieger LLP, Bond Counsel, and subject to certain other conditions. Certain legal matters will be passed on for the City and the District by the City Attorney and for the Underwriter by Stradling Y occa Carlson & Rauth, a Professional Corporation, Newport Beach, California, as counsel to the Underwriter. It is anticipated that the 2006 Bonds in book-entry form will be available for delivery to DTC in New York, New York, on or about , 2006. Dated: Stone & Youngberg LLC ,2006. . Preliminary, subject to change. PEXHIBIT J DOCSOCIl151029v4/022245"0163 11-9 '"-. MA TURlTY SCHEDULE (Base CUSIPt ) Maturity Date (September 1) Principal Amount Interest Rate Yield Maturity Date CUSIP (September 1) Principal Anwunt Interest Rate Yield CUSIP t $ $ $ _% Term Bonds due September 1, 20_ Yield: _% - CUSIpt: % Term Bonds due September 1, 20 Yield: % - CUSIP': %Term Bonds due September 1,2036 Yield: % - CUSIP': t Copyright 2006, American Bankers Association. CUSlP data herem is provided by Standard & Poor's. CUS]P Service bureau, a division of the McGraw-Hill Companies, Inc. NeIther the Underwriter nor the District takes any responsIbility for the accuracy a/such data. DOCSOCIl151029v4/022245-0163 11-10 CITY OF CHULA VISTA, CALIFORNIA CITY COUNCIL Steve C. Padilla, Mayor Patricia Chavez, Councilmember Steve Castaneda, Councilmember John C. McCann, CounciImember Jerry Rindone, Councilmember CITY STAFF David D. Rowlands, Jr., City Manager Dana Smith, Assistant City Manager Ann Moore, City Attorney Maria Kachadoorian, Director of Finance Susan Bigelow, City Clerk Matt Little, Acting City Engineer BOND COUNSEL Best Best & Krieger LLP San Diego, California FINANCIAL ADVISOR TO THE CITY Fieldman, Rolapp & Associates Irvine, California SPECIAL TAX CONSULT ANT REAL ESTATE APPRAISER McGill Martin Self, Inc. Chula Vista, California Bruce W. Hull & Associates, Inc. Ventura, California MARKET ABSORPTION CONSULT ANT FISCAL AGENT Sullivan Group Real Estate Advisors San Diego, California U.S. Bank National Association Los Angeles, California DOCSOCI115! 029v4/022245-0 163 11-11 Except where otherwise indicated, all information contained in this Official Statement has been provided by the District. No dealer, broker, salesperson or other person has been authorized by the District, the City, the Fiscal Agent or the Underwriter to give any information or to make any representations in connection with the offer or sale of the 2006 Bonds other than those contained herein and, if given or made, such other information or representations must not be relied upon as having been authorized by the District, the City, the Fiscal Agent or the Underwriter. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the 2006 Bonds by a person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale. This Official Statement is not to be construed as a contract with the purchasers or Owners of the 2006 Bonds. Statements contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact. This Official Statement, including any supplement or amendment hereto, is intended to be deposited with a nationally recognized municipal securities depository. The Underwriter has provided the following sentence for inclusion in this Official Statement: The Underwriter has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. The information set forth herein which has been obtained ITom third party sources is believed to be reliable but is not guaranteed as to accuracy or completeness by the District or the City. The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the District, the City or any other parties described herein since the date hereof. All summaries of the Indenture or other documents are made subject to the provisions of such documents respectively and do not purport to be complete statements of any or all of such provisions. Reference is hereby made to such documents on file with the District for further information in connection therewith. All information considered material to the making of an informed investment decision with respect to the 2006 Bonds is contained in this Official Statement. While the City maintains an internet website for various purposes, none of the information on its website is incorporated by reference into this Official Statement. Any such information that is inconsistent with the information set forth in this Official Statement should be disregarded. Certain statements included or incorporated by reference in this Official Statement constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27 A of the United States Securities Act of 1933, as amended. Such statements are generally identifiable by the tenninology used such as "plan," "expect," "estimate," "project," "budget" or other similar words. Such forward-looking statements include, but are not limited to, certain statements contained in the information under the caption "THE COMMUNITY FACILITIES DISTRICT" and "THE DEVELOPMENT AND PROPERTY OWNERSHIP." THE ACHIEVEMENT OF CERTAIN RESULTS OR OTHER EXPECTATIONS CONTAINED IN SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS DESCRIBED TO BE MA TERIALL Y DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. THE DISTRICT DOES NOT PLAN TO ISSUE ANY UPDATES DOCSOCIl151029v4/022245-0163 11-12 OR REVISIONS TO THE FORWARD-LOOKING STATEMENT SET FORTH IN THIS OFFICIAL STATEMENT. IN CONNECTION WITH THE OFFERING OF THE 2006 BONDS, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS WmCH STABILIZE OR MAINTAIN THE MARKET PRICE OF SUCH BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE 2006 BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, IN RELIANCE UPON AN EXEMPTION CONTAINED IN SUCH ACT. THE 2006 BONDS HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATE. DOCSOC/115I029v4!022245-0163 11-13 TABLE OF CONTENTS Page INTRODUCTION.................................................................................................................................................1 General ................. ........... ................................... ............................................................................................ I The District........... ............................. ............................................................................................................. 1 Sources of Payment for the 2006 Bonds.........................................................................................................3 Description of the 2006 Bonds .......................................................................................................................4 Tax Maners............ ......... ............. ............ .............. ......... ..... ....................... ....... .... .................... ...... ........ .......4 Professionals lnvol ved in the Offering........................ ............................... ....................................................5 Continuing Disclosure ................. ................................ ...................................................................................5 Bond Owners' Risks... ................. ...................................................................................................................5 Forward Looking Statements..........................................................................................................................5 Other lnformation...........................................................................................................................................6 ESTIMATED SOURCES AND USES OF FUNDS .............................................................................................6 THE 2006 BONDS................................................................................................................................................ 7 A uthority for Issuance ......... ................................................ ...........................................................................7 Purpose of the 2006 Bonds................................................ ..................... ............................................. ...........7 Description of the 2006 Bonds.................... ................................................................................................... 7 Redemption of 2006 Bonds................................................. ........................................................................... 8 Notice and Selection of Bonds for Redemption .............................................................................................9 Notice of Redemption................................................................. ..................................................................1 0 Effect of Redemption.............................................. ........................................................... ....................... ....1 0 Transfer and Exchange of Bonds................................................................. .................................................11 Debt Service Schedule for the 2004 Bonds and the 2006 Bonds .................................................................]2 SOURCES OF PAYMENT FOR THE 2006 BONDS........................................................................................] 2 Limited Obligations................... ................................................................................................................... ] 2 Special Taxes....... ................................ ......... ..................................................................... ..... .... .................. ] 3 Reserve Fund......................................................................................................... ....................................... ] 8 Issuance of Parity Bonds ..............................................................................................................................] 8 THE COMMUNITY F AClLITIES DISTRICT ..................................................................................................18 General Description of the District...............................................................................................................18 Description of Authorized Facilities... ....................................................................................................... ...19 Status of Facilities.............................................. ....................... ................................................................... ] 9 Principal Taxpayers......................................................... ...................................... ..................... ...... .......... ..20 Delinquency History................................................................................................................................... ..21 Estimated Direct and Overlapping lndebtedness..........................................................................................2 ] Expected Tax Burden................................................................................................................................. ..23 Estimated Value-to-Lien Ratios............................. ............ ....... ................................................................ ...24 Permitted Land Use............................................................ ....... ........................................... .................... ....27 THE DEVELOPMENT AND PROPERTY OWNERSHIP................................................................................29 General Description and Location of the District.........................................................................................29 The Developer............................................................................................ ........................................ ...... ....29 Development Plan................................ .............................................................................. ...... ............... .....30 Development Status.... ......................................................... .........................................................................3 2 Financing Plan.................................................................................................................................... ..........33 Status of Entitlement Approvals......................................................................................................... ..........3 7 Environmental Constraints................................................................................................................. ..........3 7 Inrrastructure Requirements and Construction Status ..................................................................................38 Potential Limitations on Development.............................................................................. ................ ...........38 Appraisal.......................................................................................................................................................39 Market Absorption Study ........................................................................................................... ................ ..40 SPECIAL RISK FACTORS ................................................................................................................................4 ] -i- DOCSOCII151029v4/022245-0163 11-14 TABLE OF CONTENTS (continued) Page Concentration of Ownership.................... .......... ..... .......... ... ........ ........... .................. ... ............. ...... ....... .......41 Limited Obligations.......................... ..... ........ .................................. .......................................................... ...41 Insufficiency of Special Taxes ................... .............................. ...................................................... ..............42 Special Tax Delinquencies......... ........... ............................................................ ...........................................42 Adjustable Rate and Non-Conventional Mortgages .....................................................................................42 Failure to Develop Properties.......................................................... .............................................................43 Future Land Use Regulations and Growth Control Initiatives .....................................................................44 Water Availability.......................................... ................................................................. .............................45 Endangered Species............................... .......................................................................................................45 Natural Disasters ....................................................... ...................................................................................45 Hazardous Substances ........................... .................................................................................... ...................46 Parity Taxes, Special Assessments and Land Development Costs...............................................................46 Disclosures to Future Purchasers....................... .................. .........................................................................47 Non-Cash Payments of Special Taxes ..........................................................................................................47 Payment of the Special Tax is not a Personal Obligation of the Owners .....................................................47 Land Values............. ..... .......... ................... ........ ............... ........ .............. ............. ........ ...... ......................... ..48 FDIC/Federal Government Interests in Properties .......................................................................................48 Bankruptcy and Foreclosure .........................................................................................................................49 No Acceleration Provision.......................................................................................................................... ..50 Loss of Tax Exemption........... ............................................................................................ ................. ....... ..50 Limitations on Remedies............................................................ ........................................ ........................ ..50 Limited Secondary Market.......................................................................................................................... .50 Proposition 218............... ............................................................................................................................ ..51 Ballot Initiatives......................................................................................................................................... ..52 CONTINUING DISCLOSURE ..........................................................................................................................52 TAX MA TIERS .................................................................................................................................................53 LEGAL MATTERS ............................................................................................................................................53 LITIGATION ......................................................................................................................................................54 NO RATING .......................................................................................................................................................54 UNDERWRITING ..............................................................................................................................................54 FINANCIAL INTERESTS .................................................................................................................................54 PENDING LEGISLA TION ................................................................................................................................54 ADDITIONAL INFORMATION .......................................................................................................................55 APPENDIX A APPENDIX B APPENDIX C APPENDIX 0 APPENDIX E APPENDIX F APPENDIX G APPENDIX G-I APPENDIX H APPENDIX I APPENDIX J APPENDIX K RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX............................ A-I SUMMARY OF MARKET ABSORPTION STUDY .......................................................B-I APPRAISAL REPORT ......................................................................................................C- I INFORMATION REGARDING THE CITY OF CHULA VISTA .................................. 0-1 SUMMARY OF INDENTURE..........................................................................................E-I CONTINUING DISCLOSURE AGREEMENT OF THE DlSTRJCT ..............................F-I DEVELOPER CONTINUING DISCLOSURE AGREEMENT ....................................... G-I DEVELOPER CONTINUING DISCLOSURE AGREEMENT .................................... G-I-I FORM OF OPINION OF BOND COUNSEL................................................................... H-I DTC AND THE BOOK ENTRY SySTEM........................................................................ I-I DEVELOPER UNAUDITED FINANCIAL STATEMENTS ............................................J-I COMBINED FINANCIAL STATEMENTS OF J.F. SHEA COMPANY........................ K-I ~ii- DOCSOCIl151029v4/022245-0163 11-15 DOCSOC/1151029v4/022245-0163 [REGIONAL LOCATION MAP] 11-16 . [AERIAL PHOTO] . . DOCSOCfl151029v4/022245-0163 11-17 $16,845,000' CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 07-1 (OTAY RANCH VILLAGE ELEVEN) 2006 SPECIAL TAX BONDS INTRODUCTION General This introduction is not a summary of this Official Statement. It is only a brief description of and guide to, and is qualified by, more complete and detailed information contained in the entire Official Statement and the documents summarized or described herein. A full review should be made of the entire Official Statement. The sale and delivery of the 2006 Bonds (defined below) to potential investors is made only by means of the entire Official Statement. All capitalized terms used in this Official Statement and not defined shall have the meaning set forth in Appendix A-"RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES" or Appendix E-"SUMMAR Y OF INDENTURE" herein. The purpose of this Official Statement, which includes the cover page, the table of contents and the attached appendices (collectively, the "Official Statement"), is to provide certain information concerning the issuance of the $16,845,000' City ofChula Vista Community Facilities District No. 07-1 (Otay Ranch Village Eleven) 2006 Special Tax Bonds (the "2006 Bonds"). The proceeds of the 2006 Bonds will be used to construct and acquire various public improvements needed with respect to the proposed development within Community Facilities District No. 07-1 (Otay Ranch Village Eleven) (the "District") formed by the City of Chula Vista (the "City"), to fund an amount necessary to bring the amount on deposit in the Reseve Fund to the Reserve Requirement on the Delivery Date of the 2006 Bonds, to pay costs of administration and issuance of the 2006 Bonds and to pay certain capitalized interest on the 2006 Bonds. See "ESTlMA TED SOURCES AND USES OF FUNDS." . The 2006 Bonds are authorized to be issued pursuant to the Act (as defined herein) and a Bond Indenture (the "Bond Indenture") dated as of May I, 2004, by and between the District and U.S. Bank National Association (the "Fiscal Agent"), as supplemented and amended by the First Supplemental Bond Indenture, dated as of May I, 2006 (the "First Supplement" and, together with the Bond Indenture, the "Indenture"). The 2006 Bonds are secured under the Indenture by a pledge of and lien upon Net Special Tax Revenues and all moneys in the funds and accounts under the Indenture other than the Rebate Fund, the Project Fund, the Cost of Issuance Fund and the Administrative Expense Fund. The 2006 Bonds are payable on a parity with the District's 2004 Special Tax Bonds originally issued and outstanding in the aggregate amount of $28,050,000 (the "2004 Bonds") and any bonds issued in the future on a parity basis with the 2004 Bonds and the 2006 Bonds (the "Parity Bonds," and together with the 2004 Bonds and the 2006 Bonds, the "Bonds"). The District Formation Proceedings. The District has been formed by the City pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (Sections 5331 I et seq. of the Government Code of the State of California) (the "Act"), and the City of Chula Vista Community Facilities District Ordinance. The City Council of the City acts as legislative body of the District. The Act was enacted by the California legislature to provide an alternative method of financing certain public capital facilities and services, especially in developing areas of the State. Any local agency (as defined in the Act) may establish a community facilities district to provide for and finance the cost of eligible public . Preliminary, subject to change. DOCSOCIl151029v4/022245-0163 11-18 . facilities and services. Generally, the legislative body of the local agency which fonns a community facilities district acts on behalf of such district as its legislative body. Subject to approval by two-thirds of the votes cast at an election and compliance with the other provisions of the Act, a legislative body of a local agency may issue bonds for a community facilities district and may levy and collect a special tax within such district to repay such indebtedness. Pursuant to the Act, the City Council adopted the necessary resolutions stating its intent to establish the District, to authorize the levy of Special Taxes on taxable property within the boundaries of the District, and to have the District incur bonded indebtedness for the purpose of financing an authorized list of facilities. Following public hearings conducted pursuant to the provisions of the Act, the City Council adopted resolutions establishing the District, and calling a special election to submit the levy of the Special Taxes and the incurring of bonded indebtedness to the qualified voters of the District. On November 12, 2003, at an election held pursuant to the Act, the landowners who comprised the qualified voters of the District authorized the District to incur bonded indebtedness in the aggregate principal amount not to exceed $45,000,000 to be secured by the levy of Special Taxes (defined below) on taxable property within the District. The 2006 Bonds represent the second series of bonds to be issued pursuant to such authorization. On November 12, 2003, the landowners within the District approved the rate and method of apportionment of the Special Taxes on land within the District (the "Special Taxes") to pay the principal of and interest on the bonds of the District. The rate and method of apportionment of special tax (the "Rate and Method") is set forth in Appendix A hereto. The facilities authorized to be fmanced by the District are referenced to herein as the "Facilities." See "TIffi COMMUNlTY F AClLITIES DISTRICT-Description of Authorized Facilities." Description and Development. The District consists of approximately 489 gross acres and is located approximately 3 miles east of Interstate 805 at the south side of Olympic Parkway between Hunte Parkway and EastIake Parkway. The District is located in the newly developing eastern portion of the City and is bounded to the north by Olympic Parkway and the previously developed villages of Eastlake Greens, to the west by Eastlake Parkway, commercial lands under development and Village Six of The Otay Ranch, and to the south and east by Hunte Parkway, beyond which are undeveloped lands. The land use entitlements for the District pennit development in sub-areas known as "planning areas." The District has been divided into 24 residential planning areas and one mixed-use planning area (containing both residential and commercial uses). Based on current land use approvals and projections, the land within these planning areas is expected to be developed into 2,304 residential units, including 282 units within the mixed-use area. There are three non-residential planning areas including two school sites and a community purpose parcel planned for a church. See "THE DEVELOPMENT AND PROPERTY OWNERSHIP- Potential Limitations on Development." . The Developer (defmed herein) plans to complete land development in the District in three phases. The grading within Phase I, Phase 2 and Phase 3 is complete and construction of both the backbone intIastructure and the intract intIastructure is complete in Phase I and Phase 2. As of April 1, 2006, there were 959 homes in the District owned by individual homeowners in 14 separate planning areas within Phases 1 and 2. The backbone intIastructure and the intract intIastructure within Phase 3 is in progress and scheduled for completion in May 2006. For a more detailed description of development activity within the District, see "TIffi COMMUNITY FAClLlTIES DISTRlCT-Status of Facilities" and "THE DEVELOPMENT AND PROPERTY OWNERSHIP-Development Status." Developer. The master developer of the property in the District is Brookfield Shea Otay LLC, a California limited liability company (the "Developer"). The Developer has two members, Brookfield Otay LLC and Shea Otay Village II, LLC. For certain infonnation concerning the Developer, see "TIffi DEVELOPMENT AND PROPERTY OWNERSHIP-The Developer." The Developer purchased the land within the District in May 2000. As of April 1 , 2006, the Developer had distributed 16 planning areas in Phase I and Phase 2 and eight planning areas in Phase 3 to its 2 DOCSOCII151 029v4/022245-0 163 11-19 members, who have, in turn, contributed the planning areas to various related entities. As of April I, 2006, the land within Phases I and 2 was owned by individual homeowners (959 units) and various merchant builder entities related to the respective members of the Developer (446 residential lots ). As of April I, 2006, none of the land in Phase 3 had been conveyed to end users. The land within Phase 3 of the District owned by various merchant builder entities related to the respective members of the Developer is proposed to be developed with 325 single family detached "fee simple" units and 292 single family attached "condominium" units. The remaining land in the District is owned by the Developer and is proposed to be developed by various parties with 239 attached "market rate and affordable" units, a mixed use area containing commercial uses and 282. additional attached "market rate" units, a church, an elementary school and middle school. As of April I, 2006 there were 959 homes in the District owned by individual homeowners. See "THE DEVELOPMENT AND PROPERTY OWNERSHIP-Development Plan" and "-Developer Related Entities." Appraisal and Market Absorption Study. Bruce W. Hull & Associates, Inc. (the "Appraiser") has conducted an appraisal (the "Appraisal") of the land within the District and has concluded, based upon the assumptions and limiting conditions contained in the Appraisal that as of January 15,2006, the aggregate value of such land was $730,148,344. In a letter dated , 2006, the Appraiser confirmed that, as of , 2006, the value of the taxable property within the District was not less than $730, I 48,344. Sullivan Group Real Estate Advisors (the "Market Absorption Consultant") has prepared a Market Analysis and Absorption Projection report dated February 7, 2006 (the "Market Absorption Study") for the purpose of developing a build-out projection for the single family detached units and single family attached units planned in the District. The Market Absorption Study concludes that the residential units within the District not currently owned by individual homeowners should be built-out and sold-out in the 2006 to 2009 period assuming continued development with no unanticipated delays in construction and with competitive pricing of the units. See "THE DEVELOPMENT AND PROPERTY OWNERSHIP-Appraisal" and "-Market Absorption Study," Appendix B-"SUMMARY OF MARKET ABSORPTION STUDY" and Appendix C- "APPRAISAL REPORT." Sources of Payment for the Bonds Special Taxes. As used in this Official Statement, the term "Special Tax" is that tax which has been authorized pursuant to the Act to be levied against certain land within the District pursuant to the Act and in accordance with the Rate and Method. See "SOURCES OF PAYMENT FOR THE BONDS-Special Taxes" and AppendixA-RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX." Under the Indenture, the District has pledged to repay the Bonds from the Special Tax Revenues remaining after the funding of the annual Administrative Expense Requirement of $75,000 and amounts on deposit in the funds and accounts established under the Indenture other than the Project Fund, the Rebate Fund, the Cost of Issuance Fund and the Administrative Expense Fund. Special Tax Revenues are defined in the Indenture to include the proceeds of the Special Taxes received by the District, including any scheduled payments and prepayments thereof, interest and penalties thereon and the proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the delinquent Special Taxes in the amount of said lien and interest and penalties thereon. The Special Taxes are the primary security for the repayment of the 2006 Bonds, the 2004 Bonds and any Parity Bonds. In the event that the Special Taxes are not paid when due, the only sources of funds available to pay the debt service on the 2006 Bonds, the 2004 Bonds and any Parity Bonds are certain amounts held by the Fiscal Agent, including amounts held in the Reserve Fund. See "SOURCES OF PAYMENT FOR THE BONDS-Reserve Fund." Foreclosure Proceeds. The District has covenanted for the benefit of the owners of the 2006 Bonds that it will commence, and diligently pursue to completion, judicial foreclosure proceedings against Assessor's Parcels under common ownership with delinquent Special Taxes in the aggregate in excess of $5,000 by the October I following the close of the fiscal year in which such Special Taxes were due, and it will commence and diligently pursue to completion judicial foreclosure proceedings against all Assessor's Parcels under 3 DOCSOCIl151 029v4/022245-0 163 11-20 common ownership with delinquent Special Taxes in the aggregate in excess of $2,500 by the October 1 following the close of any fiscal year if the amount in the Reserve Fund is less than the Reserve Requirement. See "SOURCES OF PAYMENT FOR THE BONDS-Proceeds of Foreclosure Sales" herein. There is no assurance that the property within the District can be sold for the appraised or the assessed values described herein, or for a price sufficient to pay the principal of and interest on the Bonds in the event of a default in payment of Special Taxes by the current or future landowners within the District. See "SPECIAL RISK FACTORS-Land Values" and Appendix C-"SUMMARY APPRAISAL REPORT" herein. EXCEPT FOR THE SPECIAL TAXES, NO OTHER TAXES ARE PLEDGED TO THE PAYMENT OF THE 2006 BONDS. THE 2006 BONDS ARE NOT GENERAL OR SPECIAL OBLIGATIONS OF THE CITY NOR GENERAL OBLIGATIONS OF THE DISTRICT, BUT ARE SPECIAL OBLIGATIONS OF THE DISTRICT PAYABLE SOLELY FROM SPECIAL TAXES AND AMOUNTS HELD UNDER THE INDENTURE AS MORE FULLY DESCRIBED HEREIN. . Parity Bonds and Liens. The District may, without the consent of the Owners of the 2006 Bonds, issue additional indebtedness secured by the Special Taxes on a parity with the Bonds only for the purpose of refunding Outstanding Bonds where such refunding results in a decrease in the total debt service due in any Bond Year on all Outstanding Bonds of the District. See "SOURCES OF PAYMENT FOR THE 2006 BONDS-Issuance of Parity Bonds" and Appendix B-"SUMMARY OF INDENTURE-Conditions for the Issuance of Parity Bonds." Other taxes and/or special assessments with liens equal in priority to the continuing lien of the Special Taxes may also be levied on the property within the District, which could adversely affect the willingness of the landowners to pay the Special Taxes when due. See "SPECIAL RISK FACTORS- Parity Taxes, Special Assessments and Land Development Costs" herein. Description of the 2006 Bonds . The 2006 Bonds of each series will be issued in the form of a single, fully registered Bonds for each maturity, registered in the name of Cede & Co. as nominee of The Depository Trust Company, New York, New York ("DTC"), and will be available to actual purchasers of the 2006 Bonds of each series (the "Beneficial Owners") in the denominations of $5,000 or any integral multiple thereof, under the book-entry system maintained by DTC, only through brokers and dealers who are or act through DTC Participants as described herein. Beneficial Owners will not be entitled to receive physical delivery of the 2006 Bonds. In the event that the book-entry-only system described herein is no longer used with respect to the 2006 Bonds, the 2006 Bonds will be registered and transferred in accordance with the Indenture. See Appendix I-"DTC AND THE BOOK ENTRY SYSTEM." Principal of, premium, if any, and interest on the 2006 Bonds is payable by the Fiscal Agent to DTC. Disbursement of such payments to DTC Participants is the responsibility of DTC and disbursement of such payments to the Beneficial Owners is the responsibility ofDTC Participants. In the event that the book-entry- only system is no longer used with respect to the 2006 Bonds, the Beneficial Owners will become the registered owners of the 2006 Bonds and will be paid principal and interest by the Fiscal Agent, all as described herein. See "BOOK-ENTRY-ONL Y SYSTEM" herein. The 2006 Bonds are subject to optional redemption, extraordinary mandatory redemption and mandatory sinking fund redemption as described herein. For a more complete description of the 2006 Bonds and the basic documentation pursuant to which they are being sold and delivered, see "THE 2006 BONDS" and Appendix E-"SUMMARY OF INDENTURE" herein. Tax Matters . In the opinion of Bond Counsel, based on an analysis of existing laws, regulations, rulings and court decisions, and assuming, among other matters, compliance with certain covenants, interest on the 2006 Bonds is excluded from gross income for federal income tax purposes under Section I 03 of the Internal Revenue 4 DOCSOCIl151 029v4/022245-0 163 11-21 Code of 1986 and is exempt ITom State of California personal income taxes. In the further opinion of Bond Counsel, interest on the 2006 Bonds is not a specific preference item for purposes of federal individual or corporate alternate minimum taxes, although Bond Counsel observes that such interest is included in adjusted current earnings in calculating federal corporate alternative minimum taxable income. Bond Counsel expresses no opinion regarding any other federal or state income tax consequences relating to the ownership or disposition of, or the accrual or receipt of interest on, the 2006 Bonds. See "TAX MATTERS" herein. Professionals Involved in the Offering U.S. Bank National Association will act as Fiscal Agent under the Indenture and as the initial Dissemination Agent under the Developer Continuing Disclosure Agreements to be entered into by the Developer and the Brookfield Entities (as described herein), and Shea Homes Limited Partnership, a California limited partnership ("Shea Homes"). See Appendix G. Stone & Youngberg LLC is the Underwriter of the 2006 Bonds. All proceedings in connection with the issuance and delivery of the 2006 Bonds are subject to the approval of Best Best & Krieger LLP, San Diego, Bond Counsel. Fieldman, Rolapp & Associates is acting as Financial Advisor to the City in connection with the 2006 Bonds. Certain legal matters will be passed upon for the City and the District by the City Attorney. Certain legal matters will be passed upon for the Underwriter by Stradling Y occa Carlson & Rauth, a Professional Corporation, Newport Beach, California, as Underwriter's Counsel. Other professional services have been perfonned by McGill Martin Self, Inc. as Special Tax Consultant, Bruce W. Hull & Associates, Inc. as Appraiser, and Sullivan Group Real Estate Advisors, as Market Absorption Consultant. For infonnation concerning the respects in which certain of the above-mentioned professionals, advisors, counsel and agents may have a financial or other interest in the offering of the 2006 Bonds, see "FINANCIAL INTERESTS" herein. Continuing Disclosure Each of the District, the Developer together with the Brookfield Entities (as described herein), and Shea Homes has agreed to provide, or cause to be provided, to each nationally recognized municipal securities infonnation repository and any public or private repository or entity designated by the State as a state repository for purposes of Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission reports containing certain financial infonnation and operating data and notices of certain material events. These covenants have been made in order to assist the Underwriter in complying with Rule 15c2-12(b)(5). See "CONTINUING DISCLOSURE" herein and Appendix F, Appendix G and Appendix G-1 hereto for a description of the specific nature of the reports and notices of material events to be filed by the District, the Developer and the Brookfield Entities and Shea Homes. Bond Owners' Risks Certain events could affect the timely repayment of the principal of and interest on the 2006 Bonds when due. See the section oflhis Official Statement entitled "SPECIAL RISK FACTORS" for a discussion of certain factors which should be considered, in addition to other matters set forth herein, in evaluating an investment in the 2006 Bonds. The 2006 Bonds are not rated by any nationally recognized rating agency. The purchase of the 2006 Bonds involves significant risks, and the 2006 Bonds are not suitable investments for all investors. See "SPECIAL RISK FACTORS" herein. Forward Looking Statements Certain statements included or incorporated by reference in this Official Statement constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Refonn Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Such statements are generally identifiable by the 5 DOCSOC!l151 029v4/022245-0 163 11-22 tenninology used such as "plan," "expect," "estimate," "project," "budget" or other similar words. Such forward-looking statements include, but are not limited to, certain statements contained in the information under the caption "THE COMMUNITY FACILITIES DISTRICT" and "THE DEVELOPMENT AND PROPERTY OWNERSHIP." THE ACHIEVEMENT OF CERTAIN RESULTS OR OTHER EXPECTATIONS CONTAINED IN SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS DESCRIBED TO BE MA TERIALL Y DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. THE DISTRICT DOES NOT PLAN TO ISSUE ANY UPDATES OR REVISIONS TO THE FORWARD-LOOKING STATEMENTS SET FORTH IN THIS OFFICIAL STATEMENT. Other Information This Official Statement speaks only as of its date, and the information contained herein is subject to change. Brief descriptions of the 2006 Bonds and the Indenture are included in this Official Statement. Such descriptions and information do not purport to be comprehensive or definitive. All references herein to the Indenture, the 2006 Bonds and the constitution and laws of the State as well as the proceedings of the City Council, acting as the legislative body of the District, are qualified in their entirety by references to such documents, laws and proceedings, and with respect to the 2006 Bonds, by reference to the Indenture. Capitalized terms not otherwise defined herein shall have the meanings set forth in the Indenture. Copies of the Indenture, the Continuing Disclosure Agreements and other documents and information referred to herein are available for inspection and (upon request and payment to the City of a charge for copying, mailing and handling) for delivery from the City at 276 Fourth Avenue, Chula Vista, CA 91910, Attention: Director of Finance. ESTIMATED SOURCES AND USES OF FUNDS The following table sets forth the expected uses of 2006 Bond proceeds: Sources of Funds Principal Amount of 2006 Bonds Plus: Net Premium TOTAL SOURCES $ ( $ Uses of Funds Capitalized Interest Sub-Account'l) Proj ect Fund Reserve Fund Cost of Issuance Fund Underwriter's Discount Administrative Expense Fund TOTAL USES $ $ (I) Represents capitalized interest on the 2006 Bonds through September I, 2006. 6 DOCSOC/1151029v4/022245-0163 11-23 THE 2006 BONDS Authority for Issuance The 2006 Bonds in the aggregate principal amount of $16,845,000' are authorized to be issued by the District under and subject to the tenns of the Indenture, the Act and other applicable laws of the State of California. Purpose ofthe 2006 Bonds The 2006 Bonds are being issued to provide funds to: (i) [mance the costs of constructing and acquiring certain public facilities related to the proposed development within the District (See "THE COMMUNITY F ACILITIES DISTRICT-Description of Authorized Facilities"); (ii) pay costs related to the administration and issuance of the 2006 Bonds; (iii) fund an amount necessary to bring the amount on deposit in the Reserve Fund to the Reserve Requirement on the Delivery Date of the 2006 Bonds; and (iv) fund the interest due on the 2006 Bonds through September I, 2006. See "ESTIMATED SOURCES AND USES OF FUNDS." Description of the 2006 Bonds The 2006 Bonds wiII be issued in fully registered fonn in denominations of $5,000 and any integral multiple thereof and shall be numbered as desired by the Fiscal Agent. The 2006 Bonds shall be dated their date of delivery. The 2006 Bonds will be issued in book-entry only fonn and DTC wiII act as securities depository for the 2006 Bonds. So long as the 2006 Bonds are held in book-entry only fonn, principal of, premium, if any, and interest on the 2006 Bonds wiII be paid directly to DTC for distribution to the beneficial owners of the 2006 Bonds in accordance with the procedures adopted by DTC. See Appendix I-"DTC AND THE BOOK ENTRY ONLY SYSTEM." The 2006 Bonds wiII mature on September I, in the principal amounts and years, and bearing rates of interest, as shown on the inside cover of this Official Statement. Interest on the 2006 Bonds wiII be payable semiannually on March I and September I of each year commencing September I, 2006 (each, an "Interest Payment Date") and wiII be computed on the basis of a 360-day year comprised of twelve 30-day months. Each Bond will bear interest trom the Interest Payment Date next preceding the date of authentication, thereof, unless (i) such date of authentication is an Interest Payment Date, in which event interest shall be payable trom such date of authentication, (ii) the date of authentication is after a Record Date but prior to the immediately succeeding Interest Payment Date, in which event interest shall be payable trom the Interest Payment Date immediately succeeding the date of authentication or (iii) the date of authentication is prior to the close of business on the first Record Date, in which event interest shall be payable trom the date of the 2006 Bonds; provided, however, that if at the time of authentication of a 2006 Bond, interest is in default, interest on that 2006 Bond shall be payable from the last Interest Payment Date to which the interest has been paid or made available for payment. Interest on any 2006 Bond shall be paid to the person whose name shall appear in the books of registration as the owner of such 2006 Bond as of the close of business on the Record Date immediately preceding such Interest Payment Date. Such interest shall be paid by check of the Fiscal Agent mailed to such Bondowner at his or her address as it appears on the books of registration or, upon the request in writing prior to the Record Date of a Bondowner of at least $ I ,000,000 in aggregate principal amount of 2006 Bonds, by wire transfer in immediately available funds to an account in the United States designated by such Owner. . Preliminary, subject to change. 7 DOCSOC/1151 029v4/022245-0 163 11-24 Redemption of 2006 Bonds Optional Redemption. The 2006 Bonds maturing on and after September 1, 20_ may be redeemed at the option of the District prior to maturity as a whole or in part on any Interest Payment Date on and after September 1, 20_, from such maturities as are selected by the District, and by lot within a maturity, from any source of funds, at the following redemption prices (expressed as percentages of the principaJ amount of the 2006 Bonds to be redeemed), together with accrued interest to the date of redemption: Redemption Date September 1, 20_ through March 1,20_ September 1, 20_and March 1, 20_ September 1, 20_ and thereafter Redemption Price % % % Extraordinary Mandatory Redemption from Special Tax Prepayment. The 2006 Bonds are subject to redemption on any Interest Payment Date, prior to maturity, as a whole or in part on a pro rata basis among maturities from amounts deposited to the Redemption Fund in connection with a prepayment of SpeciaJ Taxes pursuant to the Rate and Method. Such extraordinary mandatory redemption of the 2006 Bonds shaJ! be at the following redemption prices (expressed as percentages of the principal amount of the 2006 Bonds to be redeemed), together with accrued interest thereon to the date of redemption: . Redemption Date September 1, 20_ through March 1,20_ September 1,20_ and March 1, 20_ September!, 20_ and thereafter Redemption Price % See "SOURCES OF PAYMENT FOR THE BONDS-SpeciaJ Taxes--Prepayment of SpeciaJ Taxes" and Section H of Appendix A for a description of how a property owner may prepay, or wi11 be required to prepay, SpeciaJ Taxes. If a property owner prepays its SpeciaJ Taxes, the prepayment wi11 be aJlocated proportionately between the 2004 Bonds, the 2006 Bonds and any Parity Bonds and be used to redeem such Bonds. . Mandatory Sinking Fund Redemption. The 2006 Bonds maturing on September 1, 20_ are subject to mandatory sinking fund redemption, in part, by lot, on September 1 in each year commencing September 1, 20_ at a redemption price equaJ to the principaJ amount of the 2006 Bonds to be redeemed, plus accrued and unpaid interest thereon to the date fixed for redemption, without premium, in the aggregate principaJ amounts and in the years shown on the following redemption schedule. Redemption Date (September 1) Principal Amount $ t Final Maturity . The 2006 Bonds maturing on September 1, 20_ are subject to mandatory sinking fund redemption, in part, by lot, on September I in each year commencing September 1, 20_, at a redemption price equaJ to the principaJ amount of the 2006 Bonds to be redeemed, plus accrued and unpaid interest thereon to the date fixed for redemption, without premium, in the aggregate principaJ amounts and in the years shown on the following redemption schedule. . Preliminary, subject to change. 8 DOCSOC/I151029v4/022245-0163 11-25 Redemption Date (September 1) Principal Amount $ t Final Maturity The 2006 Bonds maturing on September I, 2036 are subject to mandatory sinking fund redemption, in part, by lot, on September I in each year commencing September I, 20_, at a redemption price equal to the principal amount of the 2006 Bonds to be redeemed, plus accrued and unpaid interest thereon to the date fixed for redemption, without premium, in the aggregate principal amounts and in the years shown on the following redemption schedule. Redemption Date (September 1) Principal Amount $ t Final Maturity In the event of a partial optional redemption or extraordinary mandatory redemption of the 2006 Bonds maturing on September I, 20_, 20_ or 2036, each of the remaining mandatory sinking fund payments for such 2006 Bonds, as applicable, will be reduced, as nearly as practicable, on a pro rata basis as nearly as practicable and in integral multiples of$5,000. Purchase in Lieu of Redemption. In lieu of such an optional, extraordinary mandatory or mandatory sinking fund redemption, the District may elect to purchase 2006 Bonds at public or private sale at such prices as the District may in its discretion determine; provided, that, unless otherwise authorized by law, the purchase price (including brokerage and other charges) thereof shall not exceed the principal amount thereof plus accrued interest to the purchase date. Notice and Selection of Bonds for Redemption In the event the District shall elect to redeem 2006 Bonds as provided in the Indenture, the District shall give written notice to the Fiscal Agent of its election to so redeem, the redemption date, the principal amount of the 2006 Bonds to be redeemed, the maturities ITom which such 2006 Bonds are to be redeemed and the principal amount of the 2006 Bonds to be redeemed ITom each such maturity, the 2006 Bonds or portions thereof to be selected for redemption. The notice to the Fiscal Agent shall be given not less than 60 days prior to the redemption date or such shorter period as shall be acceptable to the Fiscal Agent. Ifless than all of the 2006 Bonds Outstanding are to be redeemed, the portion of any 2006 Bond of a denomination of more than $5,000 to be redeemed shall be in the principal amount of $5,000 or a multiple thereof, and, in selecting portions of such 2006 Bonds for redemption, the District shall treat each such 2006 Bond as representing that number of 2006 Bonds of $5,000 denomination which is obtained by dividing the principal amount of such 2006 Bond to be redeemed in part by $5,000. 9 DOCSOC/1151029v4/022245-0163 11-26 Notice of Redemption Notice by Mail to Registered Owners. The Fiscal Agent shall mail, at least 30 days but not more than 45 days prior to the date of redemption, notice of intended redemption, by first-class mail, postage prepaid, to the original purchasers of the 2006 Bonds and the respective registered Owners of the 2006 Bonds at the addresses appearing on the Bond registry books. The notice of redemption shall state: (a) the redemption date; (b) the redemption price; (c) the bond registration numbers, dates of maturity and CUSIP numbers of the 2006 Bonds to be redeemed, and in the case of 2006 Bonds to be redeemed in part, the respective principal portions to be redeemed; provided, however, that whenever any call includes all 2006 Bonds of a maturity, the numbers of the 2006 Bonds of such maturity need not be stated; (d) that such 2006 Bonds must be surrendered at the Principal Corporate Trust Office of the Fiscal Agent; (e) that further interest on such 2006 Bonds will not accrue from and after the designated redemption date; (t) the date of the issue of the 2006 -Bonds as originally issued; (g) the rate of interest borne by each 2006 Bond being redeemed; and (h) that any other descriptive information needed to identifY accurately the 2006 Bonds being redeemed as the District shall direct. Further Notice. Further notice of redemption shall be sent at least two days before the notice of redemption is mailed to the Bondholders, as described above, by registered or certified mail or overnight delivery service to the registered securities depositories and to the national information services listed in the Indenture or, in accordance with the then-current guidelines of the Securities and Exchange Commission, such other securities depositories and services providing information on called bonds, or such other securities depositories and services, as the District may determine in its sole discretion. Failure to Receive Notice. So long as notice by first class mail has been provided as set forth above, the actual receipt by the Owner of any 2006 Bond of notice of such redemption shall not be a condition precedent to redemption, and failure to receive such notice shall not affect the validity of the proceedings for redemption of such 2006 Bonds or the cessation of interest on the date fixed for redemption. Certificate of Giving Notice. The notice or notices described above shall be given by the Fiscal Agent on behalf of the District. A certificate by the Fiscal Agent that notice of call and redemption has been given to the registered Owners of the 2006 Bonds as herein provided shall be conclusive against all parties, and no Owner whose 2006 Bond is called for redemption may object thereto, or object to cessation of interest on the redemption date, by any claim or showing that he failed to receive actual notice of call and redemption. Notice from DTC to BenefICial Owners. So long as the 2006 Bonds are held in book-entry-form, notice of redemption will be sent by the Fiscal,Agent only to DTC or its nominee. Conveyance of redemption notice by DTC to Beneficial Owners is determined by DTC and its participants and is not the responsibility of the District. See Appendix I-"DTC AND TIIE BOOK ENTRY SYSTEM." Effect of Redemption When notice of redemption has been given, and when the amount necessary for the redemption of the 2006 Bonds called for redemption is set aside for that purpose in the Redemption Fund, the 2006 Bonds designated for redemption shall become due and payable on the date fixed for redemption thereof, and upon presentation and surrender of said 2006 Bonds at the place specified in the notice of redemption, with the form of assignment endorsed thereon executed in blank, said 2006 Bonds shall be redeemed and paid at the redemption price out of the Redemption Fund and no interest will accrue on such 2006 Bonds or portions of 2006 Bonds called for redemption from and after the redemption date specified in said notice, and the Owners of such 2006 Bonds so called for redemption after such redemption date shall look for the payment of principal and premium, if any, of such 2006 Bonds or portions of 2006 Bonds only to said Redemption Fund. All 2006 Bonds redeemed shall be canceled forthwith by the Fiscal Agent and shall not be reissued. Upon surrender of 2006 Bonds redeemed in part, a new 2006 Bond or 2006 Bonds of the same maturity shall be registered, authenticated and delivered to the registered Owner at the expense of the District, in the 10 DOCSOCIl151029v4/022245-0 163 11-27 aggregate principal amount of the unredeemed portion. All unpaid interest payable at or prior to the date fixed for redemption shall continue to be payable to the respective registered owners of such 2006 Bonds or their order, but without interest thereon. Transfer and Exchange of Bonds There shall be kept by the Fiscal Agent, sufficient books for the registration and transfer of the 2006 Bonds and, upon presentation for such purpose, the Fiscal Agent shall, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on said register, 2006 Bonds. The ownership of the 2006 Bonds shall be established by the 2006 Bond registration books held by the Fiscal Agent. Whenever any 2006 Bond or 2006 Bonds shall be surrendered for registration of transfer or exchange, the Fiscal Agent shall authenticate and deliver a new 2006 Bond or 2006 Bonds of the same maturity and series, for a like aggregate principal amount of authorized denominations; provided that the Fiscal Agent shall not be required to register transfers or make exchanges of (I) 2006 Bonds for a period of 15 days next preceding the date of any selection of the 2006 Bonds to be redeemed, or (ii) any 2006 Bonds chosen for redemption. 2006 Bonds may be exchanged at the Principal Corporate Trust Office, for a like aggregate principal amount of 2006 Bonds of authorized denominations, interest rate and maturity, subject to the terms and conditions of the Indenture, including the payment of certain charges, if any, upon surrender and cancellation of a 2006 Bond. Upon such transfer and exchange, a new registered 2006 Bond or 2006 Bonds of any authorized denomination or denominations of the same maturity and series and for the same aggregate principal amount will be issued to the transferee in exchange therefor. The transfer of any 2006 Bond may be registered only upon such books of registration upon surrender thereof to the Fiscal Agent, together with an assignment duly executed by the Owner or his attorney or legal representative, in satisfactory form. Upon any such registration of transfer, a new 2006 Bond or 2006 Bonds shall be authenticated and delivered in exchange for such 2006 Bond, in the name of the transferee, of any denomination or denominations authorized by the Indenture, and in an aggregate principal amount equal to the principal amount of such 2006 Bond or 2006 Bonds so surrendered. In all cases in which 2006 Bonds shall be exchanged or transferred, the Fiscal Agent shall authenticate the 2006 Bonds in accordance with the provisions of the Indenture. All 2006 Bonds surrendered in such exchange or transfer shall forthwith be canceled. The Fiscal Agent may make a charge for every such exchange or registration of transfer of2006 Bonds sufficient to reimburse it for any tax or other governmental charge required to be paid with respect to such exchange or registration or transfer. 11 DOCSOC/l151029v4/022245-0163 11-28 Debt Service Schedule for the 2004 Bonds and the 2006 Bonds Total Debt Period Total Debt Service on Ending Principal on Interest on Principal on Interest Service on 1004 and 1006 (September 1) 1004 Bonds 1004 Bonds 1006 Bonds on 1006 Bonds 1006 Bonds Bonds 2006 $ $ $ $ (1) $ (1) $ 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 . 2030 2031 2032 2033 2034 2035 2036 Total $ $ $ $ $ $ (I) To be paid ITom capitalized interest. SOURCES OF PAYMENT FOR THE 2006 BONDS . Limited Obligations The 2006 Bonds are special, limited obligations of the District payable on a parity with the 2004 Bonds only ITom amounts pledged under the Indenture and ITom no other sources. The Special Taxes are the primary security for the repayment of the 2006 Bonds, 2004 Bonds and any Parity Bonds. Under the Indenture, the District has pledged to repay the 2006 Bonds, 2004 Bonds, and any Parity Bonds, on a parity basis from the Special Tax Revenues remaining after the funding of the annual Administrative Expense Requirement not to exceed $75,000 and ITom amounts held in the funds and accounts under the Indenture, other than amounts held in the Project Fund, the Rebate Fund, the Cost of Issuance Fund and the Administrative Expense Fund. Special Tax Revenues are defmed in the Indenture to include the proceeds of the Special Taxes received by the District, including any scheduled payments and prepayments thereof, interest and penalties thereon, the proceeds of the redemption of delinquent Special Taxes or sale of property sold as a result of foreclosure of the lien of delinquent Special Taxes in the amount of said lien, and interest and penalties thereon. 12 DOCSOC/1151029v4/022245-0 163 11-29 In the event that the Special Tax Revenues are not received when due, the only sources of funds available to pay the debt service on the 2006 Bonds, the 2004 Bonds and any Parity Bonds are amounts held by the Fiscal Agent, including amounts held in the Reserve Fund for the Bonds, for the exclusive benefit of the Owners of the 2006 Bonds, the 2004 Bonds and any Parity Bonds NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE CITY, THE COUNTY OF SAN DIEGO, THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE 2006 BONDS. EXCEPT FOR THE SPECIAL TAXES, NO OTHER TAXES ARE PLEDGED TO THE PAYMENT OF THE 2006 BONDS. THE 2006 BONDS ARE NOT GENERAL OR SPECIAL OBLIGATIONS OF THE CITY BUT ARE SPECIAL OBLIGATIONS OF THE DISTRICT PAYABLE SOLELY FROM THE SPECIAL TAXES AND OTHER AMOUNTS PLEDGED UNDER THE INDENTURE AS MORE FULLY DESCRIBED HEREIN. Special Taxes Authorization and Pledge. In accordance with the provisions of the Act, the City Council established the District on November II, 2003 for the purpose of financing the acquisition, construction and installation of various public improvements to serve the District. At a special election held on November 12, 2003, the owners of the property within the District authorized the District to incur indebtedness secured by Special Taxes levied on property in the District in an amount not to exceed $45,000,000, and approved the Rate and Method which authorized the Special Tax to be levied to repay District indebtedness for the District, including the 2006 Bonds, the 2004 Bonds and any Parity Bonds. See Appendix A-"RA TE AND METHOD OF APPORTIONMENT OF SPECIAL TAX." The District has covenanted in the Indenture that each year (not later than the date required to place the Special Tax levy on the real property tax roll) it will levy Special Taxes within the District up to the maximum rates permitted under the Rate and Method in the amount sufficient for the payment of principal of and interest on any Outstanding Bonds when due, to replenish the Reserve Fund to the Reserve Requirement and to pay the Administrative Expenses when due. The Special Taxes levied in any fiscal year may not exceed the maximum rates authorized pursuant to the Rate and Method. See AppendixA-"RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX" hereto. There is no assurance that the Special Tax Revenues will, in all circumstances, be adequate to pay the principal of and interest on the 2006 Bonds when due. See "SPECIAL RISK FACTORS- Insufficiency of Special Taxes" herein. Rate and Method. Under the Rate and Method, all Taxable Property within the District is to be (a) categorized as being located in either Zone A or Zone B, (b) classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property and (c) subject to the levy of annual Special Taxes as described below. Under the Rate and Method, Developed Property is defined as all Taxable Property for which a building permit for new construction was issued prior to March I of the prior fiscal year in which the Special Tax is being levied. Developed Property is further classified as Residential Property, Non-Residential Property or Mixed Use Property. Residential Property includes all Developed Property for which a building permit has been issued for construction of buildings or structures for use as residential dwelling units. Non- Residential Property includes all Developed Property for which a building permit was issued for non- residential use, excluding Community Purpose Facility Property. Mixed Use Property includes all Developed Property for which a building permit was issued for both residential and non-residential uses. The Rate and Method defines Undeveloped Property as all Taxable Property not classified as Developed Property, Approved Property or Provisional Undeveloped Property. Approved Property is dermed 13 DOCSOCII 151029v4/022245-0163 11 -30 as Taxable Property that (a) is included in an "A" Map or Final Subdivision Map recorded prior to January I, 2005, and thereafter recorded prior to March I of the prior fiscal year in which the Special Tax is being levied and (b) has not been issued a building pennit prior to March I of the prior fiscal year in which the Special Tax is being levied. Provisional Undeveloped Property is defined as all Public Property, Property Owner Association Property, Community Purpose Facility Property, Open Space or other property that would otherwise be classified as Exempt Property, but cannot be classified as Exempt Property because to do so would reduce the acreage of all Taxable Property below the required minimum acreage for Zone A or Zone B as applicable. See AppendixA-"RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX" hereto. The Maximum Annual Special Tax for each Assessor's Parcel of Residential Property, Non- Residential Property and Mixed Use Property shall be the greater of (I) the Assigned Special Tax described below or (2) the Backup Special Tax computed as described below. below: The Assigned Special Tax for each Assessor's Parcel of Developed Property is shown in the table Assigned Annual Special Tax for Developed Property Within Zone A and Zone B Land Use Class 2 Description Residential Property (0-8 units per acre) Residential Property (9-20 units per acre) Residential Property (more than 20 units per acre) Non-Residential Property Assigned Annual Special Tax $1,675 per unit $1,340 per unit 3 $1,005 per unit 4 $6,000 per Acre The Assigned Special Tax for each Assessor's Parcel of Mixed Use Property will equal the total of the Assigned Special Tax applicable if such parcel was classified only as Residential Property and the Assigned Special Tax applicable if such parcel was classified as Non-Residential Property. When a Final Subdivision Map is recorded within Zone A or Zone B, the Backup Special Tax for Assessor's Parcels, classified as Residential Property, Non-Residential Property, Mixed Use Property and Undeveloped Property shall be detennined as described below: For each Assessor's Parcel of Residential Property or Undeveloped Property and Approved Property to be classified as Residential Property upon its development within the Final Subdivision Map area, the Backup Special Tax shall be the rate per Dwelling Unit calculated according to the following fonnula: Zone A B= $13.955 x A U Zone B B= $24.218 x A U 14 DOCSOCII151029v4/022245-0163 11-31 . .~- The tenns above have the following meanings: B= Backup Special Tax per Dwelling Unit in each Fiscal Year. A = Acreage classified or to be classified as Residential Property in such Final Subdivision Map. U= Number of Dwelling Units in the Final Subdivision Map which are classified or expected to be classified as Residential Property. For each Assessor's Parcel of Developed Property classified as Non-Residential Property, or for each Assessor's Parcel of Approved Property or Undeveloped Property to be classified as Non-Residential Property within the Final Subdivision Map area, the Backup Special Tax shall be detennined by multiplying $13,955 for Zone A and $24,218 for Zone B by the total Acreage of any such Assessor's Parcel. For each Assessor's Parcel of Mixed Use Property, the Backup Special Tax shall be detennined by multiplying $13,955 for Zone A and $24,218 for Zone B by the total Acreage of any such Assessor's Parcel. Notwithstanding the foregoing, if an Assessor's Parcel of Residential Property, Non-Residential Property, Mixed Use Property, Approved Property or Undeveloped Property for which the Backup Special Tax has been detennined are subsequently changed or modified by recordation of a new of amended Final Subdivision Map, then the Backup Special Tax applicable to such Assessor's Parcel shall be recalculated to equal the amount of Backup Special Tax that would have. been generated if such change did not take place. The Maximum Annual Special Tax for each Assessor's Parcel of Approved Property shall be $13,955 per acre for Zone A and $24,218 per acre for Zone B. The Maximum Annual Special Tax for each Assessor's Parcel classified as Undeveloped Property or Provisional Undeveloped Property shall be $13,955 per acre for Zone A and $24,218 per acre for Zone B. Commencing with Fiscal Year 2004-05 and for each following Fiscal Year, the City Council shall detennine the Special Tax Requirement (as defmed in the Rate and Method) and shall levy the Special Tax until the amount of Special Taxes equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on all Developed Property at a rate up to 100% ofthe applicable Assigned Special Tax to satisf'y the Special Tax Requirement. Second: If additional monies are needed to satisf'y the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on all Approved Property at a rate up to 100% of the Maximum Annual Special Tax for Approved Property. Third: If additional monies are needed to satisf'y the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on all Undeveloped Property within Zone A and Zone B at a rate up to 100% of the Maximum Annual Special Tax for Undeveloped Property. Fourth: If additional monies are needed to satisf'y the Special Tax Requirement after the first three steps have been completed, then the Special Tax to be levied on each Assessor's Parcel of Developed Property whose Maximum Annual Special Tax is derived by the application of the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to the Maximum Annual Special Tax for each such Assessor's Parcel. Fifth: If additional monies are needed to satisf'y the Special Tax Requirement after the first four steps have been completed, then the Special Tax shall be levied Proportionately on all Provisional Undeveloped Property at a rate up to 100% of the Maximum Annual Special Tax for Undeveloped Property. 15 DOCSOC/1151029v4/022245-0163 11-32 Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Residential Property be increased by more than ten percent per year as a consequence of delinquency or default in the payment of Special Taxes by the owner of any other Taxable Property. Prepayment of Special Taxes. There are certain events that will result in a required prepayment of Special Taxes as described in the following paragraph. In addition, under the Rate and Method, the owner of any Developed Property, Undeveloped Property or Approved Property for which a building permit has been issued, or Provisional Undeveloped Property, may prepay the Special Tax obligation applicable to such parcel in whole or in part. Any required or voluntary prepayment of Special Taxes will result in an extraordinary redemption of a portion of the 2006 Bonds. See "TIffi BONDS-Redemption-Extraordinary Mandatory Redemptionfrom Special Tax Prepayment." A required prepayment of Special Taxes will occur on a parcel to the extent necessary to comply with the City's policy that the total annual taxes and assessments on such a parcel, exclusive of special taxes for services including City maintenance community facilities districts, will not exceed two percent (2%) of the sales price of such a parcel to a residential homeowner. Pursuant to the Acquisition Financing Agreement, the Developer has agreed to comply with the policy and the Developer and the City expect that the current merchant builders will also agree to comply with the policy. The Developer has agreed with the City to require all merchant builders to comply with this policy. Based on estimated retail home sales prices, the Developer currently does not anticipate that the total taxes and assessments, exclusive of special taxes for services, will exceed 2% of the sales price. As shown in Table 6 under the caption "TIffi COMMUNITY FACILITIES DISTRICT-Expected Tax Burden," the projected tax burden on an average single family detached unit and an average single family attached unit, based on the weighted averages of the respective unit sizes and current prices and taxes, will be approximately 1.72% and 1.77%, respectively, including City maintenance community facilities districts. Under the policy, prior to the closing of an escrow for the sale of a residential unit, the merchant builder is to deposit into escrow the amount needed to partially prepay the Special Taxes or other special taxes or assessments so that following such prepayment the parcel will be in compliance with the policy. Upon the closing of the escrow, any prepayment of the Special Taxes will be paid to the Director of Finance of the City and will be sent to the Fiscal Agent to redeem Bonds. Collection and Application of Special Taxes. The Special Taxes are levied and collected by the Treasurer-Tax Collector of the County in the same manner and at the same time as ad valorem property taxes, but may be collected in any other manner the legislative body of the District may choose. The District has made certain covenants in the Indenture for the purpose of ensuring that the current maximum Special Tax rates and method of collection of the Special Taxes are not altered in a manner that would impair the District's ability to collect sufficient Special Taxes to pay debt service on the Bonds and Administrative Expenses when due. First, the District has covenanted that, to the extent it is legally permitted to do so, it will not initiate proceedings to reduce the maximum Special Tax rates and will oppose the reduction of maximum Special Tax rates by initiative where such reduction would reduce the maximum Special Taxes payable from parcels on which a completed structure is located to less than 110% of Maximum Annual Debt Service on the Bonds as permitted by the Indenture. See "SPECIAL RISK F ACTORS- Proposition 218." Second, the District has covenanted not to permit the tender of Bonds in payment of any Special Taxes except upon receipt of a certificate of a Special Tax Consultant that to accept such tender will not result in the District having insufficient Special Tax Revenues to pay the principal of and interest when due on the Bonds following such tender. See "SPECIAL RISK FACTORS-Non-Cash Payment of Special Taxes." Although the Special Taxes constitute liens on Taxable Property within the District, they do not constitute a personal indebtedness of the owners of such property within the District. Moreover, other liens for taxes and assessments already exist on the property located within the District and other such liens could come into existence in the future in certain situations without the consent or knowledge of the City or the landowners therein. See "SPECIAL RISK FACTORS-Parity Taxes, Special Assessments and Land Development Costs" 16 DOCSOCIl151029v4/022245-0163 11-33 herein. There is no assurance that property owners will be fmancially able to pay the annual Special Taxes or that they will pay such taxes even iffmancially able to do so, all as more fully described in the section of this Official Statement entitled "SPECIAL RISK FACTORS." Under the terms of the Indenture, not later than the tenth Business Day after receipt, all Special Tax Revenues received by the District are to be deposited in the Special Tax Fund, except for Special Tax Revenues representing Prepayments, which shall be deposited in the Redemption Fund and the Administrative Expense Fund. Special Tax Revenues (with the exception of Special Tax Revenues representing Prepayments) are to be applied by the Fiscal Agent under the Indenture in the following order of priority: (1) to deposit annually to the Administrative Expense Fund an amount equal to the Administrative Expense Requirement, (2) to pay the principal of and interest on the Bonds when due, (3) to replenish the Reserve Fund to the Reserve Requirement, (4) to make any required transfers to the Rebate Account for each series of Bonds and (5) to pay Administrative Expenses of the District above the Administrative Expense Requirement. See Appendix E-"SUMMARY OF INDENTURE." Special Tax Revenues representing Prepayments shall be transferred to the Redemption Fund as provided for in the Indenture and used to redeem Bonds with such amounts being allocated to redeem Bonds of each series on a pro rata basis based on the outstanding principal amounts of each series. See "THE 2006 Bonds-Redemption of 2006 Bonds-Extraordinary Mandatory Redemption from Prepayment." Proceeds of Foreclosure Sales. The net proceeds received following a judicial foreclosure sale of land within the District resulting from a landowner's failure to pay the Special Taxes when due are included within the Special Tax Revenues pledged to the payment of principal of and interest on the 2006 Bonds under the Indenture. Pursuant to Section 53356.1 of the Act, in the event of any delinquency in the payment of any Special Tax or receipt by the District of Special Taxes in an amount which is less than the Special Tax levied, the City Council, as the legislative body of the District, may order that Special Taxes be collected by a superior court action to foreclose the lien within specified time limits. In such an action, the real property subject to the unpaid amount may be sold at a judicial foreclosure sale. Under the Act, the commencement of judicial foreclosure following the nonpayment of a Special Tax is not mandatory. However, the District has covenanted for the benefit of the owners of the Bonds that it will commence and diligently pursue to completion, judicial foreclosure proceedings against (i) properties under common ownership with delinquent Special Ta.'{es in the aggregate of $5,000 or more by the October I following the close of the Fiscal Year in which such Special Taxes were due, and (ii) against all properties with delinquent Special Taxes in the aggregate of $2,500 or more by the October I following the close of any Fiscal Year if the amount in the Reserve Fund is less than the Reserve Requirement. See Appendix E-"SUMMARY OF INDENTURE- Other Covenants of the District" herein. If foreclosure is necessary and other funds (including amounts in the Reserve Fund) have been exhausted, debt service payments on the 2006 Bonds could be delayed until the foreclosure proceedings have ended with the receipt of any foreclosure sale proceeds. Judicial foreclosure actions are subject to the normal delays associated with court cases and may be further slowed by bankruptcy actions, involvement by agencies of the federal govemment and other factors beyond the control of the City and the District. See "SPECIAL RISK F ACTORS--Bankruptcy and Foreclosure" herein. Moreover, no assurances can be given that the real property subject to foreclosure and sale at a judicial foreclosure sale will be sold or, if sold, that the proceeds of such sale will be sufficient to pay any delinquent Special Tax installment. See "SPECIAL RISK FACTORS--Land Values" herein. Although the Act authorizes the District to cause such an action to be commenced and diligently pursued to completion, the Act does not impose on the District or the City any obligation to purchase or acquire any lot or parcel of property sold at a foreclosure sale if there is no other purchaser at such sale. However, the City does have the ability to use the foreclosure judgment to purchase property by credit bid at a foreclosure sale, in which case the City would have no obligation to pay such credit bid for 24 months. The Act provides that, in the case of a delinquency, the Special Tax will have the same lien priority as is provided for ad valorem taxes. 17 DOCSOC/1151029v4/022245-0163 11-34 Reserve Fund In order to secure further the payment of principal of and interest on the 2006 Bonds, the District is required, upon delivery of the 2006 Bonds, to deposit in the Reserve Fund and thereafter to maintain the Reserve Fund at an amount equal to the Reserve Requirement. The Indenture provides that the amount in the Reserve Fund shall, as of any date of calculation, equal the lesser of (i) 10% of the original principal amount of the Bonds, less original issue discount, if any, plus original issue premium, if any, applicable to the Bonds, (ii) Maximum Annual Debt Service on the Bonds, and (iii) one hundred twenty-five percent (125%) of Average Annual Debt Service for the Bonds (the "Reserve Requirement"). Subject to the limits on the maximum annual Special Tax which may be levied within the District, as described in Appendix A, the District has covenanted to levy Special Taxes in an amount that is anticipated to be sufficient, in light of the other intended uses of the Special Tax proceeds, to maintain the balance in the Reserve Fund at the Reserve Requirement. Amounts in the Reserve Fund are to be applied to (i) pay debt service on the Bonds, to the extent other monies are not available therefore, (ii) redeem the Bonds in whole or in part, and (iii) pay the principal and interest due in the final year of maturity of each series of the Bonds, as applicable. In the event of a prepayment of Special Taxes, under certain circumstances, a portion of the Reserve Fund will be credited toward the amount being prepaid (the "Reserve Fund Credit"). As described in the Rate and Method, this Reserve Fund Credit will be equal to the lesser of: (a) the expected reduction in the Reserve Requirement, if any, as a result of prepayment, or (b) the amount derived by subtracting the new Reserve Requirement in effect after the redemption from the balance in the Reserve Fund, but in no event shall such amount be less than zero. See Appendix E-"SUMMARY OF INDENTURE" herein. Issuance of Parity Bonds Subject to the limitations set forth in the Bond Indenture, the District may, at any time after the issuance and delivery of the 2006 Bonds, and without the consent of the Owners of the 2006 Bonds, issue Parity Bonds equally secured with the 2006 Bonds and any Outstanding Bonds by a pledge of and lien upon the Special Tax Revenues and amounts in the funds and accounts established under the Bond Indenture other than the Project Fund, the Rebate Fund, and the Administrative Expense Fund only for the purpose of refunding the 2006 Bonds or any Parity Bonds outstanding where the refunding results in a reduction of annual debt service on all Out~tanding Bonds of the District. See Appendix E-"SUMMARY OF BOND INDENTURE-Conditions for the Issuance of Parity Bonds" herein. THE COMMUNITY FACILITIES DISTRICT General Description of the District The District consists of approximately 489 gross acres and is located approximately 3 miles east of Interstate 805 at the south side of Olympic Parkway between Hunte Parkway and Eastlake Parkway. The District is located in the newly developing eastern portion of the City and is bounded to the north by Olympic Parkway and the previously developed villages of Eastlake Greens, to the west by Eastlake Parkway, commercial lands under development and Village Six of The Otay Ranch, and to the south and east by Hunte Parkway, beyond which are undeveloped lands. The District is divided into 24 residential planning areas, one mixed-use planning area (containing both residential and commercial uses), two school sites and one community purpose parcel planned for a church. At buildout, the residential planning areas are expected to be developed into a total of 2,304 units consisting of 1,101 single family detached "fee simple" units and 1,203 single family attached and detached "condominium" units, including 282 attached units within the mixed-use planning area. See "THE DEVELOPMENT AND PROPERTY OWNERSHIP-Development Plan." . 18 DOCSOCIl151 029v4/022245-0 163 11-35 Description of Authorized Facilities The Facilities authorized to be acquired or constructed by the District with the proceeds of the 2006 Bonds consist of various public improvements, described in Table I below, to serve property within the District. In addition to or in substitution for the Facilities listed below, the City and the Developer may agree to [mance additional or different eligible Facilities. As set forth in Table I below, the Developer expects to finance a portion of the cost of the Facilities from the proceeds of lot sales and other available cash. See Table 10 herein. TABLE 1 ESTIMATED COSTS OF FACILITIES' Facilities City of Chula Vista - Traffic Enhancement Program - Telegraph Canyon Road Hunte Parkway - TDIF Eligible Hunte Parkway - Non- TDIF Eligible EastLake Parkway - TDiF Eligible EastLake Parkway - Non- TDIF Eligible Otay Lakes Road Olympic Parkway Backbone Streets (Kestral Falls Road, Windingwalk Street, Evening Star Street, Hidden Path Drive, Discovery Falls Drive, Birch Road, Exploration Falls Drive and Crossroads Street) Perimeter Sound Walls Slope Landscaping Traffic Counters - TDIF Eligible Facilities Development Impact Fee(S) TOTALS Portion Paid Portion to be Portion to be Cost by 2004 Paid by 2006 paid by Other Estimati1) Bondi2) BondlJ) Sourcei4) $ 1,200,000 $ 1,200,000 $ 0 $ 0 10,235,791 4,947,331 5,288,460 0 810,571 452,632 357,939 0 8,195,038 2,330,001 2,052,553 2,812,484 647,929 360,099 287,830 0 5,592,000 0 2,000,000 3,592,000 450,000 450,000 0 0 10,826,553 6,000,761 589,316 4,236,476 1,335,304 1,084,984 0 250,320 2,997,269 1,991,519 0 1,005,750 50,000 50,000 0 0 9577392 4 185926 4 443 276 948 190 $ \1917847 $ 24 O'B 253 $ ]5019371 $ 12845221 (I) Costs shown may not represent total cost of improvement and soft costs. The Developer expects to pay the overage from proceeds of lot sales and other available cash. (2) As of March 1, 2006, of the $24,057.253 paid by proceeds from the 2004 Bonds, the Developer has been reimbursed approximately $19.2 million by the City. (3) The proposed allocation of the 2006 Bond proceeds for these Facilities could change and will be prioritized pursuant to the AcquisitionIFinance Agreement for the District. (4) A portion of the total improvement costs for the Facilities will be paid by members of the Developer to the extent such members of the Developer are obligated to pay for such improvement costs and the remaining improvement costs for the Facilities will be paid from bond proceeds of other community facilities districts formed by the City which have outstanding debt that is not secured by taxes or assessments levied on the parcels within the District to the extent the City believes such bond proceeds are available. (5) Public Facilities are those facilities that would otherwise be eligible to be financed from the proceeds of the City's Public Facilities Development Impact Fee. Source: Developer and McGill Martin Self, Inc. Status of Facilities The Developer plans to develop the planning areas planned for residential and commercial development in the District in three phases: Planning Areas R-I, R-2, R-4, R-7, R-20, R-21, R-22 and R-23 were developed in Phase I; Planning Areas R-3, R-5, R-6, R-8, R-9, R-IO, R-24, R-25, and S-I (elementary school site) are being developed in Phase 2; and Planning Areas R-ll, R-12, R-13, R-14, R-15, R-16, R-i7, . Preliminary subject to change. DOCSOCIl151029v4/022245-0163 19 11-36 R-18, R-19/MU-I (mixed use), S-2 (middle school site) and CPF-I (commercial site) are expected to be developed in Phase 3. All grading in Phase I, Phase 2 and Phase 3 has been completed and construction of both the backbone infrastructure and the intract infrastructure for Phase I and Phase 2 is complete. The backbone infrastructure and the intract infrastructure for Phase 3 is underway and scheduled for completion in June 2006. For more information on the status of construction of the Facilities in the District, see "THE DEVELOPMENT AND PROPERTY OWNERSHIP-Infrastructure Requirements and Construction Status." . Principal Taxpayers Table 2 below sets forth the percentage of the Special Taxes that the property owners in the District would pay in fiscal year 2006-07 based on the ownership in the District as of April I, 2006 and a projected Special Tax levy of $3,131,968: For fiscal year 2006-07, Special Taxes are expected to be levied only on Developed Property and Approved Property in an amount sufficient, together with capitalized interest payable from 2006 Bond proceeds, to pay debt service due on the 2004 Bonds and the 2006 Bonds through September 1,2007. TABLE 2 PROJECTED PRINCIPAL TAXPAYERS FOR FISCAL YEAR 2006-07' Planning Areas Owners(]) Private OwnershiD I Individual Homeowners 2/3 Individual Homeowners . 4/5/6 Individual Homeowners 7/10 Individual Homeowners 8/9 Individual Homeowners 20/21/22 Individual Homeowners 23 Individual Homeowners Suhtotal Merchant Builders Shea Homes L.P. 4/5/6 Shea Homes L.P. 11/12 Shea Homes L.P. 13/14 Shea Homes L.P. 18 Shea Homes L.P. 24/25 Shea Homes L.P. Subtotal 8/9 Brookfield Otay R8/9 LLC 15/16 Brookfield Otay R15/16 LLC 17 Brookfield Otay R 17 LLC 20/21/22 OtayMFI LLC Subtotal Master DeveloDer 19/MU-I Brookfield Shea Otay LLC Grand Totals . Preliminary, subject to change. 20 DOCSOC/1151 029v4/022245-0 163 11-37 Est/mated Fiscal Year 2006-2007 Special Tax(2) %01 Total $ 273,025 155,775 211,050 261,300 98,825 318,920 159.460 $ 1,478,355 8.72% 4.97 6.74 8.34 3.16 10.18 5.09 47.20% $ 1,675 0.05% 117,517 3.75 154,750 4.94 136,295 4.35 403.404 12.88 $ 813,640 25.98% $ 97,150 3.10% 139,620 4.46 153,331 4.90 42.880 1.37 $ 432,981 13.00% $ 406,991 12.99% $ 3,131,968 100.00% Grand Totals $3131968 lQQ..QQ% (1) Ownership infonnation provided by Developer as of April!, 2006. (2) Estimated Special Tax Levy based upon Assigned and Undeveloped Special Tax. Due to rounding totals may not be exact. Source: McGill Martin Sel~ 1nc. Delinquency History Table 3 summarizes the Special Tax delinquencies for property within the boundaries of the District for the prior and current fiscal year. TABLE 3 SPECIAL TAX DELINQUENCY HISTORY 2004-05 2005-06 Remaining Fiscal YeaT Fiscal YeaT Amount Remaining Delinquency Amount Delinquency Collected as of Delinquency as Rate as of Delinquent Rate _,2006 of _,2006 _,2006 $ % $ $ % Fiscal YeaT Source: City Estimated Direct and Overlapping Indebtedness Within the District's boundaries are numerous overlapping local agencies providing public services. Some of these local agencies have outstanding bonds or other fonns of indebtedness which are secured by taxes and assessments on the parcels within the District and others have authorized but unissued bonds which, if issued, will also be secured by taxes and assessments levied on parcels within the District. The approximate amount of the direct and overlapping debt secured by such taxes and assessments on the parcels within the District for fiscal year 2005-06, including the 2006 Bonds, is shown in Table 4 below (the "Debt Report"). The Debt Report has been derived from data assembled and reported to the District by California Municipal Statistics, Inc. Neither the District, the City nor the Underwriter has independently verified the infonnation in the Debt Report and do not guarantee its completeness or accuracy. 21 DOCSOC/1151029v4/022245-0163 11-38 TABLE 4 DIRECT AND OVERLAPPING DEBT SUMMARY CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 07-1 2005-06 Local Secured Assessed Valuation: $83,317,431 DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: Metropolitan Water District Otay Municipal Water District, J.D. No. 27 Southwestern Community College District Sweetwater Union High School District Chula Vista City School District Sweetwater Union High School District Community Facilities District No. 14 CFD No. 07-1 Bonds(l) TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT % Aoolicable 0.0060% 0.825 0.243 0.281 0.393 44.407 100 OVERLAPPING GENERAL FUND DEBT: San Diego County General Fund Obligations San Diego County Pension Obligations San Diego County Superintendent of Schools Obligations Southwestern Community College District General Fund Obligations Sweetwater Union High School District Certificates of Participation Chula Vista City School District General Fund Obligations(2) City ofChula Vista Certificates of Participation City of Chula Vista Pension Obligations Otay Municipal Water District Certificates of Participation TOTAL GROSS OVERLAPPING GENERAL FUND DEBT Less: Otay Municipal Water District Certificates of Participation TOTAL NET OVERLAPPING GENERAL FUND DEBT GROSS COMBINED TOTAL DEBT(3) NET COMBINED TOTAL DEBT 0.029% 0.029 0.029 0.263 0.309 0.408 0.472 0.472 0.43 Ratios to 2005-06 Assessed Valuation: Direct Debt Total Direct and Overlapping Tax and Assessment Debt Gross Combined Total Debt Net Combined Total Debt 53.88% 59.25% 61.34% 61.21% STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/05: $0 Debt 411/06 $23,374 79,132 220,022 232,364 347,252 3,562,615 44.895.000(4) $49,359,759(4) $124,135 357,072 3,624 5,957 54,878 448,739 584,879 55,672 107.178 $1,742,134 107.178 $1,634,956 $51,101,893 (4) $50,994,715 (4) (1) Includes Bonds. (2) Chula Vista City School District intends to use special taxes levied in various community facilities districts to support lease payments, but is not obligated to do so. (3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded, capital lease obligations. (4) Preliminary, subject to change. Source: California Municipal Statistics, Inc. The authorized but unissued debt of existing community facilities districts with boundaries overlapping the District as of April I, 2006 is summarized in Table 5 below. Other public agencies may from time to time form additional districts that impose special taxes or assessments payable by landowners within the District. See "SPECIAL RISK FACTORS-Parity Taxes, Special Assessments and Land Development Costs. " 22 DOCSOC/1151029v4/022245-0163 11-39 . ~- TABLE 5 SUMMARY OF OVERLAPPING COMMUNITY FACILITIES DISTRICTS District Chula Vista Elementary CFD No. 14(1) Sweetwater High School CFD No. 14(1) Purpose Elementary Schools High Schools Fiscal Year 2005-06 Undeveloped Land Special Tax Per Acre(2) $ 2,785 $ 2,931 Fiscal Year 2005-06 Developed Residential Special Tax Per Sq. Ft. $ .2910 $ .3708(3) Authorized Debt $250,000,000 250,000,000 (1) On July 1 of each year, the maximum special tax: rates shall be increased prior to development of a parcel by the greater of (i) the annual percentage change in the Engineering News Record building cost index for the City of Los Angeles determined every May 31 for the prior 12-month period, or (ii) two percent per fiscal year, and after development of a parcel at the rate of 2% per annum. (2) An Undeveloped Land Special Tax is provided for in these CFD's if the debt service is not satisfied through the levy of the Special Tax on Residential Property. To date CFD No. 14 of Chula Vista Elementary School District and CFD No. 14 of Sweetwater Union High School District have not been required to levy a Special Tax on Undeveloped Land. (3) These amounts are currently pledged to lease payments with respect to certain certificates of participation of the Sweetwater Union High School District and are expected to be pledged to lease payments with respect to one or more future series of certificates of participation. Source: McGill Martin Self, Inc. Expected Tax Burden It is expected that the total tax hurden on residential units in the District will be less than 2% of the initial base sales price of the units. Table 6 below sets forth an estimated property tax hill for a single family attached unit of 1,700 square feet (such square footage being the weighted average of expected unit sizes of the planned single family detacbed units) and for a single family detached unit of 2,800 square feet (such square footage being the weighted average of expected unit sizes of the planned single family attached units). The total effective tax rate for a typical single family detached unit is projected to he 1.72% and for a typical single family attached unit 1.77% of the estimated initial base sales price. 23 DOCSOCIl151029v4/022245-0163 11-40 TABLE 6 SAMPLE PROPERTY TAX BILL PROJECTED FOR FISCAL YEAR 2006-2007 FORAN AVERAGE SINGLE FAMILY ATTACHED UNIT AND SINGLE FAMILY DETACHED UNIT Assessed Valuation and Property Taxes House Square Footage (Weighted Average) Base Sales Price Total Assessed Value Percent of Total Assessed Valuation Basic Levy MWD Chula Vista Elementary School District G.O. Bond Sweetwater High School District G.O. Bond Southwestern Community College G.O. Bond Otay Water ill #27 Total Taxes Based on Assessed Value 1.00000 0.00520 0.02738 0.02252 0.01505 0.01000 1.08015% Chula Vista Elementary CFD No. 14 Sweetwater Union High School CFD No. 14 Sweetwater UHSD G.O. Credit Chula Vista Maintenance CFD No. 09-M Chula Vista Preserve CFD No. 97-2 Annexation No.3 Improvement Area C City of Chula Vista CFD No. 07-1" MosquitolRat Control MWD Water Standby Charge Otay Water Availability CWA Water Availability Total Assessments and Parcel Charges Total all Property Taxes Total Effective Tax Rate Total Effective Tax Rate Excluding City Maintenance CFD's Source: McGill Martin Self; Inc. Estimated Value-to-Lien Ratios Single Family Attached Unit Single Family (Medium Density Detached Unit (Luw 8to]0 Density 0 to 8 Units/Gross Acre) Units/Gross acre) 1,700 2,800 $ 392,412.00 $ 600,387.00 $ 385,412.00 $ 593,387.00 $ 3,854.12 $ 5,933.87 $ 20.04 $ 30.86 $ 105.53 $ 162.47 $ 86.79 $ 133.63 $ 58.00 $ 89.30 $ 27.96 $ 59.34 $ 4,152.44 $ 6,409.47 $ 494.70 $ 814.80 $ 630.36 $ 1,038.24 $ (86.79) $ (133.63) $ 376.22 $ 470.28 $ 23.80 $ 39.20 $ 1,340.00 $ 1,675.00 $ 2.29 $ 2.29 $ 11.50 $ 11.50 $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 2,812.08 $ 3,937.68 $ 6 964 52 $ 1034715 1.77% 1.72% 1.68% 1.65% The value of the land within the District is significant because in the event of a delinquency in the payment of Special Taxes the District may foreclose only against delinquent parcels in the District. Table 7 summarizes the estimated appraised value-to-lien ratios for property in the District based on the principal amount of the 2004 Bonds and the 2006 Bonds and the projected Special Tax levy for fiscal year 2006-07 based on the land use as of April!, 2006 and assuming no further development within the District after such date. . Preliminary, subject to change. 24 DOCSOC/l151029v4/022245-0163 . 11-41 The appraised value of the land within the District, based on the assumptions and limiting conditions contained in the Appraisal, was $730,148,344 as of January 15, 2006. In a letter dated ,2006, the Appraiser confirmed that, as of , 2006, the value of the taxable property within the District was not less than $730,148,344. The estimated appraised value-to-lien ratio for the property within the District currently subject to the levy of the Special Tax, based upon land values and property ownership described in the Appraisal, is approximately 16.26' to 1 as shown in Table 7 below. The estimated appraised value-to-lien ratio for the land owned by the Developer is approximately 7.86' to 1 based on the assumptions set forth in Table 7. Table 7 does not include the overlapping debt which is payable from taxes and assessments on land within the District, which, as set forth in Table 4 above, was estimated at $4,466,548 for fiscal year 2005-06. If the overlapping debt payable from taxes and assessments were included, the estimated appraised value-to- lien ratio for the District as a whole would be 14.8' to 1 rather than the 16.26' to 1 shown in Table 7. In the Annual Report filed pursuant to the Continuing Disclosure Agreement, the District will estimate the assessed value-to-lien ratios for property within the District subject to the Special Tax based on the assessed value of the taxable property within the District, but not by the appraised value of the property within the District. The infonnation in the Annual Report will follow the fonnat of Table 7. The assessed value of the land within the District for fiscal year 2005-06 is $83,317,431. Dividing this assessed value by the principal amount of the 2004 Bonds and the 2006 Bonds results in an estimated assessed value-to-lien ratio for the District as a whole of 1.9' to 1. . Preliminary, subject to change. 25 DOCSOCIl151029v4/022245-0163 11-42 ~~ ~ ~ ~~~~~~~~ ~~~~~~ 2222 . . ~ .~.!.~.~ ------ - ---- - ~~~~g;:~ N ;;;:g~~ :b -...."""" ~ ~ ~~~...~ "" "" -.... ~ N No'''''''''''.... "" ~=:=."" "" :::i=""~ ~ ~ "''''''''''''''''' '" 808~00r 8~"or 8~;8 ~. ~ - "'''''- .... "1"....... ... ~ 1. "1"-"1"""....0 "" .......'" .... 3;.~-G'~S~ ~ 0".....""-...- o. ~-:::f~8. 8i ~ 'E.e "1""""''''' .... ...0""'" ... ~~- ==~ .....""-<6....-"'.... .... ~:::f:=.. ~ _."'''''.0- ~. ~ , """"...."""1"= :;:: "''''-- ~ ~ ~ ~ ~ ~ ~ . "1:1 o::iE O~"._.r 0'.',- , 8 ~(j;""000""'D"" _ ""... 0....... ~~s::g ~ o::~.. 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"" 1" t~~ ~ ~N;!::"';:; !;;:_ . ~ ~ .. ~<:'" ~ ;; ~ ~ " .. ::- .. ~ ... ! 0 .... ... == 0 ~ ~ 11 ~"" ~ .1! ... -< t~ ~~ 888888~8 g....o.oa g~:=.g N <28] ~ 1i"'t..... ...._N .... ;;~. "" = 000000 0 00'...... 0-: o:!....o ... ~ ;:.. ~~~~ -- ~ N . ~"'~ N -< ~ ... ~ 4! ;3~ "" 00 -< ~ ~> .... H] ~ u ~~ ~. 00 <..a. .... ]~:i! ;.... g~~ ~ e~" t..... "':"'~ ......... 0,.... "''''....'''~''' "" 00 _ 0 ~ ~li"';' ~an "'0.0_""'" ... o'N-Q"":o"": oo:!"".... ~ ~ -< ~ --"'''' '" = - - ~ <E..~ ~ ~ ~~~ "" ~Ui ~ u "" ~ -. - :;;:011]= ~ .., ~'i!~::~ ~~~~3:::J::!~ _~:!o~:;: ~oo~ 0 , ....1!:] 0 :;~ ;1.:::: N ~.l= s .... == " , ;;;; a.~ ~ "" 00 iO. .1!l!ac"g ~ :z: ~ = <<<<<== <<<=iX! <<iX!iX! .2 ;.~ < 1! 0 = g 0 N lila::::J ~ 'S'.!"ii'g ~ . ~;:~~~~::!~ -a;~=~~ """"OM ~ ~ :-g~~ ~ li ~~ "";:::!~.... 0 N " ~~] ~ 00 ";;;;:j~~ ..r : i.8-~ eNg' !''''''' u::u ~ ~5:;i! . ~~~ .~ I ~~~ r ~ CI.... - '" ~ ~~~~~~.i ruu ~::::....u g-~g G'li' S ~ 8322~ ....I....I....I....I~ "'~;-:j ,,0 - >~ ill = .., ~ eeeee !I !I ::I :I 13 >>'" >.- .8 ~i8~j '" 0000000 eeeeee a S5~ ;; ::c::c:r::::c:r::::c::c .. 0 0 000 ~ .Q~"'1! S '7 i "ii"ii"ii...."ii< > > > > > > ~1@ ~~ li 0 ~.g:i ~ N ii~ii-gi ! ~~~~1] N ------- ~ N ~ "~ ~ 05....9 ._ s;: ~ :.1.H:=~~ . e.s~~ g~.s .. ... ~ ~ ~ 8r~.~~ 0 '" . N ~ g.s....1/;.8~~ <5' 0 . ~ =~..a "'-'-t: i; '" N . . N ~ .- - ="'= , ....'ce.~!2::S~Q 'ce.:!:! ~ii ~ " ~ 'i'Q~i~li':i C. .~ "" _~ _ 00 _ ~~!:;~ S -N~;::;""g ~ .....-....- ..1;1 ~ ~~~]~la , "1"-- = ~ 0 .~ ~ N ~ ~ , q.HH 0 ~ d ~ >. c... ~ en Oii::t:<uB J; U , 0 ------ 0 Q -"''''''"...''' ~ ------ 11-43 Permitted Land Use Table 8 below describes the currently approved land uses within the District. TABLE 8 LAND USE SUMMARY OF COMMUNITY FACILITIES DISTRICT Use Residential (Attached/Detached) Mixed Use Community Purpose Facilityl') Elementary School Middle School Neighborhood Parks(]) Open Space, Roads and Homeowners (HOA) Total (1) Approved for up to 2,290 units pursuant to a tract map revised on May 27, 2003. (2) Planning Area CPF-l. (3) Includes Planning Area CPF-2. Source: Developer. 27 DOCSOC/1151029v4/022245-0163 11-44 Acres 304.9(1) 10.1 5.5 11.0 25.5 16.7 115.4 489.1 . . DOCSOCIl151029v4/022245-0163 [DISTRICT LOCATION MAP] 28 11-45 THE DEVELOPMENT AND PROPERTY OWNERSHIP Exceptfor the information under the captions "-Appraisal" and "-Market Absorption Study," the Developer has provided the information in this section. The information herein regarding ownership of property in the District has been included because it is considered relevant to an informed evaluation of the 2006 Bonds. The inclusion in this Official Statement of information related to existing owners of property should not be construed to suggest that the 2006 Bonds, or the Special Taxes that will be used to pay the 2006 Bonds, are recourse obligations of the property owners. A property owner may sell or otherwise dispose of land within the District or a development or any interest therein at any time. No assurance can be given that the proposed development within the District will occur as described below. As the proposed land development progresses and parcels are sold, it is expected that the ownership of the land within the District will become more diversified. Although planning for the development of the District is at an advanced stage, actual construction of improvements is as described below under the caption "Infrastructure Requirements and Construction Status." No assurance can be given that development of the land within the District will continue to completion, or that it will occur in a timely manner or in the configuration or intensity described herein, or that any landowner described herein will obtain or retain ownership of any of the land within the District. The 2006 Bonds and the Special Taxes are not personal obligations of any landowners and, in the event that a landowner defaults in the payment of the Special Taxes, the District may proceed with judicial foreclosure but has no direct recourse to the assets of any landowner other than the property upon which the Special Tax is levied. As a result, other than as provided herein, no financial statements or information is, or will be, provided about the Developer or other landowners. The 2006 Bonds are secured solely by the Special Taxes and other amounts pledged under the Indenture. See "SOURCES OF PAYMENT FOR THE 2006 BONDS" and "SPECIAL RISK FACTORS. " General Description and Location of the District The District consists of apptoximately 489 gross acres and is located approximately 3 miles east of Interstate 805 at the south side of Olympic Parkway between Hunte Parkway and Eastlake Parkway. The District is located in the newly developing eastern portion of the City known generally as "The Otay Ranch," which is an area of approximately 9,100 acres which was annexed to the City in 1997. The District is bounded to the north by Olympic Parkway and the previously developed villages of Eastlake Greens, to the west by Eastlake Parkway, undeveloped commercial lands and Village Six of The Otay Ranch, and to the south and east by Hunte Parkway, beyond which are undeveloped lands. The 2006 Bond proceeds and additional amounts expended and expected to be expended by the Developer wiU be used to finance the infrastructure benefiting 2,304 planned housing units and a 10-acre multi-use site within the District. The infrastructure is expected to include backbone road improvements relating to Hunte Parkway, Eastlake Parkway, Kestrel Falls Road, Windingwalk Street, Evening Star Street, Hidden Path Drive, Birch Road, Exploration Falls Drive, Discovery Falls Drive and Crossroads Street. Also e1igible to be financed are improvements relating to the City's Traffic Enhancement Program and improvements relating to the City's Public Facilities Development Impact Fee program. The Developer The Developer is Brookfield Shea Otay LLC, a California limited liability company (the "Developer"). The Developer was formed on May 9, 2000 and has two members, Brookfield Otay LLC, an entity wholly-owned by Brookfield San Diego Holdings LLC, a Delaware limited liability company ("Brookfield San Diego"), and Shea Otay ViUage 11, LLC, an entity wholly-owned by Shea Homes Limited Partnership, a California limited partnership ("Shea Homes"). The Developer is managed pursuant to the terms of an Operating Agreement dated as of May 17, 2000, as amended (the "Operating Agreement"). The 29 DOCSOCIl151 029v4/022245-0 163 11-46 obligations of Brookfield Otay LLC under the Operating Agreement have been guaranteed by Brookfield Homes Holdings, Inc. and the obligations of Shea Otay Village II, LLC thereunder have been guaranteed by Shea Homes (a "Guarantor" and together with Brookfield Homes Holdings, Inc., the "Guarantors"). Each member has a 50% ownership interest in the Developer. The Operating Agreement does permit a member to make and offer to acquire the other member's ownership interest at any time on the terms set forth in the Operating Agreement. Brookfield San Diego is a 90% owned subsidiary of Brookfield Homes Holdings Inc., a California corporation. Brookfield Homes Holdings Inc. is a wholly owned subsidiary of Brookfield Homes Corporation, a Delaware corporation ("Brookfield Homes Corporation"). Brookfield Homes Corporation, through its subsidiaries, operates in five local market areas: San Francisco Bay Area, Orange County/Los Angeles, San DiegolRiverside, Sacramento, and Northern Virginia, and has been building homes and developing land in these markets since the mid-1990's. Brookfield Homes Corporation is publicly traded and its head office is in Del Mar, California. Brookfield Homes Corporation is listed on the NYSE under the ticker symbol "BHS" and is subject to the informational requirements of the Securities Exchange Act of 1934, as amended, and in accordance therewith files reports, proxy statements and other information with the Securities and Exchange Commission (the "SEC"). Such filings, particularly the Annual Report on Form IO-K and its most recent Quarterly Report on Form 10-Q, may be inspected and copied at the public reference facilities maintained by the SEC at 450 Fifth Street, N. W., Washington, D.C. 20549 at prescribed rates. Such files can also be accessed over the Internet at the SEC's website at www.sec.gov. . Shea Homes and related entities have eight operating divisions throughout California, Arizona, North Carolina and Denver, Colorado, including its active adult division which develops communities known as Trilogy. These divisions construct townhouses, condominiums, detached homes and also develop master planned communities. The general partner of Shea Homes is J.F. Shea LLC, a Delaware limited liability company, which is majority owned by J.F. Shea Co., Inc., a Nevada corporation ("Shea Company"). Shea Company also has an interest in Shea Financial Services, Reed Manufacturing, Redding Construction, Shea Properties, Shasta Electric, and J.F. Shea Construction Inc. Shea Homes and its related entities are privately held and have been operating for over 100 years. Management of Shea Homes is directed by members of the Shea family. For fiscal years 2004 and 2005, total home closings exceeded 6,408 and 6,360 units, respectively, and total revenues exceeded $2.8 billion and $3.1 billion for Shea Homes and its related entities. [SYCR NEEDS SOURCE DOCUMENT TO VERIFY THESE NUMBERS] Development Plan . History of Development. The Developer acquired the approximately 489 gross acres of land comprising the District in May 2000. The District is located in and constitutes a portion of Village Eleven of The Otay Ranch. The District has been zoned as a Planned Community as part of the General Development Plan planning process and is subject to a Sectional Planning Area Plan which allows for the development of up to 2,304 dwelling units, 10 acres of mixed use, two school sites, parks, open spaces and a community purpose facility site. See "-Status of Entitlement Approvals." . Planning Areas. The approved tentative tract map applicable to the District allows for the development of 2,304 dwelling units. Upon buildout, development within the District is anticipated to include a total of 2,304 residential units including 1,101 single family detached "fee sirople" units and 1,203 single family attached and detached "condominium" units, along with approximately 5.5 acres of community purpose property planned for commercial uses, _ acres of mixed use containing commercial uses and 282 of the single family attached condominium units referenced above, an II-acre elementary school site, a 25.5-acre middle 30 DOCSOCIl151029v4/022245-0 163 11-47 school site, 16.7 acres of neighborhood parks and approximately 115.5 acres of open space, roads and homeowner association property. The Developer has distributed 16 planning areas within Phase 1 and Phase 2 and an additional eight planning areas within Phase 3 to its members, who have, in turn, contributed such land to various merchant- builder entities related to the respective members of the Developer (the "Member Merchant Builders"). As of April 1, 2006 there were 959 homes in the District owned by individual homeowners, all of which are within 14 separate planning areas comprising Phases 1 and 2. The eight planning areas in Phase 3 owned by the Member Merchant Builders (Planning AreasR-ll, R-12, R-l3, R-14, R-15, R-16, R-17 and R-18) are expected to be developed in Phase 3 with 325 single family detached "fee simple" units and 292 single family attached and detached "condominium" units. Lots within these planning areas were distributed to the members as blue top individual lots as certified by the civil and soils engineer with the utilities stubbed into the tract boundary and were concurrently contributed to various Member Merchant Builders who are responsible for completing intract improvements such as sewer, water, dry utilities and street improvements. The DeveJoper is responsible for the completion of all other improvements adjacent to the tracts including master backbone sewer and water, storm drains, dry utilities, streets, master landscaping and trails, parks and any offsite improvements. A portion of Planning Area R-19/MU-l (planned for 282 single family attached "market rate and affordable units") is expected to be distributed to a wholly owned entity of the Developer named Winding Walk Residential LLC. The other portion of Planning Area R-19/MU-l planned for commercial uses is expected to be distributed to another wholly owned entity of the Developer named Winding Walk Retail LLC. Planning Areas Sol and S-2 are expected to be sold to the Chula Vista Elementary School District and Sweetwater Union High School District, respectively, and Planning Area CPF-l is expected to be sold to a church. These distributions and sales are expected to occur and close in the end of2006. Table 9 below summarizes the proposed or actual developer entity and proposed or actual development within the District as of April I, 2006. 31 DOCSOC/l151029v4/022245-0163 11-48 TABLE 9 SUMMARY OF PROPOSED DEVELOPMENT AS OF APRIL 1, 2006 [WILL NEED UPDATE TO APRIL 1] DDtniyl Totlll Building Tottl/ Projected Planning p",.", Minimum Lor Size Actuolor Proposed p"poud Pemtits Units Home Size Projs:ted HOlm: Price A,~ Type (Square Fed) Developer EnJity Units ]'m" Cltned Range Range R-I SFD 3,500 SheaHomesL.P. 163 163 163 2061-2284 5560,000 - 5621,000 R-2 SFD 6,000 Dray R213 LtC 47 47 47 3390-3817 $680,000.5722,000 R-3 SFD 6,000 Otay R213 LtC 46 46 46 3390-3817 5680,000 - $722.000 R-4 SFD 5,000 Shea Homes L.P 55 55 54 2480-3058 $634,000. $717,000 R-5 SFD 5,000 Shea Homes L.P. 34 34 34 2480-3058 5634,000-5717,000 R-6 SFD 5,000 Shea Homes L.P " " " 2480-3058 $634,000-$717,000 R-7 SFD 4,050 Otay R7/10 LLC 67 67 67 2088-2491 5507,000 - $550,000 R-' SFD 4,500 BrookficJd Otay R8J9 LiC " " 20 2767~2928 5705,000.5750,000 R-' SFD 4,500 Brookfield Otay R8/9 LLC 60 60 39 2767-2928 5705,000-5750,000 R-lO SFD 4,050 Otay R7/10 LLC 89 89 89 2088-2491 5507,000-5550,000 R-ll SFD 4,500 Shea Homes L.P. 34 0 0 2342-2678 $580,000-$660,000 R-IZ SFD 4,500 Shea Homes L.P. 57 15 0 2342-2678 $580,000 - $660,000 R-13 SFD 4,500 Shea Homes L.P. 54 0 0 2606-3046 $645,000 - $745,000 R-14 SFD 4,500 Shea Homes L.P. 54 14 0 2606-3046 $645,000 - $745,000 R-1S SFD 3,400 Brookfield Otay R15/16 LLC 67 0 0 2375-2647 S.590,OOO - $655,000 R~16 SFD 3,400 Brookfield Otay Rl.5/16 LLC " 0 0 2375-2647 $590,000 _ $655,000 R-17 MF 12unitslacre Brookfield Otay R17 LLC 1'0 0 0 1760.1950 $46.5,000 - $495,000 R-18 MF 15 units/acre Shea Homes L.P 112 0 0 ]643-1797 $4.50,000-$48.5,000 R~20/21/22(1) SFD 1O.5unitslacre Otay MFl LLC 150 150 122 1,870-2375 $410,000- S572,000 R-20/21122 MF 10.5 units/acre Otay MFl LLC 120 120 II' 1334-1950 $343,000 ~ $497,000 R-23 SFD 2,7.50 She. Homes L.P. II' II' II' 1491-1788 $485,000 ~ $535,200 R-24/25 MF 20.2units/a.crc Shea Homes L.P 175 102 0 1464-1.581 $418,000 - $445,000 R-24125 MF 16..5units/a.crc Shea Homes L.P. 100 " 0 1279--158.5 $375,000 - $410,000 R-24125 SFD 12 units/acre Shea Homes L.P 84 63 0 1636-1964 $440,000 - $450,000 R_]9(1) Winding Will Residentilli MF 19.5 units/acre LLC (Wholly Owned) 23' 0 0 1284-1375 $170,443-$310,000 MU_Im Winding Walk Residential MF ]7.2unitsl.cres LLC (Wholly Owned) 43 0 0 1284-2646 S375,000 - $425,000 MU-I Winding Will Retail LLC N/A Comm. 10 acres (Wholly Owned) N/A N/A N/A N/A CPF-l Ch_ 5.5 acres Third Party Developer N/A N/A N/A N/A N/A 5-1 Elemental)' School Site II acres Third Party Developer N/A N/A N/A N/A N/A S-2 MiddlelHigh Sc.hoolSite 25.S acres Third Party Developer !>If. !>If. !>If. N/A N/A T,,,," 2.304 1,298 95' '" Single family detached condominium units ", MU; of 92 Low Income, 11.5 Moderate Income and 32 Muicet Rate condominium units '" Mix ofCommercilli Site and 43 condominium units Source: Developer Development Status As of April I, 2006, 959 homes in the District were owned by individual homeowners, all of which are within 14 planning areas comprising Phases I and 2. Eight additional planning areas within Phase 3 of the District (Planning Areas R-II through R-18) have been distributed by the Developer to its members, who have, in turn, contributed such land to various Member Merchant Builders as described below, Each of the Member Merchant Builders described below is affiliated with one of the Developer's two members (Brookfield Otay LLC and Shea Otay Village II, LLC). The Member Merchant Builders referenced below which are affiliates of Brookfield Otay LLC include Brookfield Otay 15/16 LLC and Brookfield Otay RI7 and are collectively referred to herein as the "Brookfield Entities" and the Member Merchant Builder referenced belDw which is an affiliate of Shea Otay Village II, LLC includes Shea Homes, Planning Area R-II, proposed for 34 single family detached lots, was distributed to Shea Otay Village II, LLC in March 2006, and concurrently contributed to Shea Homes. The project in Planning Area R-II, which along with Planning Area R-21, is known as "Amber," with a minimum lot size of 4,500 square feet and homes ranging in size from approximately 2,342 to 2,678 square feet. Model homes in Amber are expected to open in late 2006. Base prices of these homes are expected to range from $580,000 to $660,000, 32 DOCSOCf1151029v4f022245-0163 11-49 Planning Area R-12, proposed for 57 single family detached lots, was distributed to Shea Otay Village II, LLC in March 2006, and concurrently contributed to Shea Homes. Planning Area R-12 is part of the 91-10t project known as "Amber," with a minimum lot size of 4,500 square feet and homes ranging in size from 2,342 to 2,678 square feet. Base prices of these homes range from $580,000 to $660,000. Planning Area R-B, proposed for 54 single family detached lots, was distributed to Shea Otay Village II, LLC in March 2006, and concurrently contributed to Shea Homes. Planning Area R-13 is part of the 108-10t project, which along with Planning Area R-14, is known as "Sapphire," with a minimum lot size of 4,500 square feet and homes ranging in size ITom approximately 2,606 to 3,046 square feet. Model homes in Sapphire are expected to open in late 2006. Base prices are expected to be from $645,000 to $745,000. Planning Area R-14, proposed for 54 single family detached lots, was distributed to Shea Otay Village II, LLC in March 2006 and concurrently contributed to Shea Homes. The project in Planning Area R-14 is part of the 108-10t project known as Sapphire, with a minimum lot size of 4,500 square feet and homes ranging in size from approximately 2,606 to 3,046 square feet. Model homes in Sapphire are expected to open in late 2006. Base prices currently range ITom $645,000 to $745,000. Planning Area R-15, proposed for 67 single family detached lots, was distributed to Brookfield Otay LLC in March 2006, and concurrently contributed to Brookfield Otay RI5116 LLC. Planning Area R-15 is part of the 126-lot project, which along with Planning Area R-16, is known as "Trellis," with a minimum lot size of 3,400 square feet and homes ranging in size ITom approximately 2,36] to 2,620 square feet. Model homes are expected to open in late 2006. Base prices of these homes currently range ITom $590,000 to $655,000. Planning Area R-]6, proposed for 59 single family detached lots, was distributed to Brookfield Otay LLC in March 2006, and concurrently contributed to Brookfield Otay RI5116 LLC. Planning Area R-16 is part of the 126-lot project known as Trellis, with a minimum lot size of3,400 square feet and homes ranging in size from approximately 2,361 to 2,620 square feet. Model homes in Trellis are expected to open in late 2006. Base prices of these homes currently range from $590,000 to $655,000. Planning Area R-17, proposed for 180 multi-family attached homes, was distributed to Shea Otay Village ] I, LLC in March 2006, and concurrently contributed to Shea Homes. The project in Planning Area R-] 7 is expected to have 12 units per acre and homes ranging in size ITom approximately ],760 to 1,950 square feet. Model homes in Planning Area R-17 are expected to open in early 2007. Base prices currently range from $469,500 to $495,000. Planning Area R-]8, proposed for 112 multi-family attached homes, was distributed to Shea Otay Village]], LLC in March 2006, and concurrently contributed to Shea Homes. The project in Planning Area R-]8 is expected to have 15 units per acre and homes ranging in size from approximately 1,643 to 1,797 square feet. Model homes in Planning Area R-18 are expected to open in early 2007. Base prices currently range from $450,000 to $485,000. The portion of Planning Area R-]9/MU-I, that is proposed for 282 multi-family attached homes, is'- expected to be distributed to Winding Walk Residential LLC, a wholly owned subsidiary of the Developer in mid-2006. It is projected there will be _ low income units, _ moderate units and _ market rate units in Planning Area R-19/MU-1. Homes are expected to range in size from 1,284 to 1,375. Model Homes are expected to be open in early 2007. Base prices currently range from $170,443 to $310,000. Financing Plan Developer Financing Plan. The development of the District will require large expenditures of fimds to fully develop the property and the required infrastructure. The development of the infrastructure and the lots by the Developer requires fimds in addition to the Bond proceeds. The cash sources outside of the Bond 33 DOCSOCIl151029v4/022245-0163 11-50 proceeds necessary to complete development of the lots and the infrastructure are expected to come from a combination of land distributions and sales, third party bank loans and member contributions. The Developer plans to use the cash balances reflected in Table 10 to complete the proposed development and to make distributions to its members. The Developer currently has a loan outstanding which is secured by property within the District. The financing plans of the Member Merchant Builders are described below. See "Member Merchant Builder Financing." The full buildout of the District as planned is dependent upon a number of external factors, including the general and local economy and the health of the local real estate market and the ability of the Developer and the Member Merchant Builders to obtain financing and all required permits to build the units. Table 10 represents the Developer's current estimate of the sources and uses of funds to complete its proposed development in the District. While Table 10 represents the current estimate of the sources and uses of funds for the Developer's operations, there can be no assurance there will not be substantial changes to the sources and uses funds presented. The projected sources and uses of funds in Table 10 has been prepared based on assumptions of future sales revenues, land distribution prices, reimbursements to the Developer, public facilities fmancing, bank financing, development costs, operating costs, property taxes and other items. The absorption estimates used for the sources and uses of funds may differ from those derived by the Appraiser. The actual revenues received by the Developer may vary from the projections in Table 10 due to a variety of factors. Detailed construction plans have been approved and are in the process of being developed for all of the work which is contemplated within the District. As such, there is no assurance that the actual costs will not be greater than projected or occur sooner than projected. There can be no assurance that the actual revenues will not be less or the actual costs more than projected or occur later than projected by the Developer. To the extent that actual revenues are less than projected in Table 10 or are received more slowly than projected in Table 10, other financing projected by the Developer is not put into place, or actual expenses are greater than or occur earlier than projected above, there could be a shortfall in the cash required to complete the land development operations being undertaken by the Developer. No assurance can be given that the Developer will have access to funds under its existing loans or will obtain any additional loans to finance the development. Neither the Developer nor any of its members has any legal obligation to any third party to obtain additional loans or otherwise advance funds for the remaining development costs. The Developer was formed to purchase the land within the District primarily for the purpose of distributing certain residential lots in a blue top condition to its members and to sell the commercial development to third parties. Its members, in turn, have transferred and expect to continue to transfer the distributed lots to the Member Merchant Builders and other affiliated merchant builders, who then complete the development process and sell the finished units. The Developer has planned the land development and lot distribution to occur in three stages. The developed lots for 721 attached and detached residential units in Phase I were distributed to members in July 2003. The developed lots for 684 attached and detached residential units in Phase 2 were distributed in June 2004. Phase 3 is projected to total 617 lots and additional parcels which are proposed for 282 attached units. The individual lots were distributed in March 2006 and the remaining residential and commercial parcels owned by the Developer are expected to be distributed to wholly owned entities of the Developer and sold to third-party developers by the end of 2006. The Developer distributes lots to its members in a non-cash transaction. At the time of distribution, the member's capital account is reduced by the distribution value of the land established under the Developer's Operating Agreement, and the member is required to payoff an. agreed upon portion of the third party debt incurred by the Developer in connection with the land development. The members obtain funds to repay the third party debt from the Member Merchant Builders, and the Member Merchant Builders obtain such moneys by placing loans against the lots distributed to them. Given this arrangement, the significant portion of profit from the development is expected to be realized by the Member Merchant Builders and other affiliated merchant builders, and not by the Developer. As set forth in Table 10, the Developer is projected to generate 34 DOCSOCIl t51029v4/022245-0163 11-51 revenues adequate to cover the costs that it is to pay in connection with the development process, with total expected revenues exceeding total projected costs by approximately $7 million. As set forth in Table 10, tbe Developer has received approximately $72 million in member contriburions to complete its development plan, witb one-half contributed by tbe Brookfield Otay LLC member and tbe otber half by the Shea Otay Village II. LLC member. In tbe event tbat future member contributions are required to be made to complete tbe development plan tben one-half of such contributions are expected to be made by tbe Brookfield Otay LLC member and the otber half by the Shea Otay Village II, LLC member. Under tbe Operating Agreement, a member has tbe right, but not tbe obligation, to make a contribution on behalf of the otber member who is delinquent in making a required capital contribution, which may result in an adjustment oftbe ownership percentages oftbe members. Neitber member currently has cash on hand to make tbese cash contributions. A copy of the most recent unaudited financial statements for tbe Developer are attached hereto as Appendix J. The Developer expects tbat Brookfield Otay LLC can receive cash for any future member contribution ITom its parent company, Brookfield San Diego, which ultimately receives its funding ITom Brookfield Homes Corporation, whose most recent financial statements can be found on the SEC's website at www.sec.gov. The Developer expects that Shea Otay Village II, LLC can receive cash for any future member contribution ITom Shea Homes eitber ITom cash tbat Shea Homes expects to have on hand or ITom proceeds received ITom Shea Homes' revolving line of credit managed by Wells Fargo Bank and described below. A copy of the audited Combined Financial Statements for J.F. Shea Company for tbe years ended December 31, 2005 and December 31, 2004 are attached hereto as Appendix K. As set forth in Note 2 to the Combined Financial Statements, the statements are considered to be a meaningful presentation of the [mancial position and result of operations ofbotb Shea Homes and J.F. Shea Company. Notwitbstanding the Developer's expectations that its members will be provided witb the cash necessary to make any future required contributions, neither Brookfield Homes Corporation or any of its subsidiaries, nor J.F. Shea Company or Shea Homes, has any legal obligation to any tbird party to contribute funds to the Developer's members, altbough each Guarantor has a legal obligation to tbe otber member of tbe Developer to perform the obligations of its member under the Operating Agreement including making capital contributions when required thereunder. No assurance can be given that any future required contributions can be made in amounts sufficient to complete tbe development process as plarmed. 35 DOCSOC/1151029v4/022245-0163 11-52 TABLE 10 DEVELOPER'S PROJECTED SOURCES AND USES OF FUNDS AS OF MARCH 31, 2006 (in thousands) Actuals Through April- March 31 December 2006 2006 2007 2008 Total Sources of Cash Member's Capital Contributions $ 64,972 $ 4,306 $ $ $ 72,016 Land Sales to Third Parties 11 ,250 11,250 Third Party Loan Balance (Wells Fargo) 68,319 68,319 Notesl Advances to Members 5,000 5,000 Net Bond Proceeds for Public Improvements 13.795 3.715 21.562 39.072 Total Sources of Cash $147,086 $ 25,271 $ 21,562 $ $ 193,919 Uses of Cash Land Development CostS(I) $ 74,858 $ 15,200 $ 11,264 $ 1,580 $ 102,902 Overhead(2) 11,379 1,087 905 378 13,749 Notesl Advances to Members 4,490 4,490 Member's Capital Distributions 44,842 2 44,844 Third Party Debt Service 7.883 7.883 Total Uses of Cash $143,452 $ 16,287 $ 12,169 $ 1,960 $ 173,868 Profit $ $ 7,062 $ $ $ 7,062 Annual Working Capital $ 3,634 $ 1,922 $ 9,393 $ (1,960) $ 12,989 Cumulative Working Capital $ 3,634 $ 5,556 $ 14,949 $ 12,989 (1) Includes costs to finance the Facilities. (2) Includes general and administrative overhead, taxes, management fee, legal costs and sales and marketing expense. Source: Developer. Member Merchant Builder Financing. The Member Merchant Builders currently owning planning areas in the District intend to finance their respective developments in the District as described below. Shea Otay Village II, LLC was distributed Planning Areas R-I, R-4, R-5, R-6, R-23, R-24 and R-25 in Phase I and 2 projected to contain 768 units at buildout, of which 408 were closed to individual homeowners as of April I, 2006. Shea Otay Village II, LLC was distributed Planning Areas R-II, R-12, R- 13, R-14 and R-18 in March 2006. Shea Otay Village II, LLC contributed the foregoing planning area to its Member Merchant Builder Shea Homes. Shea Homes currently has a revolving line of credit with a group of banks managed by Wells Fargo Bank in the amount of $850 million (the "Line of Credit"). The amount outstanding as of February 28, 2006 was $345 million. The planning areas being developed by Shea Homes are being principally fmanced by draws on the Line of Credit. The Line of Credit is available for projects other than those in the District, and there is no requirement that any portion of the Line of Credit be reserved or made available for development within the District. Shea Homes estimates that, as of April I, 2006, it will be required to expend an additional $_ million to complete the construction of the remaining _ units within Phases I and 2 that have yet to close escrow (planning Areas 24/25) and an additional $24.5 million to complete the development of its property in Phase 3 to finished lot status (Planning Areas R-ll, R-12, R-13, R-14 and R-18). 36 DOCSOC/1151029v4/022245-0163 11-53 Brookfield Otay LLC was distributed Planning Areas R-2, R-3, R-7, R-8, R-9, R-IO, R-20, R-21, R-22 in Phases I and 2 totaling 637 units of which 551 are closed to individual homeowners as of April I, 2006. Brookfield Otay LLC was distributed Planning Areas R-15, R-16 and R-17 in Phase 3 in March 2006. Immediately following the foregoing contributions, Brookfield Otay LLC contributed the foregoing planning areas to various of its related Member Merchant Builders. Planning Areas R-15 and R-16 are being financed by an acquisition and development loan from Union Bank (the "Union Bank Loan"). The principal amount of the Union Bank Loan is $17,140,880. Future construction financing is anticipated to pay off the Union Bank Loan. Planning Areas R-17 and R-19 are being fmanced by and acquisition and development loan from Wells Fargo Bank (the "Well Fargo Bank Loan"). The principal amount of the Wells Fargo Bank Loan is $17,875,000. Future construction financing is anticipated to payoff the Wells Fargo Loan. Brookfield Otay LLC and its Merchant Member Builders estimated that, as of April I, 2006, they will be required to expend an additional $23.6 million to complete construction of the remaining 86 units within Phases I and 2 that have yet to close escrow (Planning Areas 8, 9, 20, 21 and 22) and an additional $89.5 million to develop the proposed 306 units within Phase3 (planning Areas R-15, R-16 and R-17). The Line of Credit and the loans described above contain a number ofterms and conditions that must be satisfied as a condition to disbursing funds. No assurance can be given that the above-described merchant builders will have access to funds under these financing arrangements or that they can or will obtain any additional loans to fmance their respective development projects. The merchant builders have no legal obligations of any kind to obtain development loans or otherwise advance funds for development costs. Status of Entitlement Approvals The District was zoned Planned Community ("PC") as part of the General Development Plan ("GDP") planning process. The PC zone required a multi-phase planning process beginning with a GDP, followed by the preparation of a Sectional Planning Area ("SPA") Plan. The SPA Plan is to be used as a supplement to other existing City regulations, and supersedes those established in the City Zoning Ordinance. Incorporated into the SPA Plan is the Site Utilization Plan, which designates the zoning on the District. The SPA Plan was adopted by the City on October 23, 2001, by Resolution No. 2001-363 as amended on May 27, 2003, by Resolution No. 2003-230. Per the SPA Plan, the District is designated for a maximum of 2,304 residential units, 10 acres of mixed uses including residential and commercial sites, an II-acre elementary school site, a 25.5-acre junior high school site, 49 acres of parks and open space lands, a 5.5-acre community purpose facility site, and both major circulation and internal streets. The District is covered by a Tentative Map for Village Eleven allowing for the development of all of the planned residential and commercial development within the District. Final Maps (dividing the property into individual lots) have been recorded for all the planning areas, except Planning Areas R-17 and R-18, which final maps are expected to record in September 2006 and Planning Area R-19/MU-l, which final map is expected to record in June 2006. The Developer believes that all discretionary approvals required for the development of the District will have been obtained by September 2006. In response to the conclusions in the most recent traffic study, the City has implemented a building permit monitoring program for a number of projects in The Otay Ranch, including those within the District. See "-Potential Limitations on Development." Environmental Constraints The land within the District has undergone extensive environmental and biological review and has received the necessary permits for the development of the entire property covered by the tentative map. The Developer believes that it has obtained all permits and approvals required by any environmental laws and regulations which are needed to complete the proposed development within the District. 37 DOCSOC1l151029v4!022245-0163 11-54 Infrastructure Requirements and Construction Status . The infrastructure requirements for the District can be grouped into two categories with their construction status as of March I, 2006 as follows: Major Backbone Infrastructure. Work on the backbone infrastructure improvements for the District are either complete or under construction. All roads within Phase I are paved and landscaping of the medians, slopes and rights-of-way have been completed. The roadway improvements for Phase I include the construction of Evening Star Street and Kestrel Falls Road and portions of Hunte Parkway, Eastlake Parkway, Hidden Path Drive, Windingwalk Street, and Exploration Falls Drive. Backbone infrastructure improvement in Phases 2 and 3 include Birch Road, Discovery Falls Drive and Crossroads Street and the remaining portions of Hunte Parkway, Eastlake Parkway, Windingwalk Street, Hidden Path Drive and Exploration Falls Drive. Backbone infrastructure improvements in Phases 2 and 3 have commenced and are expected to be completed in June 2006. . Intract Infrastructure. All planning areas within Phases I and 2 have been graded to finish pads and water and sewer and dry utilities have been installed. Phase 3 grading is complete and installation of water, sewer and dry utilities has commenced and is scheduled for completion in the first quarter of 2007. Potential Limitations on Development . Growth Management Oversight Commission ("GMOC''). The City has established a Threshold Standards Policy (the "Threshold Policy") through the adoption of a Growth Management Ordinance, which established eleven public facility and service area "quality of life" measures. The eleven public facility and service thresholds include police, fire and emergency medical services, traffic, schools, parks and recreation, libraries, sewer, drainage, fiscal impact, air quality and water. The Threshold Policy established goals, objectives, standards or thresholds and applicable implementation measures for the eleven services. The GMOC was created to provide an annual independent review for compliance with the Threshold Policy. The GMOC review for compliance occurs on a fiscal year cycle. The Threshold Policy calls for preparation of short-range, 12 to 18 month, and mid-range, five to seven year, development forecasts. These forecasts are utilized by City staff and external service agencies to evaluate projected service levels, identify any potential threshold problems and address implementation measures to avoid level of service problems. As a condition to developing property within the District, .a landowner must, prior to [mal map approval for a parcel, enter into an agreement with the City acknowledging that building permits may be withheld if any of the required development threshold limits set in the City transportation planning phase are exceeded. The tentative map conditions for the land within the District also subject the land to the provisions of the GMOC. The Threshold Policy includes traffic thresholds which require that level of service "C" be maintained on the arterial street system except level of service "D" can occur for no more than two hours of the day. The level of service is a descriptive and qualitative measure of the degree of traffic congestion experienced by motorists. There are six levels of congestion, assigned letters 'A' through 'F.' Levels of service 'A' Through 'D' represent generally acceptable levels of service with level of service 'A' corresponding to no congestion and level of service 'c' represents a range in which the ability of vehicles to maneuver is affected by the presence of other vehicles and speeds begin to show some reduction. Level of service 'D' is approaching roadway capacity with the ability to maneuver being severely restricted and traffic is subject to speed reductions. Level of service 'E' is at roadway capacity with unstable speeds. Level of service 'F' occurs when roadway capacity is exceeded, excessive delays are experienced and stop-and-go traffic conditions exist. Should the traffic threshold standard be exceeded, the Growth Management Ordinance calls for a building permit moratorium to be considered by the City Council until the threshold problem can be mitigated. There 38 DOCSOC/1151 029v4/022245-0 163 11-55 can be no guarantee that any such moratorium would exclude the District, even if the traffic congestion leading to such moratorium occurs outside of the District's area. On August 9, 2005 the City Council accepted the 2005 GMOC Annual Report (the "2005 Report"). The 2005 Report covers the eleven public facility and service area "quality of life" measures for the period from July I, 2003 through June 30, 2004, identifies current issues in the second half of 2004 and early 2005 and assesses threshold compliance concerns over the next five years. The 2005 Report concluded that there were no unacceptable levels of service or expected unacceptable levels of service for the time periods covered by the 2005 Report. It is expected that the next GMOC Annual Report will go to council in August 2006 and, currently, the City does not expect there to be any unacceptable levels of service. Prior Monitoring Program. The City previously implemented a three-year building permit monitoring program (the "Monitoring Program") for a number of projects within the City, including those within the District. The Developer and the City entered into an agreement (the "Monitoring Agreement") which provided that up to 378 building permits could be issued for units within the District between April I, 2003 and March 31, 2004, an additional 568 permits between April I, 2004 and March 31, 2005 and an additional 492 permits between April I, 2005 and March 31, 2006. Release of certain permits depended upon the construction of certain roadway improvements. If a roadway improvement was not completed by the date set forth in the Monitoring Agreement, then, until it was completed, the corresponding number of building permits attributed to such improvement were deducted from the total number of permits to be issued for the last 12 months of the Monitoring Program. The amount deducted was prorated against all developers included within the Monitoring Program on a proportionate basis. The Monitoring Agreement expired on March 31, 2006. Projects that had been operating, including those in the District, pursuant to the Monitoring Agreement currently have no constraint on their access to building permits although the City could impose restrictions in the future under the GMOC. Should the City determine that the standards of the Threshold Policy are not being met, it could impose further limitations or a moratorium on the issuance of building permits within the District. The City does not currently anticipate that it will need to further restrict or prohibit the issuance of building permits within the District; however, currently unforeseen events could result in further action by the City under the GMOC. Investors should note that, in particular, the City may amend its Growth Management Ordinance from time to time and no assurance can be given that its terms will not be more restrictive on development than those currently in effect. Appraisal The information regarding ownership of property in the District included in the Appraisal has been included because it is considered relevant to an informed evaluation of the Bonds. The inclusion in this Official Statement of information related to existing owners of property should not be construed to suggest that the Bonds, or the Special Taxes that will be used to pay the Bonds, are recourse obligations of the property owners. A property owner may sell or otherwise dispose of land within the District or a development or any interest therein at any time. Development may also be abandoned at any time. The Appraiser valued the property within the District, taking into consideration the lien of the Special Taxes, based upon a number of assumptions and limiting conditions contained in the Appraisal as set forth in Appendix C. The Appraiser has valued the property within the District based upon a sales comparison approach to value and, as to the property owned by the Developer, the sales comparison approach was coupled with a discounted cash flow analysis. Under the sales comparison approach to value, the Appraisal takes into account the development status of the residential lots, analyzes the market for similar properties and compares these properties to the properties in the District. The Appraiser then arrives at an estimated retail value for finished lots in the District. Under the discounted cash flow analysis, the Appraiser values the undeveloped 39 DOCSOCIl151029v4/022245-0163 11-56 acreage by discounting to a present value the net cash flow projected to result uom the development of the finished lots. The Appraiser first estimates the retail value of the finished lots, the costs of developing the finished lots, the estimated absorption period and the marketing, sales and carrying costs. The Appraiser then applies a discount rate to the projected cash flow that accounts for the risk associated with the development of the lots, the time value of money and a profit due to the owner of the lots. Based on historical information, the Appraiser has assumed annual appreciation of 5% on land sales and 6% on development costs. A discount rate of 16% per year has been used by the Appraiser in arriving at the estimate of value for the land within the District. The Appraiser is of the opinion that the aggregate "as is" value of the land within the District as of January 15, 2006, assuming the completion of all improvements to be financed with proceeds of the Bonds was $730,148,344. Of this total, the lots previously distributed by the Developer to its members were valued at $79,885,000, the property owned by individual homeowners at $534,303,344 and the property owned by the Developer at $115,960,000. Certain land that is expected to become exempt uom the levy of Special Taxes in the future was not assigned a value in the Appraisal. In a letter dated , 2006 (the "Letter of Appraisal"), the Appraiser stated that the value of the taxable property within the District as of 2006 was not less than the value provided in the Appraisal. In arriving at its statement of value, the Appraiser assumed that the remaining development costs provided by the Developer are accurate, there are no hidden or unapparent conditions of the property or subsoil that render it more or less valuable, that all required licenses, certificates of occupancy or other legislative or administrative authorizations uom governmental agencies or private entities or organizations have been or can be obtained, that no hazardous waste and/or toxic materials are located on the property within the District that would affect the development process, that the improvements to be funded with the Bonds are completed and that the proposed development is constructed in a timely manner with no adverse delays (Le., construction will proceed as proposed with no limitations on development occurring beyond those imposed by the Monitoring Agreement). See "-Potential Limitations on Development" above. No assurance can be given that the assumptions made by the Appraiser will, In fact, be realized, and, as a result, no assurance can be given that the property within the District could be sold at the appraised values included in the Appraisal. Market Absorption Study The Market Absorption Study dated February 7, 2006, has been prepared by the Market Absorption Consultant. An executive summary of the Market Absorption Study dated , 2006, is included herein as Appendix B. The Market Absorption Consultant has estimated, based upon the analysis of relevant demographic and economic conditions in the Chula Vista area, the number of housing units in the District that can be expected to be marketed and sold annually using the estimated absorption schedules for each of the product types. The Market Absorption Study concludes that given market conditions and the Monitoring Agreement it will take until early 2009 for the residential units within the District to be constructed and sold. The Market Absorption Study projects that the residential units in the District could sell out over a 12-quarter period and that, in addition to the 968 homes absorbed in 2003-2005, 491 homes could be absorbed in 2006, 489 in 2007,314 in 2008 and 42 in 2009. The Market Absorption Study assumes that all required governmental approvals will be obtained in a timely manner and that there will be no slowdown in the issuance of permits due to the City's GMOC beyond those contained in the Monitoring Agreement, that there are no physical impediments to construction such as earthquakes and hazardous waste, that the public infTastructure necessary to develop will be provided in a timely manner, that the merchant builders in the District will maximize the market potential through strict product differentiation, appropriate and competitive pricing and timely inuastructure completion, that the developers and merchant builders and their lenders have sufficient financial strength to fund adequately the projects and that they have sufficient cash flow reserves to supplement their cash flow positions in the event 40 DOCSOC/I151 029v4/022245-0 163 11-57 ,.....- that adverse economic or market conditions occur. The Market Absorption Consultant concludes that the success of the planned development in the District will depend on national, regional and local economic conditions during the projected buildout period. The actual absorption of units could be adversely affected if one or more of the foregoing assumptions is not realized or if economic conditions change in a manner that adversely affects housing projects. See Appendix B-"SUMMARY OF MARKET ABSORPTION STUDY." SPECIAL RISK FACTORS The purchase of the 2006 Bonds involves a high degree of investroent risk and, therefore, the 2006 Bonds are not appropriate investments for many types of investors. The following is a discussion of certain risk factors which should be considered, in addition to other matters set forth herein, in evaluating the investment quality of the 2006 Bonds. This discussion does not purport to be comprehensive or defInitive. The occurrence of one or more of the events discussed herein could adversely affect the ability or willingness of property owners in the District to pay their Special Taxes when due. Such failures to pay Special Taxes could result in the inability of the District to make full and punctual payment of debt service on the 2006 Bonds. in addition, the occurrence of one or more of the events discussed herein could adversely affect the value of the property in the District. See "Land Values" and "Limited Secondary Market" below. Concentration of Ownership As of April I, 2006, all of the taxable land within the District was owned by the Developer, various Member Merchant Builders and 959 individual homeowners. Although 959 individual homeowners have now closed escrow, as set forth in Table 2 above, a signifIcant amount of the projected fIscal year 2006-07 Special Tax levy will be levied against Developed Property and Approved Property owned by the Developer and the Member Merchant Builders. See "TIlE COMMUNITY FACILITIES DISTRICT-Principal Taxpayers." This concentration of ownership presents a risk to investors. Until the completion and sale of additional parcels, the receipt of the Special Taxes is dependent on the willingness and the ability of the Developer and Member Merchant Builders or other third-party developers, to pay the Special Taxes when due: Failure of the current landowners, or any successor, to pay the annual Special Taxes when due could result in a default in payments of the principal of, and interest on, the 2006 Bonds, when due. See "-Failure to Develop Properties" below. No assurance can be made that the Member Merchant Builders, or other third-party developers or any of their successors, will complete the intended construction and development in the District. See "-Failure to Develop Properties" below. As a result, no assurance can be given that such landowners will continue to pay Special Taxes in the future or that they will be able to pay such Special Taxes on a timely basis. See "- Bankruptcy and Foreclosure" below, for a discussion of certain limitations on the District's ability to pursue judicial proceedings with respect to delinquent parcels. Limite!! Obligations The 2006 Bonds and interest thereon are not payable from the general funds of the City. Except with respect to the Special Taxes, neither the credit nor the taxing power of the District or the City is pledged for the payment of the 2006 Bonds or the interest thereon, and, except as provided in the indenture, no Owner of the 2006 Bonds may compel the exercise of any taxing power by the District or the City or force the forfeiture of any City or District property. The principal of, premium, if any, and interest on the 2006 Bonds are not a debt of the City or a legal or equitable pledge, charge, lien or encumbrance upon any of the City's or the District's property or upon any of the City's or the District's income, receipts or revenues, except the Special Taxes and other amounts pledged under the indenture. 41 DOCSOCIl151029v4/022245-0163 11-58 . Insufficiency of Special Taxes Under the Rate and Method, the annual amount of Special Tax to be levied on each taxable parcel in the District will generally be based on whether such parcel is categorized as Approved Property, Undeveloped Property or as Developed Property and on the land use class to which a parcel of Developed Property is assigned. See AppendixA-"RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES" and "SOURCES OF PAYMENT FOR THE BONDS-Method of Apportionment of Special Tax." . The Rate and Method governing the levy of the Special Tax expressly exempts property owned by public agencies or a property owners association, or property classified as open space, community purpose facility property provided that no such exemption shall reduce the sum of all taxable property to less than 147.15 acres in Zone A and 59.04 acres in Zone B. If a substantial portion of land within the District became exempt from the Special Tax hecause of puhlic ownership, or otherwise, the maximum Special Tax which could be levied upon the remaining property within the District might not be sufficient to pay principal of and interest on the Bonds when due and a default could occur with respect to the payment of such principal and interest. Special Tax Delinquencies Under provisions of the Act, the Special Taxes, from which funds necessary for the payment of principal of, and interest on, the 2006 Bonds are derived, are customarily billed to the properties within the District on the ad valorem property tax bills sent to owners of such properties. The Act currently provides that such Special Tax installments are due and payable, and bear the same penalties and interest for non-payment, as do ad valorem property tax installments. See "SOURCES OF PAYMENT FOR THE BONDS-Special Taxes," for a discussion of the provisions which apply, and procedures which the District is obligated to follow under the Indenture, in the event of delinquencies in the payment of Special Taxes. See "-Bankruptcy and Foreclosure" below, for a discussion of the policy of the Federal Deposit Insurance Corporation (the "FDIC") regarding the payment of special taxes and assessment and limitations on the District's ability to foreclosure on the lien of the Special Taxes in certain circumstances. Adjustable Rate and Non-Conventional Mortgages Since the end of 2002, many persons have financed the purchase of new homes using loans with little or no downpayment and with adjustable interest rates that start low and are subject to being reset at higher rates on a specified date or upon the occurrence of specified conditions. Many of these loans allow the borrower to pay interest only for an initial period, in some cases up to 10 years. Currently, in Southern California, a substantial portion of outstanding home loans are adjustable rate loans at historically low interest rates. In the opinion of some economists, the significant increase in home prices in this time period (more than 70% since 2003 in southern San Diego County) has been driven, in part, by the ability of home purchasers to access adjustable rate and non-conventional loans. These economists predict that as interest rates on new loans increase and as the interest rates on existing adjustable rate loans are reset (and payments are increased) there will be a decrease in home sales due to the inability of purchasers to qualify for loans with higher interest rates. They further predict that such a decrease in home sales will, eventually, result in a decrease in home prices. Some economists are concerned that such a reduction in home prices will result in recent homebuyers having loan balances that exceed the value of their homes, given their low downpayments and small amount of equity in their homes. Homeowners in the District who purchase their homes with adjustable rate and non-conventional loans with no or low downpayments may experience difficulty in making their loan payments due to automatic mortgage rate increases and rising interest rates. This could result in an increase in the Special Tax delinquency rate in the District and draws on the Reserve Fund. If there were significant delinquencies in 42 DOCSOC/1151 029v4/022245-0 163 11-59 Special T...x collections in the District and the Reserve Fund was fully depleted, there could be a default in the payment of principal of and interest on the Bonds. Some economists have also predicted that, as mortgage loan defaults increase bankruptcy filing by such homeowners are also likely to increase. Bankruptcy filings by homeowners with delinquent Special Taxes would delay the commencement and completion of foreclosure proceedings to collect delinquent Special Taxes. See "SPECIAL RISK FACTORS-Bankruptcy and Foreclosure" below. Failure to Develop Properties Undeveloped or partially developed land is inherently less valuable than developed land and provides less security to the Bondowners should it be necessary for the District to foreclose on the property due to the nonpayment of Special Taxes. The failure to complete development of the required infrastructure for development in the District as planned, or substantial delays in the completion of the development or the required infrastructure for the development due to litigation or other causes may reduce the value of the property within the District and increase the length of time during which Special Taxes will be payable from undeveloped property, and may affect the willingness and ability of the owners of property within the District to pay the Special Taxes when due. Land development is subject to comprehensive federal, State and local regulations. Approval is required from various agencies in connection with the layout and design of developments, the nature and extent of improvements, construction activity, land use, zoning, school and health requirements, as well as numerous other matters. Although most approvals have been obtained, there is always the possibility that the remaining approvals will not be obtained or, if obtained, will not be obtained on a timely basis. Failure to obtain any such remaining agency approval or satisfy such governmental requirements would adversely affect planned land development. Finally, development of land is subject to economic considerations. Additionally, the Developer and Member Merchant Builders may need to obtain additional financing to complete the development of the property and units that they are developing. No assurance can be given that the required funding will be secured or that the proposed development will be partially or fully completed, and it is possible that cost overruns will be incurred which will require additional funding beyond what the Developer and the Member Merchant Builders have projected, which mayor may not be available. See "THE DEVELOPMENT AND PROPERTY OWNERSHIP-Finance Plan" herein. The future development of the vacant land within the District may be adversely affected by existing or future governmental policies, or both, restricting or controlling the development of vacant land in the District. See "THE DEVELOPMENT AND PROPERTY OWNERSHIP-Potential Limitations on Development" for a discussion of certain significant limitations on the ability of the Developer and merchant builders to complete the projected development in the District. Specifically, investors should consider the broad power of the City to halt or delay development under its Growth Management Ordinance. There can be no assurance that the owners of the vacant land in the District will be able to secure the necessary discretionary approvals if they choose to develop their properties. See also "-Future Land Use Regulations and Growth Control Initiatives" below. There can be no assurance that land development operations within the District will not be adversely affected by a future deterioration of the real estate market and economic conditions or future local, State and federal governmental policies relating to real estate development, the income tax treatment of real property ownership, or the national economy, or the direct or indirect consequences of military and/or terrorist activities in this country or abroad. A slowdown of the development process and the absorption rate could adversely affect land values and reduce the ability or desire of the property owners to pay the annual Special Taxes. In that event, there could be a default in the payment of principal of, and interest on, the 2006 Bonds when due. 43 DOCSOC/1151029v4/022245-0163 11-60 Bondowners should assume that any event that significantly impacts the ability to develop land in the District to a degree not considered by the Appraiser would cause the property values within the District to decrease substantially ITom those estimated by the Appraiser and could affect the willingness and ability of the owners of land within the District to pay the Special Taxes when due. . The payment of principal of and interest on the 2006 Bonds depends upon the receipt of Special Taxes levied on undeveloped property. Undeveloped property is less valuable per unit of area than developed land, especially if there are no plans to develop such land or if there are severe restrictions on the development of such land. The undeveloped property also provides less security to the Bondowners should it be necessary for the District to foreclose on undeveloped property due to the nonpayment of the Special Taxes. Furthermore, an inability to develop the land within the District as currently proposed will make the Bondowners dependent upon timely payment of the Special Taxes levied on undeveloped property for a longer period of time than projected. Because substantially all of the land within the District is currently owned by the Member Merchant Builders, the timely payment of the 2006 Bonds depends upon the willingness and ability of such owners to pay the Special Taxes levied on the undeveloped property when due. See "--Concentration of Ownership" above. A slowdown or stoppage in the continued development of the District could reduce the willingness and ability of such owners to make Special Tax payments on undeveloped property and could greatly reduce the value of such property in the event it has to be foreclosed upon. See "-Land Values" below. . Future Land Use Regulations and Growth Control Initiatives The City currently has the authority under its Growth Management Ordinance to limit or halt development within the District if certain quality of life standards are not met within the City. See 'TIffi DEVELOPMENT AND PROPERTY OWNERSHIP-Potential Limitations on Development." In addition, it is possible that future growth control initiatives could be enacted by the voters or future local, state or federal land use regulations could be adopted by governmental agencies and be made applicable to the development of the vacant land within the District with the effect of negatively impacting the ability of the owners of such land to complete the development of such land if they should desire to develop it. Development could also be delayed or prohibited under the City's existing Growth Management Ordinance. This possibility presents a risk to prospective purchasers of the 2006 Bonds in that an inability to complete desired development increases the risk that the 2006 Bonds will not be repaid when due. The owners of the 2006 Bonds should assume that any reduction in the permitted density, significant increase in the cost of development of the vacant land or substantial delay in development caused by growth and building permit restrictions or more restrictive land use regulations would cause the values of such vacant land within the District to decrease. A reduction in land values increases the likelihood that in the event of a delinquency in payment of Special Taxes a foreclosure action will result in inadequate funds to repay the 2006 Bonds when due. In completing their analyses, both the Appraiser and the Market Absorption Consultant have assumed that there will be no delays in development due to land use regulations or growth control initiatives. Completion of construction of any proposed structures on the vacant land within the District is subject to the receipt of approvals ITom a number of public agencies concerning the layout and design of such structures, land use, health and safety requirements and other matters. The failure to obtain any such approval could adversely affect the planned development of such land. Under current State law, it is generally accepted that proposed development is not exempt ITom future land use regulations until building permits have been issued and substantial work has been performed and substantial liabilities have been incuITed in good faith reliance on the permits. Because future development of vacant property in the District could occur over several years, if at all, the application of future land use regulations to the development of the vacant land could cause significant delays and cost increases not currently anticipated, thereby reducing the development potential of the vacant property and the ability or willingness of owners of such land to pay Special Taxes when due or causing land values of such land within the District to decrease substantially from those in the Appraisal. 44 DOCSOC/1151 029v4/022245-0 163 11-61 Water Availability The development of the land within the District is dependent upon the availability of water for the planned units. The availability of water depends upon the weather, the rate of development and other factors including water rights and legal actions challenging water rights. The Otay Municipal Water District (the "Water District") is the agency responsible for providing water to the District. The Water District receives a significant portion of its water !Tom the Metropolitan Water District ("MWD"), which is the primary supplier of wholesale water in Southern California. MWD's major source of water is the State Water Project operated by the California Department of Water Resources. MWD historically has been apportioned the use of a certain amount of water delivered to the State !Tom the Colorado River. In addition to this apportionment, MWD is also entitled to surplus water !Tom the Colorado River. Increased demand for water in Arizona and Nevada is resulting in less surplus water being available to MWD' MWD has stated that it plans to meet the demand for water within its service area without relying on the delivery of surplus Colorado River water. The Developer and the City believe that the Water District will be able to provide water to the District to permit the construction of the planned units. No assurance can be given, however, that water service will be available at the time that building permits are applied for, and the lack of water availability could adversely affect the planned development in the District. A slowdown or stoppage in the continued development of the District could reduce the willingness and ability of such owners to make Special Tax payments on undeveloped property and could greatly reduce the value of such property in the event it has to be foreclosed upon. See "-Land Values" below. Endangered Species In recent years there has been an increase in activity at the State and federal levels related to the possible listing of certain plant and animal species found in the southern San Diego County area as endangered species. An increase in the number of endangered species could curtail development in the southern San Diego County area. Any action by the State or federal goverrunents to protect species located on or adjacent to the property within the District could negatively impact the ability of the owners of that land to develop it. This, in turn, could reduce the likelihood of timely payment of the Special Taxes levied against such that land and would likely reduce the value of such land and the potential revenues available at the foreclosure sale for delinquent Special Taxes. See "-Failure to Develop Land" above. Natural Disasters The District, like all California communities, may be subject to unpredictable seismic activity, fires, flood, or other natural disasters. Southern California is a seismically active area. Seismic activity represents a potential risk for damage to buildings, roads, bridges and property within the District. In addition, land susceptible to seismic activity may be subject to liquefaction during the occurrence of such event. Portions of Southern California are subject to wildfires. In October 2003, over 200,000 acres and over two thousand homes were destroyed in wildfires in San Diego County. The land within the District was not affected by these wildfires, but the terrain to the east of the District includes large tracts of open space that could be susceptible to damage from wildfires in the future, and it is possible that the District could be affected by a future wildfire. In the event of a severe earthquake, fire, flood or other natural disaster, there may be significant damage to both property and in!Tastructure in the District. As a result, a substantial portion of the property owners may be unable or unwilling to pay the Special Taxes when due. In addition, the value of land in the District could be diminished in the aftermath of such a natural disaster, reducing the resulting proceeds of foreclosure sales in the event of delinquencies in the payment of the Special Taxes. 45 DOCSOCIl151 029v4/022245-0 163 11-62 Hazardous Substances The presence of hazardous substances on a parcel may result in a reduction in the value of a parcel. In general, the owners and operators of a parcel may be required by law to remedy conditions of the parcel relating to releases or threatened releases of hazardous substances. The Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, sometimes referred to as "CERCLA" or the "Superfund Act," is the most well-known and widely applicable of these laws, but California laws with regard to hazardous substances are also stringent and similar. Under many of these laws, the owner or operator is obligated to remedy a hazardous substance condition of property whether or not the owner or operator has anything to do with creating or handling the hazardous substance. The effect, therefore, should any of the taxed parcels be affected by a hazardous substance, is to reduce the marketability and value of the parcel by the costs of remedying the condition, because the purchaser, upon becoming owner, will become obligated to remedy the condition just as is the seller. Further, it is possible that liabilities may arise in the future with respect to any of the parcels resulting from the existence, currently, on the parcel of a substance presently classified as hazardous but which has not been released or the release of which is not presently threatened, or may arise in the future resulting from the existence, currently on the parcel of a substance not presently classified as hazardous but which may in the future be so classified. Further, such liabilities may arise not simply from the existence of a hazardous substance but from the method of handling it. All of these possibilities could significantly affect the value ofa parcel that is realizable upon a delinquency. Neither the City nor the Developer has knowledge of any hazardous substances being located on the property within the District. Parity Taxes, Special Assessments and Land Development Costs Property within the District is subject to the lien oftaxes and assessments imposed by public agencies also having jurisdiction over the land within the District and several overlapping districts. See "THE COMMUNITY F ACILITIES DISTRICT-Estimated Direct and Overlapping Indebtedness." The Special Taxes and any penalties thereon will constitute a lien against the lots and parcels of land on which they will be annually imposed until they are paid. Such lien is on a parity with all special taxes and special assessments levied by the City and other agencies and is co-equal to and independent of the lien for general property taxes regardless of when they are imposed. The Special Taxes have priority over all existing and future private liens imposed on the property except, possibly, for liens or security interests held by the Federal Deposit Insurance Corporation. See "-Bankruptcy and Foreclosure" below. Development ofland within the District is contingent upon construction or acquisition of major public improvements such as arterial streets, water distribution facilities, sewage collection and transmission facilities, drainage and flood protection facilities, gas, telephone and electrical facilities, schools, parks and street lighting, as well as local in-tract improvements and on-site grading and related improvements. Certain of these improvements have been acquired and/or completed; however, there can be no assurance that the remaining improvements will be constructed or will be constructed in time for development to proceed as currently expected. The cost of these additional improvements plus the public and private in-tract, on-site and off-site improvements could increase the public and private debt for which the land within the District is security. This increased debt could reduce the ability or desire of the property owners to pay the annual Special Taxes levied against the property. In that event there could be a default in the payment of principal of, and interest on, the Bonds when due. Neither the City nor the District has control over the ability of other entities and districts to issue indebtedness secured by special taxes or assessments payable from aU or a portion of the property within the District. In addition, the landowners within the District may, without the consent or 46 DOCSOCII151 029v4/022245-0 163 11-63 knowledge of the City, petition other puhlic agencies to issue public indebtedness secured by special taxes or assessments. Any such special taxes or assessments may have a lien on such property on a parity with the Special Taxes and could reduce the estimated value-to-lien ratios for property within the District described herein. Disclosures to Future Purchasers The willingness or ability of an owner of a parcel to pay the Special Tax even if the value of the parcel is sufficient may be affected by whether or not the owner was given due notice of the Special Tax authorization at the time the owner purchased the parcel, was informed of the amount of the Special Tax on the parcel should the Special Tax be levied at the maximum tax rate and the risk of such a levy and, at the time of such a levy, has the ability to pay it as well as pay other expenses and obligations. The City has caused a notice of the Special Tax lien to be recorded in the Office of the County Recorder of the County of San Diego against each parcel. While title companies normally refer to such notices in title reports, there can be no guarantee that such reference will be made or, if made, that a prospective purchaser or lender will consider such Special Tax obligation in the purchase of a property within the District or lending of money thereon. The Act requires the subdivider (or its agent or representative) of a subdivision to notify a prospective purchaser or long-term lessor of any lot, parcel, or unit subject to a Mello-Roos special tax of the existence and maximum amount of such special tax using a statutorily prescribed form. California Civil Code Section l102.6b requires that in the case of transfers other than those covered by the above requirement, the seller must at least make a good faith effort to notify the prospective purchaser of the special tax lien in a format prescribed by statute. Failure by an owner of the property to comply with the above requirements, or failure by a purchaser or lessor to consider or understand the nature and existence of the Special Tax, could adversely affect the willingness and ability of the purchaser or lessor to pay the Special Tax when due. Non-Cash Payments of Special Taxes Under the Act, the City Council as the legislative body of the District may reserve to itself the right and authority to allow the owner of any taxable parcel to tender a Bond in full or partial payment of any installment of the Special Taxes or the interest or penalties thereon. A Bond so tendered is to be accepted at par and credit is to be given for any interest accrued thereon to the date of the tender. Thus, if Bonds can be purchased in the secondary market at a discount, it may be to the advantage of an owner of a taxable parcel to pay the Special Taxes applicable thereto by tendering a Bond. Such a practice would decrease the cash flow available to the District to make payments with respect to other Bonds then outstanding; and, unless the practice was limited by the District, the Special Taxes paid in cash could be insufficient to pay the debt service due with respect to such other Bonds. In order to provide some protection against the potential adverse impact on cash flows which might be caused by the tender of Bonds in payment of Special Taxes, the Indenture includes a covenant pursuant to which the District will not authorize owners of taxable parcels to satisfy Special Tax obligations by the tender of Bonds unless the District shall have fIrst obtained a report of a Special Tax Consultant certifying that doing so would not result in the District having insufficient Special Tax Revenues to pay the principal of and interest on all Outstanding Bonds and any Parity Bonds when due. Payment of the Special Tax is not a Personal Obligation of the Owners An owner of a taxable parcel is not personally obligated to pay the Special Tax. Rather, the Special Tax is an obligation which is secured only by a lien against the taxable parcel. If the value of a taxable parcel is not suffIcient, taking into account other liens imposed by public agencies, to secure fully the Special Tax, the District has no recourse against the owner. 47 DOCSOCI1151029v4/022245-0163 11-64 Land Values The value of the property within the District is a critical factor in determining the investment quality of the 2006 Bonds. If a property owner is delinquent in the payment of Special Taxes, the District's only remedy is to commence foreclosure proceedings in an attempt to obtain funds to pay the Special Taxes. Reductions in property values due to a downturn in the economy, the direct or indirect consequences of military and/or terrorist actions in this country or abroad, physical events such as earthquakes, fires or floods, stricter land use regulations, delays in development or other events will adversely impact the security underlying the Special Taxes. See "TIiE COMMUNITY FACILITIES DISTRlCT-Estimated Value-to-Lien Ratios" herein. The assessed values set forth in this Official Statement do not represent market values arrived at through an appraisal process and generally reflect only the sales price of a parcel when acquired by its current owner, adjusted annually by an amount determined by the San Diego County Assessor, not to exceed an increase of more than 2% per fiscal year. No assurance can be given that a parcel could actually be sold for its assessed value. The Appraiser has estimated, on the basis of certain definitions, assumptions and limiting conditions contained in the Appraisal, that as of January IS, 2006 the value of the land within the District was $730, I 48,344. In the Letter of Appraisal, the Appraiser confirmed that as of , 2006, the value of the taxable property within the District was not less than $730,148,344. The Appraisal is based on the assumptions as stated in Appendix C-"APPRAISAL REPORT." The Appraisal does not reflect any possible negative impact which could occur by reason of future actions by the City under the Growth Management Ordinance or future slow or no growth voter initiatives, any potential limitations on development occurring due to time delays, an inability of the property owners within the District to obtain any needed development approval or permit, the presence of hazardous substances within the District, the listing of endangered species or the determination that habitat for endangered or threatened species exists within the District, or other similar situations. The Appraiser has conditioned the Appraisal on four special conditions in addition to the typical list of assumptions and limiting conditions, including that: (i) the value takes into consideration the improvements to be fmanced with the proceeds of the 2006 Bonds, (ii) the cost estimates provided by the Developer are accurate and complete, (iii) building permits will be made available to projects in the District in accordance with the schedule in the Monitoring Agreement and thereafter that no additional monitoring of building permits will be imposed, and (iv) there are no environmental or moratorium issues which would slow or thwart development of the District to its highest and best use. See "THE DEVELOPMENT AND PROPERTY OWNERSHIP-Potential Limitations on Development" and Appendix C-"APPRAISAL REPORT." . Prospective purchasers of the 2006 Bonds should not assume that the land within the District could be sold at a foreclosure sale for delinquent Special Taxes for the appraised amount in the Appraisal. In arriving at the estimates of value, the Appraiser assumes that any sale will be unaffected by undue stimulus and will occur following a reasonable marketing period, which is not always present in a foreclosure sale. See Appendix C for a description of other assumptions made by the Appraiser and for the defmitions and limiting conditions used by the Appraiser. No assurance can be given that any bid will be received for a parcel with delinquent Special Taxes offered for sale at foreclosure or, if a bid is received, that such bid will be sufficient to pay all delinquent Special Taxes. See "SOURCES OF PAYMENT FOR TIiE 2006 BONDS-Special Tax-Proceeds of Foreclosure Sales." . FDIC/FederaI Government Interests in Properties The ability of the District to foreclose the lien of delinquent unpaid Special Tax installments may be limited with regard to properties in which the Federal Deposit Insurance Corporation (the "FDIC") has an 48 DOCSOC/1151029v41022245-0163 11-65 interest. In the event that any fmancial institution making any loan which is secured by real property within the District is taken over by the FDIC, and prior thereto or thereafter the loan or loans go into default, then the ability of the District to collect interest and penalties specified by State law and to foreclose the lien of delinquent unpaid Special Taxes may be limited. The FDIC's policy statement regarding the payment of state and local real property taxes (the "Policy Statement") provides that property owned by the FDIC is subject to state and local real property taxes only if those taxes are assessed according to the property's value, and that the FDIC is immune from real property taxes assessed on any basis other than property value. According to the Policy Statement, the FDIC will pay its property tax obligations when they become due and payable and will pay claims for delinquent property taxes as promptly as is consistent with sound business practice and the orderly administration of the institution's affairs, unless abandonment of the FDIC's interest in the property is appropriate. The FDIC will pay claims for interest on delinquent property taxes owed at the rate provided under state law, to the extent the interest payment obligation is secured by a valid lien. The FDIC will not pay any amounts in the nature of fines or penalties and will not pay nor recognize liens for such amounts. If any property taxes (including interest) on FDIC-owned property are secured by a valid lien (in effect before the property became owned by the FDIC), the FDIC will pay those claims. The Policy Statement further provides that no property of the FDIC is subject to levy, attachment, garnishment, foreclosure or sale without the FDIC's consent. In addition, the FDIC will not permit a lien or security interest held by the FDIC to be eliminated by foreclosure without the FDIC's consent. The Policy Statement states that the FDIC generally will not pay non-ad valorem taxes, including special assessments, on property in which it has a fee interest unless the amount of tax is fixed at the time that the FDIC acquires its fee interest in the property, nor will it recognize the validity of any lien to the extent it purports to secure the payment of any such amounts. Special taxes imposed under the Mello-Roos Act and a special tax formula which determines the special tax due each year are specifically identified in the Policy Statement as being imposed each year and therefore covered by the FDIC's federal immunity. The District is unable to predict what effect the application of the Policy Statement would have in the event of a delinquency in the payment of Special Taxes on a parcel within the District in which the FDIC has or obtains an interest, although prohibiting the lien of the FDIC to be foreclosed out at a judicial foreclosure sale could reduce or eliminate the number of persons willing to purchase a parcel at a foreclosure sale. Such an outcome could cause a draw on the Reserve Fund and perhaps, ultimately, a default in payment on the 2006 Bonds. Bankruptcy and Foreclosure Bankruptcy, insolvency and other laws generally affecting creditors rights could adversely impact the interests of owners of the Bonds in at least two ways. First, the payment of taxes by property owners and the ability of the District to foreclose the lien of a delinquent unpaid Special Tax pursuant to its covenant to pursue judicial foreclosure proceedings may be limited by bankruptcy, insolvency or other laws generally affecting creditors' rights or by the laws of the State relating to judicial foreclosure. In addition, the prosecution of a foreclosure could be .delayed due to many reasons, including crowded local court calendars or lengthy procedural delays. Second, the Bankruptcy Code might prevent moneys on deposit in the funds and accounts created under the Indenture from being applied to pay interest on the Bonds and/or to redeem Bonds if bankruptcy proceedings were brought by or against the Developer or a merchant builder and if the court found that the Developer or such merchant builder had an interest in such moneys within the meaning of Section 541(a)(l) of the Bankruptcy Code. Although a bankruptcy proceeding would not cause the Special Taxes to become extinguished, the amount of any Special Tax lien could be modified if the value of the property falls below the value of the lien. 49 DOCSOC/1151029v4/022245-0163 11-66 If the value of the property is less than the lien, such excess amount could be treated as an unsecured claim by the bankruptcy court. In addition, bankruptcy of a property owner could result in a delay in prosecuting Superior Court foreclosure proceedings. Such delay would increase the likelihood of a delay or default in payment of delinquent Special Tax installments and the possibility of delinquent Special Tax installments not being paid in full. The various legal opinions to be delivered concurrently with the delivery of the 2006 Bonds (including Bond Counsel's approving legal opinion) will be qualified, as io the enforceability of the various legal instruments, by moratorium, bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors generally. No Acceleration Provision The 2006 Bonds do not contain a provision allowing for the acceleration of the 2006 Bonds in the event of a payment default or other default under the 2006 Bonds or the Indenture. Loss of Tax Exemption As discussed under the caption "TAX MATTERS," the interest on the 2006 Bonds could become includable in gross income for federal income tax purposes retroactive to the date of issuance of the 2006 Bonds as a result of a failure of the District to comply with certain provisions of the Internal Revenue Code of I 986, as amended. Should such an event of taxability occur, the 2006 Bonds are not subject to early redemption and will remain outstanding to maturity or until redeemed under the optional redemption provisions of the Indenture. Limitations on Remedies Remedies available to the owners of the 2006 Bonds may be limited by a variety of factors and may be inadequate to assure the timely payment of principal of and interest on the 2006 Bonds or to preserve the tax-exempt status of the 2006 Bonds. Bond Counsel has limited its opinion as to the enforceability of the 2006 Bonds and of the Indenture to the extent that enforceability may be limited by bankruptcy, insolvency, reorganization, :traudulent conveyance or transfer, moratorium, or other similar laws affecting generally the enforcement of creditors' rights, by equitable principles and by the exercise of judicial discretion. The lack of availability of certain remedies or the limitation ohemedies may entail risks of delay, limitation or modification ofthe rights of the owners of the 2006 Bonds. Limited Secondary Market There can be no guarantee that there will be a secondary market for the 2006 Bonds or, if a secondary market exists, that such Bonds can be sold for any particular price. Although the District and the Developer and the merchant builders have committed to provide certain financial and operating information on an annual basis, there can be no assurance that such information will be available to Bondowners on a timely basis. See "CONTINUING DISCLOSURE." The failure to provide the required annual financial information does not give rise to monetary damages but merely an action for specific performance. Occasionally, because of general market conditions, lack of current information, or because of adverse history or economic prospects connected with a particular issue, secondary marketing practices in connection with a particular issue are suspended or terminated. Additionally, prices of issues for which a market is being made wi1l depend upon then prevailing circumstances. Such prices could be substantially different :trom the original purchase price. 50 DOCSOCII151029v4/022245-0 163 11-67 Proposition 218 An initiative measure commonly referred to as the "Right to Vote on Taxes Act" (the "Initiative") was approved by the voters of the State of California at the November 5, 1996 general election. The Initiative added Article XIIIC and Article XIIID to the California Constitution. According to the "Title and Summary" of the Initiative prepared by the California Attorney General, the Initiative limits "the authority of local governments to impose taxes and property-related assessments, fees and charges." Many provisions of the Initiative have not yet been interpreted by the courts, although several lawsuits have been filed requesting the courts to interpret various aspects of the Initiative and a number of decisions have been rendered. Tbe Initiative could potentially impact the Special Taxes available to the City to pay the principal of and interest on the 2006 Bonds as described below. Among other things, Section 3 of Article XIII states that ". . . the initiative power shall not be prohibited or otherwise limited in matters of reducing or repealing any local tax, assessment, fee or charge." The Act provides for a procedure which includes notice, hearing, protest and voting requirements to alter the rate and method of apportionment of an existing special tax. However, the Act prohibits a legislative body from adopting any resolution to reduce the rate of any special tax or terminate the levy of any special tax pledged to repay any debt incurred pursuant to the Act unless such legislative body determines that the reduction or termination of the special tax would not interfere with the timely retirement of that debt. On July I, 1997, a bill was signed into law by the Governor of the State enacting Government Code Section 5854, which states that: "Section 3 of Article XIIIC of the California Constitution, as adopted at the November 5, 1996, general election, shall not be construed to mean that any owner or beneficial owner of a municipal security, purchased before or after that date, assumes the risk of, or in any way consents to, any action by initiative measure that constitutes an impairment of contractual rights protected by Section 10 of Article I of the United States Constitution." Accordingly, although the matter is not free from doubt, it is likely that the Initiative has not conferred on the voters the power to repeal or reduce the Special Taxes if such reduction would interfere with the timely retirement of the 2006 Bonds. It may be possible, however, for voters or the City Council acting as the legislative body of the District to reduce the Special Taxes in a manner which does not interfere with the timely repayment of the 2006 Bonds, but which does reduce the maximum amount of Special Taxes that may be levied in any year below the existing levels. Furthermore, no assurance can be given with respect to the future levy of the Special Taxes in amounts greater than the amount necessary for the timely retirement of the 2006 Bonds. Therefore, no assurance can be given with respect to the levy of Special Taxes for Administrative Expenses. Nevertheless, to the maximum extent that the law permits it to do so, the District has covenanted that it will not initiate proceedings under the Act to reduce the maximum Special Tax rates on parcels within the District to less than an amount equal to 1 10% of Maximum Annual Debt Service on the 2006 Bonds. In connection with the foregoing covenant, the District has made a legislative finding and determination that any elimination or reduction of Special Taxes below the foregoing level would interfere with the timely retirement of the 2006 Bonds. Tbe District also has covenanted that, in the event an initiative is adopted which purports to alter the Rate and Method of Apportionment of Special Tax, it will commence and pursue legal action in order to preserve its ability to comply with the foregoing covenant. However, no assurance can be given as to the enforceability of the foregoing covenants. The interpretation and application of the Initiative will ultimately be determined by the courts with respect to a number of the matters discussed above, and it is not possible at this time to predict with certainty the outcome of such determination or the timeliness of any remedy afforded by the courts. See "SPECIAL RlSK FACTORS-Limitations on Remedies." 51 DOCSOCII151029v4/022245-0163 11-68 Ballot Initiatives Article XIII A, Article XIII B and Proposition 218 were adopted pursuant to measures qualified for the ballot pursuant to California's constitutional initiative process. From time to time, other initiative measures could be adopted by California voters. The adoption of any such initiative might place limitations on the ability of the State, the City or local districts to increase revenues or to increase appropriations or on the ability of the landowners within the District to complete the remaining proposed development. See "SPECIAL RISK FACTORS-Failure to Develop Properties" herein. CONTINUING DISCLOSURE Pursuant to a Continuing Disclosure Agreement with NBS Government Finance Group, as dissemination agent (the "Disclosure Agreement"), the District, has agreed to provide, or cause to be provided, to each nationally recognized municipal securities information repository and any public or private repository or entity designated by the State as a state repository for purposes of Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission (each, a "Repository") certain annual fmancial information and operating data concerning the District. The Annual Report to be filed by the District is to be filed not later than February I of each year, beginning February I, 2007, and is to include audited financial statements of the City. The requirement that the District file the City's audited financial statements as a part of the Annual Report has been included in the Disclosure Agreement solely to satisfY the provisions of Rule 15c2-12. The inclusion of this information does not mean that the 2006 Bonds are secured by any resources or property of the City, and the 2006 Bonds are limited obligations of the District. See "SOURCES OF PAYMENT FOR THE BONDS" and "SPECIAL RISK FACTORS-Limited Obligations." The District has not previously failed to comply within the last five years in all material respects with any previous undertakings with regard to Rule 15c2 12 to provide annual reports or notices of material events. The full text of the Disclosure Agreement is set forth in Appendix F. To assist the Underwriter in complying with Rule 15c2-12(b)(5), the Developer and the BrookfieJd Entities together will, and Shea Homes will, each enter into a certain Continuing Disclosure Agreement (the "Developer Disclosure Agreement") covenanting to provide Semi-Annual Reports not later than May I and November I of each year beginning November I, 2006. The Semi-Annual Reports due in May of each year provided by the Developer and the Brookfield Entities and Shea Homes are to contain the unaudited financial statements of such entities and their affiliates owning land within the District or, if available, the audited financial statements. Each Semi-Annual Report also will contain the additional financial and operating data outlined in Section 4 of the Developer Disclosure Agreement attached in Appendix G and Appendix G-I. The obligations of a landowner under its Developer Disclosure Agreement will terminate upon the earliest to occur of: (a) the legal defeasance, prior redemption or payment in full of all the 2006 Bonds; (b) the date on which such landowner and all affiliates thereof are no longer responsible for the payment of more than 20 percent of the annual Special Tax levy and not less than 90% of the Facilities have been completed; or (c) the date on which such landowner delivers to the District an opinion of nationally-recognized bond counsel to the effect that the continuing disclosure is no Jonger required under the Rule. Each Developer Disclosure Agreement provides that, if the parties thereto sell or transfer an ownership interest in any property in the District to a non-affiliated entity which will result in the transferee becoming responsible for the payment of 20 percent of the annual Special Tax levy in the fiscal year following such transfer, the applicable landowner will cause any such transferee to enter into a disclosure agreement or assume the obligations of the transferor under its Developer Disclosure Agreement with respect to such property transferred, as described in Section 12 of the Developer Disclosure Agreement attached hereto in Appendix G and Appendix G-I. The Developer, the Brookfield Entities and Shea Homes have each represented that they are not aware of any previous failure to comply within the last five years in all material respects with any previous undertakings with regard to Rule 15c2-12 to provide annual reports or notices of material events. Each 52 DOCSOCI1151029v4/022245-0163 11-69 Developer Disclosure Agreement will inure solely to the benefit of the District, any Dissemination Agent, the Underwriter and owners or beneficial owners from time to time of the 2006 Bonds. TAX MATTERS In the opinion of Best Best & Krieger LLP ("Bond Counsel"), based upon an analysis of existing laws, regulations, rulings and court decisions, and assuming, among other matters, compliance with certain covenants, interest on the 2006 Bonds is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986 (the "Code") and is exempt from State of California personal income taxes. Bond Counsel is of the further opinion that interest on the 2006 Bonds is not a specific preference item for purposes of the federal individual or corporate alternative minimum taxes, although Bond Counsel observes that such interest is included in adjusted current earnings when calculating federal corporate alternative minimum taxable income. A complete copy of the proposed form of opinion of Bond Counsel is set forth in Appendix H hereto. The Code imposes various restrictions, conditions and requirements relating to the exclusion from gross income for federal income tax purposes of interest on obligations such as the 2006 Bonds. The District has covenanted to comply with certain restrictions designed to insure that interest on the 2006 Bonds will not be included in federal gross income. Failure to comply with these covenants may result in interest on the 2006 Bonds being included in federal gross income, possibly from the date of original issuance of the 2006 Bonds. The opinion of Bond Counsel assumes compliance with these covenants. Bond Counsel has not undertaken to determine (or to inform any person) whether any actions taken (or not taken) or events occurring (or not occurring) after the date of issuance of the 2006 Bonds may adversely affect the value of, or the tax status of interest on, the 2006 Bonds. Further, no assurance can be given that pending or future legislation or amendments to the Code, if enacted into law, or any proposed legislation or amendments to the Code, will not adversely affect the value of, or the tax status of interest on, the 2006 Bonds. Prospective Bondholders are urged to consult their own tax advisors with respect to proposals to restructure the federal income tax. Certain requirements and procedures contained or referred to in the Indenture, the Tax Certificate, and other relevant documents may be changed and certain actions (including, without limitation, defeasance of the 2006 Bonds) may be taken or omitted under the circumstances and subject to the terms and conditions set forth in such documents. Bond Counsel expresses no opinion as to any Bond or the interest thereon if any such change occurs or action is taken or omitted upon the advice or approval of Bond Counsel other than itself. Although Bond Counsel is of the opinion that interest on the 2006 Bonds is excluded from gross income for federal income tax purposes and is exempt from State of California personal income taxes, the ownership or disposition of, or the accrual or receipt of interest on, the 2006 Bonds may otherwise affect a Bondholder's federal or state tax liability. The nature and extent of these other tax consequences will depend upon the particular tax status of the Bondholder or the Bondholder's other items of income or deduction, and Bond Counsel expresses no opinion regarding any such other tax consequences. LEGAL MATTERS Certain legal matters incident to the issuance of the 2006 Bonds are subject to the approving legal opinion of Best Best & Krieger LLP, San Diego, California ("Bond Counsel"). A copy of the proposed form of opinion of Bond Counsel is set forth in Appendix H hereto. The opinion of Bond Counsel will be qualified as to the enforceability of certain of the proceedings by limitations imposed by bankruptcy, insolvency, moratoria and other similar laws affecting creditors' rights, heretofore or hereafter enacted, and by the exercise of judicial discretion in accordance with general principles of equity. Bond Counsel has reviewed the cover page of this Official Statement and the portions hereof under the captions "INTRODUCTION," "THE 2006 BONDS," "SOURCES OF PAYMENT FOR THE 2006 BONDS" "TAX MATTERS" and in Appendices E and H, insofar as such portions purport to summarize 53 DOCSOC/llS1029v4/02224S-0163 11-70 certain provisions of the 2006 Bonds, the Indenture, the legal procedures required for the authorization of the 2006 Bonds, and the opinion of Bond Counsel concerning the exclusion of interest on the 2006 Bonds from gross income, but Bond Counsel has not assisted in the preparation of or reviewed the remainder of this Official Statement, and accordingly Bond Counsel expresses no opinion as to the accuracy or sufficiency of any statements, material or financial information contained in the remainder of this Official Statement. Certain legal matters will be passed upon for the City and the District by the City Attorney and for the Underwriter by its counsel, Stradling Y occa Carlson & Rauth, a Professional Corporation, Newport Beach, California ("Stradling"). Although it serves as counsel to the Underwriter in connection with the issuance and sale of the 2006 Bonds, Stradling represents the City in connection with other financings. Stradling undertakes no responsibility to the purchasers of the 2006 Bonds for the accuracy, completeness or fairness of the information in this Official Statement and expressly disclaims any duty to do so. LITIGATION No litigation is pending or threatened concerning the validity of the 2006 Bonds or the pledge of Special Taxes to repay the 2006 Bonds and a certificate of the District to that effect will be furnished to the Underwriter at the time of the original delivery of the 2006 Bonds. The District is not aware of any litigation pending or threatened which questions the existence of the District or contests the authority of the District to levy and collect the Special Taxes or to issue and retire the 2006 Bonds. NO RATING The District has not made and does not contemplate making application to any rating agency for the assignment of a rating of the 2006 Bonds. UNDERWRITING The 2006 Bonds are being purchased by Stone & Youngberg LLC (the "Underwriter"). The Underwriter has agreed to purchase the 2006 Bonds at a price of $ (being $ aggregate principal amount thereof, less original issue discount of $ and less Underwriter's discount of $ ). The purchase agreement relating to the 2006 Bonds provides that the Underwriter will purchase all of the 2006 Bonds if any are purchased. The obligation to make such purchase is subject to certain terms and conditions set forth in such purchase agreement, the approval of certain legal matters by counsel and certain other conditions. The Underwriter may offer and sell the 2006 Bonds to certain dealers and others at prices lower than the offering price stated on the cover page hereof. The offering price may be changed from time to time by the Underwriter. FINANCIAL INTERESTS The fees being paid to the Financial Advisor, Underwriter, Underwriter's Counsel and Bond Counsel are contingent upon the issuance and delivery of the 2006 Bonds. From time to time, Bond Counsel represents the Underwriter on matters unrelated to the 2006 Bonds and Underwriter's Counsel represents the City on matters unrelated to the 2006 Bonds. PENDING LEGISLATION The District is not aware of any significant pending legjslation which would have material adverse consequences on the 2006 Bonds or the ability of the District to pay the principal of and interest on the 2006 Bonds when due. 54 DOCSOC/I151029v4/022245-0163 11-71 ADDITIONAL INFORMATION The purpose of this Official Statement is to supply information to prospective buyers of the 2006 Bonds. Quotations and summaries and explanations of the 2006 Bonds and documents contained in this Official Statement do not purport to be complete, and reference is made to such documents for full and complete statements and their provisions. The execution and delivery of this Official Statement by the Director of Finance of the City has been duly authorized by the City Council acting in its capacity as the legislative body of the District. COMMUNITY FACILITIES DISTRICT NO. 07-1 (Otay Ranch Village Eleven) By: /s/ Director of Finance 55 DOCSOC/1151 029v4/022245-0 163 11-72 APPENDIX A RATE AND METHOD OF APPORTIONMENT FOR CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 07-1 (Otay Ranch ViUage Eleven) A Special Tax as hereinafter defined shall be levied on each Assessor's Parcel of Taxable Property within the City of Chula Vista Community Facilities District No. 07-1 (Otay Ranch Village Eleven), and collected each Fiscal Year commencing in Fiscal Year 2004-2005 in an amount determined by the City Council through the application of the appropriate Special Tax for "Developed Property," "Approved Property", "Undeveloped Property" and "Provisional Undeveloped Property" as described below. All of the Taxable Property within CFD-07-I, 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 meaning: "'A' Map" shall mean a master final subdivision or parcel map, filed in accordance with the Subdivision Map Act and the Chula Vista Municipal Code, which subdivides the land or a portion thereof shown on a tentative map into "super block" lots corresponding to units or phasing of combination of units as shown on such tentative map and which may further show Community Purpose Facility Property, Property Owner Association Property, Public Property, open space lot dedications, backbone street dedications and utility easements required to serve such "super block" lots. "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, parcel map, condominium plan, record of survey, or other recorded document creating or describing the land area. If the preceding maps for a land area are not available, the Acreage of such land area shall be determined by the City Engineer. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Fees and Expenses" means the actual or reasonably estimated costs directly related to the administration ofCFD-07-I including, but not limited to, the following: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County, the City, or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD-07-I, or any designee thereof of complying with arbitrage rebate requirements and/or responding to any audit of the Bonds by the Internal Revenue Service; the costs to the City, CFD-07 - I, or any designee thereof of providing continuing disclosure; the costs of the City, CFD-07-I or any designee thereof of preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD-07-I, or any designee thereof related to any appeal of the levy or application of the Special Tax; and the costs associated with the release of funds uom an escrow account, if any. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD-07-I, for any other administrative purposes, including, but not limited to attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. A-I DOCSOC/I 151 029v4/022245-0 163 11-73 "Approved Property" means all Assessor's Parcels of Taxable Property: (i) that are included in an 'A' Map, excluding lettered lots thereon, or a Final Subdivision Map, excluding lettered lots thereon, that were recorded prior to January 1st for the Fiscal Year ending July 31, 2005, and prior to March 1st for each subsequent Fiscal Year thereafter preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a building permit prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied. "Assessor's 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 County Assessor of the County designating parcels by Assessor's Parcel number. "Assigned Special Tax" means the Special Tax for each Land Use Class of Developed Property as determined in accordance with Section C.I.a. "Available Funds" means (a) the balance in the reserve fund established pursuant to the terms of the Indenture in excess of the reserve requirement as defined in such Indenture, (b) delinquent Special Tax payments not required to fund the Special Tax Requirement for any preceding Fiscal Year, (c) that portion of Special Tax prepayments allocated to the payment of interest on Bonds, and (d) other sources of funds available as a credit to the Special Tax Requirement as specified in such Indenture. "Backup Special Tax" means the Special Tax as determIned in accordance with Section C.l.b. "Bonds" means any bonds or other debt (as defined in the Act), whether in one or more series, issued or incurred by CFD-07 - I under the Act. "Bond Year" means a one-year period beginning on September 2nd in each year and ending on September I st in the following year, unless defined otherwise in the applicable Indenture. "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-07-I" means City ofChula Vista Community Facilities District No. 07-1. "City" means the City of Chula Vista. . "Community Purpose Facility Property" means all Assessor's Parcels which are (a) classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2002- 2883 as amended on November 5,2002 or (b) designated on an "A" Map or a Final Subdivision Map as a community purpose facility. "Council" means the City Council of the City, acting as the legislative body ofCFD-07-1. "County" means the County of San Diego. "Density" means for each Assessor's Parcel of Residential Property the number of Dwelling Units per gross acre determined pursuant to those provisions of Ordinance No. 2866, in effect as of January 7, 2003, that provide for the calculation of density for purposes of calculating Transportation Development Impact Fees. A-2 DOCSOCfl151 029v4/022245-0 163 11-74 "Developed Property" means all Assessor's Parcels of Taxable Property for which a building permit has been issued prior to March I st preceding the Fiscal Year in which the Special Tax is being levied. "Dwelling Unit" means each separate residential dwelling unit that comprises an independent facility capable of conveyance or rental separate ITom adjacent residential dwelling units. "Exempt Property" means all Assessor's Parcels that are exempt from the Special Tax pursuant to Section E.!. "Final Subdivision Map" means a subdivision of property, created by recordation of a fmal subdivision map, parcel map or lot line adjustment, approved by the City 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 residential building permits may be issued without further subdivision of such property. "Fiscal Year" means the period starting July I and ending on the following June 30. "Indenture" means the indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. "Land Use Class" means any of the classes listed in Table I of Section C. "Maximnm Annnal Special Tax" means the maximum annual Special Tax, determined in accordance with the provisions of Section C, which may be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property. "Mixed Use Property" means all Assessor's Parcels that have been classified by the City to allow both Residential Property and Non-Residential Property uses on each such Assessor's Parcel. For an Assessor's Parcel of Mixed Use Property, each Land Use Class thereon is subject to taxation pursuant to the provisions of Section C regardless of the geographic orientation of such Land Use Classes on such Assessor's Parcel. "Non-Residential Property" means all Assessor's Parcels of Developed Property, for which a building permit(s) has been issued to allow the construction of one or more buildings or structures for a non-residential use, excluding Community Purpose Facility Property. "Open Space" means property within the boundaries of CFD 07-1 in which prior to June 1st of the preceding Fiscal Year (a) has been designated with specific boundaries and acreage on an 'A' Map or Final Subdivision Map as open space, (b) is classified by the County Assessor as open space, (c) has been irrevocably offered for dedication as open space to the federal government, the State of California, the County, the City, or any other public agency or (d) is encumbered by an easement or other restriction required by the City limiting the use of such property to open space. "Outstanding Bonds" means all Bonds, which remain outstanding as defmed in the Indenture. "Property Owner Association Property" means any property within the boundaries of CFD-07-1 which is (a) owned by a property owner association or (b) is designated with specific boundaries and acreage on an 'A' Map or Final Subdivision Map as property owner association property. As used in this definition, a property owner association includes any master or sub-association. "Proportionately" means for Developed Property that the ratio of the actual Special Tax levy to the Assigned Special Tax or the Backup Special Tax is equal for all Assessors' Parcels of the Developed A-3 DOCSOCIl 15 1 029v4/022245-0 163 11-75 Property. For Approved Property, Undeveloped Property and Provisional Undeveloped Property "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Annual Special Tax per Acre is equal for all Assessor's Parcels oflike classification. "Provisional Undeveloped Property" means all Assessor's Parcels of Public Property, Property Owner Association Property, Community Purpose Facility Property, Open Space or other property that would otherwise be classified as Exempt Property pursuant to the provisions of Section E, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property below the required minimum acreage as set forth in Section E.I for Zone A or Zone B as applicable. "Public Property" means any property within the boundaries of CFD-07-1 which (a) is owned by a public agency, (b) has been irrevocably offered for dedication to a public agency or (c) is designated with specific boundaries and acreage on an 'A' Map or Final Subdivision Map as property which will be owned by a public agency. For purposes of this definition, a public agency includes the federal government, the State of California, the County, the City or any other public agency. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued to allow the construction of one or more buildings or structures for use as residential dwelling units. "Special Tax" means the annual special tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property to fund the Special Tax Requirement. "Special Tax Requirement" means that amount of Special Tax revenue required in any Fiscal Year for to: (i) pay annual debt service on all Outstanding Bonds due in the Bond Year beginning in such Fiscal Year; (ii) pay other periodic costs on Outstanding Bonds, including but not limited to, credit enhancement and rebate payment; (iii) pay Administrative Fees and Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds in accordance with the Indenture; and (v) pay directly for acquisition and/or construction of public improvements which are authorized to be financed by CFD-07-1 provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on the Undeveloped Property; less (vi) a credit for Available Funds. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD 07-1 that are not exempt ITom the Special Tax pursuant to law or Section E below. "Trustee" means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means, for each Fiscal year, all Taxable Property not classified as Developed Property, Approved Property or Provisional Undeveloped Property. "Zone A" means a specific geographic area as depicted in Exhibits A and B attached hereto. "Zone B" means a specific geographic area as depicted in Exhibits A and B attached hereto. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Assessors' Parcels of Taxable Property within CFD-07-I shall be (a) categorized as being located in either Zone A or Zone B, (b) classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property and (c) subject to the levy of annual A-4 DOCSOC/l151029v4/022245-0163 11-76 Special Taxes determined pursuant to Sections C and D below. Developed Property shall be further classified as either Residential Property, Non-Residential Property or Mixed Use Property. The Land Use Class of each Assessor's Parcel of Residential Property or Mixed Use Property shall be determined based on its Density. C. MAXIMUM ANNUAL SPECIAL TAX RATE 1. Developed Property The Maximum Annual Special Tax for each Assessor's Parcel of Residential Property, Non- Residential Property or Mixed Use Property shall be the greater of (I) the Assigned Special Tax described in Section a. below or (2) the Backup Special Tax computed pursuant to Section b. below. a. Assi!!ned Special Tax The Assigned Special Tax for each Land Use Class of Developed Property is shown in Table I. TABLE 1 Assigned Special Tax for Developed Property Within Zone A and Zone B: I 2 3 4 Description Residential Property Residential Property Residential Property Non Residential Property Density (DUIAcre) Oto 8 >8 to 20 >20 N/A Assigned Special Tax $1,675 per Dwelling Unit $1,340 per Dwelling Unit $1,005 per Dwelling Unit $6,000 per Acre Land Use Class The Assigned Special Tax for each Assessor's Parcel of Mixed Use Property shall equal the total of (i) the Assigned Special Tax that would be applicable to such Assessor's Parcel if it was classified only as Residential Property and (ii) the Assigned Special Tax that would be applicable to such Assessor's Parcel if it was classified as Non-Residential Property. b. Backup Special Tax When a Final Subdivision Map is recorded within Zone A or Zone B, the Backup Special Tax for Residential Property and Non-Residential Property, shall be determined as follows: For each Assessor's Parcel of Residential Property or Undeveloped Property and Approved Property to be classified as Residential Property upon its development within the Final Subdivision Map area, the Backup Special Tax shall be the rate per Dwelling Unit calculated according to the following formula: A-5 DOCSOCII 151029v4l022245-0163 11-77 Zone A $13,955 x A B; ~_.__._----------------- U Zone B $24,218xA B; ------------------------ U The terms above have the following meanings: B; Backup Special Tax per Dwelling Unit in each Fiscal Year. A ; Acreage classified or to be classified as Residential Property in such Final Subdivision Map. U; Number of Dwelling Units in the Final Subdivision Map which are classified or expected to be classified as Residential Property. For each Assessor's Parcel of Developed Property classified as Non-Residential Property or for each Assessor's Parcel of Approved or Undeveloped Property to be classified as Non-Residential Property within the Final Subdivision Map area, the Backup Special Tax shall be determined by multiplying $13,955 for Zone A and $24,218 for Zone B by the total Acreage of any such Assessor's Parcel. For each Assessor's Parcel of Mixed Use Property, the Backup Special Tax shall be determined by multiplying $13,955 for Zone A and $24,218 for Zone B by the total Acreage of any such Assessor's Parcel. Notwithstanding the foregoing, if Assessor's Parcels of Residential Property, Non-Residential Property, Mixed Use Property, Approved Property or Undeveloped Property for which the Backup Special Tax has been determined are subsequently changed or modified by recordation of a new or amended Final Subdivision Map, then the Backup Special Tax applicable to such Assessor's Parcels shall be recalculated to equal the amount of Backup Special Tax that would have been generated if such change did not take place. 2. Approved Property The Maximum Annual Special Tax for each Assessor's Parcel of Approved Property shall be $13,955 per Acre for Zone A and $24,218 per Acre for Zone B. 3. Undeveloped Property and Provisional Undeveloped Property The Maximum Special Tax for each Assessor's Parcel of Undeveloped Property and Provisional Undeveloped Property shall be $13,955 per Acre for Zone A and $24,218 per Acre for Zone B. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2004-2005 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement and shall levy the Special Tax until the amount of Special Taxes equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: A-6 DOCSOCIl151029v4/022245-0163 11-78 First: The Special Tax shall be levied Proportionately on all Developed Property at a rate up to 100% of the applicable Assigned Special Tax to satisfY the Special Tax Requirement. Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on all Approved Property at up to 100% of the Maximum Annual Special Tax for Approved Property. Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on all Undeveloped Property within Zone A and Zone B, at a rate up to 100% of the Maximum Annual Special Tax for Undeveloped Property. In determining the Acreage of an Assessor's Parcel of Undeveloped Property for purposes of determining the annual Special Tax to be levied on such Assessor's Parcels of Undeveloped Property, the CFD Administrator shall not include any Acreage shown on any applicable tentative subdivision map or other land use entitlement approved by the City that designates such Acreage for a use that would be classified as Open Space, Property Owner Association Property, Community Purpose Facility or Public Property. Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax to be levied on each Assessor's Parcel of Developed Property whose Maximum Annual Special Tax is derived by the application of the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to the Maximum Annual Special Tax for each such Assessor's Parcel. Fifth: If additional monies are needed to satisfY the Special Tax Requirement after the first four steps have been completed, then the Special Tax shall be levied Proportionately on all Provisional Undeveloped Property at a rate up to 100% of the Maximum Annual Special Tax for Undeveloped Property. Notwithstanding the above, under no circumstances will the Special Ta.x levied against any Assessor's Parcel of Residential Property be increased by more than ten percent per year as a consequence of delinquency or default in the payment of Special Taxes by the owner of any other Taxable Property. E. EXEMPTIONS 1. The CFD Administrator shall classify the following as Exempt Property: (i) Public Property, (ii) Property Owner Association Property, (iii) Community Purpose Facility Property, (iv) Open Space and (v) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set for;th in the easement; provided, however, that no such classification shall reduce the sum of all Taxable Property to less than 147.15 Acres for Zone A and 59.04 Acres for Zone B. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 147.15 Acres for Zone A and 59.04 Acres for Zone B will be classified as Provisional Undeveloped Property and shall be taxed pursuant to the fifth step of Section D. Exempt status for purposes of this paragraph will be assigned by the CFD Administrator in the chronological order in which property becomes Exempt Property. In the event the Taxable Property will be reduced below the minimum Acreage noted above for either Zone A or Zone B as a result of the recordation of a single "A" Map, the CFD Administrator shall classify property within Zone A or Zone B that is shown on such "A" Map as Exempt Property up to the limits of Exempt Property applicable to such Zone or Zones in the following priority order: I) Community Purpose Facility Property, 2) Property Owner Association Property, 3) Public Property, 4) Open Space, 5) other public or utility easements making impractical their utilization for no other such purpose. A-7 DOCSOCIl151029v4/022245-0163 11-79 2. The Maximum Annual Special Tax obligation for any property which would be classified as Public Property upon its transfer or dedication to a public agency but which is classified as Provisional Undeveloped Property pursuant to E.l above shall be prepaid in full by the seller pursuant to Section H.l, prior to the transfer/dedication of such property to such public agency. Until the Maximum Annual Special Tax obligation for any such Public Property is prepaid, the property shall continue to be subject to the levy of the Special Tax as Provisional Undeveloped Property. 3. If the use of an Assessor's Parcel of Exempt Property changes so that such Assessor's Parcel is no longer classified as one of the uses set forth in paragraph I that would make such Assessor's Parcel eligible to be classified as Exempt Property, such Assessor's Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property. F. REVIEW/APPEAL COMMITTEE Any landowner or resident who feels 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 Administrator 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 CFD-07-I 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 annual 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. G. MANNER OF COLLECTION The annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD-07-I, may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on Assessor's Parcels of Taxable Property that are delinquent in the payment of Special Taxes. Tenders of Bonds in prepayment of Maximum Annual Special Taxes may be accepted upon the terms and conditions established by the Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the Council. H. PREPAYMENT OF SPECIAL TAX The following definitions apply to this Section H: "CFD Public Facilities" means those public facilities authorized to be fmanced by CFD-07-I. "CFD Public Facilities Costs" means either $35 million, or such lower number as shall be determined either by (a) the CFD Administrator as sufficient to finance the CFD Public Facilities, or (b) the Council concurrently with a covenant that it will not issue any more Bonds to be secured by Special Taxes levied under this Rate and Method of Apportionment. A-8 DOCSOC/1151029v4/022245-0163 11-80 "Construction Fund" means an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct the CFD Public Facilities. "Future Facilities Costs" means the CFD Public Facilities Costs minus that (a) portion of the CFD Public Facilities Costs previously funded (i) from the proceeds of all previously issued Bonds, (ii) from interest earnings on the Construction Fund actually earned prior to the date of prepayment and (iii) directly from Special Tax revenues and (b) the amount of the proceeds of all previously issued Bonds then on deposit in the Construction Fund. "Outstanding Bouds" means all previously issued Bonds which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Annual Special Taxes. 1. Prepayment in Full The Maximum Annual Special Tax obligation may only be prepaid and permanently satisfied for an Assessor's Parcel of Developed Property, Undeveloped Property or Approved Property for which a building permit has been issued, or Provisional Undeveloped Property. The Maximum Annual Special Tax obligation applicable to such Assessor's Parcel may be fully prepaid and the obligation of the Assessor's Parcel to pay the Special Tax permanently satisfied as described herein; provided, however that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Ma.ximum Annual Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount of such Assessor's Parcel. The CFD Administrator may charge a reasonable fee for providing this figure, which can be collected prior to preparing such calculation. The prepayment amount shall be calculated as summarized below (capitalized terms as defined below): Bond Redemption Amount plus Redemption Premium plus Future Facilities Amount plus Defeasance Amount plus Prepayment Fees and Expenses less Reserve Fund Credit less Canitalized Interest Credit equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be calculated as follows: Step No.: 1. For Developed Property, compute the Maximum Annual Special Tax for the Assessor's Parcel to be prepaid. For Assessor's Parcels of Approved Property or Undeveloped Property to be prepaid, compute the Maximum Annual Special Tax for that Assessor's Parcel as though it was already designated as Developed Property, based upon the building permit issued for that Assessor's Parcel. For Assessor's Parcels of Provisional Undeveloped Property to be prepaid, compute the Maximum Annual Special Tax for that Assessor's Parcel using the Maximum Annual Special Tax for Provisional Undeveloped Property. A-9 DOCSOC/1151029v4/022245-0163 11-81 . 2. Divide the Maximum Annual Special Tax computed pursuant to step I by the sum of the total expected Maximum Annual Special Tax revenues which may be levied within CFD-07-I excluding any Assessors Parcels for which the Maximum Annual Special Tax obligation has been previously prepaid. 3. Multiply the quotient computed pursuant to step 2 by the principal amount of the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the "Bond Redemption Amounf'). 4. Multiply the Bond Redemption Amount computed pursuant to step 3 by the applicable redemption premium(s) on the next possible Bond call date, if any, on the Outstanding Bonds to be redeemed (the "Redemption Premium"). 5. If all the 2006 Bonds authorized to be issued by CFD-07-I have not been issued, then compute the Future Facilities Costs. . 6. Multiply the quotient computed pursuant to step 2 by the amount if any, determined pursuant to step 5 to compute the amount of Future Facilities Costs to be allocated to such Assessor's Parcel (the "Future Facilities Amount"). 7. Compute the amount needed to pay interest on the Bond Redemption Amount trom the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds. 8. Confmn that no Special Tax delinquencies apply to such Assessor's Parcel. 9. Determine the Special Taxes levied on the Assessor's Parcel in the current Fiscal Year, which have not yet been paid. . 10. Determine the fees and expenses of CFD-07-I, including but not limited to, the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming Bonds ITom the proceeds of such prepayment, and the cost of recording any notices to evidence the prepayment and the redemption (the "Prepayment Fee and Expenses"). II. Compute the amount the CFD Administrator reasonably expects to derive from the reinvestment of the prepayment amount, less the Prepayment Fees and Expenses, pursuant to step 10, ITom the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment. 12. Add the amounts computed pursuant to steps 7 and 9 and subtract the amount computed pursuant to step II (the "Defeasance Amount"). 13. The reserve fund credit (the "Reserve Fund Credif') shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defmed in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment trom the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. 14. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to step 2 by the expected . A-IO DOCSOC/1151 029v4/022245-0 163 11-82 balance in the capitalized interest fund after such fIrst interest payment (the "Capitalized Interest Credit'). 15. The Maximum Annual Special Tax prepayment is equal to the sum of the amounts computed pursuant to steps 3, 4, 6, 10, and 12, less the amounts computed pursuant to steps 13 and 14 (the "Prepayment Amount"). 16. From the Prepayment Amount, the amounts computed pursuant to steps 3, 4, 12, 13 and 14 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds or make debt service payments. The amount computed pursuant to step 10 shall be retained by CFD-07-I. The amount computed pursuant to step 6 shall be deposited in the Construction Fund. The prepayment amount may be suffIcient to redeem other than a $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of bonds or to make debt service payments. As a result of the payment of the current Fiscal Year's Special Tax levy as determined under step 9 above, the CFD Administrator shall remove the current Fiscal Year's Special Tax levy for such Assessor's Parcel nom the County tax rolls. With respect to any Assessor's Parcel that is prepaid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Special Taxes and the release of the Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay the Special Tax shall cease. Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Annual Special Taxes that may be levied on Taxable Property within both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds. 2. Prepayment in Part The Maximum Annual Special Tax on an Assessor's Parcel of Developed Property or an Assessor's Parcel of Approved Property or Undeveloped Property for which a building permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as presented in Section R.I; except that a partial prepayment shall be calculated according to the following formula: PP = (PE X F) + A These terms have the following meaning: PP = the partial prepayment PE = the Prepayment Amount calculated according to Section R.I, minus Prepayment Fees and Expenses determined pursuant to step 10. F = the percent by which the owner of the Assessor's Parcel(s) is partially prepaying the Maximum Annual Special Tax. A= the Prepayment Fees and Expenses determined pursuant to step 10. The owner of an Assessor's Parcel who desires to partially prepay the Maximum Annual Special Tax shall notify the CFD Administrator of (i) such owner's intent to partially prepay the Maximum Annual A-II DOCSOC1l151029v4!022245-0163 11-83 Special Tax, (ii) the percentage by which the Maximum Annual Special Tax shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if applicable. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Maximum Annual Special Tax for an Assessor's Parcel within 30 days of the request and may charge a reasonable fee for providing this service. With respect to any Assessor's Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to step 16 of Section H.l, and (ii) indicate in the records of CFD-07-I that there has been a partial prepayment of the Maximum Annual Special Tax and that a portion of the Maximum Annual Special Tax equal to the outstanding percentage (1.00 - F) of the remaining Maximum Annual Special Tax shall continue to be authorized to be levied on such Assessor's Parcel pursuant to Section D. I. TERM OF MAXIMUM ANNUAL SPECIAL TAX The Maximum Annual Special Tax shall be levied commencing in Fiscal Year 2004-2005 to the extent necessary to fully satisfy the Special Tax Requirement and shall be levied for a period no longer than the 2043-2044 Fiscal Year. A-12 DOCSOC/1151029v4/022245-0163 11-84 . - ., APPENDIX B SUMMARY OF MARKET ABSORPTION STUDY DOCSOC/1 151 029v4/022245-0163 B-1 11-85 APPENDIX C APPRAISAL REPORT DOCSOC/1151029v4/022245-0163 C-l 11-86 APPENDIX D INFORMATION REGARDING THE CITY OF CHULA VISTA GENERAL INFORMATION This appendix sets forth general information about the City ofChula Vista ("Chula Vista'') including information with respect to its finances. Thefollowing information concerning Chula Vista, the County of San Diego (the "County '') and the State of California (the "State '') is included only for general background purposes. General Description Chula Vista is located on San Diego Bay in Southern California, 8 miles south of the City of San Diego and 7 miles north of the Mexico border, in the area generally known as "South Bay." Chula Vista's city limits cover approximately 50 square miles. Chula Vista was incorporated March 17, 1911 and became a chartered city in 1949. Chula Vista operates under a Council-Manager form of government and provides the following services: public safety, community services, engineering services, planning services, public works, general administrative services and capital improvements. With a January 2005 estimated population of 217,543, Chula Vista is the second largest city in the County. Population The historic population of Chula Vista, the County and the State is shown below. City of Chula Vista, County of San Diego and State of California Population Estimates Year City of Chula Vista County of San Diego State of California 2001 181,453 2,863,657 34,441,561 2002 191,033 2,920,010 35,088,671 2003 200,378 2,971,805 35,691,442 2004 208,510 3,013,014 36,271,091 2005 217,543 3,051,280 36,810,358 Source: State of California., Department of Finance, EA Population Estimates for Cities, Counties and the State, 2001-2005, with 2000 DRU Benchmark, Sacramento, California, May 2005. D-I DOCSOC/I 151029v41022245-0163 11-87 Building Activity Residential building activity for the past five calendar years for Chula Vista is shown in the following tables. City of Ch ula Vista Building Permit Valuations Number of Percent of Total Construction Building Building Permit Increase Over Valuation Percent Fiscal Year Permits Valuations Previous Year (In Millions) Change 2000-01 5,671 $3,986,912 27.39% $574 43.50% 2001-02 5,267 3,032,352 (23.94) 543 (5.40) 2002-03 6,557 4,013,076 32.34 662 21.92 2003-04 6,951 5,049,320 25.82 826 24.77 2004-05 5,770 3,374,004 (33.18) 552 (33.17) Source: City of Chula Vista Finance Department and City of Chula Vista Department of Planning and Building. D-2 DOCSOC/1151 029v4/022245-0 163 11 -88 Employment The following table summarizes the labor force, employment and unemployment figures over the period 2000 through 2004 for Chula Vista, the County, the State and the United States. Chula Vista, San Diego County, State of California and United States Labor Force, Employment and Unemployment Yearly Average Civilian Civilian Civilian Civilian Year and Area Labor Force Employmenl]) Unemploymenf2) Unemployment Ratl]) 2000 Chula Vista 79,400 76,000 3,400 4.2% San Diego County 1,378,700 1,324,700 54,000 3.9% California 16,869,700 16,034, I 00 835,600 5.0% United States(') 142,583,000 136,891,000 5,692,000 4.0% 2001 Chula Vista 81,200 77,500 3,700 4.5% San Diego County 1,4 I 0,700 1,351,800 58,900 4.2% California 17,150,100 16,217 ,500 932,600 5.4% United States 143,734,000 136,933,000 6,801,000 4.7% 2002 Chula Vista 83,500 78,900 4,600 5.5% San Diego County 1,449,800 1,375,400 74,400 5.1% California 17,326,900 16,165,100 1,161,800 6.7% United States 144,863,000 136,485,000 8,378,000 5.8% 2003 Chula Vista 84,600 79,900 4,700 5.6% San Diego County 1,469,800 1,393,500 76,300 5.2% California 17,414,000 16,223,500 1,190,500 6.8% United States(') 146,510,000 137,736,000 8,774,000 6.0% 2004 Chula Vista 86,000 81,600 4,400 5.1% San Diego County 1,493,200 1,422,500 70,700 4.7% California 17,552,300 16,459,900 1,092,400 6.2% United States(') 147,401,000 139,252,000 137,020,000 5.5% (11 Includes persons involved in labor-management trade disputes. (2) Includes all persons withoutjohs who are actively seeking work. (3) The unemployment rate is computed from unrounded data; therefore, it may differ from rates computed from rounded figures in this table. (4) Not strictly comparable with data for prior years Source: California Employment Development Department, based on March 2004 benchmark, and U.S. Department of Lahor, Bureau of Labor Statistics. D-3 DOCSOC/1151029v4/022245-0163 11-89 San Diego-Carlsbad-San Marcos Metropolitan Statistical Area ("MSA"), which includes Chula Vista, civilian labor force and wage and salary employment figures for calendar years 2000 through 2004 are shown in the following table. These figures are county-wide statistics and may not necessarily accurately reflect employment trends in Chula Vista. San Diego-Carlsbad-San Marcos MSA Civilian Labor Force, Employment and Unemployment Annual Averages, March 2004 Benchmark 2000 2001 2002 2003 2004 Civilian Labor Force 1,378,700 1,410,700 1,449,800 1,469,800 1,493,200 Civilian Employment 1,324,700 1,351,800 1,375,400 1,393,500 1,422,500 Civilian Unemployment 54,000 58,900 74,400 76,300 70,700 Civilian Unemployment Rate 3.9% 4.2% 5.1% 5.2% 4.7% . Total Farm 11,400 11,400 11 ,000 11 ,200 11,100 Total Nonfarm 1,193,800 1,218,400 1,230,700 1,240,100 1,258,600 Total Private 987,200 1,004,700 1,011,000 1,022,900 1,043,900 Goods Producing 192,600 194,400 189,000 185,800 192,000 Natural Resources and Mining 300 300 300 300 400 Construction 69,700 75,100 76,400 80,200 87,400 Manufacturing 122,600 119,000 112,300 105,300 104,200 Durable Goods 92,200 89,300 84,700 78,800 77,900 Nondurable Goods 30,400 29,800 27,700 26,500 26,300 Service Providing 1,001,200 1,024,000 1,041,700 1,054,300 1,066,600 Private Service Producing 794,600 810,200 822,000 837,000 851,900 Trade, Transportation and Utilities 202,600 209,000 208,600 209,700 214,500 Wholesale Trade 39,100 41,500 41,300 41,600 41,900 Retail Trade 133,800 135,600 138,000 140,800 144,300 . Transportation, Warehousing and Utilities 29,800 32,000 29,300 27,300 28,400 Infonnation 39,200 38,800 37,700 36,900 36,400 Financial Activities 71,200 72,000 75,000 79,900 81,600 Professional and Business Services 195,200 198,200 201,700 201,200 205,100 Educational and Health Services 115,300 116,000 119,700 121,800 121,300 Leisure and Hospitality 129,000 131,400 133,800 140,700 145,300 Other Services 42,200 44,900 45,600 46,800 47,700 Government 206,600 213,800 219,700 217,300 214,700 Total, All Industries 1,205,200 1,229,800 1,241,700 1,251,300 1,269,700 Note: The "Total, All Industries" data is not directly comparable to the employment data found herein. Source: State of California. Employment Development Department, Labor Market Infonnation Division, San Diego-Carlsbad- San Marcos MSA Annual Average Labor Force and Industry Employment, March 2004 Benchmark. . D-4 DOCSOC/1151029v4/022245-0163 11-90 2005: The following listings set forth Chula Vista's principal employers for fiscal year ending June 30, Chula Vista's Principal Employers Business IndustriaVOffice Name Rohr BDA Goodrich Aerospace Sharp Chula Vista Medical Center Scripps Memorial Hospital United Parcel Service Walmart # 2291 Sears Roebuck & Co. Costco Wholesale Corp # 781 ATC Vancom Inc. Costco Wholesale Corp. # 460 Walmart Store # 3516 Bayview Behavioral Health Campus Target # 203 Home Depot 658/Home Depot USA Inc. Raytheon Systems Company Target # 1815 Target # 204 Hitachi Home Electronics (America) Inc. Knotts Soak City USA Fredericka Manor Source: City of Chula Vista Finance Department. Effective Buying Income Type of Business Aerospace Hospital Hospital Parcel Delivery Service General Merchandise General Merchandise General Merchandise General Merchandise General Merchandise General Merchandise Hospital Department Store General Merchandise Communications Department Store Department Store Home Electronics Entertainment - Theme Park Retirement Community No. of Employees 1,903 1,410 890 637 400 340 285 284 275 250 236 230 215 200 194 180 163 160 160 "Effective Buying Income" is defined as personal income less personal tax and nontax payments, a number often referred to as "disposable" or "after-tax" income. Personal income is the aggregate of wages and salaries, other than labor-related income (such as employer contributions to private pension funds), proprietor's income, rental income (which includes imputed rental income of owner-occupants of non-farm dwellings), dividends paid by corporations, interest income ITom all sources and transfer payments (such as pensions and welfare assistance). Deducted ITom this total are personal taxes (federal, state and local, nontax payments, fines, fees, penalties, etc.) and personal contributions to social insurance. According to U.S. government definitions, the resultant figure is commonly known as "disposable personal income." DOCSOCIl151 029v4/022245-0 163 D-5 11-91 The following table summarizes the total effective buying income, the per capita effective buying income, the median household effective buying income and percent of households over $50,000 for Chula Vista, the County and the State between 2000 and 2004. Chula Vista, Sau Diego Couuty and California Effective Buying Income!') Median Per Capita Household Percent of Effective Buying Effective Buying Effective Buying Households Income(2) Income Income over $50,000 2000 Chula Vista $ 2,959,674 $17,268 $42,550 41.6% San Diego County 54,337,662 19,150 44,292 43.7 California 652,190,282 19,081 44,464 44.3 2001 Chula Vista $ 2,917,494 $16,128 $42,229 39.1% San Diego County 55,210,119 19,092 44,146 42.0 California 650,521,407 18,652 43,532 41.9 2002 Chula Vista $ 2,864,900 $15,231 $40,578. 37.0% San Diego County 54,831,958 18,524 42,315 39.7 California 647,879,427 17,737 42,484 40.5 2003 Chula Vista $ 3,420,253 $16,225 $42,389 39.9% San Diego County 57,680,880 19,407 43,346 41.4 California 674,721,020 18,821 42,924 41.2 2004 Chula Vista $ 3,671,403 $17,375 $45,145 43.6% San Diego County 60,578,879 20,202 44,506 42.8 California 70,108,410 19,469 43,915 42.5 (I) Not comparable with prior years. Effective Buying Income is now based on money income (which does not take into account sale of property. taxes and social security paid, receipt of food stamps, etc.) versus personal income. (2) Dollars in thousands. Source: "Survey of Buying Power," Sales & Marketing Management Magazine, dated 2001,2002,2003,2004 and 2005. Sales Taxes The following table shows taxable transactions in Chula Vista by type of business during calendar years 2000 through 2001. As indicated below, total retail sales for Chula Vista in 2001 increased approximately 4.98% over the 2000 level, in 2002 increased approximately 2.42% over the 2001 level, in 2003 increased approximately 7.41 % over the 2002 level and in 2004 increased approximately 11.64% over 2003. 0-6 DOCSOC/1151029v4/022245-0163 11-92 . ...... A summary of historic taxable transactions for Chula Vista is shown in the following table. City of Chula Vista Taxable Transactions (Dollars in thousands) 2000 2001 2002 2003 2004 Apparel Stores Group $ 66,598 $ 61,937 $ 67,035 $ 67,114 $ 82,165 General Merchandise Stores 495,679 524,942 525,423 553,979 609,028 Food Stores Group 90,487 92,224 99,897 103,155 106,056 Eating and Drinking Group 155,583 164,417 169,892 188,675 213,412 Household Group/Home Furn. Appli. 66,365 67,827 74,255 78,561 87,203 Building Material Group 102,370 97,827 9],235 100,504 142,321 Automotive Group ]45,923 151,812 ]56,872 ] 78,733 19],185 Service Stations 121,244 119,050 123,636 148,3]8 174,968 Other Retail Stores 157.152 183.303 205.564 223.850 239.235 Retail Stores Total $ 1,401,401 $ 1,463,409 $1,513,809 $1,642,889 $1,845,573 All Other Outlets 206.889 225.256 215.349 2]4.344 227.767 Total All Outlets $ ] 608 290 $ 1 688 665 $1729158 $1 857233 $2073340 Note: Drugs stores are grouped with the General Merchandise Stores and package liquor stores are grouped with the Eating and Drinking Group. Source: State Board of Equalization. Education Public educational instruction from kindergarten through high school is provided by the Chula Vista Elementary School District and Sweetwater Union High School District. These districts administer twenty-six elementary schools, nine junior high schools and eight senior high schools. Southwestern College, a two year Community College, has an enrollment of more than ]5,000. There are also four adult education schools and twelve private schools. There are seven universities or colleges within 30 minutes commuting distance from Chula Vista in the San Diego Metropolitan Area. Chula Vista has proposed a University of California campus in Chu]a Vista, to be located on a 400 acre site adjoining the Olympic Training Center. Transportation U.S. Highways 5 (along the coast) and 805 (inland) provide full freeway access from Chula Vista north to San Diego and south to the Mexican boarder. Connnuter rail service is provided by the San Diego Trolley, a light rail system started in 198] and eleven bus routes serve Chula Vista. Utilities Electric power and natural gas are provided by San Diego Gas and Electric. Pacific Bell provides telephone service to the area. Otay Water District and Sweetwater Water District provide water service and Chula Vista provides sewer service. D-7 DOCSOCIl151029v4/022245-0163 11-93 APPENDIX E SUMMARY OF INDENTURE The following is a summary of certain provisions of the Bond Indenture not otherwise summarized in the text of this Official Statement. This summary is not intended to be definitive, and reference is made to the complete text of each of such documents for the complete terms thereof E-I DOCSOCII 1 51029v4/022245-0163 11-94 APPENDIX F CONTINUING DISCLOSURE AGREEMENT OF THE DISTRICT This Continuing Disclosure Agreement dated as of May I, 2006 (the "Disclosure Agreement") is executed and delivered by Community Facilities District No. 07-1 (Otay Ranch Village Eleven) (the "Issuer") and NBS Government Finance Group as dissemination agent (the "Dissemination Agent"), in connection with the issuance and delivery by the Issuer of its $ 2006 Special Tax Bonds (the "2006 Bonds"). Tbe 2006 Bonds are being issued pursuant to an Indenture, dated as of March I, 2004 (the "Indenture"), by and between the Issuer and U.S. Bank National Association, as fiscal agent (the "Fiscal Agent"), as supplemented and amended by the First Supplemental Bond Indenture dated as of May I, 2006 by and between the District and the Fiscal Agent. The Issuer and the Dissemination Agent covenant as follows: SECTION 1. Pumose of the Disclosure Agreement. This Disclosure Agreement is being executed and delivered by the Issuer and the Dissemination Agent, for the benefit of the Owners and Beneficial Owners of the 2006 Bonds and in order to assist the Participating Underwriter in complying with the Rule. SECTION 2. Definitions. In addition to the definitions set forth in the Indenture, which apply to any capitalized term used in this Disclosure Agreement unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Report" shall mean any Annual Report provided by the Issuer pursuant to, and as described in, Sections 3 and 4 of this Disclosure Agreement. "Beneficial Owner" shall mean any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any 2006 Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income purposes. "Central Post Office" shall mean the Disclosure USA website maintained by the Municipal Advisory Council of Texas or any successor thereto, or any other organization or method approved by the staff or members of the Securities and Exchange Commission as an intermediary through which issuers may, compliance with the Rule, make filings required by this Disclosure Agreement. "Disclosure Representative" shall mean the Director of Finance of the City of Chula Vista or his or her designee, or such other officer or employee as the Issuer shall designate in writing to the Dissemination Agent from time to time. "Dissemination Agent" shall mean, initially, NBS Government Finance Group, acting in its capacity as Dissemination Agent hereunder, or any successor Dissemination Agent designed in writing by the Issuer and which has been filed with the then current Dissemination Agent a written acceptance of such designation. "Listed Events" shall mean any of the events listed in Section 5(a) ofthis Disclosure Agreement. "National Repository" shall mean any Nationally Recognized Municipal Securities Information Repository for purpose of the Rule. "Official Statement" shall mean the Official Statement, dated , 2006 relating to the 2006 Bonds. "Participating Underwriter" shall mean Stone & Youngberg LLC, whose address for purposes of this Agreement is One Ferry Building, San Francisco, California 94111, Attention: Research Department. F-I DOCSOCIl151029v4/022245-0163 11-95 . "Repository" shall mean each National Repository and each State Repository. "Rule" shall mean Rule 15c2-12(b)(5) adopted by tbe Securities and Exchange Commission under tbe Securities Exchange Act of 1934, as tbe same may be amended from time to time. "State Repository" shall mean any public or private repository or entity designated by tbe State of California as a state repository for tbe purpose of tbe Rule and recognized as such by tbe Securities and Exchange Commission. As oftbe date oftbis Disclosure Agreement, tbere is no State Repository. "Tax-exempt" shall mean tbat interest on tbe 2006 Bonds is excluded from gross income for federal income tax purposes, whetber or not such interest is includable as an item of tax preferences or otberwise includable directly or indirectly for purposes of calculating any otber tax liability, including any alternative minimum tax or environmental tax. SECTION 3. Provision of Annual Reports. (a) The Issuer shall, or shall cause the Dissemination Agent by written direction to such Dissemination Agent to, not later than February I after tbe end oftbe Issuer's fiscal year (which currently ends on June 30), commencing witb tbe report due by February I, 2007, provide to each Repository and tbe Participating Underwriter an Annual Report which is consistent witb tbe requirements of Section 4 of this Disclosure Agreement. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference otber information as provided in Section 4 of this Disclosure Agreement; provided tbat the audited financial statements of tbe Issuer may be submitted separately from and later tban the balance of the Annual Report iftbey are not available by tbe date required above for the filing of tbe Annual Report. . An Annual Report shall be provided at least annually notwithstanding any fiscal year longer tban 12 calendar months. The Issuer's fiscal year is currently effective from July I to tbe immediately succeeding June 30 of the following year. The Issuer will promptly notify each Repository or tbe Municipal Securities Rulemaking Board and, in eitber case, tbe Fiscal Agent and tbe Dissemination Agent of a change in tbe fiscal year dates. (b) Not later than fifteen (IS) Business Days prior to tbe date specified in subsection (a) for providing tbe Annual Report to Repositories, tbe Issuer shall provide tbe Annual Report to tbe Dissemination Agent. If by fifteen (IS) Business Days prior to such date the Dissemination Agent has not received a copy of tbe Annual Report, tbe Dissemination Agent shall contact tbe Issuer to determine if tbe Issuer is in compliance with subsection (a). The Issuer shall provide a written certification witb each Annual Report furnished to tbe Dissemination Agent to tbe effect tbat such Annual Report constitutes the Annual Report required to be furnished by it hereunder. The Dissemination Agent may conclusively rely upon such certification of the Issuer and shall have no duty or obligation to review such Annual Report. . (c) If tbe Dissemination Agent is unable to verify that an Annual Report has been provided to Repositories by tbe date required in subsection (a), tbe Dissemination Agent shall send a notice to each Repository, in substantially the form attached as Exhibit A. (d) The Dissemination Agent shall: (i) determine each year prior to tbe date for providing tbe Annual Report tbe name and address of each National Repository and each State Repository, if any; and (ii) promptly after receipt of tbe Annual Report, file a report witb tbe Issuer and (if tbe Dissemination Agent is not tbe Fiscal Agent) tbe Fiscal Agent certifying tbat tbe Annual Report has F-2 DOCSOCII151 029v4/022245-0 163 11-96 been provided pursuant to this Disclosure Agreement, stating the date it was provided and listing all the Repositories to which it was provided. (e) Notwithstanding any other provision of this Disclosure Agreement, the Issuer and the Dissemination Agent reserve the right to make any of the aforementioned filings through the Central Post Office. SECTION 4. Content of Annual Reports. The initial Annual Report due by February I, 2007 shall include only a copy of the Official Statement and the audited financial statements of the Issuer described in Section 4(a) below. Thereafter, the Issuer's Annual Report shall contain or include by reference: (a) Financial Statements. The audited financial statements of the Issuer for the most recent fiscal year of the Issuer then ended. If the Issuer prepares audited financial statement and if the audited fmancial statements are not available by the time the Annual Report is required to be filed, the Annual Report shall contain any unaudited financial statements of the Issuer in a format similar to the fmancial statements, and the audited financial statements shall be filed in the same marmer as the Annual Report when they become available. Audited financial statements of the Issuer shall be audited by such auditor as shall then be required or permitted by State law or the Indenture. Audited financial statements, if prepared by the Issuer, shall be prepared in accordance with generally accepted accounting principles as prescribed for governmental units by the Governmental Accounting Standards Board; provided, however, that the Issuer may from time to time, if required by federal or state legal requirements, modify the basis upon which its financial statements are prepared. In the event that the Issuer shall modify the basis upon which its financial statements are prepared, the Issuer shall provide a notice of such modification to each Repository, including a reference to the specific federal or state law or regulation specifically describing the legal requirements for the change in accounting basis. (b) Financial and Operating Data. The Annual Report shall contain or incorporate by reference the following information: (i) the principal amount of Bonds outstanding as of the September 2 preceding the filing of the Annual Report; (ii) the balance in each fund under the Indenture and the Reserve Requirement as of the September 2 preceding the filing of the Annual Report; (iii) an update on the status of construction of the public improvements to he constructed with the proceeds of the 2006 Bonds, which shall include an update of Table 1 in the Official Statement; (iv) any changes to the Rate and Method of Apportiomnent of the Special Taxes approved or submitted to the qualified electors for approval prior to the filing of the Annual Report and a description of any parcels for which the Special Taxes have been prepaid in the Fiscal Year for which the Annual Report is being prepared; (v) an update of the estimated assessed value-to-lien ratios within the District based upon the most recent Special Tax levy preceding the date of the Annual Report and on the assessed values of property for the current fiscal year substantially in the form set forth in Table 7; provided, however, that all parcels which constitute Developed Property may be grouped as a single category; (vi) an update of Table 2 in the Official Statement, including (a) the percentage of Special Taxes payable by individual homeowners as a group, and (b) a list of all taxpayers within the District which own property in the District upon which 5% or more of the total Special Taxes for the F-3 DOCSOC/1151 029v4/022245-0 163 11-97 current fiscal year have been levied, and a statement as to whether any of such taxpayers is delinquent in the payment of Special Taxes; (vii) an update of Table 3 in the Official Statement; (viii) any event known. to the Issuer which reduces or slows the number of residential units permitted to be constructed within the District or which results in a moratorium on future building within the District; (ix) the status of any foreclosure actions being pursued by the Issuer with respect to delinquent Special Taxes; (x) the total Special Taxes levied and the total Special Taxes collected for the prior fiscal year and the total Special Taxes that remain unpaid for each prior fiscal year in which Special Taxes were levied; and (xi) any information not already included under (i) through (ix) above that the Issuer is required to file in its annual report to the California Debt and Investment Advisory Commission pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, as amended. (c) Any or all of the items listed in (a) or (b) above may be included by specific reference to other documents, including official statements of debt issues of the Issuer or related public entities, which have been submitted to each of the Repositories or the Securities and Exchange Commission. If the document included by reference is a [mal official statement, it must be available from the Municipal Securities Rulemaking Board. The Issuer shall clearly identify each such other document so included by reference. SECTION 5. ReDorting of Significant Events. (a) Pursuant to the provisions ofthis Section 5, the Issuer shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the 2006 Bonds, if material: (I) principal and interest payment delinquencies. (2) an event of default under the Indenture other than as described in (1) above. (3) unscheduled draws on the Reserve Fund reflecting [mancial difficulties. (4) unscheduled draws on any credit enhancements securing the 2006 Bonds reflecting financial difficulties. (5) any change in the provider of any letter of credit or any municipal bond insurance policy securing the 2006 Bonds or any failure by the providers of such letters of credit or municipal bond insurance policies to perform on the letter of credit or municipal bond insurance policy. (6) adverse tax opinions or events adversely affecting the tax-exempt status of the 2006 Bonds. (7) modifications to the rights of Bond Owners. (8) unscheduled redemption of any Bond. (9) defeasances. F-4 DOCSOC/1151029v4/022245-0163 11-98 (10) any release, substitution, or sale of property securing repayment of the 2006 Bonds. (11) rating changes. (b) The Dissemination Agent shall, promptly upon the obtaining actual knowledge of the occurrence of any of the Listed Events, contact the Disclosure Representative, inform such person of the event, and pursuant to the Indenture, inform such person of the event, and request that the Issuer promptly notify the Dissemination Agent in writing whether or not to report the event pursuant to subsection (I). (c) Whenever the Issuer obtains knowledge of the occurrence of a Listed Event, whether because of a notice ITom the Dissemination Agent pursuant to subsection (b) or otherwise, the Issuer shall as soon as possible determine if such event would be material under applicable federal securities laws. (d) If the Issuer has determined that knowledge of the occurrence of a Listed Event would be material under applicable federal securities laws, the Issuer shall promptly notify the Dissemination Agent in writing. Such notice shall instruct the Dissemination Agent to report the occurrence pursuant to subsection (t). (e) If in response to a request under subsection (b), the Issuer determines that the Listed Event would not be material under applicable federal securities laws, the Issuer shall so notify the Dissemination Agent in writing and instruct the Dissemination Agent not to report the occurrence pursuant to subsection (I). (I) If the Dissemination Agent has been instructed by the Issuer to report the occurrence of a Listed Event, the Dissemination Agent shall file a notice of such occurrence with (i) the Municipal Securities Rulemaking Board, (ii) the Central Post Office or (iii) each National Repository, and in either case, to each State Repository. Notwithstanding the foregoing, notice of Listed Events described in subsections (a)(8) and (9) need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to Owners of affected 2006 Bonds pursuant to the Indenture. In each case of the Listed Event, the Dissemination Agent shall not be obligated to file a notice as required in this subsection (I) prior to the occurrence of such Listed Event. (g) The Issuer hereby agrees that the undertaking set forth in this Disclosure Agreement is the responsibility of the Issuer and that the Fiscal Agent or the Dissemination Agent shall not be responsible for determining whether the Issuer's instructions to the Dissemination Agent under this Section 5 comply with the requirements of the Rule. SECTION 6. Termination of ReDortin2 Obli2ation. The obligation of the Issuer and the Dissemination Agent under this Disclosure Agreement shall terminate upon the legal defeasance, prior redemption or payment in full of all of the 2006 Bonds. If such termination occurs prior to the final maturity of the 2006 Bonds, the Issuer shall give notice of such termination in the same manner as for a Listed Event under Section 5. SECTION 7. Dissemination A2ent. The Issuer may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under the Disclosure Agreement, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. If at any time there is not any other designated Dissemination Agent, the Fiscal Agent shall be the Dissemination Agent. The initial Dissemination Agent shall be NBS Government Finance Group. The Dissemination Agent may resign by providing (i) thirty days written notice to the Issuer and the Fiscal Agent and (ii) upon appointment of a new Dissemination Agent hereunder. SECTION 8. Amendment. (a) This Disclosure Amendment may be amended, by written agreement of the parties, without the consent of the Owners, if all of the following conditions are satisfied: (I) such amendment is made in connection with a change in circumstances that arises ITom a change in legal (including regulatory) requirements, a change in law (including rules or regulations) or in interpretations F-5 DOCSOC/I151 029v4/022245-Q 163 11-99 thereof, or a change in the identity, nature or status of the Issuer or the type of business conducted thereby, (2) this Disclosure Agreement as so amended would have complied with the requirements of the Rule as of the date of this Disclosure Agreement, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances, (3) the Issuer shall have delivered to the Fiscal Agent an opinion of a nationally recognized bond counselor counsel expert in federal securities laws, addressed to the Issuer and the Fiscal Agent, to the same effect as set forth in clause (2) above, (4) the Issuer shall have delivered to the Dissemination Agent an opinion of nationally recognized bond counselor counsel expert in federal securities laws, addressed to the Issuer, to the effect that the amendment does not materially impair the interests of the Owners or Beneficial Owners, and (5) the Issuer shall have delivered copies of such opinion and amendment to each Repository. (b) This Disclosure Agreement may be amended, by written agreement of the parties, upon obtaining consent of Owners in the same manner as provided in the Indenture for amendments to the Indenture with the consent of the Owners of the 2006 Bonds, provided that the conditions set forth in Section 8(a)(I), (2) and (3) have been satisfied. (c) To the extent any amendment to this Disclosure Agreement results in a change in the type of financial information or operating data provided pursuant to this Disclosure Agreement, the first Annual Report provided thereafter shall include a narrative explanation of the reasons for the amendment and the impact of the change. . (d) If an amendment is made to the basis on which fmancial statements are prepared, the Annual Report for the year in which the change is made shall present a comparison between the financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. Such comparison shall include a quantitative and, to the extent reasonably feasible, qualitative discussion of the differences in the accounting principles and the impact of the change in the accounting principles on the presentation of the financial information. SECTION 9. Additional Information. Nothing in this Disclosure Agreement shall be deemed to prevent the Issuer fiom disseminating any other information, using the means of dissemination set forth in this Disclosure Agreement or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Agreement. If the Issuer chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Agreement, the Issuer shall have no obligation under this Agreement to update such information or include it in any future Annual Report or notice if occurrence of a Listed Event. . The Issuer acknowledges and understands that other state and federal laws, including but not limited to the Securities Act of 1933 and Rule IOb-5 promulgated under the Securities Exchange Act of 1934, may apply to the Issuer, and that under some circumstances compliance with this Disclosure Agreement, without additional disclosures or other action, may not fully discharge all duties and obligations of the Issuer under such laws. . SECTION 10. Default. In the event of a failure of the Issuer or the Dissemination Agent to comply with any provision of this Disclosure Agreement, the Participating Underwriter or any Owner or Beneficial Owner of the 2006 Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Issuer to comply with its obligations under this Disclosure Agreement. A default under this Disclosure Agreement shall not be deemed an Event of DefauJ! under the Indenture, and the sole remedy under this Disclosure Agreement in the event of any failure of the Issuer or the Fiscal Agent to comply with this Disclosure Agreement shall be an action to compel performance. SECTION I!. Duties. Immunities and Liabilities of Fiscal Agent and Dissemination Agent. Article VI of the Indenture is hereby made applicable to this Disclosure Agreement as if this Disclosure F-6 DOCSOC/1151029v4/022245-0163 11-100 Agreement were (solely for this purpose) contained in the Indenture and the Dissemination Agent shall be entitled to the same protections, limitations from liability and indemnification hereunder as are afforded the Fiscal Agent thereunder. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Agreement, and the Issuer agrees to indemnify and save the Dissemination Agent and its respective officers, directors, employees and agents, harmless against any loss, expense and liabilities which they may incur arising out of or in the exercise or performance of their powers and duties hereunder, including the costs and expenses (including attorneys fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent's negligence or willful misconduct. The Dissemination Agent shall be paid compensation by the Issuer for its services provided hereunder in accordance with its schedule of fees as amended from time to time and all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. The Dissemination Agent shall have no duty or obligation to review any information provided to it hereunder. The obligations of the Issuer under this Section shall survive resignation or removal of the Dissemination Agent and payment of the 2006 Bonds. No person shall have any right to commence any action against the Dissemination Agent seeking any remedy other than to compel specific performance of this Disclosure Agreement. The Dissemination Agent shall not be liable under any circumstances for monetary damages to any person for any breach under this Disclosure Agreement. SECTION 12. Beneficiaries. This Disclosure Agreement shall inure so]ely to the benefit of the Issuer, the Fiscal Agent, the Dissemination Agent, the Participating Underwriter and Owners and Beneficial Owners from time to time of the 2006 Bonds, and shall create no rights in any other person or entity. SECTION 13. Notices. Notices should be sent in writing to the following addresses. The following information may be conclusively relied upon until changed in writing. Disclosure Representative: Director of Finance City of Chula Vista 276 Fourth A venue Chula Vista, California 9] 91 0 Dissemination Agent: NBS Government Finance Group 32605 Highway 79 South, Suite 100 Temecula, California 92592 Attention: Greg Ghironzi SECTION ]4. Counterparts. This Disclosure Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. COMMUNITY FACILITIES DISTRICT NO. 07-1 (Otay Ranch Village Eleven) By: Director of Finance NBS GOVERNMENT FINANCE GROUP, as Dissemination Agent By: Authorized Officer F-7 DOCSOC/1151029v4/022245-0163 11-101 EXHIBIT A NOTICE TO REPOSITORIES OF FAILURE TO FILE ANNUAL REPORT Name ofIssuer: Community Facilities District No. 07-1 (Otay Ranch Village Eleven) Name of Bond Issue: City of Chula Vista $ Community Facilities District No. 07-1 (Otay Ranch Village Eleven) 2006 Special Tax Bonds Date ofIssuance: ,2006 NOTICE IS HEREBY GIVEN that the Community Facilities District No. 07-1 (Otay Ranch Village Eleven) located in the City of Chula Vista, California (the "District") has not provided an Annual Report with respect to the above-named Bonds as required by Section 3 of the Continuing Disclosure Agreement, dated as of May I, 2006, by and between the District and NBS Government Finance Group, as dissemination agent. [The District anticipates that the Annual Report will be filed by .] Dated: NBS Government Finance Group, as Dissemination Agent cc: City of Chula Vista Stone & Youngberg LLC F-8 DOCSOCIl151029v4/022245-0163 11-102 APPENDIX G DEVELOPER CONTINUING DISCLOSURE AGREEMENT This Continuing Disclosure Agreement (the "Disclosure Agreement") dated as of May 1, 2006 is executed and delivered by Shea Homes Limited Partnership, a California limited partnership (the "Developer"), and U.S. Bank National Association, as fiscal agent (the "Fiscal Agent") and as dissemination agent (the "Dissemination Agent"), in connection with the execution and delivery by Community Facilities District No. 07-1 (Otay Ranch Village Eleven) (the "District") of $ aggregate principal amount of its City ofChula Vista Community Facilities District No. 07-1 (Otay Ranch Village Eleven) 2006 Special Tax Bonds (the "Bonds"). The Bonds are being executed and delivered pursuant to a Bond Indenture dated as of May I, 2004 by and between the District and U.S. Bank National Association, as Fiscal Agent (the "Indenture"), as supplemented and amended by the First Supplemental Bond Indenture dated as of May 1, 2006 by and between the District and the Fiscal Agent. The Developer covenants and agrees as follows: SECTION 1. Pumose of the Disclosure Acreement. This Disclosure Agreement is being executed and delivered by the Developer for the benefit of the Bondowners and Beneficial Owners and in order to assist the Participating Underwriter in complying with S.E.C. Rule 15c2-12(b)(5). This Disclosure Agreement does not address additional undertakings, if any, by or with respect to persons other than the Developer who may be considered obligated persons or purposes of the Rule, which additional undertakings, if any, may be required for the Participating Underwriter to comply with the Rule. SECTION 2. Definitions. In addition to the definitions set forth in the Indenture, which apply to any capitalized term used in this Disclosure Agreement unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Affiliate" shall mean, with respect to any Person, (a) each Person that, directly or indirectly, owns or controls, whether beneficially or as an agent, guardian or other fiduciary, twenty-five percent (25%) or more of any class of Equity Securities of such Person, (b) each Person that controls, is controlled by or is under common control with such Person, or (c) each of such Person's executive officers, directors, joint venturers and general partners; provided, however, that in no case shall the District or individual homebuyers be deemed to be Affiliates of the Developer for purposes of this Disclosure Agreement. For the purpose of this definition, "control" of a Person shall mean the possession, directly or indirectly, of the power to direct or cause the direction of its management or policies, whether through the ownership of voting securities, by contract or otherwise. For purposes of this Disclosure Agreement, any Person in which the Developer has an ownership interest and which owns property within the District shall be considered an Affiliate of the Developer. For purposes of this Disclosure Agreement, Affiliates shall not include Brookfield Shea Otay LLC, Brookfield Otay R8/9 LLC, Brookfield Otay R15/16 LLC or Brookfield Otay RI7 LLC (collectively "Brookfield"), or any other Person intended to be an Affiliate of Brookfield under the Developer Continuing Disclosure Agreement dated May I, 2006, executed by Brookfield. "Beneficial Owner" shall mean any person which has or shares the power, directly or indirectly, to make investment decisions concerning ownership of the Bonds (including persons holding Bonds through nominees, depositories or other intermediaries). "Bondowner" shall mean the person or persons in whose name any Bond is negotiated. "Dissemination Agent" shall mean U.S. Bank National Association, acting in its capacity as Dissemination Agent hereunder, or any successor Dissemination Agent designated in writing by the Developer and which has filed with the Developer and the District a written acceptance of such designation. "District" shall mean Community Facilities District No. 07-1 (Otay Ranch Village Eleven). G-I DOCSOCIl151029v4/022245-0163 11-103 "Equity Securities" of any Person shall mean (a) all common stock, preferred stock, participations, shares, general partnership interests or other equity interests in and of such Person (regardless of how designated and whether or not voting or non-voting) and (b) all warrants, options and other rights to acquire any of the foregoing. . "Fiscal Year" shall mean the period beginning on July I of each year and ending on the next succeeding June 30. "Government Authority" shall mean any national, state or local government, any political subdivision thereof, any department, agency, authority or bureau of any of the foregoing, or any other Person exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. "Listed Event" shall mean any of the events listed in Section Sea) of this Disclosure Agreement. "National Repository" shall mean any Nationally Recognized Municipal Securities Information Repository for purposes of the Rule. "Official Statement" shall mean the Official Statement, dated , 2006, relating to the Bonds. "Participating Underwriter" shall mean Stone & Youngberg LLC, the original underwriter of the Bonds, whose address for purposes of this Disclosure Agreement is One Ferry Building, San Francisco, California 94111, Attention: Research Department, and any other underwriting firm that provides written notice to the Developer that it is required to comply with the Rule in connection with the offering of the Bonds. "Person" shall mean any natural person, corporation, limited liability company, partnership, firm, association, Government Authority or any other Person whether acting in an individual fiduciary, or other capacity. "Repository" shall mean each National Repository and the State Repository. "Rule" shall mean Rule ISc2-12(b)(S) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. "Semi-Annual Report" shall mean any Semi-Annual Report provided by the Developer pursuant to, and as described in, Sections 3 and 4 of this Disclosure Agreement. "State" shall mean the State of California. . "State Repository" shall mean any public or private repository or entity designed by the State as a state repository for the purpose of the Rule and recognized as such by the Securities and Exchange Commission. As of the date of this Disclosure Agreement, there is no State Repository. SECTION 3. Provision of Semi-Annual Reports. (a) The Developer shall, or shall cause the Dissemination Agent to, not later than May I and November I of each year, commencing November I, 2006, provide to each Repository, the District and to the Participating Underwriter a Semi-Annual Report which is consistent with the requirements of Section 4 of this Disclosure Agreement. The Semi-Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 4 of this Disclosure Agreement provided that the audited financial statements, if any, of the Developer may be G-2 DOCSOCIl151 029v4/022245-0 163 11-104 submitted separately ITom the balance of the Semi-Annual Report and later than the date required for the filing of the Semi-Annual Report if they are not available by that date. (b) Not later than fifteen (15) Business Days prior to the date specified in subsection (a) for providing the Semi-Annual Report to Repositories, the Developer shall provide the Semi-Annual Report to the Dissemination Agent or shall provide notification to the Dissemination Agent that the Developer is preparing, or causing to be prepared, the Semi-Annual Report and the date which the Semi-Annual Report is expected to be available. If by such date, the Dissemination Agent has not received a copy of the Semi-Annual Report or notification as described in the preceding sentence, the Dissemination Agent shall contact the Developer to determine if the Developer is in compliance with the first sentence of this subsection (b). (c) If the Dissemination Agent is unable to provide a Semi-Annual Report to Repositories by the date required in subsection (a) or to verify that a Semi-Annual Report has been provided to Repositories by the date required in subsection (a), the Dissemination Agent shall send a notice to each Repository in substantially the form attached as Exhibit A. (d) The Dissemination Agent shall: (i) determine each year prior to the date for providing the Semi-Annual Report the name and address of each National Repository and the State Repository, if any; and (ii) file a report with the Developer and the District certifYing that the Semi-Annual Report has been provided pursuant to this Disclosure Agreement, stating the date it was provided and listing all the Repositories to which it was provided. SECTION 4. Content of Semi-Annual ReDort. The Developer's Semi-Annual Report shall contain or include by reference the information which is available as of January I and July I of each year, as applicable, relating to the following: a. An update to the information specifically relating to the Developer in the section in the Official Statement entitled "THE DEVELOPMENT AND PROPERTY OWNERSHIP- Financing Plan" including a summary of any material changes to and the sources of funds to finance development relating to the property of the Developer and its Affiliates within the District, and whether any material defaults exist under any loan arrangement related to such financing; b. A summary of development activity within the District relating to the property owned by the Developer and its Affiliates, including the number of parcels for which building permits have been issued, the number of parcels for which certificates of occupancy have been issued, the number of parcels for which sales have closed, and for land or lot sales to persons other than individual homebuyers the amount of land or lots sold and the name of the purchaser of lots to be developed. c. An update on the status of any material governmentally-imposed preconditions for commencement or continuation of development of the parcels within the District owned by the Developer and its Affiliates. d. Status of any material legislative, administrative and judicial challenges known to the Developer adversely affecting the construction of the development within the District being undertaken by the Developer or the time for construction of any public or private improvements to be made by the Developer or any of its Affiliates within the District, other than the public improvements described in (e) below (the "Developer Improvements"). G-3 DOCSOC/1 151029v4/022245-0163 11-105 e. Status of completion of the public improvements financed by the Bonds and to be constructed by the Developer and its Affiliates and any material legislative, administrative and judicial challenges known to the Developer to or affecting the construction of such public improvements (the "District Improvements"). f. Any material amendments to land use entitlements or Special Tax exemption status with respect to parcels owned by the Developer and its Affiliates within the District that are known to the Developer, including (i) an update of the total acres owned by the Developer and its Affiliates . subject to the levy of Special Taxes if the amendment affects the total number of acres subject to the levy of the Special Taxes, and (ii) listings of any such acreage that has become exempt from the levy of Special Taxes. g. Until such time as the Developer and its Affiliates no longer own land within the District which is responsible for 20% or more of the annual Special Tax levy, the Semi-Annual Report due May I of each year shall contain unaudited financial statements of the Developer and its Affiliates owning land within the District or, if prepared, audited fmancial statements of each of such entities for its most recently completed fiscal year (which currently ends on each December 31), prepared in accordance with generally accepted accounting principles as promulgated from time to time by the Financial Accounting Standards Board. If the Developer has audited financial statements prepared and the audited fmancial statements are not available by the time the Semi-Annual Report is required to be filed pursuant to Section 3(a), the Semi-Annual Report shall contain unaudited financial statements in a format similar to the fmancial statements for the preceding year, if prepared, and the audited financial statements shall be filed in the same manner as the Semi-Annual Report when they become available. The Developer need only provide audited or unaudited data once per year. h. The filing of any lawsuit against the Developer or otherwise known to the Developer which will materially adversely affect the completion of the District Improvements, the Developer Improvements or the development of undeveloped parcels owned by the Developer and its Affiliates within the District, or litigation which would materially adversely affect the financial condition of the Developer or its Affiliates that own property within the District. 1. Material payment default by the Developer on any loan of the Developer (whether or not such loan is secured by property within the District) which is beyond any applicable cure period in such loan. Any and all of the items listed above may be included by specific reference to other documents, including official statements of debt issues which have been submitted to each of the Repositories or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the Municipal Securities Rulemaking Board. The Developer shall clearly identify each such other document so included by reference. SECTION 5. Reporting of Significant Events. (a) Pursuant to the provisions of this Section 5, the Developer shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds, if material under clauses (b) and (c): 1. Failure to pay any real property taxes, special taxes or assessments (including any assessment installment) levied within the District on a parcel owned by the Developer or any of its Affiliates; . G-4 DOCSOC/l151 029v4/022245-0 163 11-106 2. Material payment default by the Developer or any Affiliate on any loan secured by property within the District owned by the Developer or any of its Affiliates which is beyond any applicable cure period in such loan; and 3. The filing of any proceedings with respect to the Developer or any of its Affiliates, in which the Developer or any of its Affiliates that own property within the District may be adjudicated as bankrupt or discharged from any or all of their respective debts or obligations or granted an extension of time to pay debts or a reorganization or readjustment of debts. (b) Whenever the Developer obtains knowledge of the occurrence of a Listed Event, the Developer shall as soon as possible determine if such event would be material under applicable federal securities laws. (c) If the Developer determines that knowledge of the occurrence of a Listed Event would be material under applicable federal securities laws, the Developer shall promptly file a notice of such occurrence with the Dissemination Agent which shall then distribute such notice to the Municipal Securities Rulemaking Board and each State Repository, with a copy to the District and the Participating Underwriter. SECTION 6. Termination of Reportiml Obligation. The Developer's obligations under this Disclosure Agreement shall terminate upon any of the following events: (a) the legal defeasance, prior redemption or payment in full of all of the Bonds, (b) if as of the date for filing the Semi-Annual Report the Developer and its Affiliates own property within the District which is responsible for less than twenty percent (20%) of the Special Taxes levied in the Fiscal Year for which the Semi-Annual Report is being prepared, and not less than 90% of the District Improvements to be constructed by the Developer and its Affiliates have been completed, or (c) upon the delivery by the Developer to the District and the Participating Underwriter of an opinion of nationally recognized bond counsel to the effect that the information required by this Disclosure Agreement is no longer required. Such opinion shall be based on information publicly provided by the Securities and Exchange Commission or a private Jetter ruling obtained by the Developer or a private letter ruling obtained by a similar entity to the Developer. If such termination occurs prior to the final maturity of the Bonds, the Developer shall give notice of such termination in the same manner as for a Semi-Annual Report hereunder. SECTION 7. Dissemination Agent. The Developer may from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Agreement, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. If the Dissemination Agent is not the Developer, the Dissemination Agent shall not be responsible in any manner for the content of any notice or report prepared by the Developer pursuant to this Disclosure Agreement. The Developer has initially appointed U.S. Bank National Association as the Dissemination Agent hereunder. The Dissemination Agent shall be paid compensation by the Developer for Its services provided hereunder in accordance with its schedule of fees as amended from time to time and all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. The Dissemination Agent shall have no duty or obligation to review any information provided to it by the District. 0-5 DOCSOCIl151 029v4/022245-0 163 11-107 SECTION 8. Amendment; Waiver. Notwithstanding any other provIsion of this Disclosure Agreement, the Developer may amend this Disclosure Agreement (provided no amendment shall increase or affect the Dissemination Agency's obligations or duties without the written consent of the Dissemination Agent), and any provision of this Disclosure Agreement may be waived, provided that the following conditions are satisfied: (a) If the amendment or waiver relates to the provisions of Sections 3(a), 4 or 5, it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature or status of an obligated person with respect to the Bonds, or the type of business conducted; (b) This Disclosure Agreement, as amended or taking into account such waiver, would, in the opinion of nationally recognized bond counsel addressed to the District, the Fiscal Agent and the Participating Underwriter, have complied with the requirements of the Rule at the time of the original issuance of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; (c) The amendment or waiver either (i) is approved by the Bondowners in the same manner as provided in the Agreement for amendments to the Agreement with the consent of Bondowners, or (Ii) does not, in the opinion of nationally recognized bond counsel addressed to the City and the Fiscal Agent, materially impair the interests of the Bondowners or Beneficial Owners of the Bonds; and (d) The Developer, or the Dissemination Agent, shall have delivered copies of the amendment and any opinions delivered under (b) and (c) above. In the event of any amendment or waiver of a provision of this Disclosure Agreement, the Developer shall describe such amendment in the next Semi-Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or, in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the Developer. In addition, if the amendment relates to the accounting principles to be followed in preparing fmancial statements, (i) notice of such change shall be given to the Municipal Securities Rulemaking Board, the State Repository, if any, and the Repositories, and (Ii) the Semi-Annual Report for the year in which the change is made should present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. The comparison of financial data described in clause (Ii) of the preceding sentence shall be provided at the time financial statements, if any, are filed under Section 4(g) hereof. SECTION 9. Additional Information. Nothing in this Disclosure Agreement shall be deemed to prevent the Developer from disseminating any other information, using the means of dissemination set forth in this Disclosure Agreement or any other means of communication, or including any other information in any Semi-Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Agreement. If the Developer chooses to include any information in any Semi-Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Agreement, the Developer shall have no obligation under this Disclosure Agreement to update such information or include it in any future Semi-Annual Report or notice of occurrence of a Listed Event. SECTION 10. Default. In the event of a failure of the Developer to comply with any provision of this Disclosure Agreement, any Participating Underwriter or any Bondowner or Beneficial Owner of the Bonds may, take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Developer or the Dissemination Agent to comply with its obligations under this Disclosure Agreement. A default under this Disclosure Agreement shall not be deemed an Event of G-6 DOCSOC/1151 029v4/022245-0 163 11-108 Default under the Indenture, and the sole remedy under this Disclosure Agreement in the event of any failure of the Developer to comply with this Disclosure Agreement shaH be an action to compel specific performance. SECTION 11. Duties. Immunities and Liabilities of Dissemination Agent. The Dissemination Agent shaH have only such duties as are specifically set forth in this Disclosure Agreement and the Developer agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents (each an "Indemnified Party"), harmless against any loss, expense and liabilities which they may incur arising out of or in the exercise or performance of their powers and duties hereunder, including the reasonable costs and expenses (including attorneys fees) of defending against any claim of liability, but excluding losses, expenses and liabilities due to any Indemnified Party's negligence or wiHful misconduct. The Dissemination Agent shaH not be deemed to be acting in any fiduciary capacity for the Developer, the Participating Underwriter, Bondowners or Beneficial Owners or any other party. The Dissemination Agent may rely and shaH be protected in acting or refraining trom acting upon a direction from the Developer or an opinion of nationally recognized bond counsel. The obligations of the Developer under this Section shaH survive resignation or removal ofthe Dissemination Agent and payment of the Bonds. No person shall have any right to commence any action against the Dissemination Agent seeking any remedy other than to compel specific performance of this Disclosure Agreement. The Dissemination Agent will not, without the Developer's prior written consent, settle, compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding in respect of which indemnification may be sought hereunder unless such settlement, compromise or consent includes an unconditional release of the Developer and its controlling persons from all liability arising out of such claim, action or proceedings. If a claim, action or proceeding is settled with the consent of the Developer or if there is a final judgment (other than a stipulated fmal judgment without the approval of the Developer) for the plaintiff in any such claim, action or proceeding, with or without the consent of the Developer, the Developer agrees to indemnifY and hold harmless the Dissemination Agent to the extent described herein. SECTION 12. Revorting Obligation of De vel over's Transferees. The Developer shall, in connection with any sale or transfer of ownership of land within the District which will result in the transferee (except when such transferee is an Affiliate of the Developer) becoming responsible (i) for the payment of more than 20 percent of the Special Taxes levied on property within the District in the Fiscal Year following such transfer and (ii) for the construction and/or instaHation of some or all of the improvements needed to bring such sold or transferred land to finished lot condition, cause such transferee to (1) enter into a disclosure agreement with terms substantially similar to the terms of this Disclosure Agreement, whereby such transferee agrees to be bound by the obligations of the Developer under this Disclosure Agreement with respect to the property within the District owned by such transferee and its Affiliates as an additional obligated party, or (2) assume the obligations of the transferor hereunder with respect to the property within the District owned by such transferee and its Affiliates. Additionally, the Developer shall, in connection with any sale or transfer of ownership of land within the District which will result in the transferee and any Affiliate of the transferee becoming responsible for the payment of more than 20 percent of the Special Taxes levied on property within the District in the Fiscal Year following such transfer, which sale or transfer occurs before such sold or transferred land is in finished lot condition, and the transferee is not responsible for the construction or installation of some or all of the infrastructure needed to bring such land to finished lot condition, cause such transferee to (1) enter into a disclosure agreement with terms substantially similar to the terms of this Disclosure Agreement, whereby such transferee agrees to provide the information of the type described in Section 4(b), (c), (d) and (f) of this Disclosure Agreement with respect to its property, or (2) assume the obligations of the transferor hereunder with respect to the property within the District owned by such transferee and its Affiliates; provided that such transferee's obligations shall terminate upon the transferee and any Affiliate of the transferee becoming responsible for the payment of less than 20 percent of the annual Special Taxes. A memorandum regarding the Developer's obligations under this Disclosure Agreement may be recorded in the Official Records in the Office of the County Recorder of the County of San Diego. G-7 DOCSOCIl151 029v4/022245-0 163 11-109 SECTION 13. Developer as Independent Contractor. In perfonning under this Disclosure Agreement, it is understood that the Developer is an independent contractor and not an agent of the City of Chula Vista or the District. SECTION 14. Notices. Notices required by this Disclosure Agreement shall be sent in writing to the following addresses. The following infonnation may be conclusively relied upon until changed in writing: Dissemination Agent: U.S. Bank National Association 633 West Fifth Street, 24th Floor Los Angeles, CA 90071 Attention: Corporate Trust . Developer and its Affiliates: Shea Homes Limited Partnership 10721 Treena Street, Suite 100 San Diego, CA 92131 Attention: Chief Financial Officer District: City of Chula Vista 276 Fourth Avenue . Chula Vista, CA 91910 Attention: Finance Department Re: Community Facilities District No. 07-1 (Otay Ranch Village Eleven) 2006 Special Tax Bonds Participating Underwriter: Stone & Youngberg LLC One Ferry Building San Francisco, CA 94111 Attention: Research Department SECTION 15. Beneficiaries. This Disclosure Agreement shall inure solely to the benefit of the Developer, the City, the Dissemination Agent, the Participating Underwriter and Bondowners and Beneficial Owners trom time to time of the Bonds, and shall create no rights in any other person or entity. G-8 DOCSOC/1151 029v4/022245-0 163 11-110 SECTION 16. Counteroarts. This Disclosure Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute one and the same instrument. SHEA HOMES LIMITED PARTNERSHIP, a California limited partnership By: J.F. Shea LLC, a Delaware limited liability company, its General Partner By: Its: By: Its: u.S. BANK NATIONAL ASSOCIATION By: Its: G-9 DOCSOC/1151029v4/022245-0163 11-111 EXHIBIT A NOTICE TO REPOSITORIES OF FAILURE TO FILE SEMI-ANNUAL REPORT Name of the Issuer: Community Facilities District No. 07-1 (Otay Ranch Village Eleven) City of ChuIa Vista, California Name of Bond Issue: City of ChuIa Vista $ Community Facilities District No. 07-1 (Otay Ranch Village Eleven) 2006 Special Ta."\: Bonds Date of Issuance: ,2006 NOTICE IS HEREBY GIVEN that the Developer has not provided a Semi-Annual Report with respect to the above-named Bonds as required by the Continuing Disclosure Agreement. [The Developer anticipates that such Semi-Annual Report will be filed not later than , _.j Dated: U.S. BANK NATIONAL ASSOCIATION By: cc: City of Chula Vista, California Stone & Youngberg LLC Shea Homes Limited Partnership G-lD DOCSOC/1151029v4/022245-0163 11-112 APPENDIX G-l DEVELOPER CONTINUING DISCLOSURE AGREEMENT This Continuing Disclosure Agreement (the "Disclosure Agreement") dated as of May I, 2006 is executed and delivered by Brookfield Shea Otay LLC, a California limited liability company, Brookfield Otay R8/9 LLC, a Delaware limited liability company, Brookfield Otay R15/16 LLC, a Delaware limited liability company, and Brookfield Otay RI7 LLC, a Delaware limited liability company (collectively, the "Developer"), and U.S. Bank National Association, as fiscal agent (the "Fiscal Agent") and as dissemination agent (the "Dissemination Agent"), in connection with the execution and delivery by Community Facilities District No. 07-1 (Otay Ranch Village Eleven) (the "District") $ aggregate principal amount of its City of Chula Vista Community Facilities District No. 07-1 (Otay Ranch Village Eleven) 2006 Special Tax Bonds (the "Bonds"). The Bonds are being executed and delivered pursuant to a Bond Indenture dated as of May I, 2004 by and between the District and U.S. Bank National Association, as Fiscal Agent (the "Indenture"), as supplemented and amended by the First Supplemental Bond Indenture dated as of May I, 2006 by and between the District and the Fiscal Agent. The Developer covenants and agrees as follows: SECTION I. Puroose of the Disclosure A2reement. This Disclosure Agreement is being executed and delivered by the Developer for the benefit of the Bondowners and Beneficial Owners and in order to assist the Participating Underwriter in complying with S.E.C. Rule 15c2-12(b)(5). This Disclosure Agreement does not address additional undertakings, if any, by or with respect to persons other than the Developer who may be considered obligated persons or purposes of the Rule, which additional undertakings, if any, may be required for the Participating Underwriter to comply with the Rule. SECTION 2. Definitions. In addition to the definitions set forth in the Indenture, which apply to any capitalized term used in this Disclosure Agreement unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Affiliate" shall mean, with respect to any Person, (a) each Person that, directly or indirectly, owns or controls, whether beneficially or as an agent, guardian or other fiduciary, twenty-five percent (25%) or more of any class of Equity Securities of such Person, (b) each Person that controls, is controlled by or is under common control with such Person, (c) each of such Person's executive officers, directors, joint venturers and general partners or (d) each Person that is, directly or indirectly, owned by Brookfield San Diego Holdings LLC, a Delaware limited liability company; provided, however, that in no case shall the District or individual homebuyers be deemed to be Affiliates of the Developer for purposes of this Disclosure Agreement. For the purpose of this definition, "control" of a Person shall mean the possession, directly or indirectly, of the power to direct or cause the direction of its management or policies, whether through the ownership of voting securities, by contract or otherwise. For purposes of this Disclosure Agreement, any Person in which the Developer has an ownership interest and which owns property within the District shall be considered an Affiliate of the Developer. For purposes of this Disclosure Agreement, Affiliates shall not include Shea Homes Limited Partnership ("Shea Homes") or any Person intended to be an affiliate of Shea Homes under the Developer Continuing Disclosure Agreement dated May I, 2006, executed by Shea Homes. "Beneficial Owner" shall mean any person which has or shares the power, directly or indirectly, to make investment decisions concerning ownership of the Bonds (including persons holding Bonds through nominees, depositories or other intermediaries). "Bondowner" shall mean the person or persons in whose name any Bond is negotiated. "Dissemination Agent" shall mean U.S. Bank National Association, acting in its capacity as Dissemination Agent hereunder, or any successor Dissemination Agent designated in writing by the Developer and which has filed with the Developer and the District a written acceptance of such designation. G-I-I DOCSOC/1151029v4/022245-0163 11-113 "District" shall mean Community Facilities District No. 07-1 (Otay Ranch Village Eleven). "Equity Securities" of any Person shall mean (a) all common stock, preferred stock, participations, shares, general partnership interests or other equity interests in and of such Person (regardless of how designated and whether or not voting or non-voting) and (b) all warrants, options and other rights to acquire any of the foregoing. "Fiscal Year" shall mean the period beginning on July I of each year and ending on the next succeeding June 30. "Government Authority" shall mean any national, state or local government, any political subdivision thereof, any department, agency, authority or bureau of any of the foregoing, or any other Person exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. "Listed Event" shall mean any of the events listed in Section 5(a) of this Disclosure Agreement. "National Repository" shall mean any Nationally Recognized Municipal Securities Information Repository for purposes of the Rule. "Official Statement" shall mean the Official Statement, dated , 2006, relating to the Bonds. "Participating Underwriter" shall mean Stone & Youngberg LLC, the original underwriter of the Bonds, whose address for purposes of this Disclosure Agreement is One Ferry Building, San Francisco, California 94111, Attention: Research Department, and any other underwriting firm that provides written notice to the Developer that it is required to comply with the Rule in connection with the offering of the Bonds. "Person" shall mean any natural person, corporation, limited liability company, partnership, finn, association, Government Authority or any other Person whether acting in an individual fiduciary, or other capacity. "Repository" shall mean each National Repository and the State Repository. "Rule" shall mean Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. "Semi-Annual Report" shall mean any Semi-Annual Report provided by the Developer pursuant to, and as described in, Sections 3 and 4 of this Disclosure Agreement. "State" shall mean the State of California. "State Repository" shall mean any public or private repository or entity designed by the State as a state repository for the purpose of the Rule and recognized as such by the Securities and Exchange Commission. As of the date of this Disclosure Agreement, there is no State Repository. SECTION 3. Provision of Semi-Annual Reports. (a) The Developer shall, or shall cause the Dissemination Agent to, not later than May I and November I of each year, commencing November I, 2006, provide to each Repository, the District and to the Participating Underwriter a Semi.Annual Report which is consistent with the requirements of Section 4 of this Disclosure Agreement. The Semi-Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 4 of G-I-2 DOCSOC/1151 029v4/022245-0 163 11-114 this Disclosure Agreement provided that the audited financial statements, if any, of the Developer may be submitted separately trom the balance of the Semi-Annual Report and later than the date required for the filing of the Semi-Annual Report if they are not available by that date. (b) Not later than fifteen (15) Business Days prior to the date specified in subsection (a) for providing the Semi-Annual Report to Repositories, the Developer shall provide the Semi-Annual Report to the Dissemination Agent or shall provide notification to the Dissemination Agent that the Developer is preparing, or causing to be prepared, the Semi-Annual Report and the date which the Semi-Annual Report is expected to be available. If by such date, the Dissemination Agent has not received a copy of the Semi-Annual Report or notification as described in the preceding sentence, the Dissemination Agent shall contact the Developer to determine if the Developer is in compliance with the first sentence of this subsection (b). (c) If the Dissemination Agent is unable to provide a Semi-Annual Report to Repositories by the date required in subsection (a) or to verify that a Semi-Annual Report has been provided to Repositories by the date required in subsection (a), the Dissemination Agent shall send a notice to each Repository in substantially the form attached as Exhibit A. (d) The Dissemination Agent shall: (i) determine each year prior to the date for providing the Semi-Annual Report the name and address of each National Repository and the State Repository, if any; and (ii) file a report with the Developer and the District certifying that the Semi-Annual Report has been provided pursuant to this Disclosure Agreement, stating the date it was provided and listing all the Repositories to which it was provided. SECTION 4. Content of Semi-Annual ReDort. The Developer's Semi-Annual Report shall contain or include by reference the information which is available as of January I and July I of each year, as applicable, relating to the following: a. An update to the information relating to the Developer in the section in the Official Statement entitled "THE DEVELOPMENT AND PROPERTY OWNERSHIP-The Developer," "_ Development Plan," "-Development Status," "-Financing Plan," "-Status of Entitlement Improvements," and "-Inftastructure Requirements and Construction Status," including an update to Table 10 therein and including a summary of any material changes to and the sources of funds to finance development relating to the property of the Developer and its Affiliates within the District, and whether any material defaults exist under any loan arrangement related to such financing; b. A summary of development activity within the District relating to the property owned by the Developer and its Affiliates, including the number of parcels for which building permits have been issued, the number of parcels for which certificates of occupancy have been issued, the number of parcels for which sales have closed, and for land or lot sales to Persons other than individual homebuyers, the amount ofland or lots sold and the name of the purchaser of lots to be developed. c. An update on the status of any material governmentally-imposed preconditions for commencement or continuation of development of the parcels within the District owned by the Developer and its Affiliates. d. Status of any material legislative, administrative and judicial challenges known to the Developer adversely affecting the construction of the development within the District being undertaken by the Developer or the time for construction of any public or private G-I-3 DOCSOCIl151029v4/022245-0163 11-115 improvements to be made by the Developer or any of its Affiliates within the District, other than the public improvements described in (e) below (the "Developer Improvements"). e. Status of completion of the public improvements fmanced by the Bonds and to be constructed by the Developer and its Affiliates and any material legislative, administrative and judicial challenges known to the Developer to or affecting the construction of such public improvements (the "District Improvements"). f. Any material amendments to land use entitlements or Special Tax exemption status with respect to parcels owned by the Developer and its Affiliates within the District that are known to the Developer, including (i) an update of the total acres subject to the levy of Special Taxes if the amendment affects the total number of acres subject to the levy of the Special Taxes, and (ii) listings of any acreage that has become exempt from the levy of Special Taxes as a result of such amendment. g. Until such time as the Developer and its Affiliates no longer own land within the District which is responsible for 20% or more of the annual Special Tax levy, the Semi-Annual Report due May 1 of each year shall contain unaudited financial statements of the Developer and its Affiliates owning land within the District or, if prepared, audited financial statements of each of such entities for its most recently completed fiscal year (which currently ends on each December 31), prepared in accordance with generally accepted accounting principles as promulgated from time to time by the Financial Accounting Standards Board. If the Developer has audited financial statements prepared and the audited financial statements are not available by the time the Semi-Annual Report is required to be filed pursuant to Section 3(a), the Semi-Annual Report shall contain unaudited financial statements in a format similar to the fmancial statements for the preceding year, if prepared, and the audited financial statements shall be filed in the same manner as the Semi-Annual Report when they become available. Tbe Developer need only provide audited or unaudited data once per year. h. Tbe filing of any lawsuit against the Developer or otherwise known to the Developer which will materially adversely affect the completion of the District Improvements, the Developer Improvements or the development of undeveloped parcels owned by the Developer and its Affiliates within the District, or litigation which would materially adversely affect the fmancial condition of the Developer or its Affiliates that own property within the District. 1. Material payment default by the Developer on any loan of the Developer (whether or not such loan is secured by property within the District) which is beyond any applicable cure period in such loan. Any and all of the items listed above may be included by specific reference to other documents, including official statements of debt issues which have been submitted to each of the Repositories or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the Municipal Securities Rulemaking Board. The Developer shall clearly identity each such other document so included by reference. G-I-4 DOCSOC/1151 029v4/022245-0 163 11-116 ., SECTION 5. ReDorting of Significant Events. (a) Pursuant to the provisions of this Section 5, the Developer shall give, or cause to be given, notice of the occurrence of any of the fol1owing events with respect to the Bonds, if material under clauses (b) and (c): 1. Failure to pay any real property taxes, special taxes or assessments (including any assessment installment) levied within the District on a parcel owned by the Developer or any of its Affiliates; 2. Material payment default by the Developer or any Affiliate on any loan secured by property within the District owned by the Developer or any of its Affiliates which is beyond any applicable cure period in such loan; and 3. The filing of any proceedings with respect to the Developer or any of its Affiliates, in which the Developer or any of its Affiliates that own property within the District may be adjudicated as bankrupt or discharged from any or al1 of their respective debts or obligations or granted an extension of time to pay debts or a reorganization or readjustment of debts. (b) Developer shall securities laws. Whenever the Developer obtains knowledge of the Occurrence of a Listed Event, the as soon as possible determine if such event would be material under applicable federal (c) If the Developer determines that knowledge of the occurrence of a Listed Event would be material under applicable federal securities laws, the Developer shal1 promptly file a notice of such occurrence with the Dissemination Agent which shaH then distribute such notice to the Municipal Securities Rulemaking Board and each State Repository, with a copy to the District and the Participating Underwriter. SECTION 6. Termination of ReDorting Obligation. The Developer's obligations under this Disclosure Agreement shall terminate upon any of the fol1owing events: (a) the legal defeasance, prior redemption or payment in ful1 of al1 of the Bonds, (b) if as of the date for filing the Semi-Annual Report the Developer and its Affiliates own property within the District which is responsible for less than twenty percent (20%) of the Special Taxes levied in the Fiscal Year for which the Semi-Annual Report is being prepared, and not less than 90% of the District Improvements to be constructed by the Developer have been completed, or (c) upon the delivery by the Developer to the District and the Participating Underwriter of an opinion of national1y recognized bond counsel to the effect that the information required by this Disclosure Agreement is no longer required. Such opinion shall be based on information publicly provided by the Securities and Exchange Commission or a private letter ruling obtained by the Developer or a private letter ruling obtained by a similar entity to the Developer. If such termination occurs prior to the final maturity of the Bonds, the Developer shal1 give notice of such termination in the same marmer as for a Semi-Annual Report hereunder. SECTION 7. Dissemination Agent. The Developer may from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Agreement, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. If the Dissemination Agent is not the Developer, the Dissemination Agent shal1 not be responsible in any marmer for the content of any notice or report prepared by the Developer pursuant to this Disclosure Agreement. The Developer has initial1y appointed U.S. Bank National Association as the Dissemination Agent hereunder. DOCSOCIl151 029v4/022245-0 163 G-I-5 11-117 SECTION 8. Amendment Waiver. Notwithstanding any other provision of this Disclosure Agreement, the Developer may amend this Disclosure Agreement, and any provision of this Disclosure Agreement may be waived, provided that the following conditions are satisfied: (a) If the amendment or waiver relates to the provisions of Sections 3(a), 4 or 5, it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature or status of an obligated person with respect to the Bonds, or the type of business conducted; . (b) This Disclosure Agreement, as amended or taking into account such waiver, would, in the opinion of nationally recognized bond counsel addressed to the District, the Fiscal Agent and the Participating Underwriter, have complied with the requirements of the Rule at the time of the original issuance of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; (c) The amendment or waiver either (I) is approved by the Bondowners in the same manner as provided in the Agreement for amendments to the Agreement with the consent of Bondowners, or (ii) does not, in the opinion of nationally recognized bond counsel addressed to the City and the Fiscal Agent, materially impair the interests of the Bondowners or Beneficial Owners of the Bonds; and . (d) The Developer, or the Dissemination Agent, shall have delivered copies of the amendment and any opinions delivered under (b) and (c) above. . In the event of any amendment or waiver of a provision of this Disclosure Agreement, the Developer shall describe such amendment in the next Semi-Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or, in the case ofa change of accounting principles, on the presentation) of financial infonnation or operating data being presented by the Developer. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (i) notice of such change shall be given to the Municipal Securities Rulemaking Board, the State Repository, if any, and the Repositories, and (ii) the Semi-Annual Report for the year in which the change is made should present a comparison (in narrative fonn and also, if feasible, in quantitative fonn) between the fmancial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the fonner accounting principles. The comparison of financial data described in clause (ii) of the preceding sentence shall be provided at the time financial statements, if any, are filed under Section 4(g) hereof. SECTION 9. Additional Infonnation. Nothing in this Disclosure Agreement shall be deemed to prevent the Developer from disseminating any other infonnation, using the means of dissemination set forth in this Disclosure Agreement or any other means of communication, or including any other infonnation in any Semi-Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Agreement. If the Developer chooses to include any infonnation in any Semi-Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Agreement, the Developer shall have no obligation under this Disclosure Agreement to update such infonnation or include it in any future Semi-Annual Report or notice of occurrence of a Listed Event. SECTION 10. Default. In the event ofa failure of the Developer to comply with any provision of this Disclosure Agreement, any Participating Underwriter or any Bondowner or Beneficial Owner of the Bonds may, take such actions as may be necessary and appropriate, including seeking mandate or specific perfonnance by court order, to cause the Developer or the Dissemination Agent to comply with its obligations under this Disclosure Agreement. A default under this Disclosure Agreement shall not be deemed an Event of Default under the Indenture, and the sole remedy under this Disclosure Agreement in the event of any failure of the Developer to comply with this Disclosure Agreement shall be an action to compel specific perfonnance. 0-1-6 DOCSOC/1151029v4/022245-0163 11-118 SECTION II. Duties. Immunities and Liabilities of Dissemination Agent. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Agreement and the Developer agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents (each an "Indemnified Party"), harmless against any loss, expense and liabilities which they may incur arising out of or in the exercise or performance of their powers and duties hereunder, including the reasonable costs and expenses (including attorneys fees) of defending against any claim of liability, but excluding any losses, expenses and liabilities due to any Indemnified Party's negligence or willful misconduct. The Dissemination Agent shall not be deemed to be acting in any fiduciary capacity for the Developer, the Participating Underwriter, Bondowners or Beneficial Owners or any other party. The Dissemination Agent may rely and shall be protected in acting or refraining from acting upon a direction from the Developer or an opinion of nationally recognized bond counsel. The obligations of the Developer under this Section shall survive resignation or removal ofthe Dissemination Agent and payment of the Bonds. No person shall have any right to commence any action against the Dissemination Agent seeking any remedy other than to compel specific performance of this Disclosure Agreement. The Dissemination Agent will not, without the Developer's prior written consent, settle, compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding in respect of which indemnification may be sought hereunder unless such settlement, compromise or consent includes an unconditional release of the Developer and its controlling persons from all liability arising out of such claim, action or proceedings. If a claim, action or proceeding is settled with the consent of the Developer or if there is a final judgment (other than a stipulated final judgment without the approval of the Developer) for the plaintiff in any such claim, action or proceeding, with or without the consent of the Developer, the Developer agrees to indemnify and hold harmless the Dissemination Agent to the extent described herein. SECTION 12. Reporting Obligation of Developer's Transferees. The Developer shall, in connection with any sale or transfer of ownership of land within the District which will result in the transferee (except when such transferee is an Affiliate of the Developer) becoming responsible (i) for the payment of more than 20 percent of the Special Taxes levied on property within the District in the Fiscal Year following such transfer and (ii) for the construction and/or installation of some or all of the improvements needed to bring such sold or transferred land to [mished lot condition, cause such transferee to (I) enter into a disclosure agreement with terms substantially similar to the terms of this Disclosure Agreement, whereby such transferee agrees to be bound by the obligations of the Developer under this Disclosure Agreement with respect to the property within the District owned by such transferee and its Affiliates as an additional obligated party or (2) assume the obligations hereunder with respect to the property within the District owned by such transferee and its Affiliates. Additionally, the Developer shall, in connection with any sale or transfer of ownership of land within the District which will result in the transferee and any Affiliate of the transferee becoming responsible for the payment of more than 20 percent of the Special Taxes levied on property within the District in the Fiscal Year following such transfer, which sale or transfer occurs before such sold or transferred land is in finished lot condition, and the transferee is not responsible for the construction or installation of some or all of the infrastructure needed to bring such land to finished lot condition, cause such transferee to (1) enter into a disclosure agreement with terms substantially similar to the terms of this Disclosure Agreement, whereby such transferee agrees to provide the information of the type described in Section 4(b), (c), (d) and (1) of this Disclosure Agreement with respect to its property or (2) assume the obligations hereunder with respect to the property within the District owned by such transferee and its Affiliates; provided that such transferee's obligations under such disclosure agreement shall terminate upon the transferee and any Affiliate of the transferee becoming responsible for the payment of less than 20 percent of the annual Special Taxes. A memorandum regarding the Developer's obligations under this Disclosure Agreement may be recorded in the Official Records in the Office of the County Recorder of the County of San Diego. SECTION 13. Developer as Independent Contractor. In performing under this Disclosure Agreement, it is understood that the Developer is an independent contractor and not an agent of the City of Chula Vista or the District. G-I-7 DOCSOCIl151029v4/022245-0163 11-119 SECTION 14. Notices. Notices required by this Disclosure Agreement shall be sent in writing to the following addresses. The following information may be conclusively relied upon until changed in writing: Dissemination Agent: U.S. Bank National Association 633 West Fifth Street, 24th Floor Los Angeles, CA 90071 Attention: Corporate Trust Developer and its Affiliates: Brookfield Shea Otay LLC 12865 Pointe Del Mar Way, Suite 200 Del Mar, CA 92014 Attention: Chief Financial Officer District: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Attention: Finance Department Re: Community Facilities District No. 07-1 (Otay Ranch Village Eleven) 2006 Special Tax Bonds Participating Underwriter: Stone & Youngberg LLC One Ferry Building San Francisco, CA 94 I I I Attention: Research Department SECTION IS. Beneficiaries. This Disclosure Agreement shall inure solely to the benefit of the Developer, the City, the Dissemination Agent, the Participating Underwriter and Bondowners and Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity. G-I-8 DOCSOC/1151 029v4/022245-0 163 11-120 SECTION 16. Counterparts. This Disclosure Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute one and the same instrument. BROOKFIELD SHEA OTA Y LLC, a California limited liability company By: BROOKFIELD OTA Y LLC, a Delaware limited liability company, Member By: Name: Its: By: Title: Its: By: SHEA OTAY VILLAGE II, LLC, a California limited liability company, Member By: Shea Homes Limited Partnership, a California limited partnership, it's Sole Member By: J.F. Shea LLC, a Delaware limited liability company, it General Partner By: Name: Its: By: Name: Its: BROOKFIELD OT A Y R8/9 LLC, a Delaware limited liability company By: Name: Its: By: Name: Its: DOCSOCIl151029v4/022245-0163 G-I-9 11-121 BROOKFIELD OTA Y R15/16 LLC, a Delaware limited liability company . By: Name: Its: By: Name: Its: BROOKFIELD OTA Y RI7 LLC, a Delaware limited liability company By: Name: Its: By: Name: Its: U.S. BANK NATIONAL ASSOCIATION By: Its: G-l-1O DOCSOCfl151029v4/022245-0163 11-122 EXHIBIT A NOTICE TO REPOSITORIES OF FAILURE TO FILE SEMI-ANNUAL REPORT Name of the Issuer: Community Facilities District No. 07-1 (Otay Ranch Village Eleven) City of Chula Vista, California Name of Bond Issue: City of Chula Vista $ Community Facilities District No. 07-1 (Otay Ranch Village Eleven) 2006 Special Tax Bonds Date of Issuance: ,2006 NOTICE IS HEREBY GIVEN that the Developer has not provided a Semi-Annual Report with respect to the above-named Bonds as required by the Continuing Disclosure Agreement. [The Developer anticipates that such Semi-Annual Report will be filed not later than , _.] Dated: U.S. BANK NATIONAL ASSOCIATION By: cc: City of Chula Vista, California Stone & Youngberg LLC [Developer] G-I-11 DOCSOCI1151029v4/022245-0163 11-123 APPENDIX H FORM OF OPINION OF BOND COUNSEL [CLOSING DATE] Mayor and City Council City of Chula Vista 276 Fourth A venue Chula Vista, CA BOND OPINION $ CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 07-1 (OTA Y RANCH VILLAGE ELEVEN) 2006 SPECIAL TAX BONDS Ladies and Gentlemen: We have acted as bond counsel in connection with the issuance by Community Facilities District No. 07-1 (Otay Ranch Vil1age Eleven) (the "District") situated in and formed by the City of Chula Vista, County of San Diego, State of California, of $ aggregate principal amount of the City of Chula Vista Community Facilities District No. 07-1 (Otay Ranch Vil1age Eleven) 2006 Special Tax Bonds (the "Bonds"). The Bonds are issued pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part I of Division 2 of Title 5 of the Government Code of the State of California (the "Act"). a resolution adopted by the City Council on , 2006 (the "Resolution"), and a Bond Indenture, dated as of May I, 2004, between the District and U.S. Bank National Association, as fiscal agent (the "Fiscal Agent"), as supplemented and amended by the First Supplemental Bond Indenture, dated as of May I, 2006, by and between the District and the Fiscal Agent (collectively, the "Bond Indenture"). We have examined the Act, the Resolution, the Bond Indenture and certified copies ofthe proceedings taken for the issuance and sale of the Bonds. As to questions of fact which are material to our opinion, we have relied upon the representations of the District and the City of Chula Vista without having undertaken to verify the accuracy of any such representations by independent investigation. Based upon such examination, we are or the opinion, as of the date hereof, that the proceedings referred to above have been taken in accordance with the laws and the Constitution of the State of California, and that the Bonds, having been issued in duly authorized form and executed by the proper officials and delivered to and paid for by the purchaser thereof, and the Bond Indenture having been duly authorized and executed by the proper officials, constitute the legally valid and binding obligations of the District enforceable in accordance with their terms subject to the qualifications specified below. Except where funds are otherwise available, as may be permitted by law, the Bonds are payable, as to both principal imd interest, solely from certain special taxes to be levied and collected within the District and other funds available therefor held under the Bond Indenture. The Internal Revenue Code of 1986, as amended (the "Code"), sets forth certain investment, rebate and related requirements which must be met subsequent to the issuance and delivery of the Bonds for the interest on the Bonds to be and remain exempt from federal income taxation. Noncompliance with such H-I DOCSOC!l151029v4/022245-0163 11-124 requirements could cause the interest on the Bonds to be subject to federal income taxation retroactive to the date of issuance of the Bonds. Pursuant to the Bond Indenture, the District has covenanted to comply with the requirements of the Code and applicable regulations promulgated thereunder. We are of the opinion that, under existing statutes, regulations, rulings and court decisions, and assuming compliance by the District with the aforementioned covenant, the interest on the Bonds is excluded !Tom gross income for purposes of federal income taxation and is exempt !Tom personal income taxation imposed by the State of California. We are further of the opinion that interest on the Bonds is not a specific preference item for purposes of the alternative minimum tax provisions of the Code. However, interest on the Bonds received by corporations will be included in corporate adjusted current earnings, a portion of which may increase the alternative minimum taxable income of such corporations. . The difference between the issue price of a Bond (the first price at which a substantial amount of the Bonds of the same maturity is to be sold to the public) and the stated redemption price at maturity with respect to such Bond constitutes original issue discount, and the amount of original issue discount that accrues to the owner of the Bond is excluded !Tom the gross income of such owner for federal income tax purposes, is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations, and is exempt !Tom State of California personal income tax. . Although interest on the Bonds is excluded !Tom gross income for purposes of federal income taxation, the accrual or receipt of interest on the Bonds may otherwise affect the federal income tax liability of the recipient. The extent of these tax consequences will depend on the recipient's particular tax status or other items of income or deduction. We express no opinion regarding any such consequences. The opinions expressed herein may be affected by actions which may be taken (or not taken) or events which may occur (or not occur) after the date hereof. We have not undertaken to determine, or to inform any person, whether any such actions or events are taken or occur or are not taken or do not occur. The rights of the owners of the Bonds and the enforceability of the Bonds and the Bond Indenture may be subject to bankruptcy, insolvency, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted, and their enforcement may be subject to the exercise of judicial discretion in accordance with general principles of equity. Respectfully submitted, . Best Best & Krieger, LLP H-2 DOCSOCIl151 029v4/022245-0 163 11-125 APPENDIX I DTC AND THE BOOK ENTRY SYSTEM The Depository Trust Company ("DTC"), New York, NY, will act as securities depository for the 2006 Bonds. The 2006 Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered bond will be issued for each maturity of the 2006 Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC. DTC, the world's largest depository, is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17 A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 2 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments from over 85 countries that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC, in turn, is owned by a number of Direct Participants of DTC and Members of the National Securities Clearing Corporation, Government Securities Clearing Corporation, MBS Clearing Corporation, and Emerging Markets Clearing Corporation, (NSCC, GSCC, MBSCC, and EMCC, also subsidiaries ofDTCC), as well as by the New York Stock Exchange, Inc., the American Stock Exchange LLC, and the National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has Standard & Poor's highest rating: AAA. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the 2006 Bonds on DTC' s records. The ownership interest of each actual purchaser of each 2004 Special Tax Bond ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the 2006 Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive bonds representing their ownership interests in Bonds, except in the event that use of the book-entry system for the 2006 Bonds is discontinued. To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the 2006 Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which mayor may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. I-I DOCSOCII 151029v4/022245-0163 11-126 Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of 2006 Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the 2006 Bonds, such as redemptions, tenders, defaults, and proposed amendments to the 2004 Bond documents. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the 2006 Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them. Redemption notices shall be sent to DTC. If less than all of the 2006 Bonds within a maturity are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed. Neither DTC nor Cede & Co. (nor such other DTC nominee) will consent or vote with respect to the 2006 Bonds unless authorized by a Direct Participant in accordance with DTC's Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the District as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.' s consenting or voting rights to those Direct Participants to whose accounts the 2006 Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). . Redemption proceeds, distributions, and dividend payments on the 2006 Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the District or the Fiscal Agent, on payment date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC nor its nominee, the Fiscal Agent, or the District, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Fiscal Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners, will be the responsibility of Direct and Indirect Participants. A Beneficial Owner shall give notice to elect to have its Bonds purchased or tendered, through its Participant, to the Fiscal Agent, and shall effect delivery of such Bonds by causing the Direct Participant to transfer the Participant's interest in the 2006 Bonds, on DTC's records, to the Fiscal Agent. The requirement for physical delivery of Bonds in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the 2006 Bonds are transferred by Direct Participants on DTC's records and followed by a book-entry credit of tendered Bonds to the Fiscal Agent's DTC account. DTC may discontinue providing its services as depository with respect to the 2006 Bonds at any time by giving reasonable notice to the District or the Fiscal Agent. Under such circumstances, in the event that a successor depository is not obtained, physical Bonds are required to be printed and delivered. The District may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, physical Bonds will be printed and delivered to DTC. The information in this section concerning DTC and DTC's book-entry system has been obtained from sources that the District believes to be reliable, but the District takes no responsibility for the accuracy thereof. 1-2 DOCSOCIl151029v4/022245-0163 11-127 APPENDIX J DEVELOPER UNAUDITED FINANCIAL STATEMENTS DOCSOCIl151029v4/022245-0163 J-I 11-128 APPENDIX K COMBINED FINANCIAL STATEMENTS OF J.F. SHEA COMPANY DOCSOC/115! 029v4/022245-0 163 K-I 11-129 EXHIBIT 1 FIRST SUPPLEMENTAL BOND INDENTURE by and between CITY OF CHVLA VISTA COMMUNITY FACILITIES DISTRICT NO. 7-1 (OTAY RANCH VILLAGE ELEVEN) and u.S. BANK TRUST NATIONAL ASSOCIATION, as Fiscal Agent Dated as of May 1, 2006 Re: $ City of Chula Vista Community Facilities District No. 7-1 (Otay Ranch Village Eleven) 2006 Special Tax Bonds WDIVEN\324338.l 11-130 FIRST SUPPLEMENTAL BOND INDENTURE This First Supplemental Bond Indenture, dated as of May 1, 2006, is entered into by and between Community Facilities District No. 7-1 (Otay Ranch Village Eleven) (the "District"), a community facilities district organized and existing under the laws of the State of California, and u.S. Bank Trust National Association, as Fiscal Agent (the "Fiscal Agent"), pursuant to and in order to supplement that Bond Indenture, dated as of May 1, 2004, (the "Indenture") and entered into by and between the District and the Fiscal Agent to provide for the issuance of the Community Facilities District No. 7-1 (Otay Ranch Village Eleven) 2006 Special Tax Bonds. ARTICLE I DEFINITIONS Section 1.01. Amendment of the Indenture. This First Supplemental Indenture amends and supplements the Indenture for the purpose of providing for the issuance, execution, authentication and delivery of the 2006 Bonds as Parity Bonds (as defmed in Section 1.01 of the Indenture) and amending the Indenture to provide for the proportionate allocation of Prepayments between the 2004 Bonds and any Parity Bonds when calling Bonds ITom such Prepayments. Regardless of the specific provisions of the Indenture, and except as specifically provided in Article II hereof, the term "Bonds" as used in the Indenture shall refer and be applicable, to the same extent and with the same effect, to the 2004 Bonds and the 2006 Bonds and the term "Bondowner" or "Owner" shall refer and be applicable, to the same extent and with the same effect, to the Owners of the 2004 Bonds and the Owners of the 2006 Bonds. Unless specifically defined herein, words and terms used herein with initial letters capitalized have the meanings given to them in the Indenture. Except as provided below, the defmitions of words and terms set forth in Section 1. 0 I of the Indenture are applicable for all purposes of this First Supplemental Indenture. If a word or term used herein and in the Indenture with initial letters capitalized is defined in both herein and in the Indenture, the defmition contained herein shall amend and supercede the definition contained in the Indenture. Section 1.02. Definitions. Except as otherwise defined in this First Supplemental Bond Indenture, the capitalized terms used herein shall have the meanings given such terms in the Indenture. "2006 Bonds" shall mean the $ Community Facilities District No. 7-1 (Otay Ranch Village Eleven) 2006 Special Tax Bonds issued pursuant to the Indenture. "First Supplemental Bond Indenture" means the First Supplemental Bond Indenture dated as of May I, 2006 by and between the District and the Fiscal Agent. 1 WDIVEN\324338.1 11-131 ARTICLE II GENERAL AUTHORIZATION AND TERMS Section 2.01. Amount, Issuance and Purpose. The 2006 Bonds shall be designated City of Chula Vista Community Facilities District No. 7-1 (Otay Ranch Village Eleven) 2006 Special Tax Bonds. The purpose of the 2006 Bonds shall be to (a) pay for the acquisition and/or construction of the Project, Traffic Facilities and Public Facilities, (b) fund an amount necessary to bring the amount on deposit in the Reserve Fund to the Reserve Requirement on the Delivery Date of the 2006 Bonds, (c) pay capitalized interest on the 2006 Bonds through September I, 2006, and (d) pay the Costs ofIssuance for the 2006 Bonds. The Delivery Date of the 2006 Bonds shall be ,2006. Section 2.02. Terms of the 2006 Bonds. The 2006 Bonds shall mature on September I in the years, and in the respective principal amounts set forth opposite such years, and shall bear interest at the respective rates per annum, as follows: Maturity Date (Sentemher 1) Principal Amount Interest Rate(% ) Section 2.03. Disposition of 2006 Bond Proceeds. Upon the receipt of $ as the sale proceeds for the 2006 Bonds (being the par amount of $ .00 less the sum of (i) underwriter's discount of $ and (ii) original issue discount of $ ), the Fiscal Agent shall transfer or set aside and deposit or cause to be deposited such funds as follows: $ shall be deposited in the Acquisition Account of the Project Fund established for the 2006 Bonds; $ shall be deposited in the Transportation Facilities of the Project Fund established for the 2006 Bonds; . $ shall be deposited in the Public Facilities Account of the Project Fund established for the 2006 Bonds; $ shall be deposited in the Capitalized Interest Subaccount of the Interest Account of the Bond Service Fund established for the 2006 Bonds; $ shall be deposited in the Reserve Fund; and 2 WDrVEN\324338.1 11-132 . $ shall be deposited into the Costs of Issuance Fund. ARTICLE III REDEMPTION OF 2006 BONDS Section 3.01. 2006 Bonds - Redemption Prices and Terms. A. Optional Redemption The 2006 Bonds maturing on and after September 1, 20_ may be redeemed at the option of the District prior to maturity as a whole, or in part on any Interest Payment Date on and after September 1, 20_, ITOm such maturities as are selected by the District, and by lot within a maturity, ITom any source of funds, at the following redemption prices (expressed as percentages of the principal amount of the 2006 Bonds to be redeemed), together with accrued interest to the date of redemption: Redemption Date Redemption Price September 1, 20_ through March 1, 20_ September I, 20_ and March 1, 20_ September 1, 20_ and thereafter % % % B. Extraordinary Mandatory Redemption. The 2006 Bonds may be redeemed on any Interest Payment Date, prior to maturity, as a whole or in part on a pro rata basis among maturities ITom the prepayment of Special Taxes pursuant to the Special Tax RMA. Such extraordinary mandatory redemption of the 2006 Bonds shall be at the following redemption prices (expressed as percentages of the principal amount of the 2006 Bonds to be redeemed), together with accrued interest thereon to the date of redemption: Redemption Date Redemption Price September 1, 2006 through March 1, 20_ September 1, 20_ and March 1, 20_ September I, 20_ and thereafter % % % C. Mandatory Sinking Fund Redemption The 2006 Bonds maturing on September 1,20_ are subject to mandatory sinking fund redemption, in part by lot, on September 1 in each year commencing September 1, 20_, at a redemption price equal to the principal amount of the 2006 Bonds to be redeemed, plus accrued and unpaid interest thereon to the date frxed for redemption, without premium, in the aggregate principal amount and in the years shown on the following redemption schedule: Redemption Date 3 WDIVEN\324338.! 11-133 (Sevtember 1) Princival Amount The 2006 Bonds maturing on September 1, 20_ are subject to mandatory sinking fund redemption, in part, by lot, on September 1 of each year commencing September 1, 20_, at a redemption price equal to the principal amount of the 2006 Bonds to be redeemed, plus accrued and unpaid interest thereon to the date fixed for redemption, without premium, in the aggregate principal amounts and in the years shown in the following redemption schedule: Redemption Date (September 1) Principal Amount Section 3.02. Amendment of Section 4.03 of the Indenture. The first paragraph of Section 4.03E of the Indenture is hereby amended to read as follows: "In the event the District shall elect to redeem Bonds as provided in this Section 4.03 and Section 3.01 of the First Supplemental Indenture, the District shall give written notice to the Fiscal Agent of its election so to redeem, the redemption date, the principal amount of the Bonds to be redeemed, the maturities ITom which such Bonds are to be redeemed and the principal amount of the Bonds to be redeemed ITom each such maturity, the Bonds or portions thereof to be selected for redemption. In the event that Bonds are to be redeemed ITom Prepayments pursuant to Section 4.03B of this Indenture and Section 3.02B of the First Supplemental Indenture, such Prepayments and any amounts transferred ITom the Reserve Fund to the Redemption Fund as a result of such Prepayments shall be allocated to the redemption of each Series of the Bonds as nearly as practicable on a proportionate basis based upon the Outstanding principal amount of each Series of the Bonds. The written notice to be provided by the District to the Fiscal Agent pursuant to the first sentence of this subsection for any redemption pursuant to Section 4.03B of this Indenture and Section 3.02B of the First Supplemental Indenture shall reflect such allocation." ARTICLE IV COVENANTS Section 4.01. Parity Bonds The District covenants that it will not issue any other obligations payable, principal or interest, ITom the Special Taxes which have, or purport to have, any lien upon the Special Taxes superior to or on a parity with the lien of the 2004 Bonds and the 2006 Bonds. Nothing in this Indenture shall, however, prevent the District ITom issuing 4 WDlVEN\324338.1 11-134 and selling, pursuant to law, refunding bonds or other refunding obligations payable from and having a first lien upon the Special Taxes on a parity with the Outstanding 2004 Bonds and Outstanding 2006 Bonds. ARTICLE V BOND FORM Section 5.01. Form of 2006 Bonds. The format of the 2006 Bonds as authorized and to be issued for these proceedings shall be substantially in the form as set forth in the attached, referenced and incorporated Exhibit "A." Section 5.02. Temporary Bonds. Any 2006 Bonds issued under the Indenture as amended by this First Supplemental Bond Indenture may be initially issued in temporary form exchangeable for definitive bonds. The 2006 Bonds may be issued as one temporary bond with an attached maturity schedule and interest rate schedule to represent all 2006 Bonds. The temporary bond may be printed, lithographed or typewritten, shall be of such denominations as may be determined by the District and may contain such references to any of the provisions of this Indenture as may be appropriate. Every temporary Series 2001 Bond shall be executed by the District in substantially the same manner as provided in Section 2.06 of the Indenture. If the District issues one or more temporary 2006 Bonds, it will execute and furnish definitive 2006 Bonds without delay upon the request of any Owner and thereupon the temporary bonds may be surrendered for cancellation at the Principal Corporate Trust Office of the Fiscal Agent, and the District shall deliver in exchange for such temporary bonds an equal aggregate principal amount of definitive 2006 Bonds of the same interest rates and maturities. Until so exchanged, the temporary bonds shall be entitled to the same benefits under the Indenture as definitive 2006 Bonds issued hereunder. [Remainder of this page intentionally left blank.] 5 WDIVEN\324338.1 11-135 IN WITNESS WHEREOF, the District and the Fiscal Agent have executed this Bond Indenture effective the date fIrst above written. COMMUNITY FACILITIES DISTRlCT NO. 7-1 (OT A Y RANCH VILLAGE ELEVEN) By: DIRECTOR OF FINANCE U.S. BANK TRUST NATIONAL ASSOCIATION, as Fiscal Agent By: AUTHORIZED OFFICER . 8-1 WDIVEN\324338.1 11-136 EXHIBIT "A" FORM OF BOND R- $ United States of America State of California CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 07-1 (OTAY RANCH VILLAGE ELEVEN) 2004 SPECIAL TAX BONDS Interest Rate Maturity Date Bond Date CUSIP No. % September I, 20 Registered Owner: Cede & Co. Principal Amount: City ofChula Vista Community Facilities District No. 07-1 (Otay Ranch Village Eleven) (the "District"), situated in ChuIa Vista, California, for value received, hereby promises to pay, solely from Special Tax Revenues (as hereafter defined), to the registered owner named above, or registered assigns, on the maturity date set forth above, unless redeemed prior thereto as hereinafter provided, the principal amount set forth above and to pay interest on such principal amount semiannually on each March I and September 1, commencing September 1,2006, (each an "Interest Payment Date") at the interest rate set forth above, until the principal amount hereof is paid or made available for payment. The principal of and premium, if any, on this Bond are payable to the registered owner hereof in lawful money of the United States of America upon presentation and surrender of this Bond at maturity or redemption at the corporate trust office or agency of U.S. Bank National Association (the "Fiscal Agent") in St. Paul, Minnesota (or such other office designated by the Fiscal Agent). Interest on this Bond is payable from the Interest Payment Date next preceding the date of its authentication, unless (i) such date of authentication is an Interest Payment Date, in which event interest shall be payable from such date of authentication, (ii) the date of authentication is after the 15th calendar day of the month preceding the Interest Payment Date (the "Record Date") but prior to the immediately succeeding Interest Payment Date, in which event interest shall be payable from the Interest Payment Date immediately succeeding the date of authentication or (iii) the date of authentication is prior to the close of business on the first Record Date, in which event interest shall be payable from the Bond Date above; provided, however, that if at the time of authentication of this Bond, interest is in default, interest on this Bond shall be payable from the last Interest Payment Date to which the interest has been paid or made available for payment. Interest on this Bond shall be payable by check of the Fiscal Agent mailed first class, postage prepaid, to the registered owner hereof at such registered owner's address as it appears on the registration books maintained by the Fiscal A-I WDrvEN\324338.1 11-137 Agent as of the close of business on the Record Date preceding the Interest Payment Date or, upon request in writing prior to the Record Date received ITom a registered owner of at least $1,000,000 in aggregate principal amount of the Bonds, by wire transfer in immediately available funds to an account in the United States of America designated by such registered owner. This Bond is one of a duly authorized issue of the "City of Chula Vista Community Facilities District No. 07-1 (Otay Ranch Village Eleven) 2006 Special Tax Bonds" (the "2006 Bonds") issued in the aggregate principal amount of $ pursuant to the Mello-Roos Community Facilities Act of 1982, constituting Sections 53311, et seq. of the California Government Code, as amended (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, for the purpose of fmancing certain public improvements in and for the District. The creation of the 2006 Bonds and the terms and conditions thereof are provided for by a Bond Indenture, dated as of May 1, 2004 (the "Indenture"), by and between the District and the Fiscal Agent, as supplemented and amended by the First Supplemental Bond Indenture dated as of May 1, 2006, by and between the District and the Fiscal Agent, and this reference incorporates the Indenture herein, and by acceptance hereof the owner of this 2006 Bond assents to said terms and conditions. All capitalized terms used herein shall have the same meaning as set forth in the Indenture unless otherwise specified herein. The Indenture is authorized under, this 2006 Bond is issued under, and both are to be construed in accordance with, the laws of the State of California. Pursuant to the Act and the Indenture, the principal of, premium, if any, and interest on this 2006 Bond are payable solely ITom, and shall be secured on a parity with any Parity Bonds (as defmed in the Indenture) subsequently issued pursuant to the Indenture by a pledge of and lien upon, the proceeds of the Special Tax (as defmed in the Indenture) levied and received by the District and the proceeds of the redemption and sale of property sold as a result of foreclosure of the lien of the Special Tax to the amount of such lien and penalties thereon (together, the "Special Tax Revenues") and certain funds held under the Indenture. The 2006 Bonds are not general obligations of the City of Chula Vista or the District, but are special, limited obligations of the District, and neither the faith and credit nor the taxing power of the District, the City of Chula Vista, the State of California, or any political subdivision thereof is pledged to the payment of the 2006 Bonds. Except for the Special Tax Revenues, no other revenues or taxes are pledged to the payment of the 2006 Bonds. The District will review the public records of the County of San Diego, California, in connection with the collection of the Special Taxes and will commence and diligently pursue to completion, judicial foreclosure proceedings against (i) properties under common ownership with delinquent Special Taxes in the aggregate of $5,000 or more by October 1 following the close of the Fiscal Year in which the Special Taxes were due, and (ii) against all properties with delinquent Special Taxes in the aggregate of $2,500 or more by October 1 following the close of any fiscal year if the amount in the Reserve Fund is less than the Reserve Requirement. The 2006 Bonds maturing on and after September 1, 20_ may be redeemed at the option of the District prior to maturity as a whole, or in part on any Interest Payment Date on and after A-2 WDIVEN\324338.1 11-138 September I, 20_, from such maturities as are selected by the District, and by lot within a maturity, from any source of funds, at the following redemption prices (expressed as percentages of the principal amount of the 2006 Bonds to be redeemed), together with accrued interest to the date of redemption: Redemption Date Redemption Price September 1,20_ through March I, 20_ September I, 20_ and March I, 20_ September I, 20_ and thereafter % % % The 2006 Bonds are subject to redemption on any Interest Payment Date, prior to maturity, as a whole or in part on a pro rata basis among maturities, from the amounts deposited in the Redemption Fund in connection with the prepayment of Special Taxes pursuant to the Special Tax RMA. Such extraordinary mandatory redemption of the 2006 Bonds shall be at the following redemption prices (expressed as percentages of the principal amount of the 2006 Bonds to be redeemed), together with accrued interest thereon to the date of redemption: Redemption Date Redemption Price September 1,2006 through March 1, 20_ September 1,20_ and March I, 20_ September I, 20_ and thereafter % % % The 2006 Bonds maturing on September 1,20_ are subject to mandatory sinking fund redemption, in part, by lot, on September I of each year commencing September I, 20_ at a redemption price equal to the principal amount of the 2006 Bonds to be redeemed, plus accrued and unpaid interest thereon to the date fixed for redemption, without premium, in the aggregate principal amounts and in the years shown in the following redemption schedule. Redemption Date (September I) Principal Amount The 2006 Bonds maturing on September 1,20_ are subject to mandatory sinking fund redemption, in part, by lot, on September I of each year commencing September I, 20_ at a redemption price equal to the principal amount of the 2006 Bonds to be redeemed, plus accrued and unpaid interest thereon to the date fixed for redemption, without premium, in the aggregate principal amounts and in the years shown in the following redemption schedule. A-3 WDIVEN\324338.1 11-139 Redemption Date (September 1) Principal Amount Notice of redemption with respect to the 2006 Bonds to be redeemed shall be given by the Fiscal Agent to the registered owner thereof at least 30 days but not more than 45 days prior to the redemption date, by fIrst class mail, postage prepaid, at their addresses appearing on the Bond Register. . This 2006 Bond shall be issued only in fully registered form in the denominations of $5,000 or any integral multiple thereof. No transfer hereof shall be valid for any purpose unless made by the registered owner, by execution of the form of assignment printed hereon, and authenticated as herein provided, and the principal hereof, interest hereon and any redemption premium shall be payable only to the registered owner or to such owner's order. Interest on this 2006 Bond shall be payable to the person whose name appears upon the Bond Register as the registered owner hereof as of the close of business on the Record Date or to such person's order. The Fiscal Agent shall require the registered owner requesting transfer or exchange to pay any tax or other governmental charge required to be paid with respect to such transfer or exchange. The Fiscal Agent shall not be required to register, transfer or make exchanges of (i) 2006 Bonds for a period of 15 days next preceding the date of any selection of 2006 Bonds to be redeemed or (ii) any 2006 Bonds chosen for redemption. Unless this 2006 Bond is presented by an authorized representative of The Depository Trust Company to the District or the Fiscal Agent for registration of transfer, exchange or payment, and any 2006 Bond issued is registered in the name of Cede & Co. or such other name as requested by an authorized representative of The Depository Trust Company and any payment is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY TO ANY PERSON IS WRONGFUL since the registered owner hereof, Cede & Co., has an interest herein. This 2006 Bond shall not become valid or obligatory for any purpose until the certifIcate of authentication hereon printed shall have been dated and manually signed by the Fiscal Agent. A-4 WDIVEN\324338.1 11-140 IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required by law to exist, happen and be performed precedent to and in the issuance of this 2006 Bond have existed, happened and been performed in due time, form and manner as required by law, and that the amount of this 2006 Bond, together with all other indebtedness of the District, does not exceed any debt limit prescribed by the laws or Constitution of the State of California. IN WITNESS WHEREOF, the City ofChula Vista Community Facilities District No. 07-1 (Otay Ranch Village Eleven), has caused this 2006 Bond to be dated as of May 20, 2004 and to be signed by the Mayor of the City of Chula Vista by his or her manual signature and attested by the City Clerk by his or her manual signature. Mayor, City of Chula Vista, for and on behalf of the City of Chula Vista Community Facilities District No. 07-1 (Otay Ranch Village Eleven) City Clerk, City of Chula Vista, for and on behalf of the City of Chula Vista Community Facilities District No. 07-1 (Otay Ranch Village Eleven) CERTIFICATE OF AUTHENTICATION This is one of the 2006 Bonds described in the within defined Indenture. Date: U.S. Bank National Association, as Fiscal Agent By: Authorized Officer A-S WDIVEN\324338.1 11-141 ASSIGNMENT For value received the undersigned do(es) hereby sell, assign and transfer unto (Name, Address, and Tax Identification or Social Security Number of Assignee) the within-mentioned registered 2006 Bond and hereby irrevocably constitute(s) and appoint(s), attorney, to transfer the same on the books of the Fiscal Agent with full power of substitution in the premises. Dated: Signature Guaranteed: NOTICE: Signature must guaranteed by a qualified guarantor. be NOTICE: The signature on this assignment must correspond with the name as it appears on the face of the within 2006 Bond in every particular, without alteration or enlargement or any change whatsoever . . A-6 WDIVEN\324338.1 11-142 Stradling Yocca Carlson & Rauth Draft as of May 3, 2006 $ CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 07-1 (OT A Y RANCH VILLAGE ELEVEN) 2006 SPECIAL TAX BONDS BOND PURCHASE AGREEMENT ,2006 Community Facilities District No. 07-1 (Otay Ranch Village Eleven) City of Chula Vista Chula Vista, California Ladies and Gentlemen: Stone & Youngberg LLC (the "Underwriter'.), acting not as a fiduciary or agent for you, but on behalf of itself, offers to enter into this Bond Purchase Agreement with Community Facilities District No. 07-1 (Otay Ranch Village Eleven) (the "District"), which was formed by the City of Chula Vista (the "City"), which, upon acceptance, will be binding upon the District and upon the Underwriter. This offer is made subject to acceptance of it by the District on the date hereof, and if not accepted will be subject to withdrawal by the Underwriter upon notice delivered to the District at any time prior to the acceptance hereof by the District. 1. Purchase. Sale and Delivery of the Bonds. (a) Subject to the terms and conditions and in reliance upon the representations, warranties and agreements set forth herein, the Underwriter agrees to purchase ITom the District, and the District agrees to sell to the Underwriter, all (but not less than all) of the City of Chula Vista Community Facilities District No. 07-1 (Otay Ranch Village Eleven) 2006 Special Tax Bonds (the "Bonds") in the aggregate principal amount specified in Exhibit A hereto. The Bonds shall be dated the Closing Date (hereinafter defined), and bear interest (payable semiannually on March I and September I in each year, commencing September I, 2006) at the rates per annum and maturing on the dates and in the amounts set forth in Exhibit A hereto. The purchase price for the Bonds shall be the amount specified as such in Exhibit A hereto. The Bonds shall be substantially in the form described in, shall be issued and secured under the provisions of, and shall be payable and subject to redemption as provided in Exhibit A hereto and in, the Bond Indenture (the "Bond Indenture") by and between the District and U.S. Bank National Association, as Fiscal Agent (the "Fiscal Agent"), dated as of May I, 2004, as supplemented and amended by the First Supplemental Bond Indenture dated as of March I, 2006 by and between the Fiscal Agent and the District, approved in Resolution No. 2006-_ adopted by the City Council of the City, as the legislative body of the District, on _, 2006 (the "Resolution of Issuance"). The Bonds and interest thereon will be payable ITom a special tax (the "Special Tax") levied and collected on certain taxable land within the District in accordance with Resolution No. 2003-461 adopted by the City Council on November 12, 2003 (the "Resolution of 11-143 EXH\B\T 5 DOCSOC/1157152v2l022245-0163 Fonnation"), Ordinance No. 2940 enacted on November 25, 2003 (the "Special Tax Ordinance"). Proceeds of the sale of the Bonds will be used in accordance with the Bond Indenture and the Mello- Roos Community Facilities Act of 1982, as amended (Sections 53311 et ~. of the Government Code of the State of California) (the "Act") and the City of Chula Vista Community Facilities District Ordinance ("Authorizing Ordinance" and together with the Act, the "Law"), to acquire certain public improvements described in the Resolution of Fonnation. The Resolution oflssuance, the Resolution of Fonnation, the Special Tax Ordinance and the Authorizing Ordinance and all other resolutions adopted with respect to the fonnation of the District and the issuance of the Bonds are collectively referred to herein as the "District Resolutions." (b) At or prior to the acceptance hereof by the District, the District shall cause to be delivered to the Underwriter (i) a Certificate of Representations and Warranties of the City, dated as of the date of this Bond Purchase Agreement (the "City Certificate"), in substantially the fonn attached hereto as Exhibit B, with only such changes therein as shall have been accepted by the Underwriter, and (ii) a certificate executed by Brookfield Shea Otay LLC (the "Developer"), dated on or prior to the date of this Bond Purchase Agreement and addressed to the Underwriter and the District deeming the infonnation in the Preliminary Official Statement (as defined in (c) below) relating to the Developer final and accurate as of its date. . (c) Subsequent to its receipt of a certificate from the District deeming the Preliminary Official Statement for the Bonds, dated , 2006 (which Preliminary Official Statement, together with the cover page and all appendices thereto, is herein collectively referred to as the "Preliminary Official Statement" and which, as amended with the prior approval of the Underwriter and executed by the District, will be referred to herein as the "Official Statement"), final for purposes of Rule 15c2-12 of the Securities and Exchange Commission ("Rule 15c2-12"), the Underwriter has distributed copies of the Preliminary Official Statement. The District hereby ratifies the use by the Underwriter of the Preliminary Official Statement and authorizes the Underwriter to use and distribute the final Official Statement dated the date hereof (including all infonnation previously pennitted to have been omitted by Rule 15c2-12) and any supplements and amendments thereto as have been approved by the District and the Underwriter as set forth in Section 2(g) hereof as evidenced by the execution and delivery of such document by an officer of the District, the Bond Indenture, the Continuing Disclosure Agreement of the District (the "District Disclosure Agreement"), this Bond Purchase Agreement, any other documents or contracts to which City or the District is a party, and all infonnation contained therein, and all other documents, certificates and statements furnished by the City and the District to the Underwriter in connection with the transactions contemplated by this Bond Purchase Agreement, in connection with the offer and sale of the Bonds by the Underwriter. The Underwriter hereby agrees to deliver a copy of the Official Statement to a national repository on or before the Closing Date (as hereinafter defined) and to each investor that purchases any of the Bonds prior to the "end of the underwriting period" (as such tenn is defined in Section 2(g) below) and otherwise to comply with all applicable statutes and regulations in connection with the offering and sale of the Bonds, including, without limitation, MSRB Rule G-32 and Rule 15c2-12. . (d) Pursuant to the Indenture and the District Disclosure Agreement the District has agreed to provide, or cause to be provided, to each NRMSIR or the Municipal Securities Rulemaking Board and any public or private repository or entity designated by the State as a state repository for purposes of Rule 15c2-12 adopted by the Securities and Exchange Commission certain annual financial infonnation and notices of the occurrence of certain events, if material. These covenants have been made in order to assist the Underwriter in complying with Rule 15c2-12. 2 DOCSOC/1 ]57152v2/022245-0163 11-144 (e) At 8:00 A.M., Pacific Daylight Time, on , 2006, or at such earlier time or date as shall be agreed upon by the Underwriter and the District (such time and date being herein referred to as the "Closing Date"), the District will deliver (i) to The Depository Trust Company in New York, New York, the Bonds in definitive form (all Bonds being in book-entry form registered in the name of Cede & Co. and having the CUSIP numbers assigned to them printed thereon), duly executed by the officers of the District as provided in the Bond Indenture, and (ii) to the Underwriter, at the offices of Best Best & Krieger LLP, Bond Counsel in San Diego, California, or at such other place as shall be mutually agreed upon by the District and the Underwriter, the other documents herein mentioned; and the Underwriter shall accept such delivery and pay the purchase price of the Bonds in immediately available funds (such delivery and payment being herein referred to as the "Closing"). Notwithstanding the foregoing, the Underwriter may, in its discretion, accept delivery of the Bonds in temporary form upon making arrangements with the District which are satisfactory to the Underwriter relating to the delivery of the Bonds in definitive form. 2. Representations. Warranties and Agreements of the District. The District represents, warrants and covenants to and agrees with the Underwriter that: (a) The City is duly organized and validly eXlstmg as a charter city duly organized and validly existing under the Constitution and laws of the State of California and has duly authorized the formation of the District pursuant to the Resolution of Formation and the Law. The City Council as the legislative body of the City and the District has duly adopted the District Resolutions, and has caused to be recorded in the real property records of the County of San Diego, a Notice of Special Tax Lien (the "Notice of Special Tax Lien") (such District Resolutions and Notice of Special Tax Lien being collectively referred to herein as the "Formation Documents"). Each of the Formation Documents remains in full force and effect as of the date hereof and has not been amended. The District is duly organized and validly existing as a community facilities district under the laws of the State of California. The City has, and at the Closing Date will have, as the case may be, full legal right, power and authority to execute, deliver and perform on behalf of itself and the District its obligations under that certain Acquisition/Financing Agreement between the City and the Developer, together with all amendments thereto (the "Funding Agreement") and to carry out all transactions contemplated by the Funding Agreement. The District has, and at the Closing Date will have, as the case may be, full legal right, power and authority (i) to execute, deliver and perform its obligations under this Bond Purchase Agreement, the District Disclosure Agreement, and the Bond Indenture, and to carry out all transactions contemplated by each of such agreements, (ii) to issue, sell and deliver the Bonds to the Underwriter pursuant to the Resolution of Issuance and Bond Indenture as provided herein, and (iii) to carry out, give effect to and consummate the transactions contemplated by the Formation Documents and by the Bond Indenture, this Bond Purchase Agreement, the District Disclosure Agreement and the Funding Agreement (collectively, the "District Documents") and the Official Statement; (b) The District and the City, as applicable, each has complied, and will at the Closing Date be in compliance, in all material respects with the Formation Documents and the District Documents, and any immaterial noncompliance by the District and the City, if any, will not impair the ability of the District and the City, as applicable, to carry out, give effect to or consummate the transactions contemplated by the foregoing. From and after the date of issuance of the Bonds, the District will continue to comply with the covenants of the District contained in the District Documents; 3 DOCSOC/1157152v2l022245-0163 11-145 (c) The City Council has duly and validly: (i) adopted the District Resolutions, (ii) called, held and conducted in accordance with all requirements of the Law the elections within the District to approve the levy of the Special Tax, the facilities eligible for financing and the issuance of the Bonds and recorded the Notice of Special Tax Lien which established a continuing lien on the land within the District securing the Special Tax, (iii) authorized and approved the execution and delivery of the Bonds and the District Documents, (iv) authorized the preparation and delivery of the Preliminary Official Statement and the Official Statement, and (v) authorized and approved the performance by the District of its obligations contained in, and the taking of any and all action as may be necessary to carry out, give effect to and consummate the transactions contemplated by, each of the District Documents (including, without limitation, the collection of the Special Tax), and at the Closing Date the Formation Documents will be in full force and effect and the District Documents and the Bonds will constitute the valid, legal and binding obligations of the District and (assuming due authorization, execution and delivery by other parties thereto, where necessary) will be enforceable in accordance with their respective terms, subject to bankruptcy, insolvency, reorganization, moratorium and other laws affecting the enforcement of creditors' rights in general and to the application of equitable principles if equitable remedies are sought; (d) To the best of the District's knowledge, neither the District nor the City is in breach of or default under any applicable law or administrative rule or regulation of the State of California (the "State"), or of any department, division, agency or instrumentality thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, bond indenture, contract, agreement or other instrument to which the District or the City is a party or is otherwise subject or bound, a consequence of which could be to materially and adversely affect the performance by the District of its obligations under the Bonds, the Formation Documents or the District Documents, and compliance with the provisions of each thereof, will not conflict with or constitute a breach of or default under any applicable law or administrative rule or regulation of the State, or of any department, division, agency or instrumentality thereof, or under any applicable court or administrative decree or order, or a material breach of or default under any loan agreement, note, resolution, trust agreement, contract, agreement or other instrument to which the District or the City, as the case may be, is a party or is otherwise subject or bound; (e) Except for compliance with the blue sky or other states securities law filings, as to which the District makes no representations, all approvals, consents, authorizations, elections and orders of or filings or registrations with any State governmental authority, board, agency or commission having jurisdiction which would constitute a condition precedent to, or the absence of which would materially adversely affect, the performance by the District of its obligations hereunder, or under the Formation Documents or the District Documents, have been obtained and are in full force and effect; (t) The Special Tax constituting the security for the Bonds has been duly and lawfully authorized and may be levied under the Law and the Constitution and other applicable laws of the State of California, and such Special Tax, when levied, will constitute a valid and legally binding continuing lien on the properties on which it has been levied; . (g) Until the date which is twenty-five (25) days after the "end of the underwriting period" (as hereinafter defmed), if any event shall occur of which the District is aware, as a result of which it may be necessary to supplement the Official Statement in order to make the statements in the Official Statement, in light of the circumstances existing at such time, not misleading, the District shall forthwith notify the Underwriter of any such event of which it has 4 DOCSOC/l157152v2l022245-0163 11-146 knowledge and shall cooperate fully in furnishing any information available to it for any supplement to the Official Statement necessary, in the Underwriter's opinion, so that the statements therein as so supplemented will not be misleading in light of the circumstances existing at such time and the District shall promptly furnish to the Underwriter a reasonable number of copies of such supplement. As used herein, the term "end of the underwriting period" means the later of such time as (i) the District delivers the Bonds to the Underwriter, or (ii) the Underwriter does not retain, directly or as a member of an underwriting syndicate, an unsold balance of the Bonds for sale to the public. Unless the Underwriter gives notice to the contrary, the "end of the underwriting period" shall be deemed to be the Closing Date. Any notice delivered pursuant to this provision shall be written notice delivered to the District at or prior to the Closing Date, and shall specifY a date (other than the Closing Date) to be deemed the "end of the underwriting period"; (h) The Bond Indenture creates a valid pledge of the Net Special Taxes and the moneys in the Special Tax Fund, the Debt Service Fund, the Redemption Fund and the Reserve Fund established pursuant to the Bond Indenture, including the investments thereof, subject in all cases to the provisions of the Bond Indenture permitting the application thereof for the purposes and on the terms and conditions set forth therein; (i) Except as disclosed in the Official Statement, no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, regulatory agency, public board or body is pending or, to the best knowledge of the District, threatened (i) which would materially adversely affect the ability of either the City or the District to perform its obligations under the Bonds, the Formation Documents or the District Documents, or (ii) seeking to restrain or to enjoin the development of the land within the District, the issuance, sale or delivery of the Bonds, the application of the proceeds thereof in accordance with the Bond Indenture or the Funding Agreement, or the collection or application of the Special Tax pledged or to be pledged to pay the principal of and interest on the Bonds, or the pledge thereof, or in any way contesting or affecting the validity or enforceability of the Bonds, the Formation Documents, the District Documents, the land use approvals granted by the City with respect to the land within the District, any other instruments relating to the development of any of the property within the District, or any action contemplated by any of said documents, or (iii) in any way contesting the completeness or accuracy of the Preliminary Official Statement or the Official Statement or the powers or authority of the District with respect to the Bonds, the Formation Documents, the District Documents, or any action of the District contemplated by any of said documents; nor is there any action pending or, to the best knowledge of the District, threatened against the City or the District which alleges that interest on the Bonds is not excludable trom gross income for federal income tax purposes or is not exempt trom California personal income taxation; CD The District will furnish such information, execute such instruments and take such other action in cooperation with the Underwriter as the Underwriter may reasonably request in order for the Underwriter to qualifY the Bonds for offer and sale under the "Blue Sky" or other securities laws and regulations of such states and other jurisdictions of the United States as the Underwriter may designate; provided, however, the District shall not be required to register as a dealer or a broker of securities or to consent to service of process in connection with any blue sky filing; (k) Any certificate signed by any authorized official of the City or the District authorized to do so shall be deemed a representation and warranty to the Underwriter as to the statements made therein; 5 DOCSOC/1157152v2/022245_0 163 11-147 (I) The District will apply the proceeds of the Bonds in accordance with the Bond Indenture and as described in the Official Statement; (m) The information contained in the Preliminary Official Statement (other than information therein relating to The Depository Trust Company and its Book-Entry-Only System, as to which no view is expressed) was as of the date thereof, and the information contained in the Official Statement (other than information therein relating to The Depository Trust Company and its Book-Entry-Only System, as to which no view is expressed) as of its date was, and on the Closing Date shall be, true and correct in all material respects and such information does not and shall not contain any untrue or misleading statement of a material fact or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; (n) The District shall use its best efforts to cause the Developer to cooperate with the Underwriter in the preparation of the Official Statement; provided, however, that such efforts shall not include the expenditure of funds by the District; . (0) The Preliminary Official Statement heretofore delivered to the Underwriter was deemed final by the District as of its date, except for the omission of such information as is permitted to be omitted in accordance with paragraph (b)(I) of Rule 15c2-12. The District hereby covenants and agrees that, within seven (7) business days from the date hereof, the District shall cause a final printed form of the Official Statement to be delivered to the Underwriter in a quantity mutually agreed upon by the Underwriter and the District so that the Underwriter may comply with paragraph (b)(4) of Rule 15c2-12 and Rules G-12, G-15, G-32 and G-36 of the Municipal Securities Rulemaking Board. (P) Except as disclosed in the Preliminary Official Statement, to the best of District's knowledge, there are no entities with outstanding assessment or special tax liens against any of the properties within the District which are senior to or on a parity with the Special Taxes; (q) Neither the City nor the District is in default with respect to any reporting obligation that it has undertaken under Rule 15c2-l2 for any indebtedness issued by it. 3. Conditions to the Obligations of the Underwriter. The obligations of the Underwriter to accept delivery of and pay for the Bonds on the Closing Date shall be subject, at the option of the Underwriter, to the accuracy in all material respects of the representations and warranties on the part of the District contained herein, as of the date hereof and as of the Closing Date, to the accuracy in all material respects of the statements of the officers and other officials of the City and the District made in any certificates or other documents furnished pursuant to the provisions hereof, to the performance by the District of its obligations to be performed hereunder at or prior to the Closing Date and to the following additional conditions: . (a) At the Closing Date, the Formation Documents and the District Documents shall be in full force and effect, and shall not have been amended, modified or supplemented, except as may have been agreed to in writing by the Underwriter, and there shall have been taken in connection therewith, with the issuance of the Bonds and with the transactions contemplated thereby and by this Bond Purchase Agreement, all such actions as, in the opinion of Best, Best & Krieger LLP, Bond Counsel for the District, and Stradling Y occa Carlson & Rauth, a Professional Corporation, counsel to the Underwriter, shall be necessary and appropriate; 6 DOCSOCIl157152v2/022245-0163 11-148 . ., . . (b) Between the date hereof and the Closing Date, the market price or marketability of the Bonds at the initial offering prices set forth in the Official Statement shall not have been materially adversely affected, in the judgment of the Underwriter (evidenced by a written notice to the District terminating the obligation of the Underwriter to accept delivery of and pay for the Bonds), by reason of any of the following: (I) legislation introduced in or enacted (or resolution passed) by the Congress of the United States of America or recommended to the Congress by the President of the United States, the Department of the Treasury, the Internal Revenue Service, or any member of Congress, or favorably reported for passage to either House of Congress by any committee of such House to which such legislation had been referred for consideration or a decision rendered by a court established under Article III of the Constitution of the United States of America or by the Tax Court of the United States of America, or an order, ruling, regulation (final, temporary or proposed), press release or other form of notice issued or made by or on behalf of the Treasury Department or the Internal Revenue Service of the United States of America, with the purpose or effect, directly or indirectly, of imposing federal income taxation upon the interest as would be received by the holders of the Bonds beyond the extent to which such interest is subj ect to taxation as of the date hereof; (2) legislation introduced in or enacted (or resolution passed) by the Congress of the United States of America, or an order, decree or injunction issued by any court of competent jurisdiction, or an order, ruling, regulation (final, temporary or proposed), press release or other form of notice issued or made by or on behalf of the Securities and Exchange Commission, or any other governmental agency havingjurisdiction of the subject matter, to the effect that obligations of the general character of the Bonds, including any or all underlying arrangements, are not exempt ITom registration under or other requirements of the Securities Act of 1933, as amended, or that the Bond Indenture is not exempt from qualification under or other requirements of the Trust Indenture Act of 1939, as amended, or that the issuance, offering or sale of obligations of the general character of the Bonds, including any or all underwriting arrangements, as contemplated hereby or by the Official Statement or otherwise is or would be in violation of the federal securities laws, rules or regulations as amended and then in effect; (3) the introduction, proposal or enactment of any amendment to the federal or California Constitution or action by any federal or California court, legislative body, regulatory body or other authority materially adversely affecting the tax status of the District, its property, income, securities (or interest thereon), the validity or enforceability of the Special Tax or the ability of the City or the District to construct or acquire the improvements as contemplated by the Formation Documents, the District Documents or the Official Statement; or (4) any event occurring, or information becoming known, which, in the judgment of the Underwriter, makes untrue in any material respect any statement or information contained in the Official Statement, or results in the Official Statement containing any untrue statement of a material fact or omitting to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. (5) any national securities exchange, the Comptroller of the Currency, or any other governmental authority, shall impose as to the Bonds or obligations of the general character of the Bonds, any material restrictions not now in force, or increase materially those now in 7 DOCSOC/1157152v2/022245-0163 11-149 force, with respect to the extension of credit by, or the charge to the net capital requirements of, the Underwriter; or (6) the declaration of a general banking moratorium by federal, New York or California authorities; (7) there shall have occurred any material outbreak or escalation of hostilities or other calamity or crisis the effect of which on the financial markets of the United States is such as to make it impracticable, in the judgment of the Underwriter, following consultation with the City, to sell the Bonds; or (8) any proceeding shall have been commenced or be threatened In writing by the Securities and Exchange Commission against the City. (c) On the Closing Date, the Underwriter shall have received counterpart originals or certified copies of the following documents, in each case satisfactory in fonn and substance to the Underwriter: (I) The Fonnation Documents and the District Documents, together with a certificate dated as of the Closing Date of the City Clerk to the effect that each Fonnation Document is a true, correct and complete copy of the one duly adopted by the City Council; (2) The Official Statement; (3) An unqualified approving opinion for the Bonds, dated the Closing Date and addressed to the City, of Best Best & Krieger LLP, Bond Counsel for the District, in the fonn attached to the Preliminary Official Statement as Appendix H, and an unqualified opinion of such counsel, dated the Closing Date and addressed to the Underwriter, to the effect that such approving opinion addressed to the District may be relied upon by the Underwriter to the same extent as if such opinion was addressed to it; . (4) A supplemental opinion, dated the Closing Date and addressed to the Underwriter, of Best Best & Krieger LLP, Bond Counsel for the District, to the effect that (i) the District Documents have been duly authorized, executed and delivered by the City or the District, as applicable, and, assuming such agreements constitute valid and binding obligations of the other parties thereto, constitute the legally valid and binding agreements of the City or the District, as applicable, enforceable in accordance with their tenns, except as enforcement may be limited by bankruptcy, moratorium, insolvency or other laws affecting creditor's rights or remedies and by general principles of equity (regardless of whether such enforceability is considered in equity or at law); (ii) the Bonds are not subject to the registration requirements of the Securities Act of 1933, as amended, and the Bond Indenture is exempt from qualification under the Trust Indenture Act of 1939, as amended; (iii) the infonnation contained in the Official Statement on the cover and under the captions "INTRODUCTION," "THE BONDS," "SOURCES OF PAYMENT FOR THE BONDS," "THE COMMUNITY FACILITIES DISTRICT," "SPECIAL RISK FACTORS- Proposition 218," "TAX MATTERS" and Appendices E and H thereof, insofar as it purports to summarize certain provisions of the Law, the Fonnation Documents, the Bonds and the Bond Indenture and our opinion as to the exclusion from gross income for federal income tax purposes and exemption from State of California personal income taxes of interest on the Bonds, presents a fair and accurate summary of such provisions; (iv) the Special Tax has been duly and validly authorized 8 DOCSOC!l157152v2/022245-0 163 . 11-150 in accordance with the provisions of the Law and, except as the same may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or other laws relating to or affecting generally the enforcement of creditors' rights, by equitable principles and by the exercise of judicial discretion in appropriate cases, a lien to secure payment of Special Taxes has been imposed on all non-exempt property in the District; and (v) Bond Counsel has examined the proceedings regarding the levy of the Special Tax, including without limitation, the Notice of Special Tax Lien which was recorded for the District pursuant to Section 3114.5 of the California Streets and Highways Code (the "Code") in the official records of the County of San Diego and based on such examination, and its review of applicable laws of the State of California, as of the date of such opinion, Bond Counsel is of the opinion that (a) pursuant to Section 53339.8(a) of the California Government Code, all non-exempt property in the District became subject to the levy of the Special Taxes as of the date of the adoption of the Resolution of Formation, (b) pursuant to Section 53340 of the California Government Code, each levy on such non-exempt property is secured by a continuing lien; and (c) any delinquent Special Taxes levied on such non-exempt property will be subject to foreclosure pursuant to Section 53356.1 of the California Government Code; (5) An opinion, dated the Closing Date and addressed to the Underwriter, of Stradling Y occa Carlson & Rauth, a Professional Corporation, counsel for the Underwriter, to the effect that (i) the Bonds are exempt from the registration requirements of the Securities Act of 1933, as amended, and the Bond Indenture is exempt from qualification under the Trust Indenture Act of 1939, as amended; and (ii) without having undertaken to determine independently the accuracy or completeness of the statements contained in the Official Statement, but on the basis of their participation in conferences with representatives of the City, Bond Counsel, representatives of the Underwriter and others, and their examination of certain documents, nothing has come to their attention which has led them to believe that the Official Statement as of its date and as of the Closing Date contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading (except that no opinion or belief need be expressed as any financial or statistical data, appraisals, assessed values or projections or information regarding the book-entry system contained in the Official Statement); (6) A certificate, dated the Closing Date and signed by an authorized representative of the District, ratifying the use and distribution by the Underwriter of the Preliminary Official Statement and the Official Statement in connection with the offering and sale of the Bonds; and certifying that (i) the representations and warranties of the District contained in Section 2 hereof are true and correct in all material respects on and as of the Closing Date with the same effect as if made on the Closing Date; (ii) to the best of his or her knowledge, no event has occurred since the date of the Official Statement affecting the matters contained therein which should be disclosed in the Official Statement for the purposes for which it is to be used in order to make the statements and information contained in the Official Statement not misleading in any material respect, and the Bonds, the Formation Documents and the District Documents conform as to form and tenor to the descriptions thereof contained in the Official Statement; (iii) the District has complied with all the agreements and satisfied all the conditions on its part to be performed or satisfied under the Formation Documents, the District Documents and the Official Statement at or prior to the Closing Date; and (iv) the representations and warranties of the City contained in the City Certificate are true and correct in all material respects on and as of the Closing Date, with the same effect as if made on the Closing Date, except that all references therein to the Preliminary Official Statement shall be deemed to be references to the Official Statement; 9 DOCSOC/1157152v2/022245-0163 11-151 . (7) An opinion, dated the Closing Date and addressed to the Underwriter, of the City Attorney, to the effect that (i) to the best of his or her knowledge and except as disclosed in the Official Statement, no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, regulatory agency, public board or body is pending or threatened which would materially adversely affect the ability of the District to perform its obligations under the Bonds, the Formation Documents or the District Documents, or seeking to restrain or to enjoin the development of property within the District, the issuance, sale, delivery of the Bonds or the exclusion from gross income for federal income tax purposes or State of California personal income taxes of interest on the Bonds, or the application of the proceeds thereof in accordance with the Bond Indenture, or the collection or application of the Special Tax to pay the principal of and interest on the Bonds, or in any way contesting or affecting the validity or enforceability of the Bonds, the Formation Documents or the District Documents or the accuracy of the Official Statement, or any action of the City or the District contemplated by any of said documents; (ii) the City is duly organized and validly existing as a charter city under the Constitution and laws of the State of California and the District is duly organized and validly existing as a community facilities district under the laws of the State of California, and the District has full legal right, power and authority to issue the Bonds and each of the City and the District has the full legal right, power and authority to perform all of its obligations under the Formation Documents and the District Documents; (iii) the City and the District have obtained all approvals, consents, authorizations, elections and orders of or filings or registrations with any State governmental authority, board, agency or commission having jurisdiction which constitute a condition precedent to the levy of the Special Tax, the issuance of the Bonds or the performance by the District of its obligations thereunder or under the Bond Indenture, except that no opinion need be expressed regarding compliance with blue sky or other securities laws or regulations, whatsoever; (iv) the City Council has duly and validly adopted the District Resolutions at meetings of the City Council which were called and held pursuant to law and with all public notice required by law and at which a quorum was present and acting throughout, and the District Resolutions are now in full force and effect and have not been amended; and (v) each of the City and the District has duly authorized, executed and delivered the District Documents to which it is a party and the District has duly authorized and executed the Bonds and has duly authorized the preparation and delivery of the Official Statement, and the District Documents and the Bonds constitute legal, valid and binding agreements of the District and the City, as applicable, enforceable in accordance with their respective terms, subject to bankruptcy, insolvency, reorganization, moratorium and other laws affecting the enforcement of creditors' rights in general and to the application of equitable principles if equitable remedies are sought and to the limitations on legal remedies against cities in the State of California; . (8) A certificate dated the Closing Date and addressed to the Underwriter and the City, from the Developer, in substantially the form attached hereto as Exhibit C, a certificate dated the Closing Date and addressed to the Underwriter and the City, from Shea Homes Limited Partnership, in substantially the form attached hereto as Exhibit C I and an executed copy of the Continuing Disclosure Agreement in the form attached as Appendix G and Appendix G-I to the Official Statement (the "Developer Continuing Disclosure Agreement"); (9) An opinion dated the Closing Date and addressed to the Underwriter, the City and the District, by counsel to the Developer, substantially in the form attached hereto as Exhibit D; . 10 DOCSOC/1157152v2l022245-0163 11-152 (10) A certificate dated the Closing Date from McGill, Martin Self, Inc. (the "Special Tax Consultant") addressed to the City, the District and the Underwriter to the effect that (i) the Special Tax if collected in the maximum amounts permitted pursuant to the Rate and Method of Apportionment of Special Taxes as of the Closing Date would generate at least 110% of the maximum annual debt service payable with respect to the Bonds, based on such assumptions and qualifications as shall be acceptable to the Underwriter, (ii) it has reviewed the Appraisal and it is of the opinion that information contained therein with respect to taxes and tax rates applicable, and projected to be applicable, to the property in the District is consistent with such information provided by the Special Tax Consultant to the Appraiser, which information so provided was based on information obtained by the Special Tax Consultant from the City, the District and the County of San Diego, and (iii) the statements in the Official Statement concerning the Rate and Method of Apportionment of Special Tax and all information supplied by it for use in the Official Statement were as of the date of the Official Statement and are as of the Closing Date true and correct, and do not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading; (11) A letter dated the Closing Date from Bruce W. Hull & Associates, Inc. (the "Appraiser") addressed to the Underwriter, the District and the City to the effect that it has prepared the appraisal report (the "Appraisal") with respect to the property located within the District and that (a) the Appraisal, in the form set forth in Appendix C to the Official Statement, may be included in the Preliminary Official Statement and the Official Statement, (b) it has reviewed the Official Statement and the Appraisal included in Appendix C thereto and the information in the Official Statement referring to the Appraisal and in the Appraisal is accurate and does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading, and the assumptions made in the Appraisal are reasonable and (c) no events or occurrences have been ascertained by it or have come to its attention that would materially change the opinion of value set forth in the Appraisal; (12) A letter from Sullivan Group Real Estate Advisors dated the Closing Date addressed to the Underwriter, the City and the District to the effect that it has prepared the market absorption study (the "Study") referred to in the Official Statement and that (a) the summary of the Study in Appendix B thereto (the "Summary") may be included in the Preliminary Official Statement and the Official Statement, (b) it has reviewed the Official Statement and the Summary and the information regarding the Study and the projected absorption of the proposed development included in the Official Statement is accurate and does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading, and (c) no events or occurrences have been ascertained by it or have come to its attention that would materially change the opinion set forth in the Study; (13) A certificate of the District dated the Closing Date, in a form acceptable to Bond Counsel, that the Bonds are not arbitrage bonds within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended; (14) A certificate of the Fiscal Agent and an opinion of counsel to the Fiscal Agent dated the Closing Date and addressed to the City, the District and the Underwriter to the effect that it has duly authorized the execution and delivery of the Bond Indenture and the Developer 11 DOCSOC/l157152v2l022245-0 163 11-153 Continuing Disclosure Agreement and that each of such documents is a valid and binding obligation of the Fiscal Agent enforceable in accordance with its terms; and (15) Such additional legal opinions, certificates, instruments and other documents as the Underwriter may reasonably request to evidence the truth and accuracy, as of the date hereof and as of the Closing Date, of the statements and information contained in the Preliminary Official Statement and the Official Statement, of the District's representations and warranties contained herein and the due performance or satisfaction by the District at or prior to the Closing of all agreements then to be performed and all conditions then to be satisfied by the District in connection with the transactions contemplated hereby and by the Official Statement. . If the District shall be unable to satisfy the conditions to the obligations of the Underwriter to purchase, accept delivery of and pay for the Bonds contained in this Bond Purchase Agreement, and the unsatisfied conditions are not waived by the Underwriter, or if the obligations of the Underwriter to purchase, accept delivery of and pay for the Bonds shall be terminated for any reason permitted by this Bond Purchase Agreement, this Bond Purchase Agreement shall terminate and neither the Underwriter nor the District shall be under any further obligation hereunder, except that the respective obligations of the District and the Underwriter set forth in Section 5 and Section 6 hereof shall continue in full force and effect. 4. Conditions of the District's OblilZations. The District's obligations hereunder are subject to the Underwriter's performance of its obligations hereunder, and are also subject to the following conditions: . (a) As of the Closing Date, no litigation shall be pending or, to the knowledge of the duly authorized officer of the District executing the certificate referred to in Section 3(c)(6) hereof, threatened, to restrain or enjoin the issuance or sale of the Bonds or in any way affecting any authority for or the validity of the Bonds, the Formation Documents, the District Documents or the existence or powers of the City or the District; and (b) As of the Closing Date, the District shall receive the approving opinions of Bond Counsel referred to in Section 3(c)(3) and (4) hereof, dated as of the Closing Date, addressed to the City, the District and the Underwriter. 5. herein: Expenses. Whether or not the Bonds are delivered to the Underwriter as set forth (a) The Underwriter shall be under no obligation to pay, and the District shall payor cause to be paid (out of any legally available funds of the District) all expenses incident to the performance of the District's obligations hereunder, including, but not limited to, the cost of printing and delivering the Bonds to the Underwriter, the cost of preparation, printing, distribution and delivery of the Bond Indenture, the Preliminary Official Statement, the Official Statement and all other agreements and documents contemplated hereby (and drafts of any thereof) in such reasonable quantities as requested by the Underwriter; and the fees and disbursements of the Fiscal Agent for the Bonds, Bond Counsel, financial advisor to the City, counsel to the Underwriter in the amount of [$45,000], and any accountants, engineers or any other experts or consultants the District has retained in connection with the Bonds including reimbursements to the Developer for advances of such amounts; and 12 DOCSOC11157152v2l022245-0163 11-154 (b) The District shall be under no obligation to pay, and the Underwriter shall pay, any fees of the California Debt and Investment Advisory Commission, the cost of preparation of any "blue sky" or legal investment memoranda and this Bond Purchase Agreement; expenses to qualify the Bonds for sale under any "blue sky" or other state securities laws; and all other expenses incurred by the Underwriter in connection with its public offering and distribution of the Bonds (except those specifically enumerated in paragraph (a) of this section), including the fees and disbursements of its counsel and any advertising expenses. 6. Notices. Any notice or other communication to be given to the City under this Bond Purchase Agreement may be given by delivering the same in writing to the City at 276 Fourth Avenue, Chula Vista, California 91910, Attention: Director of Finance; and any notice or other communication to be given to the Underwriter under this Bond Purchase Agreement may be given by delivering the same in writing to Stone & Youngberg, 4350 La Jolla Village Drive, Suite 140, San Diego, California 92122, Attention: 1. William Huck, and to One Ferry Building, San Francisco, California 94111, Attention: Public Finance. 7. Parties in Interest. This Bond Purchase Agreement is made solely for the benefit of the District and the Underwriter (including their successors or assigns), and no other person shall acquire or have any right hereunder or by virtue hereof. 8. Survival of Representations and Warranties. The representations and warranties of the District and the City set forth in or made pursuant to this Bond Purchase Agreement and any certificates delivered hereunder shall not be deemed to have been discharged, satisfied or otherwise rendered void by reason of the Closing or termination of this Bond Purchase Agreement and regardless of any investigations made by or on behalf of the Underwriter (or statements as to the results of such investigations) concerning such representations and statements of the District and the City and regardless of delivery of and payment for the Bonds. 9. Effective. This Bond Purchase Agreement shall become effective and binding upon the respective parties hereto upon the execution of the acceptance hereof by the District and shall be valid and enforceable as of the time of such acceptance. 10. No Prior Agreements. This Bond Purchase Agreement supersedes and replaces all prior negotiations, agreements and understandings between the parties hereto in relation to the sale of Bonds for the District. 11. Governing Law. This Bond Purchase Agreement shall be governed by the laws of the State of California. 13 DOCSOC1l157152v2/022245-0163 11-155 12. Counteroarts. This Bond Purchase Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute one and the same instrument. Very truly yours, STONE & YOUNGBERG LLC By: Managing Director ACCEPTED: ,2006 COMMUNITY FACILITIES DISTRICT NO. 07-1 (OTA Y RANCH VILLAGE ELEVEN) By: Director of Finance . 14 DOCSOC1l157152v2l022245-0163 11-156 EXHIBIT A MATURITY SCHEDULE CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 07-1 (OTAY RANCH VILLAGE ELEVEN) 2006 SPECIAL TAX BONDS Maturity Date (September 1) Principal Coupon % Yield $ % Par Amount $ Original Issue Discount Underwriter. s Discount Purchase Price $ A-I DOCSOC11157152v2/022245-0163 11-157 Price Optional Redemption. The Bonds may be redeemed at the option of the District on any Interest Payment Date prior to maturity as a whole, or in part on any Interest Payment Date on and after March 1, 20_, from such maturities as are selected by the District, and by lot within a maturity, from any source of funds, at the following redemption prices (expressed as percentages of the principal amount of the Bonds to be redeemed), together with accrued interest to the date of redemption: Redemption Date March 1, 20_ through March 1, 20_ September 1, 20_ and March 1, 20_ September 1, 20_ and March 1, 20_ September 1, 20_ and thereafter Redemption Price Extraordinary Mandatory Redemption from Special Tax Prepayment. The Bonds are subject to redemption on any Interest Payment Date prior to maturity, as a whole, or in part on a pro rata basis among maturities, from the proceeds of the prepayment of Special Taxes pursuant to the Rate and Method. Such extraordinary mandatory redemption of the Bonds shall be at the following redemption prices (expressed as percentages of the principal amount of the Bonds to be redeemed), together with accrued interest thereon to the date of redemption: Redemption Date March 1, 20_ through March 1,20_ September 1, 20_ and March 1,20_ September 1, 20_ and March 1, 20_ September 1, 20_ and thereafter Redemption Price REDEMPTION PROVISIONS The mandatory sinking fund payments for the Bonds maturing on September 1, 20_, 20_ and 20_ are set forth below: BOND MATURING SEPTEMBER 1, 20_ Redemption Date (September 1) Principal Amount $ A-2 DOCSOC1l157152v2!022245-0163 11-158 BOND MATURING SEPTEMBER 1, 20_ Redemption Date (September 1) Principal Amount $ BOND MATURING SEPTEMBER 1, 20_ Redemption Date (September 1) Principal Amount $ A-3 DOCSOCIl157152v2l022245-0163 11-159 EXHIBIT B CERTIFICATE OF REPRESENTATIONS AND WARRANTIES OF THE CITY OF CHULA VISTA _, 2006 To: Stone & Youngberg LLC San Diego, California Re: $ City ofChula Vista Community Facilities District No. 07-1 (Otay Ranch Village Eleven) 2006 Special Tax Bonds Ladies and Gentlemen: We are delivering to you this certificate in connection with the issuance and sale of $ aggregate principal amount of the City of Chula Vista Community Facilities District No. 07-1 (Otay Ranch Village Eleven) 2006 Special Tax Bonds and pursuant to the Bond Purchase Agreement, dated the date hereof (the "Purchase Contract"), by and between you and Community Facilities District No. 07-1 (Otay Ranch Village Eleven) (the "District"). All capitalized terms used herein without definition shall have the meanings assigned to such terms in the Purchase Contract. Tbe undersigned, in his capacity as an officer of the City and not in his individual capacity, on behalf of the City, represents and warrants to you that: (1) The City is duly organized and validly existing as a charter city under the Constitution and laws of the State of California and the City Council of the City, as the legislative body of the District, has duly and validly adopted each of the District Resolutions and authorized the formation of the District pursuant to the Law. (2) The information contained in the Preliminary Official Statement (except for information therein as to the book-entry system as to which no view is expressed) was, as ofthe date thereof and is, as of the date hereof, true and correct in all material respects and did not, as of the date thereof, and does not, as of the date hereof, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. CITY OF CHULA VISTA By: Director of Finance B-1 DOCSOC/1157152v2!022245-0163 11-160 EXIllBIT C CERTIFICATE OF THE DEVELOPER ,2006 Stone & Youngberg LLC 4350 La Jolla Village Drive, Suite 140 San Diego, California 92122 City ofChula Vista 276 Fourth Avenue Chula Vista, California 91910 Re: $ City ofChula Vista Community Facilities District No. 07-1 (Otay Ranch Village Eleven) 2006 Special Tax Bonds (the "Bonds") Ladies and Gentlemen: r 1 (the "Developer"), hereby certifies that: 1. The Developer is the owner of certain of the land within Community Facilities District No. 07-1 (Otay Ranch Village Eleven) (the "District"), as described in the Official Statement of the District dated , 2006 relating to the above-captioned Bonds (the "Official Statement"). 2. The Developer covenants that, while the Bonds are outstanding, the Developer will not bring any action, suit, proceeding, inquiry or investigation at law or in equity, before any court, regulatory agency, public board or body which in any way seeks to challenge or overturn the District, the levy of the Special Tax in accordance with the rate and method of apportionment contained in the Notice of Special Tax Lien recorded in the real property records of the County of San Diego (the "Rate and Method of Apportionment") or the validity of the Bonds or the proceedings leading up to their issuance. The foregoing covenant shall not prevent the Developer from (a) bringing an action or suit contending that the Special Tax has not been levied in accordance with the methodology contained in the Rate and Method of Apportionment; or (b) bringing any action, suit, proceeding, inquiry or investigation to enforce the obligations of the District or the City of Chula Vista (the "City") under the District formation resolutions or any agreement including, without limitation, the Bond Indenture, the Bond Purchase Agreement, or the Acquisition/Financing Agreement, dated as of March 1, 2006, executed by and between the City and the Developer, and/or any other agreement with the District and/or the City for which the Developer is a party or beneficiary, so long as any such action or suit does not seek to interfere, or have the effect of interfering, with the levy and collection of the Special Tax in amounts and at C-l DOCSQCIl157152v2/022245-0 163 11-161 times sufficient to pay the principal of and interest on the Bonds when due and unless such action or suit is brought or filed pursuant to subsection (a) above. 3. Any and all information submitted by the Developer to the City, the Underwriter and Underwriter's counsel in connection with the preparation of the Official Statement, and any and all information submitted by the Developer to the Special Tax Consultant, the Appraiser and the Market Absorption Consultant, was, to the best of the Developer's knowledge, true and correct when given and remains true and correct as of the date hereof, and all information in the Official Statement relating to the Developer and the development of its land within the District was final as of its date for purposes of Rule 15c2-12 promulgated under the Securities Exchange Act of 1934. 4. The statements relating to the Developer, its members and related entItIes, its proposed development in the District, their property ownership and its contractual arrangements contained in the Official Statement do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. If at any time subsequent hereto and within 25 days after the Closing Date any such statements in the Official Statement become untrue, the Developer agrees to notify the City and the Underwriter immediately. 5. No proceedings are pending or, to the best of the Developer's knowledge, threatened in which the Developer or any of its members may be adjudicated as bankrupt or discharged from any or all of their debts or obligations or granted an extension of time to pay its debts or a reorganization or readjustment of its debts. 6. Except as disclosed in the Official Statement, no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, regulatory agency, public board or body, is pending or, to the best of the Developer's knowledge, threatened, in any way seeking to restrain or enjoin the development of the property within the District or in any way seeking to invalidate or set aside any final or vesting tentative maps on land in the District. 7. None of the parcels which constitute land within the District owned by the Developer or any of its affiliates are delinquent in the payment of any taxes or assessments. 8. Except as disclosed in the Official Statement, to the best of the Developer's knowledge, no other public debt secured by a tax or assessment on the land in the District is in the process of being authorized and no assessment districts or community facilities districts have been or are in the process of being formed which include any portion of the land within the District. . 9. The Developer will advise the District and the Underwriter promptly of the occurrence of any event or circumstances of which it becomes aware of during the ninety days after the end of the underwriting period and a result of which it may be necessary to supplement the Official Statement in order to make the statements therein, in light of the circumstances existing at such time, not misleading. . C-2 DOCSOC/1157152v2/022245-0163 11-162 10. Except as disclosed in writing to the Underwriter and the City, to the best of the Developer's knowledge, there are no events of monetary default or events which with the passage of time would constitute a monetary default under any loan or similar credit arrangement to which the Developer or any of its members is a party which would materially and adversely affect the ability of the Developer to develop the property or pay Special Taxes when due. II. The Developer has duly authorized and executed the Developer Continuing Disclosure Agreement dated as of March I, 2006 (the "Disclosure Agreement"), and such Disclosure Agreement is the valid obligation of the Developer, enforceable against the Developer in accordance with its terms, and none of the documents which govern the Developer would cause such Disclosure Agreement to be invalid or unenforceable against the Developer in accordance with its terms; and no event has occurred which, with the passage oftime, would constitute a default by the Developer of any of its obligations under the Disclosure Agreement. 12. All capitalized terms not otherwise defined herein shall have the meaning set forth in the Bond Purchase Agreement to be entered into between the District and Stone & Youngberg LLC relating to the sale of the Bonds. [DEVELOPER], a California limited liability company By: 1, a Its: Manager By: Its: By: Its: C-3 DOCSOC1l157152v2/022245-0 163 11-163 EXHIBIT C-I CERTIFICATE OF SHEA HOMES ,2006 Stone & Youngberg LLC 4350 La Jolla Village Drive, Suite 140 San Diego, California 92122 City of Chula Vista 276 Fourth Avenue Chula Vista, California 91910 Re: $ City ofChula Vista Community Facilities District No. 07-1 (Otay Ranch Village Eleven) 2006 Special Tax Bonds (the "Bonds") Ladies and Gentlemen: The Shea Homes Limited Partnership, a California limited liability company ("Shea Homes"), hereby certifies that: I. Shea Homes is the owner of certain of the land within Community Facilities District No. 07-1 (Otay Ranch Village Eleven) (the "District"), as described in the Preliminary Official Statement of the District dated , 2006 relating to the above-captioned Bonds (the "Preliminary Official Statement"). 2. Shea Homes covenants that, while the Bonds are outstanding, Shea Homes will not bring any action, suit, proceeding, inquiry or investigation at law or in equity, before any court, regulatory agency, public board or body which in any way seeks to challenge or overturn the District, the levy of the Special Tax in accordance with the rate and method of apportionment contained in the Notice of Special Tax Lien recorded in the real property records of the County of San Diego (the "Rate and Method of Apportionment") or the validity of the Bonds or the proceedings leading up to their issuance. The foregoing covenant shall not prevent Shea Homes from (a) bringing an action or suit contending that the Special Tax has not been levied in accordance with the methodology contained in the Rate and Method of Apportionment; or (b) bringing any action, suit, proceeding, inquiry or investigation to enforce the obligations of the District or the City of Chula Vista (the "City") under the District formation resolutions or any agreement including, without limitation, the Bond Indenture, the Bond Purchase Agreement, and/or any other agreement with the District and/or the City for which Shea Homes is a party or beneficiary, so long as any such action or suit does not seek to interfere, or have the effect of interfering, with the levy and collection of the Special Tax in amounts and at times sufficient to pay the principal of and interest on the C-I-I DOCSOC/1157152v2/022245-0163 11-164 Bonds when due and unless such action or suit is brought or filed pursuant to subsection (a) above. 3. Any and all information submitted by Shea Homes to the City, the Underwriter and Underwriter's counsel in connection with the preparation of the Preliminary Official Statement, and any and all information submitted by Shea Homes to the Special Tax Consultant, the Appraiser and the Market Absorption Consultant, was, to the best of Shea Homes' knowledge, true and correct when given and remains true and correct as of the date hereof, and all information in the Preliminary Official Statement relating to Shea Homes and the development of its land within the District was final as of its date for purposes of Rule l5c2-l2 promulgated under the Securities Exchange Act of 1934. 4. The statements relating to Shea Homes, its proposed development in the District, its property ownership and its contractual arrangements contained in the Preliminary Official Statement do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. If at any time subsequent hereto and within 25 days after the Closing Date any such statements in the Preliminary Official Statement become untrue, Shea Homes agrees to notify the City and the Underwriter immediately. 5. No proceedings are pending or, to the best of Shea Homes' knowledge, threatened in which Shea Homes may be adjudicated as bankrupt or discharged from any or all of their debts or obligations or granted an extension of time to pay its debts or a reorganization or readjustment of its debts. 6. Except as disclosed in the Preliminary Official Statement, no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, regulatory agency, public board or body, is pending or, to the best of Shea Homes' knowledge, threatened, in any way seeking to restrain or enjoin the development of the property within the District or in any way seeking to invalidate or set aside any final or vesting tentative maps on land in the District. 7. None of the parcels which constitute land within the District owned by Shea Homes or any of its affiliates are delinquent in the payment of any taxes or assessments. 8. Except as disclosed in the Preliminary Official Statement, to the best of Shea Homes' knowledge, no other public debt secured by a tax or assessment on the land in the District is in the process of being authorized and no assessment districts or community facilities districts have been or are in the process of being formed which include any portion of the land within the District. 9. Shea Homes will advise the District and the Underwriter promptly of the occurrence of any event or circumstances of which it becomes aware of during the ninety days after the end of the underwriting period and a result of which it may be necessary to supplement the Official Statement in order to make the statements therein, in light of the circumstances existing at such time, not misleading. . C-I-2 DOCSOC1I157152v2l022245-0163 11-165 10. Except as disclosed in writing to the Underwriter and the City, to the best of Shea Homes' knowledge, based upon due inquiry, there are no events of monetary default or events which with the passage of time would constitute a monetary default under any loan or similar credit arrangement to which Shea Homes is a party which would materially and adversely affect the ability to develop the property or pay Special Taxes when due. 11. Shea Homes has duly authorized and executed the Continuing Disclosure Agreement dated as of March 1, 2006 (the "Disclosure Agreement"), and such Disclosure Agreement constitutes the valid obligation of Shea Homes, enforceable against Shea Homes in accordance with its respective terms, and none of the documents which govern Shea Homes would cause such Disclosure Agreement to be invalid or unenforceable against Shea Homes in accordance with its terms; and no event has occurred which, with the passage of time, would constitute a default by Shea Homes of any of its obligations under Disclosure Agreement. 12. All capitalized terms not otherwise defined herein shall have the meaning set forth in the Bond Purchase Agreement to be entered into between the District and Stone & Youngberg LLC relating to the sale of the Bonds. SHEA HOMES LIMITED PARTNERSHIP, a California limited partnership By: J.F. Shea LLC, a Delaware limited liability company, its General Partner By: Its: By: Its: C-I-3 DOCSOC/1157152v2/022245-0163 11-166 EXHIBIT D OPINION OF DEVELOPER COUNSEL (1) The Developer is duly formed, validly existing and in good standing as a limited liability company under the laws of the State of Delaware. (2) The Developer has the power to enter into and perform its obligations under the Continuing Disclosure Agreement dated as of March I, 2006 (the "Developer Continuing Disclosure Agreement"), has duly authorized, executed, and delivered the Developer Continuing Disclosure Agreement, and has authorized the performance of its respective duties and obligations thereunder. (3) The Developer Continuing Disclosure Agreement constitutes a legally valid and binding obligation of the Developer, enforceable in accordance with its terms. (4) The execution and delivery of the Developer Continuing Disclosure Agreement by the Developer, and compliance with the provisions thereof by the Developer will not result in a violation of, a breach of, or a default under the operating agreement of the Developer or, to our knowledge, of any trust agreement, mortgage, deed of trust, note, lease, commitment, agreement, or other instrument to which the Developer is a party, or, to our knowledge, any order, rule or regulation of any court or other governmental body having jurisdiction over the Developer, the breach of which might have a materially adverse effect on the ability of the Developer to perform its obligations under the Developer Continuing Disclosure Agreement. (5) There is no litigation pending or threatened against or affecting the Developer (a) which affects or seeks to prohibit, restrain or enjoin the development by the Developer of the property it owns within the District, or (b) in which the Developer or any of the members of the Developer may be adjudicated as bankrupt or discharged from any or all of its debts or obligations or granted an extension of time to pay its debts or a reorganization or readjustment of its debts, or (c) which seeks to grant an extension of time to pay the Developer's debts, or (d) seeks to effect a reorganization or readjustment of the Developer's debts or (e) if determined adversely to the Developer, would materially and adversely affect the transactions contemplated by the Official Statement to be engaged in by the Developer, or the ability of the Developer to perform its obligations as described in the Official Statement and under the Developer Continuing Disclosure Agreement. (6) During the course of our representation the Developer, we have reviewed certain documents and have participated in conferences in which the contents of the Official Statement and related matters were discussed. To our knowledge, no facts have come to our attention which would cause us to believe that the statements contained in the Official Statement under the headings "THE COMMUNITY FACILITIES DISTRlCT," "THE DEVELOPMENT AND PROPERTY OWNERSHIP," and "SPECIAL RlSK FACTORS" relating to the District and the Developer (excluding therefrom the financial and statistical data included therein) contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading (except as to financial information contained therein, as to which no view or opinion is expressed). D-I DOCSOC/1157152v2l022245-0163 11-167 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 07-1 (OTAY RANCH VILLAGE ELEVEN), AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF A SECOND SERIES OF BONDS OF THE DISTRICT, APPROVING THE FORM OF FIRST SUPPLEMENTAL BOND INDENTURE, BOND PURCHASE AGREEMENT, PRELIMINARY OFFICIAL STATEMENT AND OTHER DOCUMENTS RELATED TO THE ISSUANCE OF THE BONDS AND AUTHORIZING CERTAIN ACTIONS IN CONNECTION WITH THE ISSUANCE OF THE BONDS WHEREAS, the City Council of the City of Chula Vista ("City Council"), previously conducted proceedings to fo= and fo=ed a community facilities district pursuant to the te=s 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"), such Community Facilities District designated as COMMUNITY FACILITIES No. 07-1 (OTA Y RANCH VILLAGE ELEVEN) (the "District") for the purpose of fmancing the acquisition or construction of certain public improvements; and, WHEREAS, this City Council previously declared its intention to issue bonds for the District in an aggregate principal amount not to exceed $45,000,000 to finance the acquisition or construction of such improvements, such bonds be issued pursuant to the te=s and provisions of the Act and the City of Chula Vista Statement of Goals and Policies Regarding the Establishment of Community Facilities Districts, as amended to date (the "Goals and Policies"); and, WHEREAS, on April 20, 2004, the City Council, acting as the legislative body of the District, adopted a resolution authorizing the issuance of the District's 2004 Special Tax Bonds (the "2004 Bonds") in the aggregate principal amount of$32,000,000 and approved the fo= of a Bond Indenture, dated as of March 1, 2004 (the "Indenture"), by and between the District and U.S. Bank Trust National Association, as fiscal agent (the "Fiscal Agent"), establishing the te=s and conditions pertaining to the issuance, sale, delivery and administration of the 2004 Bonds; and, WHEREAS, on May 4, 2004, the District issued, sold and delivered the 2004 Bonds in the aggregate principal amount of $28,050,000 (the "2004 Bonds"); and WHEREAS, the provisions of the Indenture establish the te=s and conditions pursuant to which the District may authorize the issuance of Parity Bonds (as such te= is defined in the Indenture) in an aggregate principal amount not to exceed $16,950,000; and 11 .!1 68 WHEREAS, at this time this City Council desires to set forth and establish the terms and conditions pertaining to the issuance, sale, delivery and administration of the District's 2006 Special Tax Bonds (the "2006 Bonds") on a parity with the 2004 Bonds; and, WHEREAS, the forms of the following documents have been presented to and considered for approval by the City Council: A. First Supplemental Bond Indenture by and between the District and the Fiscal Agent amending and supplementing the Indenture to set forth the terms and conditions relating to the issuance and sale of 2006 Bonds (the "First Supplemental Bond Indenture"); B. Bond Purchase Agreement authorizing the sale of the 2006 Bonds to Stone & Youngberg LLC, the designated underwriter ("the Underwriter") (the "Bond Purchase Agreement"); C. Preliminary Official Statement containing information concerning the District and the Bonds (the "Preliminary Official Statement"); and D. Continuing Disclosure Agreement by and between the District and NBS Government Finance Group, as dissemination agent (the "Dissemination Agent"), pursuant to which the District will be obligated to provide ongoing annual disclosure relating to the 2006 Bonds (the "Continuing Disclosure Agreement"); and WHEREAS, the City Council, with the aid of City staff, has reviewed and considered the First Supplemental Bond Indenture, the Bond Purchase Agreement, the Continuing Disclosure Agreement and the Preliminary Official Statement and finds those documents suitable for approval, subject to the conditions set forth in this Resolution; and WHEREAS, all conditions, things and acts required to exist, to have happened and to have been performed precedent to and in the issuance of the 2006 Bonds on a parity with the 2004 Bonds as contemplated by this Resolution and the documents referred to in this Resolution exist, have happened and have been performed or have been ordered to have been preformed in due time, form and manner as required by the laws of the State of California, including the Act, the applicable policies and regulations of the City of Chula Vista and the Indenture. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: . SECTION I. Recitals. The above recitals are true and correct. SECTION 2. Determinations. The City Council makes the following determinations pertaining to the proposed issuance of the 2006 Bonds: (a) The Goals and Policies generally require that the full cash value of the properties within the Community Facilities District subjectto the levy of the special taxes must . 11.3169 .,. be at least 4 times the principal amount of the 2006 Bonds and the principal amount of all other bonds outstanding, including but not limited to the 2004 Bonds, that are secured by a special tax levied pursuant to the Act on property within the District or a special assessment levied on property within the District (collectively, "Land Secured Bonded Indebtedness"). The Act authorizes the City Council, acting as the legislative body of the District, to sell the 2006 Bonds only if the City Council has determined prior to the award of the sale of the 2006 Bonds that the value of such properties within the District will be at least 3 times the amount of such Land Secured Indebtedness. The value of the property within the District, which will be subject to the special tax to pay debt service on the 2006 Bonds, is at least 4 times the amount of the Land Secured Bonded Indebtedness. The Goals and Policies further provide that the full cash value of each development area for which no final subdivision map has been filed must also be at least 4 times the Land Secured Bonded Indebtedness allocable to each such property. The full cash value of each development area for which no final subdivision map has been filed is at least 4 times the Land Secured Bonded Indebtedness allocable to each such property . These determinations are based upon the full cash value of such properties and development areas as shown upon an appraisal of the subject properties prepared by Bruce W. Hull & Associates, a state certified real estate appraiser, as defined in Business and Professions Code Section 11340( c). These determinations were made in a manner consistent with the Goals and Policies. (b) The terms and conditions of the 2006 Bonds as contained in the Indenture, as amended and supplemented by the First Supplemental Bond Indenture, are consistent with and conform to the Goals and Policies. (c) As a result of the current status of development of the property within the District and the relative overall lack of diversity of ownership of property in the District, the private sale of the Bonds will result in a lower overall cost to the District. SECTION 3. Bonds Authorized. Pursuant to the Community Facilities District Law, this Resolution and the Indenture, as amended and supplemented by the First Supplemental Bond Indenture, the City Council authorizes the issuance of the 2006 Bonds, designated as the "City of Chula Vista Community Facilities District No. 07-1 (Otay Ranch Village Eleven) 2006 Special Tax Bonds," in an aggregate principal amount not to exceed $16,955,000 on a parity with the 2004 Bonds. The date, manner of payment, interest rate or rates, interest payment dates, denominations, form, registration privileges, manner of execution, place of payment, terms of redemption and other terms, covenants and conditions of the Bonds shall be as provided in the Indenture, as amended and supplemented by the First Supplemental Bond Indenture as finally executed. The City Council authorizes the 2006 Bonds to be issued on a parity with the 2004 Bonds subject to the satisfaction of all conditions precedent of the 2004 Bonds. The City Council authorizes and directs the Director of Finance to determine when all conditions for the issuance of " 11...:'170 the 2006 Bonds on a parity with the 2004 Bonds have been satisfied and to certify to the satisfaction of such conditions as required pursuant to the Indenture. SECTION 4. Authorization and Conditions. The City Council authorizes and directs the City Manager, the Director of Finance and such other official or officials of the City as may be designated in writing by this City Councilor the City Manager (each, an "Authorized Officer") to execute and deliver the fmal form of the various documents and instruments described in this Resolution, with such additions or changes as the Authorized Officer may deem necessary and advisable provided that no additions or changes shall authorize an aggregate principal amount of Bonds in excess of $16,950,000, an annual interest rate on the 2006 Bonds in excess of five and seventy five hundredths percent (5.75%) per year and an underwriter's discount in excess of one and seventy five hundredths percent (1.75%) of the par amount of the 2006 Bonds (excluding original issue discount, if any). The approval of such additions or changes shall be conclusively evidenced by the execution and delivery of such documents or instruments by an Authorized Officer, upon consultation with and review by the City Attorney and Best Best & Krieger LLP, the District's bond counsel. SECTION 5. First Supplemental Bond Indenture. The City Council approves the form of First Supplemental Bond Indenture by and between the District and the Fiscal Agent as presented to this City Council and on file with the City Clerk. The City Council authorizes and directs an Authorized Officer to complete and execute the First Supplemental Bond Indenture on behalf of the District, subject to the provisions of Section 4 above. . SECTION 6. Official Statement and Continuing Disclosure Agreement. The City Council approves the form of the Preliminary Official Statement as presented to this City Council and on file with the City Clerk, together with any changes or additions deemed advisable by the Director of Finance or, in the absence of the Director of Finance, another Authorized Officer. Pursuant to Rule 15c2-12 under the Securities Exchange Act of 1934 (the "Rule"), the City Council authorizes the Director of Finance or, in the absence of the Director of Finance, another Authorized Officer to determine when the Preliminary Official Statement is deemed final, and authorizes and directs the Director of Finance or such other Authorized Official to provide written certification that the Preliminary Official Statement is fmal. The execution of the fmal Official Statement, which shall include such changes and additions deemed advisable by the Director ofFinance or, in the absence of the Director of Finance, another Authorized Officer pursuant to the Rule, shall be conclusive evidence of the approval of the final Official Statement by the Community Facilities District. The City Council authorizes the distribution of the fmal Official Statement by the Underwriter as the initial purchaser of the Bonds. The City Council approves the form of the Continuing Disclosure Agreement by and between the Community Facilities District and the Dissemination Agent as presented to this City Council and on file with the City Clerk. The City Council authorizes and directs an Authorized Officer to complete and execute the Continuing Disclosure Agreement on behalf of the Community Facilities District, subject to the provisions of Section 4 above. . 11 3171 SECTION 7. Sale of Bonds. The City Council authorizes and approves the negotiated sale of the Bonds to the Underwriter. The City Council approves the form of the Bond Purchase Agreement and authorizes and directs an Authorized Officer to execute the Bond Purchase Agreement on behalf of the Community Facilities District upon the execution of that Agreement by Underwriter, subject to the provisions of Section 4 above. SECTION 8. Bonds Prepared and Delivered. Upon the execution of the Bond Purchase Agreement, the Bonds shall be prepared, authenticated and delivered, all in accordance with the applicable terms of the Community Facilities District Law and the Indenture, as amended and supplemented by the First Supplemental Bond Indenture. The City Council authorizes and approves any Authorized Officer and other responsible City officials, acting for and on behalf of the Community Facilities District, to take such actions as are required under the Bond Purchase Agreement and the Indenture, as amended and supplemented by the First Supplemental Bond Indenture, to complete all actions required to evidence the delivery of the 2006 Bonds upon the receipt of the purchase price of the 2006 Bonds from the Underwriter. SECTION 9. Actions. The City Council approves, confIrms and ratifIes all actions previously taken by the offIcers and agents of the City with respect to the issuance and sale of the 2006 Bonds. The City Council authorizes and directs the proper offIcers of the City, acting for and on behalf of the District, to do any and all things and take any and all actions and execute any and all certifIcates, agreements, contracts, and other documents, which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the 2006 Bonds in accordance with the Community Facilities District Law, this Resolution, the Indenture, as amended and supplemented by the First Supplemental Bond Indenture, the Bond Purchase Agreement, the Continuing Disclosure Agreement, and any certifIcate, agreement, contract, and other document described in the documents pursuant to this Resolution. 11 J17 2 SECTION 10. Effective Date. This resolution shall take effect from and after its adoption. Presented by Approved as to form by '-/~ /1_ d~~J Ann Moore City Attorney Leah Browder Acting Director of Engineering WDIVEN\329496.4 . . 11-~73 CITY COUNCIL AGENDA STATEMENT ITEM NO.: \:;:L MEETING DATE: 05/09/06 ITEM TITLE: CONSIDERATION OF THE DRAFT HOUSING ELEMENT UPDATE OF THE CITY OF CHULA VISTA GENERAL PLAN FOR THE 2005-2010 PLANNING PERIOD AND AUTHORIZATION TO CIRCULATE DOCUMENT TO THE STATE OF CALIFORNIA FOR REVIEW AND COMMENT ASSISTANT CIJYI-b!~A ER/COMMUNITY DEVELOPMENT DIRECTOR i'ij'J'K. \". CITY MANAGER(j1 .' SUBMITTED BY: REVIEWED BY: BACKGROUND 4/STHS VOTE: YES D NO 0 The California State Legislature has identified the attainment of a decent home and suitable living environment for every Californian as the State's maior housing goal. Recognizing the important role of local planning and housing programs in the pursuit of this goal, the Legislature has mandated that all cities and counties prepare a Housing Element as part of the comprehensive General Plan. The City of Chula Vista has prepared a draft Housing Element update for the 2005-2010 planning period (Exhibit 1 - on file in the Community Development Department and distributed to City Council under separate cover on Friday, April 28, 2006). RECOMMENDATION Staff recommends that the City Council authorize the circulation of the Draft Housing Element Update of the General Plan for the 2005-2010 planning period to the public and the State of California for review and comment. BOARDS/COMMISSIONS RECOMMENDATION On November 16, 2005, and April 19, 2006, the Housing Advisory Commission and Planning Commission held joint meetings to review and consider the proposed preliminary goals and policy revisions of the Element. Both Commissions approved a recommendation to the City Council to authorize the Element for public review and submission to the State of California. The Planning Commission Resolution is included as Exhibit 2. 12-1 DISCUSSION PAGE 2, ITEM NO.: MEETING DATE: ;1.- 05/09/06 Housino Element Reouirements Pursuont to Stote Low, Chulo Visto is required to prepore 0 Housing Element Updote thot covers the period of July 1,2005 through June 30,2010. The Housing Element includes the following components: . A review of the previous Element's goals, policies, programs, and objectives to ascertain the effectiveness of each of these components, as well as the overall effectiveness of the Housing Element; . An assessment of housing needs and an inventory of resources and constraints related to meeting these needs; . An analysis of programs for the preservation of assisted housing developments; . A statement of community goals, quantified objectives ond policies relative to the maintenonce, preservation, improvement and development of housing; and, . A policy program that provides a schedule of actions that the City should undertake, or intends to undertake, in implementing the policies set forth in the Housing Element Update. Draft Housino Element Update Format The Chula Vista Housing Element Update is organized into four parts, including: . Introduction I. Issues & Opportunities . II. Policy & Implementation Plan III. Quantified Objectives Explains the purpose, process and contents of the Housing Element Describes the key issues and opportunities identified from the needs assessment and the public participation process upon which the update to the Housing Element should focus. Details specific policies and programs the City of Chula Vista will carry out over the five-year period to address the City's housing goals. --- - -- Specifies the number of households assisted and housing units constructed, rehabilitated, conserved and preserved through the adopted policies and programs. Given the detailed and lengthy analysis in developing the Housing Element, supporting bockground material is included in the appendices. . 12-2 PAGE 3, ITEM NO.: MEETING DATE: JrJ 05/09/06 KEY ISSUES The City's rapid change and escalating housing market have raised concerns from both the Chula Vista community and City elected officials, many af which were discussed at the February 7 Revitalization Workshop. Mare specifically, two key housing issues were identified to address in this Housing Element period: (1) Given the shortfall and high cost of housing, the City must consider measures to continue to preserve and expand affordable housing for both existing ond future very low, low and moderate income residents; and (2) While revitalizing western Chula Vista will enliven and enhance the community and provide for certain future housing needs, such efforts must be mindful of the challenges and the impact of change on the existing rental housing stock and residents. The Policy and Implementation Plan of this Draft Housing Element Update (see Part II of the Element) aims ta pravide the City and the residential development community with policy and program tools that address these issues. The City's efforts will be concentrated in preserving and enhancing single family housing and neighborhoods, promoting balanced and diverse housing, and looking at City government's role and processes to facilitate a mix of residential development types. REGIONAL HOUSING NEEDS AsSESSMENT State Housing Element Law mandates that a jurisdiction must show that it has adequate sites that will be made available through appropriate zoning and development standards and with the required public services and facilities for a variety of housing types and incomes. The projected need for housing used for this evaluation is defined as the City's share of the region's housing needs for 2005-2010. A Regional Housing Needs Assessment (RHNA) prepared by SANDAG in February 2005 for the period beginning January 1,2003 to June 30, 2010 (a 7 Vo year period) identifies Chula Vista's share of the region's housing needs as 17,224 new housing units. To determine the regional housing needs for the 2005-2010 planning period, the needs are adjusted by the actual number of units constructed from January 1,2003 to June 30, 2005, a total of 5,916 housing units. Based upon this adjustment, Chula Vista's share of the regional housing need for 2005-2010 is 11,307 housing units, with 58% allocated for lower income households. As required by State Housing Law, the City must plan for its share of the region's new housing needs in all four income categories by identifying an adequate supply of land zoned at the appropriate density levels to accommodate each income category. The RHNA goals do not represent a requirement for actual housing production, but rather seek to ensure the City has, or plans to add, zoning and land capacity to accommodate new housing growth. 12-3 PAGE 4, ITEM NO.: I ;J MEETING DATE: 05/09/06 To address the City's needs for very low and low income housing, Chula Vista must demonstrate that it has an adequate supply of land for higher density housing (30 or more dwelling units per acre). Although zoning land for higher density development does not guarantee the construction of housing that is affordable to low and moderate income families, without such higher density zoning, the opportunity to use subsidies and implement affordable housing programs for such families would not exist. Appendix C of the Housing Element Update provides detail showing that the City has adequate sites to satisfy this requirement. GOALS AND POLICIES The centerpiece of the Element is the Policy and Implementation Plan (Port II of the Element) with goals, policies, and implementing programs to address the identified needs. In developing the goals, objectives, policies, and programs described in this Plan, the City assessed its housing needs, evaluated the performance of existing programs, and received input from the community through participation in housing workshops. In substantial compliance with the requirements of Stote law, the City will be striving to provide programs to meet the current and future housing needs of all income levels of the community through the following goals: Goal 1 : A Maintained and Enhanced Housing Stock and Neighborhoods; Goal 2: Housing Opportunities that Meet the City's Diverse Needs; and, Goal 3: Maximized Funding and Implementation of Services Vital to Community Housing Needs. To realize these goals, the Policy and Implementation Plan of the Housing Element details objectives, policies, and implementing programs according to three major policy focus areas: 1) Mointain and Enhance Housing and Residential Neighborhoods; 2) Balanced and Diverse Housing Opportunities; and, 3) Government Role and Process. While the plan covers a broad array of housing issues that are applicable Citywide, the emphasis of the 2005-2010 Policy and Implementation Plan is on actions enabling the City to maintain and increase housing opportunities affordable to very low, low, and moderate income households, particularly in the urbanized Northwest and Southwest Planning Areas. Exhibit 3 includes a table summarizing these goals. The objectives, policies and programs are discussed in Section 3.0 of Part II of the Housing Element Update. . Public Participation Process The Community Development Department solicited community input in preparing and reviewing the City's Five-Year Housing Element Update. The City held numerous workshops to obtain the views of citizens, developers, social service agencies, and other interested persons on the City's housing needs and policies and programs to be implemented to address these needs. The following outlines the public participation process so far: 12-4 . PAGE 5, ITEM NO.: ) ~ MEETING DATE: 05/09/06 . City staff workshop (September 12, 2005) . Stakeholders meeting (November 7, 2005 and April 18, 2006); . Community workshop (November 14, 2005); . Housing Advisory Commission/Planning Commission Meetings (November 16, 2005 and April 19, 2006); . Housing Advisory Commission Workshops (January 20, 2006, February 1, 2006, and March 22, 2006); . City Council Revitalization Workshop (February 7, 2006); . Mobilehome Rent Review Commission Workshop (February 23, 2006); and . Building Industry Association briefing (April 13, 2006) Consistent with the requirements of Stote law, the City will make the Draft 2005-2010 Housing Element Update available to the public for review and comment for the required 30- day period, once it is approved for distribution by City Council. Staff estimates this public review period would run from approximately mid-May to mid-June. Summary of Comments Throughout the citizen participation process the City received comments and suggestions from concerned citizens, residential developers and advocates for affordable housing. Exhibit 4 provides a summary of consistent comments received by the public. Recently, staff met for additional feedback on the Draft Housing Element Update with the Stakeholder's Group, Housing Advisory Commission, and Planning Commission. Many of their suggestions are reflected in the updated Draft Element. A memo reflecting responses to their comments is included as Exhibit 5. Remainina Process & Schedule State Housing Element law requires that all cities and counties submit their Housing Elements to the State Department of Housing and Community Development for a determination of substantial compliance with State law. The Housing Element Update substantially complies with the requirements of State Law, as summarized in Table 1 of the Element. If approved by the City Council, the following actions will be taken: . Publish a Public Notice announcing the availability of the Draft 2005-2010 Housing Element Update for review and comment; . Make the draft document available for public comment at City facilities and on the City's web-site; . Concurrently submit the droft document to the State of California for preliminary review and comment (60 days); . Conduct an environmental review of the draft document; 12-5 PAGE 6, ITEM NO.: ) (t. MEETING DATE: 05/09/06 . Conduct 0 public hearing before the Planning Commission to recommend approval of final adoption of the Housing Element Update (anticipated August, 2006); and . Return to the City Council for final adoption (anticipated in late August 2006). FISCAL IMPACT Staff time involved in the preparation of the Draft Housing Element agreement is budgeted in the staff services component of the Community Development Department Housing Division and Planning and Building Department budgets. Implementation of the policies and programs outlined within the Element may require additional resources within the Community Development Department and Planning and Building Department. As each of the policies and programs are developed, staff will bring forward a mare thorough analysis of staffing and resource needs and the fiscal impact. Several of these programs will be addressed in the Community Development Department Work Program to implement the adopted Community Development Strategic Plan, which will be brought to the City Council in June 2006. AnACHMENTS 1. Draft 2005- 1 0 Housing Element Update of the City's General Plan (on file In the Community Development Department) 2. Planning Commission Resolution 3. Summary of Housing Policies and Programs 4. Summary of Public Comments 5. Letter Reflecting Recent Changes to Draft Element Prepared by: Amanda Mills, Housing Manager, Community Development Department J:\COMMDEV\STAFF.REp\2006\OS-09-06\DRAFT Rpt CC-Hsg Element2.doc . . 12-6 ~ Exhibit 2 RESOLUTION NO. GPA 06-01 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF CHULA VISTA AUTHORIZING THE CIRCULATION OF THE DRAFT HOUSING ELEMENT FOR THE 2005-2010 PLANNING PERIOD TO THE PUBLIC AND THE STATE OF CALIFORNIA FOR REVIEW AND COMMENT. WHEREAS, the California State legislature has identified the attainment of a decent home and suitable living environment for every Californian as the State's major housing goal; and WHEREAS, pursuant to State law, Chula Vista is required to prepare a Housing Element of the General Plan that covers the period of July 1,2005 through June 30, 2010; and WHEREAS, the City of Chula Vista has prepared a draft Housing Element update for the 2005-2010 planning period that meets the requirements of State law; and WHEREAS, consistent with the requirements of State law, the City will make the Draft 2005-2010 Housing Element available to the public for review and comment for the required 30. day period. NOW, THEREFORE, BE IT RESOLVED that the Planning Commission of the City of Chula Vista authorizes the circulation of the Draft Housing Element for the 2005-2010 planning period to the public and the State of California for review and comment. Presented by Approved as to form by Dana Smith Assistant City Manager/ Director of Community Development Ann Moore City Attorney pcReso draft 12-7 '1::1 C I'll C1 C 'iij :::J o J: C1 c '(3 C tn 1'11'1::1 .c 0 C 0 Wi: '1::1 0 C.c 1'II.c C1,~ C CI) 'C z Sfti c" 'cu ; :2'1::1 'iij ';&! CI) .. <I: tn :::J CJ o u.. >. .!:! "0 a. Objective HE1: Enforce maintenance of safe and decent housing, enhance the quality of existing housing, and maintain the integrity of residential neighborhoods Objective HE2: Promote the efficient use of water and energy to conserve limited resources and reduce long term operational costs of housing. SUMMARY OF HOUSING POLICIES AND PROGRAMS 2~2010 and neighborhood drought 2.2.1 Encourage residential developers/builders to maximize energy efficiency through appropriate site and building design and through the use of energy efficient materials, equipment, and appliances. 2.2.2 Develop and distribute pertinent information about the benefits 0 energy conservation and available energy conservation incentive programs to residents and developers and builders of housing. 2.2.3 Continue to perform a Residential Title 24 Energy Arlalysis and enforce these requirements as part of building plan check rocedures. 2.2.4 Green Building: Promote the development of high. performance, sustainable buildings that meet LEED (Leadership in Energy and Environmental Design) certification requirements through land use development standard incentives as may be adopted in Specific Plans for the Northwest, Southwest, and Bayfront planning areas and General Development Plans and Sectional Planning Area Plans to the East planning area. 12-8 Exhibit 3 10000 x x x x x x x II) ell E c :I 1:: o c.. c.. o CI C II) :I o :I: ell I!! ell > o "C C CIS "C ell U C CIS c; III N CIS e c( II) :I U o u.. >. .!:! '0 D. Objective HE 3: As required by State law, preserve existing affordable housing opportunities. where feasible and practical, to maintain an adequate supply of affordable housing. SUMMARY OF HOUSING POLICIES AND PROGRAMS 2005-2010 Exhibit 3 3.1.1 Expiring Affordability Restrictions: Proactively work with property owner(s) of two (2) "at-risk" assisted housing developments whose affordability restrictions are due to expire by 2010, Canterbury Court and Eucalyptus Parkview, 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. 3.1.2 First Right of Refusal to Maintain Affordable Housing: Evaluate the appropriateness of and modify terms within required Affordable Housing Agreements that will allow opportunities to maintain the housing as affordable beyond the termination date of the Agreement and noticing to residents. Such opportunities could include a first right of refusal to the City/Agency to purchase the housing and adequate noticing to residents of the terms of affordability and prior to such date, the intent to convert the housing. 3.2.1 Monitoring of Units Lost: Comply with State Law regarding the monitoring and reporting of housing units occupied by low 0 moderate income households demolished within the Coastal Zone and Redevelo ment Pro'act Areas. 216 x x 3.2.2 R I t H "Wh " I"t" f h " ep aeemen ousmg: ere conversion or demo I Ion 0 ouslng units in the Coastal Zone or Redevelopment Project Areas occupied by low or moderate income households is proposed, replacement 0 such housing will be completed in accordance with State Law and the City's adopted Local Coastal Plan and Redevelopment Plan. x 4.1.1 Community Impact Report (CIR): Consider requiring preparation of a CIR on a project-by-projact basis to evaluate and determine the impact, if any, of such project on the availability of adequate rental housing within the geographic Planning Area and to lower income residents. If determined to have a negative impact, consider mitigation measures such as a fee to develop housing or relocation assistance. The preparation of a CIR could be applicable to condominium conversions, mobilehome park closures/conversions and demolition of large existing housing developments to be replaced by new housing. 4.1.2 Mitigation Fee for Lost Units: Consider establishing a fee to be paid by those residential developments, such as condominium conversions and demolition of housing for the purposes of n development, that negatively impact the availability of rental housing stock within the geographic Planning Area. Funds would be used to facilitate the development of an affordable housing rental project. x x 12-9 rn Q) E c: :2 t:: o c- C- O C) c: rn :2 o :x: Q) ~ Q) > 15 't:J c: CIS 't:J Q) U c: CIS ;a III N CIS Q) .. <I: rn :2 u o u.. >- .!:! o 11. Objective HE 4: Minimize the impacts associated with the conversion or demolition of rental housing on the availability of such housing and very low and low income residents. Objective H5: Encourage the provision of a wide range of housing choices by location, type of unit, and price level, in particular the establishment of permanent affordable housing for low and moderate income households. Exhibit 3 SUMMARY OF HOUSING POLICIES AND PROGRAMS 2005-2010 4.2.1 Mobilehome Park Conversion: Continue to enforce CVMe Chapter 9.40 to protect the rights of residents as mobilehomeltrailer parks are closed or converted to other uses. Evaluate the appropriateness 0 amendments to the Code to enhance the protection of the most X economically vulnerable residents. Consider such elements as adequate bilingual noticing and relocation assistance, to afford sam level of protection for the most economically wlnerable residents. 4.2.2C d .. C . E I th . f d on omlnlum onversron: va uate e appropnateness 0 an amend Chula Vista Municipal Code Chapter 15.56 (Condominium Conversion) to better articulate provisions for adequate bilingual noticing, relocation assistance, requiring a portion of the units as affordable to low and moderate income households, and a physical elements report to provide same level of protection and assistance for residents, particarly the most economically vulnerable. x 4.2.3 Tenant Rental Assistance: Develop and fund a short-term rental assistance program to provide rent subsidies for a maximum of 24 months for those residents displaced as a result of the conversion 0 demolition of their housing. Assistance will target those most economically vulnerable including: very low income residents, r income residents with minor children and residents with a head 0 household who is permanently disabled or a senior citizen age 62 0 over. 4.2.4 Housing Resource Program: Develop a "Housing Assistance Resource Program" which could provide tenant education of rights and procedures for conversions of rental housing to condominium 0 market priced housing and mobifehome/trailer parks to other uses and offer informational services to any displaced very low and low income renters, such as rental listings and moving assistance referrals. 80 800 5.1.1 Affordable Housing (aka "lncJusionary") Policy: Continue to implement the Balanced Communities-Affordable Housing Policy first adopted by the City's Housing Element in 1981. Current requirements include the provision of affordable housing within the development ("on-site"). Alternatives to the on-site provision of housing include. in order of priority,"aff-site" provision of affordable housing and payment of an in-lieu fee. Such alternatives can be considered, at the sole discretion of the City, upon determination of a finding of "unreasonable hardship" to the development and such alternative being in the"public interest" 5.1.2 Affordable Housing Policy for Infill Development: Evaluate the appropriateness of revisions to the Balanced Communities - Affordable Housing Policy that more appropriately reflect its application to infill urbanized housing developments, including lowering the unit threshold of applicability, increasing the percentage of affordable housing units required, targeting very law and low income households, flexibility in the methods of compliance, and consistency with the affordable housing requirements of Community Redevelopment Law. 5.1.3 Affordable Housing Policy - Adoption of an Ordinance:_Consider implementation of the City's Balanced Communities - Affordable Housing Policy (H 5.1) through the adoption of an Ordinance. 600 x x 12-10 UI CD E c ::I 1:: o c.. c.. o CI C 'iij ::I o :r: CD I!! CD > is 'C C co 'C CD U C CO ;;; III N co CD ... os: UI ::I U o LL >- .~ '0 D.. CI C UI ::I o :r: CD Objective H5: Encourage the provision of a wide range of housing choices by location, type of unit, and price level, in particular the establishment of permanent affordable housing for low and moderate income households. SUMMARY OF HOUSING POLICIES AND PROGRAMS 2005-2010 Exhibit 3 5.2.1 New Rental Housing: Promote the development of new rental housing affordable to very low and low income households where such housing will provide a balanced inventory of housing types (e.g., multi~famiry rental and owner occupied housing) within the Northwest, Southwest, and East Planning Areas. Encourage the inclusion of housing for very row and low income households within the actual development (on-site") and/or in areas that offer residents easy access to goods, services, jobs, transportation, education and recreation. 5.2.2 I t. I R I H . C . .. th nceo Ives or enta ouslng: onSlder IncentIves to encourage e development of adequate new relJtal housing opportunities, particularty to accommodate large families. Also refer to Policies H 7.2 and 7.4 for possible assistance and incentives. 5.2.3 Incentives for Housing in Redevelopment Project Areas: Provide incentives to developers in redevelopment project areas to provide affordable housing within the proposed project \,on-site") and to exceed affordable housing requirements as established within Community Redevelopment Law (CRL), particularly for those housing income categories least served. 100 x x 5.3.1 First Time Homebuyer Assistance: Continue to provide low income households with assistance 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. 5.3.2 . H. . E th Continued Occupancy for omeownershlp UnIts: valuate e appropriateness of amendments to current City homeownership policies and programs to encourage the long-term occupancy of the housing unit by a low income household, where practical. 5.3.3 New For Sale Housing: Promote the development of new entry level homes for sale and affordable to row and moderate income households where such housing will provide a balanced inventory 0 housing types (e.g., multi-family rental and owner occupied housing) within the Northwest, Southwest, and East Planning Areas. Encourage the inclusion of housing for low and moderate income households within the actual develo ment "on-site" . 5.3.4 Mortgage Credit Certificates: Continue to participate with the County of San Diego and other cities to provide Mortgage Credit Certificates (MCC) to qualified first-time tow and moderate income homebuyers. MCCs are certificates issued to homebuyers authorizing them to take a credit against their federal income taxes of up to 20 percent of the annual mortgage interest paid. First-time homebuyers are referred by the Community Development Department to the administrating agency. 5.3.5 Homebuyer Education & Counseling: Support and encourage developers, lenders and social service organizations to provide educational programs, loan counseling, and materials fo homeowners and potential homeowners on home maintenance, improvement, and financial management. The purpose of the educational programs will be to help first-time homebuyers, prepare for the purchase of a home, and to understand the importance 0 maintenance, equity and appreciation, and personal budgeting to avoid foreclosures. 30 x x 25 80 12-11 I!! CI) .~ C 't:I C I'll 't:I CI) U C I'll c;; IX) N I'll CI) .. < f/) ::I U o u.. >. .~ o Il. f/) CI) E c ::I 1:: o C- C- O Objective H5: Encourage the provision of a wide range of housing choices by location, type of unit, and price level, in particular the establishment of permanent affordable housing for low and moderate income households. SUMMARY OF HOUSING POLICIES AND PROGRAMS 2005-2010 Policies and Pro rams 5.3.6 5 P . F. . I ^_. 5 upport nvate InanCla ~slstance Programs: upport and encourage lenders, community development organizations and others to use nonMtraditional financial approaches to assist law and moderate income first time homebuyers such as Individual Development,Accounts and other emerging financial approaches. 5.4.1 Mobilehome Space Rent Review: Continue to enforce CYMC Chapter 9.50 to protect mobilehome residents' investment in thei home while at the same time providing a reasonable return to the park owner in order to preserve this affordable housing alternative. Monitor and revise this Ordinance, as necessary, to ensure the provision of fair and reasonable rents for residents and a reasonable rate of return for arkowners. 5.4.2 Resident Ownership of Mobilehome Parks: VVhen mobilehorne park owners want to sell their parks, promote the purchase of parks by park residents through technical assistance in preparing applications for funding sources such as the State Mobilehome Assistance Program. Financial assistance provided by the City, Agency, State, or other funding sources may be limited to income eligible residents and require affordable housing costs. Focus assistance to parks where consistent with the General Plan within Mobilehome Park (MHP) zone designations; not those that are non-conforming uses. 12-12 Exhibit 3 Quantified Objective Level 1 Level 2 x x 100 x '0 C en ca .~ '0.- 4) .- u C C :::I cat:: - 0 cae. ale. NO ca CI I!! C <I: en :::I en 0 :::IJ: U 4) ~ I!! >.4) U > '0 is n. Objective H 6: Promote the development of varied housing, coupled with appropriate services, to meet the needs of special population groups, including the homeless, those "al- risk" of becoming homeless, persons with physical and/or development disabilities, students, athletes at the Olympic Training Center, single- parent households, and seniors. SUMMARY OF HOUSING POLICIES AND PROGRAMS 2005-2010 Exhibit 3 6.1.1 Homeless & ~At-Risk" Homeless-Regional Planning: Continue to participate in regional planning efforts to address needs of the homeless, including the Regional Task Force for the Homeless and the South Bay Homeless Coalition. x 6.1.2 Homeless & ~At-Rjsk Homeless" - Regional Funding: Continue to support regional funding efforts to develop new housing facilities for the homeless and maintain existing facilities and services, including the Regional Continuum of Care Council for San Diego County and it's application for funding through the Federal Supportive Housing Program, local FEMA Board, County of San Diego HoteVMotel Voucher Program and temporary winter shelters. 6.1.3 Existing & New Emergency Shelters & Transitional Housing: Continue in-kind and financial assistance for existing and new emergency shelters and transitional housing facilities that serve the City by providing technical assistance, siting opportunities, grants, or low cost loans to 0 eratin a encies. 6.1.4 Information of Resources for Basic Needs: Develop informational materials that provide contact information regarding basic needs, such as emergency food, shelter, and services for the homeless. 11 x x 12-13 C) c 'iij ::s 0 :x: GI I!! GI > C ~ c /I) <II GI ~ E GI U C C ::s ..!!! 1:: <II 0 !XI Co Co N 0 <II GI .. <C /I) ::s u 0 u.. >- ,~ 0 11. SUMMARY OF HOUSING POLICIES AND PROGRAMS 2005-2010 Exhibit 3 Objective H 6: Promote the development of varied housing, coupled with appropriate services, to meet the needs of special population groups, including the homeless, those "at- risk" of becoming homeless, persons with physical andlor development disabilities, students, athletes at the Olympic Training Center, singre~ parent households, and seniors. 6.2.1 Second DweUing Units: Allow construction of new secondary dwelling units in areas where the units do not compromise the oai hborhood character. 6.2.2 Shared Living: Support programs for shared living that connect those with a home and willing to share living accommodations with those that are seeking housing, particularly seniors, students, and single erson households. 6.2.3 Co-Housing: Evaluate the viability of co-housing and amendments to Title 19 of the Chula Vista Municipal Code and other documents, where a ro riate to facilitate its develo ment. 6.2.4 Farmwortsr Housing: Continue to monitor the continued availability 0 farmworker housing at the Brisa del Mar development to ensure the continued provision of housing to meet the needs of the City's farmworker o ulation. 6.2.5 . . H . E h d I . d . UnIVersIty oUSlng: ncourage t e eve opment of a mIx an vanety of housing types in the University Village Focus Area in the East, recognizing the need for higher residential densities and the need fo varied housing resulting from the proposed university, such as housing for students, faculty and employees. 6.2.6 Olympic Training Center Housing: Encourage the development 0 housing located at the Olympic Training Center (OTC) for those athletes participating in programs at the Center and its employees. 6.2.7 Accessible Housing Regulations: Continue to maintain and implement California Title 24 provisions for the review and approval of residential develo ments. 6.2.8 Senior Housing Services: Encourage the development of sanio housing developments through incentives (i.e, expedited processing, fee waivers, ete.) that provide a wide range of housing choices from independent living to assisted living with access to services on-site, including heaJthcare, nutrition, transportation and other appropriate services. 12-14 x 200 100 34 x x x x . 'II 'II GI U o .. Q. "C C I'll GI "0 It: - C GI E c .. GI > o C) M I'll GI .. < 'II ::s U o II.. >. .!:! "0 Q. Objective H 7: Facilitate the creation, maintenance, preservation and conservation of affordable housing for lower and moderate income households through comprehensive planning documents and processes and the provision of financial assistance and other incentives. SUMMARY OF HOUSING POLICIES AND PROGRAMS 2005-2010 Exhibit 3 Specific Plans: Develop and consider for adoption specific plans fa the Urban Core and Southwest Planning Areas in order to implemen the General Plan Update which win aUow the development of highe density housing, particularly within identified mixed use residential and mixed use transit focus areas. x 7.1.2 Zoning: Update Title 19 of the Chule Vista Municipal Code, to implement the General Plan Update of 2005. x 7.1.3 Remove Constraints to Housing for Persons with Disabilities: Review and update Title 19 of the Chuls Vista Municipal Code and other City processes to remove constraints, if any, identified to allow reasonable accommodations for the provision of housing for persons with disabilities. x 7.2.1 Priority Processing: Assign priority processing of the necessary entitlements and plan checks to expedite the development process for residential developments with 50 percent of the units as affordable for low and moderate income households which do not require extensive Engineering or environmental review. 7.2.2 Development Fees: Continue to consider subsidizing, waiving, 0 deferring fees for affordable units on a case-by-case basis. Requests are evaluated based upon the developmenfs effectiveness and efficiency in achieving the City's underserved housing needs and as allowed by the City's Municipal Code. Also refer to related H Policy 7.4.5. 7.2.3 Flexible Development Standards: Continue to encourage the use 0 flexible development standards through the Planned Community (PC) Zone and Precise Plan (P) Modi~ing District to facilitate the development of housing for very low and low income households. 7.2.4 Article XXXIV: Assess the applicability of Article XXXIV of the California Constitution to certain housing developments where the City and/or Agency are considering financial assistance or other incentives to assist in the development of affordable housing. Evaluate the appropriateness of a possible referendum to obtain more authority for the City/Agency's development, construction or acquisition of "low rent housing". x x x x 7.3.1 Expand Redevelopment Project Areas: Evaluate the viability 0 expanding redevelopment project areas to include more residential areas. 7.3.2 Maximize Redevelopment Funds: Develop financial strategies that maximize redevelopment income streams, such as bond financing. 7.3.3 California Reinvestment Act: Work with local financial institutions to meet their community reinvestment obligation under the Communi Reinvestment Act. 7.3.4 Pursue Affordable Housing Funding: Proactively pursue available Federal or State funding to increase, preserve, and enhance housing affordable to low income households. x x x x 12-15 In In ~ CJ E! D. "C s::: <II ~ '0 !k: Objective H 7; Facilitate the creation, maintenance, preservation and conservation of affordable housing for lower and moderate income households through comprehensive planning documents and processes and the provision af financial assistance and other incentives. - s::: ~ E s::: ... ~ > o C) M <II ~ ... < In :I CJ o LL >- .!:! o D. Objective H 8; Ensure the availabi!ity of housing opportunities to all persons regardless of race, color, ancestry, national origin, religion, sex, disability, marital status, familial status, source of income, or sexual orientation. SUMMARY OF HOUSING POLICIES AND PROGRAMS 2005-2010 Exhibit 3 7.4.1 Density Bonus: Amend Title 19 of the Chula Vista Municipal Code to authorize a density bonus and/or other incentives for new housing developments and condominium conversions providing the required affordable housing as specified in Califomia Govemment Code Section 65915. 7.4.2 Land Banking: Actively identify and pursue sites located in proximity to goods, services, jobs, transportation, education, recreation and/or other amenities for permanent affOrdable housing. 7.4.3 Public Property: Evaluate the viability of providing affordable housing on publicly owned property that becomes available or is deemed su Ius ro e 7.4.4 Affordable Housing in Public Zones: Evaluate the appropriateness of allowing affordable housing within".public" or "semi~public" zone desi nations. where a ro riate. 74.5 Financial Assistance: Continue to evaluate on a case-by-case basis requests from developers for financial assistance to provide affordable housing opportunities for very low and low income households. Requests are evaluated based upon the development's effectiveness and efficiency in achieving the City's underserved housing needs. Assistance will be offered to the extent that resources and ro rams are available. x x x x x 8.1.1 Affirmative Marketing & Leasing: Require affordable housing developments for low and moderate income households x 8.1.2 Fair Housing Education & Counseling: Support programs for outreach and education on housing rights and counseling and mediation of discrimination complaints. Where appropriate refer to other agencies, including State and Federal enforcement agencies. x 12-16 - c CI) E c .. CI) > fI) o fI) C) ~ C') e caD.. !!!-c <( :; [g..9:! (,) 0 OD:: u. >. .!:! '0 D.. Objective H 9: Promote and facilitate early, transparent public input and participation emphasizing community awareness of the City of Chula Vista's goats, tools, available resources and programs for lower income households. SUMMARY OF HOUSING POLICIES AND PROGRAMS 2005-2010 Exhibit 3 9.1.1 Public Input & Participation: Incorporate public input and participation in the design and development of City housing plans and policies. 9.1.2 Bilingual Noticing: Expand the City's bilingual noticing requirements for pending actions, meetings, and workshops sponsored by the City and/or Agency related to affordable housing for low and maderat income households. 9.1.3 Public Outreach & Education of Resources: Initiate a bilingual educational campaign to non.native speaking lower income renters in the Northwest and Southwest Planning Areas to provide information on the City's housing resources and programs. 9.1.4 Disclosures of Affordable Housing Sites: Require through conditions of approval on discretionary permits and/or maps the provision 0 disclosures to new residents of master planned communities ro sed affordable housin sites. 9.1.5 Annual Housing Report: Provide an annual report on the City's housing efforts, to the City Council and ensure the annual report is available for review in ublic locations. x x x x x 12-17 Exhibit 4 2005-2010 Draft Hausing Element Update Summary of Public Comments Affordable Housina Production . Chula Vista needs more low-income housing . Long-term affordability . Reach out to non-profit affordable housing developers to build housing. Also to step into HUD projects that are coming to maturity . Have a certain % of larger units for larger families . Mixed responses on allowing an in-lieu fee . Pursue a deep targeting strategy to serve the very low income . Mixed responses on reduction of development standards (i.e. parking requirements) . Consider land trusts to keep affordable first-time homebuyer units affordable in perpetuity . Plan infrastructure needed to support additional housing- schools, fires, etc. . Build concurrently low-income and very-low income housing with market rate housing . Every development must include some low and very-low income alternatives even if they are rentals . Mixed responses on integration of affordable housing into all areas of the community . All housing must meet high standards and all codes. Mobilehome & Trailer Parks . Financial assistance both to mobilehome owners and owners of mobilehome parks . Protect mobile home/ trailer park living . Assist mobilehome park owners to buy their parks . Assist displaced mobilehome residents Condominium Conversions . Limit condominium conversions -Only allow if there is a high enough percent of rental homes available in the community . Set percent of conversions must be set aside for low income residents - first priority given to existing renters . Relocation assistance for residents of conversion projects . Conversions must upgrade buildings to current code . Extend noticing requirements to tenants . Allow first buyer incentive programs should apartments be converted to condos Displacement . Concern about the loss of rental housing as a source of inexpensive housing . Mitigate Fiscal/social impact of revitalization on residents 12-18 Exhibit 5 mY OF CHUIA VISTA STAKEHOLDERS, HOUSING ADVISORY COMMISSION AND PLANNING COMMISSION COMMENTS AND RESPONSES TO DRAFT HOUSING ELEMENT UPDATE 2005-2010 On April 18 and 19,2006 the Stakeholder Group, Housing Advisory Commission and Planning Commission provided feedback on the draft Housing Element. The following comments were heard at these meetings and have been addressed in the latest version of the Draft Housing Element as described below. COMMENT: Objective HI Minimize blighting influences and maintain the integrity of residential neighborhoods. . Use more positive language (i.e. decrease, delete and enhance, improve, etc.). . Active verb. RESPONSE: Objective HI has been revised to read: Enforce maintenance of safe and decent housing. enhance quality of existing housing. and maintain the integrity of residential neighborhoods. COMMENT: Policy Focus Area 1 - Include Lead Abatement . Include in Community Housing Improvement Program (CHIP) and other rehabilitation programs. . Pursue funding opportunities. RESPONSE: Program 1.1.1 has been revised to include the following sentence: Eligible rehabilitation activities also include improvements for water conservation. energv efficiencv. and lead based paint abatement. Program 1.1.4 has been added and reads: Pursue Funding for Housing Related Environmental Hazard Control: Proactivelv pursue available Federal or State funding to reduce housing related environmental hazards. including lead hazard control. building structural safetv. electrical safetv. and fire protection to address multiple childhood diseases and iniuries in the home. such as the Healthv Homes Initiative. COMMENT: Objective HE2 Conservation and Efficiency . Balance prescriptive with incentive based approach. . More requirements can increase the cost. . Link developers with programs and funding. 12-19 . Comments and Responses Draft Housing Element Update 2005-2010 Page 2 of6 RESPONSE: Program 2.2.4 has been added and reads: Green Building: Promote the development of high-performance. sustainable buildings that meet LEED (Leadership in Energv and Environmental Design) certification requirements through land use development standard incentives as mav be adopted in Specific Plans for the Northwest. Southwest. and Bavfront planning areas and General Development Plans and Sectional Planning Area Plans for the East planning area. COMMENT: Program 4.1.1 Community Impact Reports · Incorporate into established process (i.e. CEQA, or other existing process requirement). · Cautionary approach. · Establish thresholds for requiring. · Balance mitigation with encouragement of development. RESPONSE: Program 4.1.1 has been revised to include the underlined text: Community Impact Report: Consider requiring a "Community Impact Report" ("CIR") on a project-by-project basis to evaluate and determine a project's impact on the availability of adequate rental housing within the geographic Planning Area and to very low and low income residents. Equitable standards and criteria to determine when a CIR is required bv development applicants and the specific review procedures and submittal requirements for CIRs would need to be established. If determined to have a negative impact, consider mitigation measures such as a fee to develop new rental housing or relocation assistance for those impacted low income residents. The preparation of a CIR could be applicable to condominium conversions, mobilehome park closures/conversions and demolition. Program 4.1.2 has been revised to include the following sentence: When establishing a potential mitigation fee. the City should consider a fee that facilitates the new construction of affordable rental housing while not impeding other housing development opportunities. COMMENT: Policy H 4.2 Resources for lower income displaced households · Household should be primary residence. · Develop sliding scale for most economically vulnerable. RESPONSE: Policy H 4.2 has been revised to include the underlines text: Provide resources to very low and low income households based upon household size and income level displaced as a result of the rental housing loss, particularly the most economically vulnerable - the working poor, seniors age 62 or over, and persons with disabilities. Program 4.2.1 has been revised to include the underlined text: 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. Evaluate the appropriateness of amendments to the Municipal Code 12-20 Comments and Responses Draft Housing Element Update 2005-2010 Page 3 of6 to enhance the protection of the most economically vulnerable residents where the park serves as their primarY residence. Consider such elements as adequate bilingual noticing and relocation assistance, to afford some level of protection for verv low and low income residents. When establishing relocation assistance. the Citv should consider requiring appropriate assistance for residents while not impeding alternative development opportunities on the site. COMMENT: Objective H4 Conversions and demolition of rental housing . Separate conversions from demolition. At times you may want demolition and replacement of substandard housing. . Develop threshold for limiting conversions (i.e. tie to vacancy rate). . Consider life-long tenancy for most vulnerable residents (i.e. finance units for rental if conversion to homeownership occurs). RESPONSE: Program 4.2.2 has been revised to include the underlined text: Condominium Conversion: Evaluate the appropriateness of amendments to Chula Vista Municipal Code Chapter 15.56 (Condominium Conversion) to evaluate and determine a proiect's impact on the availability of a balance of housing opportunities. in terms of tenure of housing. within the geographic Planning Area and provide!! heightened level of protection and assistance for those households where the housing serves as their primarv residence. particularly the most economically vulnerable. Such provisions may address: adequate bilingual noticing, relocation assistance, requiring a portion of the units as affordable to low and moderate income households, a threshold requirement related to the availability of rental housing for the conversion of rental units, and a physical elements report Also refer to related Policies 3.1 and 7.1.4. Program 4.2.3 has been revised to include the following sentence: Establish standards and criteria to prioritize households who are most economicallv vulnerable and level of assistance based upon household size and Income. COMMENT: Policy H 5.2 Development of rental housing . Monitor rental stock and listings of properties for sale to assist developers and non-profits. . Promote incentives for building units for very low income, building affordable units on-site and larger units. . Look at creative solutions to parking on a project basis and provide incentives (i.e. subsidize parking for affordable units). . Provide opportunities for Master EIRs or other streamlining solutions. RESPONSE: Program 5.1.2 has been revised to include the underlined text: Affordable Housing Policv for lnfill Development: Evaluate the appropriateness of revising the Balanced Communities - Affordable Housing Policy to more appropriately reflect its application to infill urbanized housing developments. Possible amendments mav include lowering the unit threshold of applicability, increasing the percentage of affordable housing units required, targeting very low 12-21 Comments and Responses Draft Housing Element Update 2005-2010 Page 4 of 6 and low income households, encouraging flexibility in the methods of compliance, ensuring consistency with the affordable housing requirements of Community Redevelopment Law, and proiect based incentives for developments that provide additional public benefit such as housing on-site. deeper affordability levels. large familv units. and/or an increase in the number of affordable units. The first sentence of Program 5.1.3 has been revised to include the follooiwng underlined text: New Rental Housing: Promote, through incentives (i.e.. fee reductions/deferrals. streamlined proiect approvals. etc.). the development of new rental housing affordable to very low and low income households where such housing will provide a balanced inventory of housing types (e.g., multi-family rental and owner occupied housing) within the Northwest, Southwest, East and Bayfront Planning Areas. COMMENT: Policy H 5.3 Homeownership opportunities · Include creative options (i.e. co-ops, IDAS and community land trusts). · Support manufactured homes as a housing option. · Consider downpayment program for teachers, law enforcement and fue personnel. RESPONSE: Program 5.3.3 has been revised to include the underlined text: New For Sale Housing: Promote and support the development and sale of new entry-level homes, including non-traditional land use and financial approaches such as cooperatives. communitv land trusts. and manufactured housing. that are affordable to low and moderate-income households where such housing will provide a balanced inventory of housing types (e.g., multi-family rental and owner occupied housing) within the Northwest, Southwest, and East Planning Areas. Unit mix, in terms of number of bedrooms should be consistent with the identified need, with a particular emphasis on large familv units (3 or more bedroom units). Encourage the inclusion of housing for low and moderate income households within the actual development ("on-site"). Program 5.3.6 has been added and reads: Support Private Financial Assistance Programs: Support and encourage lenders. communitv development organizations and others to use non-traditional fmancial approaches to assist low and moderate income first time homebuvers such as Individual Development Accounts and other emerging financial approaches. Program 5.3.7 has been added and reads: Pursue Additional Financing Sources: Proactively pursue Federal. State or private funding to provide additional resources specificallv targeting teachers and public safetv personnel. COMMENT: Program 5.4.2 Resident Ownership of Mobilehome Parks: 12-22 Comments and Responses Draft Housing Element Update 2005-2010 Page 5 of6 . A previous version of the Housing Element included wording regarding mobilehome residents having first right ofrefusal. RESPONSE: Program 5.4.2 has been revised to include the underlined text: Resident Ownership of Mobile home Parks: When mobilehome park owners want to sell their parks, promote the purchase by park residents through technical assistance in preparing applications for funding sources such as the State Mobilehome Assistance Program and in accordance with CVMC Chapter 9.60. supporting California Civil Code Section 798.80. 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 of a purchase with the mobilehome park owner. Financial assistance provided by the City, Agency, State, or other funding sources may be limited to income eligible residents and require affordable housing costs. Focus assistance on uses that are consistent with the General Plan within Mobilehome Park (MHP) zone designations; not those that are non-conforming uses. COMMENT: Policy HE 6.2 Special needs housing and services . Increase housing opportunities. . Provide a full spectrum of services for seniors on-site. RESPONSE: Program 6.2.8 has been added and reads: Senior Housing Services: Encourage the development of senior housing developments through incentives (i.e. expedited processing. fee waivers. etc.) that provide a wide range of housing choices from independent living to assisted living with access to services on-site. including healthcare. nutrition. transportation and other appropriate services. COMMENT: Policy HE 7.2 Entitlement Process . If possible, priority processing for affordable projects. . Consider expediting fee. . Consider using tax increment funding for additional staffing to expedite. RESPONSE: Program 7.2.1 has been revised to include the underlined text: Priority Processing: Assign priority processing of the necessary entitlements and plan checks to expedite the development process for residential developments, which do not require extensive Engineering or environmental review, with at least 12 percent of the units as affordable for very low and low income households. Staff will further investigate the options for expediting and processing affordable projects during the implementation and revisions of the affordable housing program. COMMENT: Policy HE 7.3 Financial resources . Consider increasing redevelopment set aside for affordable housing. RESPONSE: This comment requires further investigation by Housing and Redevelopment staff and will be considered in project implementation. 12-23 Comments and Responses Draft Housing Element Update 2005-2010 Page 6 of6 . COMMENT: Policy HE 9.1 Public participation and reporting · Increase baseline housing data for inclusion in annual housing report. · Provide additional data regarding housing stock and market rate information to Planning Commission during the review of condominium conversions and other projects. RESPONSE: Program, 9.1.5 has been revised to include the underlined text: Annual Housing Report: Provide an annual report to an oversight bodv to advise the City Council on the City's existing housing stock and policies. The annual report shall provide for a monitoring and reporting of updated housing data relative to housing starts. demolition and conversion of rental housing. affordabilitv levels. market trends. existing housing by tenure and type and b; geographic areas. and other relevant data and an evaluation of progress in implementing the policies of the Housing Element. The annual report shall also be made available for review in public locations. Staff will also examine the possibility of gathering additional data during the implementation of a Community Impact Report (CIR). 12-24 HOUSING ELEMENT TABLE OF CONTENTS I TABLE OF CONTENTS EXECUTIVE SUMMARY 1.0 Executive Summaty H-1 INTRODUCTION 1.0 Community Context 2.0 Purpose and Nature of the Housing Element 3.0 Ci1y's Vision and Themes 3.1 Implementing the Vision and Themes 4.0 Housing Element Update Process 5.0 State Law and Local Plans 5.1 Consistency with State Law 5.2 Consistency with General Plan and Policies 5.3 Relationship to Other City Plans and Policies 6.0 Housing Element Organization 7.0 Focus of 2005-2010 Housing Element H-3 H-6 H-8 H-10 H-ll H-13 H-13 H-14 H-15 H-19 H-21 PART I 1.0 Overview: Key Issues & Approach 20 Community Factors 2.1 The Growing Need 2.2 Higher Housing Costs and a Lack of Afford a bility 2.3 Who Are OUf Residents 2.4 What Housing is Available 2.5 Increasing Housing Opportunities in Western Chula Vista 3.0 Approaches to Meet Identified Needs H-25 H-27 H-27 H-27 H-32 H-34 H-35 H-37 Page H-i ~l~ T~ CIlY Of OIUA VISrA - HOUSING ELEMENT TABLE OF CONTENTS - PART II 1.0 Overview: Policy & Implementation Plan H-45 2.0 Policy Focus Areas H-49 2.1 Maintain & Enhance the Quali1y of Housing and Residential Neighborhoods in the Ci1y:- H-49 2.2 Support Housing Opportunities to Meet the City's Diverse Needs: H-49 2.3 Fund and Implement Services that Provide Vital Communi1y Resources for Lower Income Residents: H-49 3.0 Policy Focus Areas, Objectives, Policies and Programs H-50 3.1 Maintain and Enhance Housing and Residential Neighborhoods H-51 3.2 Balanced and Diverse Housing Opportunities H-57 3.3 Government Role & Process H-73 - - Part III 1.0 OvervieW: Quantified Objectives 20 Quantified Objectives 3.0 Planning for New Construction 4.0 Implementation Tools H-83 H-84 H-86 H-88 - APPENDIX A 1.0 OvervieW: Community Profile & Housing Needs 20 Community Profile 2.1 Population Trends and Characteristics 2.2 Employment Trends 2.3 Household Characteristics 2.4 Housing Inventory and Market Conditions 2.5 Summary & Conclusion 3.0 Housing Needs 3.1 Households Overpaying for Housing 3.2 Overcrowding 3.3 2005-2010 Growth Needs 3.4 Special Needs Groups 3.5 Summary & Conclusion M-l M-2 M-2 M-7 AA-IO AA-16 AA-27 M-29 AA-29 AA-30 AA-31 AA- 32 AA- 38 - - - - - Page H-i i City of Chula Vista General Plan HOUSING ELEMENT TABLE OF CONTENTS APPENDIX B 1.0 Overview: Constraints to the Provision of Housing 20 Government Constraints 1.1 Land Use Controls 1.2 Growth Management 1.3 Densny Bonus 1.4 Accessory Second Unit Requirements 1.5 Senior Housing 1.6 Building Codes and Enforcement 1.7 Development Fees 1.8 Local Processing and Permit Procedures 1.9 Environmental and Infrastructure Constraints 20 Non-Government Constraints 2.1 Vacant and Underutilized Land 2.2 Housing Costs and Land Prices 2.3 Construction and Land Costs 2.4 Financing AB-I AB-2 AB-2 AB-7 AB-7 AB-8 AB-8 AB-8 AB-9 AB-10 AB-12 AB-14 AB-14 AB-14 AB-16 AB-16 APPENDIX C 1.0 Overview: Housing Resources 20 Land AvailabilW 2.1 Regional Housing Needs Assessment 2.2 Capacity to Meet Regional Share Goals 2.3 Availability of Public Services and Facilities 3.0 Homeless Shelters and Transitional Housing 4.0 Assisted Units -at-risk" of Conversion 4.1 Inventory of Affordable Units 4.2 Inventory of At-Risk Units 4.3 Cost of Preservation Versus Replacement 4.3 Resources for Preservation 4.4 Program Efforts to Preserve At-Risk Units 4.5 Quantified Objectives 5.0 Energy Conservation AC-I AC-2 AC-2 AC-4 AC-22 AC-23 AC-25 AC-26 AC-27 AC-30 AC-33 AC-36 AC-36 AC-37 Page H-iii ~(~ 7~",. ct<<S'lA ~ - HOUSING ELEMENT TABLE OF CONTENTS - APPENDIX D - 1.0 Overview: Evaluation of Performance 2.0 Overview: Progress in Implementing the 1999-2004 Goals and Objectives AD-I AD-2 - APPENDIX E 1.0 SummaI}' of 2005-2010 Goals, Objectives & Policies - AE-l APPENDIX F 1.0 General Plan Consistency Analysis AF-l - APPENDIX G - 1.0 Communi1y Outreach AG-l - APPENDIX H 1.0 References AH-l APPENDIX I 1.0 Glossal}' 20 Acronyms Used - AI-l AI-9 - - - - Page H-iv City of Chula Vista General Plan - /#;f.?'-~.~ Chula (({ ~;II Vista ~".,/Vision -- -'",<" 2020 '......' .,..::;.,. HOUSING ELEMENT EXECUllVE SUMMARY 1.0 EXECUTIVE SUMMARY The City of Chula Vista General Plan Housing Element details the City's five-year strategy for the enhancement and preservation of the community's character, identifies strategies for expanding housing opportunities for the City's various economic segments and provides the official policy guidance for local decision-making related to housing. The Housing Element of the General Plan provides the implementation mechanisms for effectively addressing housing needs in Chula Vista throughout the 2005-1010 planning period. The Housing Element provides in-depth analysis of the City's population, economic and housing stock characteristics as required by State law. The Element also provides a comprehensive evaluation of existing programs and policies of the 1999-2005 Housing Element to determined necessary revisions to meet current needs. Through this analysis, the City has identified goals, objectives, policies and program actions the directly address the current needs of Chula Vista's population. The Housing Element is organized into four policy components, including: . Introduction - Explains the purpose, process and content of the Housing Element: . Issues & Opportunities - Describes the key issues and opportunities identified from needs assessments and the public participation process upon which the update to the Housing Element should focus. . Policy & Implementation Plan - Details specific policies and programs the City of Chula Vista will carry out over the five-year period to address the City's housing goals. . Quantified Objectives - Specifies the number of households assisted and housing units constructed, rehabilitated, conserved and preserved through the adoption of policies and programs. Additionally, a number of Appendices are included to supplement the development of the Housing Elemenfs Policy and Implementation Plan. Page H-l ~tft. - - ~ CJlY Of 0tuIA VISfA HOUSING ELEMENT EXECUllVE SUMMARY A particular emphasis of this Housing Element is addressing the Ci1y's transition into a more urbanized environment especially in the western portions of the City. The Policy and Implementation Plan provides focused attention to needs, challenges and opportunities created as a result of the Ci1y's transition to a more vibrant urbanized community. Page H-2 City of Chula Vista General Plan - - - - - - - - - - - - - .-., /SL?C~i!:a ........../. r"".;........ Vision ./ 2020 HOUSING ELEMENT INTRODUcnON 1.0 COMMUNITY CONTEXT Once the largest lemon growing center in the world, Chula Vista has rapidly grown, developed, and expanded to become one of the nation's fastest growing cities. Of cities with a population over 100,000, Chula Vista had the eight fastest percentage growth rate nationally since the 2000 US Census. Who We Are Initially incorporated in 1911, much of the Otis historical growth development traces back to World War II and the relocation of Rohr Aircraft Corporation to Chula Vista in early 1941. The presence of Rohr along the Cit)/s Bayfront and the post-VvWII boom brought to Chula Vista extraordinary population growth and demands for housing, roads, schools, public services, and retail services (e.g., shops, restaurants, markets, banks, etc) to the Cit)/s historic core, east of the Bayfront and west of First Avenue. Over the next several decades, California's continued rate of population growth and housing production, coupled with Chula Vista's regional and waterfront location between the Mexican border and downtown San Diego, spurred the Cit)/s outward expansion and development to the east (east of Interstate-80S). In 1985, residents of the unincorporated Montgomery area voted to become part of the Chula Vista, adding approximately 23, 000 new residents. During the late 1980's and 1990's, Rancho del Rey, Eastlake and other master planned communities began to develop in the East In 1992, the City annexed 14 square miles of Otay Ranch for future development Now home to nearly a quarter-million residents, Chula Vista is the second largest city in San Diego County. The City now encompasses approximately 52 square miles of land area from the San Diego Bay eastward to Otay Lakes and includes most of the land between the Sweetwater River to the north and the Otay River to the south. The bayfront rivers, hills define the Cit)/s planning area. Located minutes from downtown San Diego and the US-Mexican border Chula Vista has convenient access to the region's cultural, recreational, educational and business opportunities. ~ 1ft.. -~- ""'- Page H-3 CIlYQf CHUlA VISTA Chula Vista will continue to playa significant role in the region's growth and is emerging as the hub of civic and cultural activity in South San Diego County. As one of the fastest growing cities in the nation with its picturesque backdrops and inviting climate, Chula Vista is a city whose growth is ripe with opportunities for both growing businesses and growing families. - - HOUSING ELEMENT I NlRODUcnON _. - - .. - - - - - - - - - Page H-4 City of Chula Vista General Plan - /(l~~;\Ch 1!1a ~.W-:'....." Vlsta \',>,-:....", '...<> Vision '.> 2020 REGIONAL LOCATION ~..- MEXICO Figure Intro-l Page H-5 ~\ft- ~f1 CI1Y OF CHULA VISTA 2.0 Purpose and Nature of the Housing Element - - HOUSING ELEMENT INlRODUcnON - - - What is a Housing Element and why do we need one? The City of Chula Vista's Housing Element is a major component of the City's General Plan that addresses adequate housing opportunities for present and future Chula Vista residents through 2010. It seNes as the primary policy document guiding local decision-making related to housing. The Housing Element of the General Plan is the only General Plan Element that requires review and certification by the State of California. The Housing Element provides a detailed analysis of Chula Vista's demographic, economic and housing characteristics as required by State Law. The Element also provides a comprehensive evaluation of the City's progress in implementing the past five-years policy and action programs related to housing production, preseNation and conseNation. Based upon the community's housing needs, available resources, constraints and opportunities for housing production and preseNation, and its past performance, the Housing Element establishes a five year strategy of priority goals, objectives and action programs that directly address the housing needs of present and future Chula Vista residents. - Create a balanced, sustainable community that offers a variety of housing choices throughout Chula Vista for all residents, present and future, through strategic policies and programs. - - - - - - - .-. Page H-6 City of Chula Vista General Plan /;;:""~"':~>< Chula i,:~,1 ff.<:;}~' , ~, Vi. sta II'. . "..""'""7j: "\ /~"'.. i,I \:\ ',;:r // V1. S1. on '~~~ ~ ~:j;' ~:;',-~,)""Ci'>' 2020 HOUSING ELEMENT I NlRODUCTlON Legislative Authority A Housing Element is based on legal requirements The California State Legislature has identified the attainment of a decent home and suitable living environment for every Californian as the State's main housing goal. Recognizing the important part that local planning programs play in pursuit of this goal, the Legislature has mandated that all cities and counties prepare a Housing Element as part of their comprehensive General Plans (California Government Code Section 65580 et al.). The City of Chula Vista adopted the previous housing element for 1999-2004 in December of 2000. In May of 2002 the Housing Element was amended to incorporate minor changes. State law requires each jurisdiction's Housing Element be updated at least every five years to reflect a community's changing housing needs. This document represents the 2005-2010 update required for jurisdictions within the San Diego Association of Governments (SANDAG) region and responds to the issues that currently facing the City. Page H-7 ~\~ --- ~~~~ 0lY Of CHULA VlSrA 3.0 City's Vision and Themes (hula Vista will be a vibrant, varied City. The vision for Chula Vista in year 2030 is a community that preserves and enhances the unique features that shape its identity. Eight major themes support Chula Vista's vision for the future and provide a foundation for the policies and action programs of The General Plan's Elements. These themes, representing the City's core values, are developed in the Housing Element and throughout the various chapters of the General Plan and include: Theme 1: Theme 2: Theme 3: Theme 4: Theme 5: Theme 6: Theme 7: Theme 8: Strong Community Character and Image Healthy and Sustainable Economy Strong and Safe Neighborhoods Improved Mobility Healthy and Sustainable Environment High Quality Community Services Effective Growth Management & Plan Implementation Shaping the Future Through the Present and Past - - HOUSING ELEMENT INTRODUOlON - - - - "The vision for Chula Vista in the year 2030 is a community that preserves and enhances the unique features that shape its identity. " - - - - - - - The City's vision and themes give focus to the General Plan A standardized format is used through the General Plan. Each of the General Plan's Elements contain introductory text describing how it implements the vision for Chula Vista and the core values or Themes that support the vision and provide a foundation for the policies and action programs within the Housing Element and how it relates to other elements, plans, and policies. Overall goal(s) are stated and topic areas are identified. Each topic is discussed followed by objectives, policies and implementing programs to be undertaken with this five-year period (see Figure Intro-2). - - - - .... Page H-8 City of (hula Vista General Plan - /CC, Oc,~ Ch 1 /l::>- ,--,,,,~ U a rr . ' ~ Vista \~ ~'?'~ ~" J Ii \~~, ~''';i/ Vision "'"",.---. _.<.":- 2020 <':.-;;., .;;.~;:::.., HOUSING ELEMENT INTRODUcnON VISION I I THEMES Core Values I I GOALS Broad statement that guides action. -- I I Focus Areas , A statement of a desired end. '--". ...._-~.._.,_..._-----------_._-----_..._-_._._-~-_._----.-.. _ -.--. --...-...-.-..----.-.---.-..-.-----------------..- POLICIES & PROGRAMS A policy is a rule that indicates how an objective will be achieved. A program is a course of action to achieve the objective. Figure Intro-2 Page H-9 ~lft.. --- "'!t:. = ..= OTY OF CHUlA VISTA - HOUSING ELEMENT INTRODUcnON - ... - 3.1 Implementing the Vision and Themes -.. Chula Vista's Vision and Themes reflect the desire of the City to preserve and enhance the unique features that give (hula Vista its identity, while at the same time improving our community and meeting the opportunities and challenges that lie ahead. Our envisioned future City offers opportunities to live in a safe, attractive, balanced and sustainable community that offers a variety of housing choices for residents - present and future. The Housing Element establishes policy direction for new housing development housing preservation, housing maintenance and enhancement of existing housing and neighborhoods. The policy program proVides the necessary guidance to realize the City's vision. - - A full discussion of Chula Vista's Vision and eight Themes is found in Chapter 4 of the City's General Plan. The Housing Element focuses on and develops four (4) Vision and Theme components: Theme 1: Theme 2: Theme 3: Theme 8: - Strong Community Character and Image Chula Vista 'continues to develop as a city with distinct identify that its citizens are proud to call home. Healthy and Sustainable Economy Chula Vista continues to expand its local economy by providing a broad range of business, employment and housing opportunities that support an excellent standard of living, and improve the ability for residents to live and work locally. Strong and Safe Neighborhoods Chula Vista is a diverse yet integrated community that celebrates its neighborhoods as the building blocks that make it a great place to live. Shaping the Future Through the Present and Past Chula Vista values its heritage and unique sense of place, and manages change in a way that complements the important qualities and features that shape its identity. .- - - ... - - - Page H-IO City of Chula Vista General Plan - f':"~~ Chula ,,-' ..itt '~\ · ~\, ."It.. ijj y!sta ~~. :i ~{;i ViSion ':::'"~:,,,,; :..,..:,:,;:' 2020 ,..-.-----.- HOUSING ELEMENT INTRODUcnON 4.0 HOUSING ELEMENT UPDATE PROCESS Come and tell us what's on your mind The City of Chula Vista has identified community participation as a priority in the planning process. The Housing Element is representative of the desires of the local residents and addresses the concerns most important to the community both now and in the future. Additionally, the State of California requires local governments make diligent efforts to involve all economic segments of the population in the development of the Housing Element The public's input and participation in the Housing Element Update process is key to ensuring a shared vision and strategy for the City. During the preparation of the Housing Element community involvement included focus group sessions, community workshops, and workshops before various City Commissions and the City Council. Workshops and working sessions focused on the issues and challenges to creating and expanding housing for lower income households, maintaining and preserving housing, barriers to housing production, and possible strategies to better address these issues. Responses from the community guided the Needs Assessment portion of the Housing Element as well as the Housing Policy and Implementation Plan. Opportunities for public participation throughout the Housing Element process include, or will include the following components: · City staff workshop (September 12, 2005) . Stakeholders meeting (November 7, 2005 and April 18, 2006); · Community workshop (November 14, 2005); . Housing Advisory Commission/Planning Commission Workshop (November 16, 2005 and April 19, 2006); . Housing Advisory Commission Workshops (January 20, 2006, February 1, 2006, and March 22, 2006); . City Council Workshop (February 7, 2006); . Mobilehome Rent Review Workshop (February 23, 2006); . Chula Vista Redevelopment Corporation Workshop (ApriIB, 2006); . City Council - Kick off of Public Review Period (May 2, 2006); . Public review of the Draft Housing Element (May 2 - 31, 2006); Page H-ll ~V?- --- ~ arv Of CHUIA VISfA - - HOUSING ELEMENT INTRODUCTION · Public hearings before the Housing Advisory Commission/Planning Commission (July 26, 2006) and City Council (anticipated in mid/late August, 2006); and, _ · Review of the Draft Element by the State Department of Housing and Community Development - Copies of agendas and materials provided at the workshops and meetings are included in Appendix G. - - - - - - - - - - - Page H-12 City of Chula Vista General Plan - C'C'~'~ Chula =- \~ ,i' ~:: Vista ,',I ~,~. Il! '1~ h'." ~." ::/ V1.S1.0n '~, . ," '/~' "'"",,,,--' -,,~:::i::' 2020 "_':'';;'',' ::;.~,~,.. HOUSING ELEMENT INTRODUOlON 5.0 STATE LAW AND LOCAL PLANS 5.1 Consistency with State Law The Housing Element is one of seven elements of the General Plan mandated by the State of California, as articulated in Sections 65580 to 65589.8 of the California Government Code. State Law requires that a jurisdiction's Housing Element consist of "an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, and scheduled program actions for the preservation, improvement and development of housing." The Housing Element is responsive to the need of providing housing for all segments of the population. Section 65583 of the Government Code sets forth specific requirements regarding the scope and content of each Housing Element Table Intro-1 summarizes these requirements and identifies the applicable section in the 2005-2010 City of Chula Vista Housing Element where these requirements are addressed. Table Intro-l STATE HOUSING ELEMENT REQUIREMENTS Required Housing Element Component Reference A Housin Needs Assessment 1. Analysis of population trends in (hula Vista in relation to coun ide trends 2. Analysis of employment trend in (hula Vista in relation to regional trends 3. Projection and quantification of (hula Vista's existing and projected housing needs for all income roups 4. Analysis and documentation of (hula Vista's housing characteristics, includin : a. Level of housin cost com ared to abili to a b. Overcrowdin c. Housin stock condition 5. An inventory of land suitable for residential development including vacant sites and having redevelopment potential and an analysis of the relationship of zoning, public facilities and services to these sites Page H-13 ~lf? --- ~ C1Y Of CHUA VISfA - - HOUSING ELEMENT INTRODUOlON - Table Intro-l STATE HOUSING ELEMENT REQUIREMENTS Required Housing Element Component Reference 6. Analysis of existing and potential government constraints upon the maintenance, improvement or development of housing for all income levels 7. Analysis of existing and potential non-governmental and market constraints upon the maintenance, improvement or development of housino for all income levels 8. Analysis of special housing need: handicapped, elderly, large families, female-headed households, students, and farm workers 9. Analysis concerning the needs of homeless individuals and families in Chula Vista 10. Analysis of opportunities for energy conservation with respect to residential development B. Goals and Policies 11. Identification of Chula Vista's goal, quantified objectives and policies relative to maintenance, improvement and development of housin C 1m fementation ram 12. Identify adequate sites which will be made available through appropriate action with required public services and facilities from a varie of housin pes for all income levels 13. Program to assists in the development of adequate housing to meet the needs of low and moderate-income households 14. Identify and, when appropriate and possible, remove governmental constraints to the maintenance, improvement and development of housin in Chula Vista 15. Conserve and improve the condition of the existing and affordable housin stock in Chula Vista 16. Promote housin opportunities for all persons 17. Identify programs to address the potential conversion of assisted housing development to market rate housing. - - - - - .... ... - 5.2 Consistency with General Plan and Policies - The Housing Element of the General Plan is one component of the City's overall long-range planning strategy. The California. Government Code requires that General Plan contain an integrated, consistent set of goals and policies. The Housing Element is therefore, affected by policies contained in other elements of the General Plan. - Page H-14 Ci1y of Chula Vista General Plan - HOUSING ELEMENT INTRODUcnON The Housing Element is most intricately related to the Land Use and Transportation (LUll Element The LUT Element sets the framework for development of housing by laying out the land designations for residential development and indicating the type and density permitted by the City. Working within this framework, the Housing Element identifies priority goals, objectives and program actions for the . next five years that directly address the housing needs of Chula Vista existing and future residents. The policies contained in other elements of the General Plan affect many aspects of life that residents enjoy - the amount and variety of open space, the preservation of natural, historic and cultural resources, the permitted noise levels in residential areas, and the safety of the residents in the event of a natural or man-made disaster. The Housing Element has been reviewed for consistency with the City's other General Plan Elements and the policies and programs in this Element reflect the policy direction contained in other parts of the General Plan (See Appendix F). As portions of the General Plan are amended in the future, this Housing Element will be reviewed to ensure that internal consistency is maintained. ... 5.3 Relationship to Other City Plans and Policies The Housing Element identifies priority goals, objectives, policies and action programs for the next five years that directly address the housing needs of Chula Vista. . These are briefly described below and include the City's Municipal Code, Specific Plans, General Development Plans, Sectional Planning Area Plans, Precise Plans, and Redevelopment Plans and the Local Coastal Program Plan. ... Chula Vista Municipal Code The Chula Vista Municipal Code (CVMC) consists of all the regulatory and penal Ordinances and certain administrative Ordinances of the City, codified pursuant to the provisions of Sections 50022.1 through 50022.8 and 50022.10 of the Government Code. The CVMC includes the City's Subdivision Ordinance and Zoning Ordinance, including the Growth Managements Ordinance. Page H-15 ~l~ --- ~ 0lY OF CHUlA VISTA HOUSING ELEMENT INTRODUCTION Subdivision Ordinance The Subdivision Ordinance regulates the design, development and implementation of land division. It applies when a parcel is split into two or more parcels; a parcel is consolidated with one or more parcels; or the boundaries of two or more parcels are adjusted to change the size and/or configuration of the parcels. Zoning Ordinance The Zoning Ordinance is the primary tool for implementing the General Plan, and is designed to protect and promote the public health, safety, comfort, convenience, prosperity and general welfare of the people. It includes a zoning map designating various districts that are described in the text of the document and outlines the permitted, conditionally permitted, and prohibited uses for each zone district Finally, the Zoning Ordinance provides property development standards for each zone district and overall administrative and legislative procedures. Redevelopment Plans The adoption of Redevelopment Plans by cities is allowed by the State Legislature under The State of California's Community Redevelopment Law. The Redevelopment Plans are intended to reverse deteriorating economic and physical conditions; redevelop blighted, underutilized, and vacant properties; improve infrastructure and public facilities; and produce revenues through the development of job generating properties. Because redevelopment projects must be in conformance with the General Plan, these plans are one of the more powerful means cities have to implement the goals and policies set forth in their General Plan. The City of Chula Vista has three Redevelopment Plans encompassing the redevelopment areas listed below. Redevelopment Plans are implemented through a variety of means, including large-small scale projects, as well as focused strategic plans, such as the Broadway Strategy (December 2003). · Bayfront · Otay Valley Rd · Southwest · Town Centre I (Third Avenue Downtown) · Town Centre II (Chula Vista Center) · 2004 Added Area Page H-16 City of (hula Vista General Plan - - - - - - - - - - - - - <""c,,-. Ch 1 /;y- ;-""~ U a .f. '\'~ . fir \:\ V1sta Vision 2020 HOUSING ELEMEI\ff INTRODUcnON Specific Plans Specific Plans are customized regulatory documents that provide focused guidance and regulations for a particular area. They generally include a land use plan, circulation plan, infrastructure plan, zoning classifications, development standards, design guidelines, phasing plan, financing plan and implementation plan. Chula Vista has eight approved Specific Plans, which are listed below. Additionally, a Specific Plan is being prepared for northwestern Chula Vista's Urban Core. · Bayfront Specific Plan · Mid-Bayfront Specific Plan · Gateway Specific Plan · Auto Park North Specific Plan · Bonita Glen Specific Plan · Bonita Gateway Specific Plan · Urban Core Specific Plan (under preparation) General Development Plans A General Development Plan (GDP) is a smaller scale version of a General Plan that typically s addressing large, previously undeveloped areas of the City, such as those in eastern Chula Vista. It establishes general development parameters, including the distribution of land uses, vehicular circulation patterns, development densities, and an overall master planned community urban structure. A GDP is implemented by the adoption of a Sectional Planning Area (SPA) Plan. The City has six GDPs, which are discussed further in the Land Use and Transportation Element Section 10.0, East Area Plan, of this element GDPs must be in conformance with the General Plan. ---------.----------------.-----.-------...---------------- Sectional Planning Area Plans _________._._______...________...._____________. ,____.._.________,..,_______.__ _H____'___ A Sectional Planning Area (SPA) Plan is a comprehensive master plan that addresses a portion of a planned community area. It is intended to implement the goals, objectives, and development parameters prescribed in the GDP. A SPA and GDP must be adopted as a prerequisite to develop land in a Planned Community (PC) Zone. Page H-17 ~lft.. --- .,,~ ': ~ 01Y Of CHUlA VISTA HOUSING ELEMENT INTRODUCTlON A SPA consists of integrated guidelines and development standards that provide detail on the land use mix, design criteria, pedestrian and vehicular circulation pattern, open space, recreation, infrastructure requirements, and other components for the entire or portion of an adopted GDP. It is based on City regulations, guidelines, and policies; but once adopted, a SPA supersedes these documents, except where incorporated by reference. Precise Plans A Precise Plan is a zoning implementation tool that creates specific property development standards and design guidelines in combination with underlying zone standards to allow site design flexibility within areas zoned a Precise Plan modifying district Precise Plan development standards and guidelines, adopted by Ordinance, can be tailored for a particular area through rezoning action. The Precise Plan is adopted through a discretionary review process that establishes standards and guidelines affecting the property. Local Coastal Program A Local Coastal Program (LCP) is the planning tool used to carry out the shared partnership between the California Coastal Commission's (CCC) mandate to protect coastal resources, and local governmenfs regulation of land use through its General Plan. An LCP includes a land use plan with land use classifications, types and densities of allowable development plus goals, objectives, and policies concerning development use of coastal resources. After an LCP is approved by the CCC, their permitting authority is delegated to the local government It is not intended that the CCC and their permitting authority usurp local government Chula Vista's Bayfront has an LCP, which contains the goal and objectives relating to coastal development It is provided by the General Plan Land Use Diagram and the associated goals, objectives and policies that relate to coastal area. Page H-18 City of (hula Vista General Plan - - - - - - -: - - - - - - - HOUSING ELEMENT INTRODUCllON 6.0 HOUSING ELEMENT ORGANIZATION California Government Code Section 65583 requires a jurisdiction's Housing Element to include the following components: · A review of the previous elemenfs goals, policies, programs, and objectives to ascertain the effectiveness of each of these components, as well as the overall effectiveness of the Housing Element . An assessment of housing need and an inventory of resources and constraints related to meeting these needs; . An analysis of programs for the preservation of assisted housing developments; . A statement of community goals, quantified objectives and policies relative to the maintenance, preservation, improvement and development of housing; and, . A policy program that provides a schedule of actions that the City is undertaking, or intends to undertake, in implementing the policy set for in the Housing Element The Chula Vista Housing Element is organized into four parts, including: Introduction I. Issues & Opportunities II. Policy & Implementation Plan III. Quantified Objectives Explains the purpose, process and contents of the Housing Element . Describes the key issues and opportunities identified from needs assessment and the public participation process upon which the update to the Housing Element should focus. Details specific policies and programs the City of Chula Vista will carry out over the five-year period to address the City's housing goals. Specifies the number of households assisted and housing units constructed, rehabilitated, conserved and preserved through the adopted policies and programs. Given the detailed and lengthy analysis in developing the Housing Element supporting background material is included in the following appendices: Page H-19 ~If? --- ~ 01Y Of CHUlA VJSrA Appendix A Appendix B: Appendix C: Appendix D: Append ix E: Appendix F: Appendix G: Append ix H: Appendix I: HOUSING ELEMENT INTRODUCTION Communi1y Profile & Housing Needs Housing Constraints and Resources Residential Land Resources Review of Housing Element Performance to Date Summary of Policies, Programs and Quantified Objectives General Plan Consistency Analysis Communi1y Workshop Materials & Outreach References Glossary Page H-20 City of Chula Vista General Plan - - - - - - - - - - - - - - - - ..,.,jf""?O:: .CO~~ Ch ula ," ", V. u " . 'Ii'. lsta Vision 2020 HOUSING ELEMENT INTRODUCTION 7.0 FOCUS OF 2005-2010 HOUSING ELEMENT As of 2005, the City of Chula Vista encompasses approximately 52 square miles within its boundaries, Over time, it has evolved into varying and distinct neighborhoods and communities, Chula Vista's communities can be distinguished by the west and east areas of the City and more specifically into four distinct planning areas within the west and the east Initially incorporated in 1911, much of the City's historical growth and development centered around the historic City center also known as the urban core, Therefore, City's older and more established neighborhoods are generally located west of Interstate-805, Over the next several decades, California's continued rate of population growth and housing development spurred Chula Vista's outward expansion and development to the east (east of Interstate-805), including the development of the master planned communities of Otay Ranch, Eastlake, Rancho del Rey, and Sunbow The City's communities can be further distinguished by geographic planning areas that follow the overall development patterns of the City, . Northwest - That area north of L Street and east of Interstate 5, also referred to as the City's historic urban core; . Southwest - That area south of L Street and east of Interstate 5, generally encompassing those neighborhoods included within the Montgomery annexation of 1985; . East - That area east of Interstate 805, generally encompassing master planned communities developed from the early 1990's; and, . Bayfront - That area west of Interstate-5 and north of L Street currently underdeveloped with large vacant waterfront properties, The Figure Intro-3 identifies the four designated geographic planning areas, For the purpose of this Element the City of Chula Vista focuses on each of the four geographic planning areas to target appropriate programs and activities given their unique physical, economic, and cultural characteristics. By utilizing geographic focus area approach, the City is able to implement programs that better address the growing needs of the Chula Vista community. Page H-21 ~I~ --- ~ 01Y OF CHUlA VISrA HOUSING ELEMENT INTRODUCTION While the Bayfront is included within the four geographic planning areas, this area is currently underdeveloped with large amount of vacant waterfront properties with very few existing housing units. Current efforts are underway to develop a master plan for the Bayfront During this five-year period it is expected that the master plan will be adopted but development is not expected to occur. Therefore, housing policies and programs are limited to planning activities. Page H-22 01y of (hula Vista General Plan - - - - - - - - - - - - - - - ~z LUO ~B LU:J ....10 LUO ~~ V) - :J o :t: ~ ~""'d_ ~ClJO- ~.?"'4 .~ N ..c=>~~ U ..,.,,"~,~ ,.,...._...~'. ./J:..",,~'''' -'--....: g'~ \~ Ii! . t '~\~ /~ \< N /,'/ ::::-.. ,,,;;;,~ ~~ ..'-<':- ,~..~. ._,~-:...:l', ~.::..:::=...... .~ Gl UJ z~w I J: ~~~~l !5~ 'iJ1~~ 5~ u M N I :r: ()J en I'ij 0.. l"f) I E c ~ :J C1 w: ov.._ HOUSING ELEMENT INTRODUcnON While the 1999-2004 Housing Element addressed citywide issues and needs, and implemented policies and programs on a citywide basis, a significant focus of the previous Housing Element was the new production of housing within the master planned communities of eastern Chula Vista. Under the prevailing market conditions at that time and the availability of vast undeveloped lands in the East the private market was able to respond to the housing needs of moderate- and upper- income households. The City's efforts were focused on production of housing for lower-income households through the implementation of the City's Balanced Communities Affordable Housing Program requiring a minimum of 5% of the total new units constructed for affordable housing, primarily in the East and other incentive programs. Within the older neighborhoods of the Northwest and Southwest Planning Areas, policies and programs were focused on the preservation and maintenance of housing and neighborhoods. Today, many of the master planned communities have developed and the remaining communities will be nearing completion over the next ten years. There are limited opportunities for the development of affordable housing for lower and moderate-income households in the East Opportunities for the future production and preservation of affordable housing are now focused in the City's urbanized areas (Northwest and Southwest). The City's ability to continue to provide new affordable rental and for-sale housing opportunities will become more challenging as development opportunities shift to a more urbanized setting. Challenges may include factors such as the availability and size of developable land, higher land and construction costs and the impact of revitalization activities on the existing housing and neighborhoods and the residents. Policies and programs of the 2005-2010 Housing Element were developed to address the shift in housing production to western <;:hula Vista and to address the challenges associated with this shift The City's policy and program efforts will also continue to focus on the preservation, maintenance and enhancement of housing and neighborhoods. Lastly, the local real estate market and housing costs have significantly changed since adoption and implementation of the 1999-2005 Housing Element With higher housing costs and an increasing affordability gap for lower and moderate income households, the City will establish new policies and programs that seek to reduce housing costs, provide for increased densities, increase multi-family housing production, provide incentives for production of affordable housing, and expand available resources for more opportunities for low and moderate income households. A full discussion of the City's five-year strategy for housing production, conservation, and preservation is presented in Part II of this Element Page H-24 Ci1y ofChula Vista General Plan - - - - - - - - - - - - """,,, ~:_~. Ch 1 ,,;)' c-";~, u a '" ~.i,. "..t./"" ~..7 ''f' ~~':"". \".. V. ., .,.<,..- II. 1St i.__",,<;;., 'II a \,: ,j;. '~~! ~\?t:~~ ~"~";: Vision ~\'" ,,<~;. -.'->-, .....,,/ 2020 .....~":~~-. :::;.~'.. HOUSING ELEMENT PART I 1.0 OVERVIEW: KEY ISSUES & APPROACH Approaching its loath anniversary as a City, Chula Vista has expanded by ten times in area, and transitioned from an agricultural community to a rapidly changing, more urban place. It has become one of California's 15 largest cities in population and among the most dynamic The City's rapid change and the escalating housing market seen in the last five years have raised concern from the Chula Vista community and City policymakers. These concerns were evident during the preparation of the City's update to the General Plan adopted in 2005, the current development of the Urban Core Specific Plan and most recently the update of the Housing Element More specifically, the Chula Vista community, City policymakers, and staff identified two key interrelated housing issues which the Housing Element update should focus. These issues are: "The City's rapid change and the escalating housing market seen in the last five years have raised concern from the Chula Vista community and City policymakers. " (1) Given the shortfall of housing, particularly affordable housing, and the ensuing high cost of housing, the City must take measures to continue to preseNe and expand affordable housing not only for future residents but to also accommodate the needs of those existing very low, low and moderate income residents; and (2) While revitalizing western Chula Vista will bring forward opportunities to enliven and enhance the community and proVide for future housing needs, such efforts must be mindful of the challenges and the impact of change on the existing rental housing stock and residents. Page H-25 ~V?- --- ~ 01Y Of CHUIA VJSrA - HOUSING ELEMENT PART I The Policy and Implementation Plan of this Housing Element (see Part 11), aims to provide the City and the residential development community with policy and program - tools that address these issues. The City's efforts will be concentrated in preserving and enhancing single family housing and neighborhoods, promoting balanced and diverse housing, and looking at City governmenfs role and processes to facilitate residential development ,- - - - Page H-26 Ci1y of (hula Vista General Plan - //<~:':e/.'.'~.''\, .Ch uIa ;;;" '",'V ~~~.:... \~ V. ,," ....:" . '.. :" lsta ..""":"....."'..' '. ....., \\\fij~)'.: ~~~~<~. :.~,/i .. I(~C"'f: {i>/ V1Sl0n ""'>' "''',c;' 2020 .<~.;.~ ,~;~,... HOUSING ELEMENT PART I 2.0 COMMUNITY FACTORS In order to develop a comprehensive strategy to preserve and expand housing for very-low, low, and moderate-income households and address development challenges, particularly in western Chula Vista, it is important to understand the needs of residents, the current real estate market and the existing housing stock An overview of these factors follows and includes highlights of the City's demographics and housing characteristics. A more detailed analysis of demographics characteristics and needs are provided in Appendix A of this Element ... 2.1 The Growing Need The San Diego County region continues to experience an unmet demand for housing. Based upon current local General Plans and the forecasted population growth for the San Diego region by 2030, the region is collectively 93,000 housing units short of estimated housing demand per the SANDAG Regional Comprehensive Plan. Based upon population projections, it is expected that the region's population will continue to expand; further impacting the demand on housing by both existing and future households. Currently home to an estimated 173,556 people (2000 U.S. Census), it is anticipated that Chula Vista's population will grow to approximately 280,000 by 2030. More housing is needed to accommodate Chula Vista and the region's future growth projections. ... 2.2 Higher Housing Costs and a Lack of Affordability As a result of the growing demand and lack of sufficient supply, the cost of owning and renting a home is escalating beyond the ability of many households to pay of many households. The San Diego region is routinely ranked as one of the top ten areas with the highest priced and least affordable homes in the nation by both the National Association of Realtors (NAR) and National Association of Home Builders (NAHB). Housing prices in the last five years have reached double digit annual increases with only 9 percent of the population able to afford to home. Page H-27 ~Irt.. --- ~ OIY Of CHUlA VlSfA - HOUSING ELEMENT PART I - The lack of affordable homes within Chula Vista and the San Diego region is causing many, irregardless of income level, to seek housing far from their jobs with some even moving outside of the region to South Riverside County and the Tijuana border region. Others are forced to pay more than their incomes can afford and/or forced to move into overcrowded or unsafe/unsanitary housing cond itions. 2.2.1 Homeownership - In years past Chula Vista's housing market offered some of the more affordable housing prices as compared to other areas of San Diego County. Today, housing costs in Chula Vista are rising beyond the affordability of a majority of San Diego households, with the median sales price in January 2005 at $550,000, a 29 percent increase from 2004L To afford this median sales price, a worker would need to earn $157,140, a year or $76 an hour (based upon 3 1jz times their annual income). With the current median income for Chula Vista residents at $59,663 a year, most residents would be unable to "afford" the median priced home (see Figure 1-1). - - Based upon current sales data, for-sale housing in Chula Vista is not affordable to any income category other than households with incomes substantially above moderate income (greater than 120% of County Median Income). With such a large gap between what a household can "afford" to pay and current housing prices, for-sale housing does not provide a financially feasible alternative opportunity for very-low and low-income households with limited incomes. - Figure 1-1 Monthly Cost of a Median Priced Home vs. Affordable Cost Based on Chula Vista Median Income - 5,000 4,000 3,000 2,000 1,000 . Median Cost . Affordable Cost Low Income - Mortgage 1 California Association of Realtors (2005) Page H-28 Ci1y of Chula Vista General Plan "o:~,,~, Chula ,'" . "~ ",'0 ',,- \\'. Vista Vision 2020 HOUSING ELEMENT PART I This high cost of housing is evidenced by City's homeownership rates. In 2000, the City's homeownership rate was 57 percent compared to national average of 67 percent In western Chula Vista, where only 45 percent of households are owner occupied, this homeownership rate is significantly lower than the national and overall City homeownership rate. Figure 1-2 Ownership Patterns Western Chula Vista versus Citywide Citywide Ownership Patterns Western CV Ownership Patterns o Renter Occupied. Ow ner Occupied o Renter Occupied . Ow ner Occupied Page H-29 ~v?- --- ~ 0lY Of CHUlA VJSrA - HOUSING ELEMENT PART I 2.2.2 Rental Housi~g Rental housing is also out of reach for many, particularly very-low income households. According to the Spring 2005 rental sUNey by the San Diego Apartment Assoclation, the average monthly rent for a two-bedroom apartment in (hula Vista was $993, a 10 percent increase from 2004. To afford this, workers need to earn about $39,720 a year or $19 an hour. In (hula Vista, approximately 39 percent of the households would be unable to afford this rent based upon earnings of less than $35,000 per year (see Figure 1-3). Two minimum wage workers combined earn just $12.50 an hour or about $26,000 a yea r. - Rental units in (hula Vista are only affordable to households at the very top of the income range for low-income households and moderate-income households. Despite these slightly high costs, rental housing presents the most financially feasible opportunity to provide affordable and suitable housing for very-low and low-income residents. - Figure 1.3 Average Rent vs. Affordable Cost for Very Low Income $1,000 $800 $600 $400 $200 $- Avg Rent . Aft Cost to Very Low Income Aft Cost to 2 Min Wage Earners - Page H- 30 City of (hula Vista General Plan ,/);)::"'~' t"~~ Ch ula /',:".J' rj < \t ,.i: .X" "~~. ".\\ V. ".......2:," .~. 'I lsta ",., . ....:.,,"4'....':;', \~"Pr4t ~ :/ Vision ~. > ,~ "'>>". ,,"::i:.;>' 2020 -___<'n__... HOUSING ELEMENT PART I The high demand for rental housing is evidenced by the City's rental vacancy rates. The estimated vacancy rate for all housing units in the San Diego County region as of January 1, 2005 was 4.3 percent2 , while the City of Chula Vista averaged 3%. The industry standard for a healthy vacancy rate is approximately 5%. Lower vacancy rates largely influence increases in rental rates. Chula Vista's low vacancy rate suggests an unmet demand for housing and means that renters looking for housing may have difficulty finding it in Chula Vista or pay higher rent 2.2.3 OverpC!Yf!l~nt and Overcrow~i"flg.. Higher housing costs force household to pay more than they can afford or doubling up in housing units to make the housing more affordable. When households overpay for housing, less money is available for discretionary spending and necessities, such as food, childcare, healthcare, and maintenance of the home. According to the 2000 Us. Census, 38 percent of Chula Vista's households overpaid for housing. Overpayment was more prevalent in renter-occupied households (42 percent) than owner-occupied households (34 percent). As a result of rising housing prices and rents, lower-income households are often forced to accept a smaller housing unit than is needed or double up households in one unit which may result in overcrowding. Overcrowding puts a strain on public facilities and services, reduces the quality of the physical environment and can eventually cause conditions that contribute to a more rapid deterioration of the housing stock. Fourteen percent of Chula Vista households were considered overcrowded in 2000, a 3 percent increase from 1990. As with overpayment of housing, overcrowding is found in more renter households (23 percent) than owner households (8 percent). Overcrowding and overpayment are more prevalent in renter occupied households with very-low and low-income levels.. With dramatic increases in housing costs experienced in the last few years, it is anticipated that many more households are overpaying for housing today and households are doubling up in order to afford current housing costs. Policies and programs aimed at increasing housing production overall, including affordable housing, and particularly large bedroom (3 or more bedrooms per unit) rental housing will assist in decreasing the number of households overpaying for housing and reduced incidents of overcrowding. ... 2 SANDAG - San Diego County region City/County Population and Housing Estimates 1/1/2005 Page H-31 ~l~ -11- ~ OTY Of 0iUlA VlSfA - HOUSING ELEMENT PART I - - 2.3 Who Are Our Residents Chula Vista is the second largest city in San Diego County and continues to surpass the rate of growth in the County and the State. Chula Vista is a community with a growing and diverse population. By understanding our diversity and basic demographic characteristics, City policies and programs can be developed to better accommodate these various needs. - 2.3.1 Racial Diversity Chula Vista's population is more ethnically diverse in comparison to the San Diego County region. Approximately, 49 percent of Chula Vista residents identified themselves to be of Hispanic or Latino origin, and over ten percent of Asian origin. 2.3.2;\g~ - The estimated average age in Chula Vista is 33.3 years. According to the 2000 Census, a majority, 57 percent of the Cit)/s population were between the ages of 21 to 64. Children and teens aged 0-20 years comprised of 32% of the population, and seniors, 65 and over, represented 11% of the City's population. A major shift in the age structure of the Cit)/s population is forecasted over the next 25 years. By 2030, the forecasted average age is over 40 and the San Diego region is expecting a decline in the growth of age groups below 55, while all age groups above 55 will increase Specifically, the western portion of Chula Vista is forecast to experience a higher increase in the 55-74 year old age group as compared to the region The 65-74 year old age group is higher in the western portion of the City than the City as a whole. The provision of housing opportunities to serve this growing population - group, including rental housing and home repair and modifications, will be needed in the future. - Page H-32 City ofChula Vista General Plan ~.:-';:".,::o,> Ch 1 ~.f:'" ~~ "~., u a ./".~ .1. ,<;, it;:;:. >.~E,.::: Vista \~ ""'~~ .'8'^.)! .. ~\ ;7,;" ;;{"\ .... V1Slon ~~~.,~. ~ ~,.-: ::~: . ".... ....,.,' 2020 -...::;:::;: ~::.:::,<., HOUSING ElEMEIVr PART I 2.3.3 Special Needs-Persons with Disabilities In addition to the age of the population, another important characteristic of the population are those with special needs, including individuals with physical, emotional, or psychological disabilities. A large portion of census tracts in western Chula Vista reporting 25 percent of their population with disabilities compared to an average of 19 percent in the East New housing opportunities should consider accessibility and adaptability to accommodate those with disabilities and mobility limitations. Rehabilitation and repair programs should encourage modifications of existing housing to enhance accessibility. 2.3.4 Household Size The City's average household size is increasing. In 2000, Chula Vista's average household size was 2.99 persons per household, increasing from 2.79 persons per household in 1990. In comparison, San Diego County had an estimated household size of 2.73 in 2000. With growing household sizes, overcrowding experienced by many Chula Vista residents, and the minimum availability of 3 or more bedroom rental units, policies should encourage the provision of more large bedroom (3 or more bedrooms) housing, particularly in rental housing. 2.3.5 Very-Low and Low-Income _Househol~_.____..______._..__._.. ______.._..___ ._---~-._-----~ At least 25 percent of the families living in Chula Vista report an annual income of at least $75,000. However, a significant number of the families, 44 percent reported incomes of less than $40,000 a year, which falls into the Very-Low (less than 50% of County Median Income) and Low-income categories (51-80% of County Median Income). There is significant disparity in household income when looking at the East and West areas of the City. Approximately 31.6 percent of households in eastern Chula Vista and 57 percent in western Chula Vista are considered low-income. In 2000, the City of Chula Vista averaged 11 percent of the population living below poverty level, compared to 13 percent in the County. According to 2000 Census data, the western portion of the City averaged 15 percent below the poverty line. Page H-33 ~,~ --- ~ 01Y OF 0iUIA VISTA - HOUSING ELEMENT PART I - With a significant number of Chula Vista residents characterized as very-low and low-income, more affordable housing is necessary to meet the needs of many in the Chula Vista community. The disparity in income from the East to the West also suggests that greater efforts are needed to promote a balance of housing opportunities throughout the City to avoid enclaves or concentrations of lower income households. ... 2.4 What Housing is Available To provide for adequate and suitable housing to meet the needs of existing and future Chula Vista households, it is important to understand what type of housing units are currently available in the City and evaluate current and future trends for the provision of a variety of housing types. - - 2.4.1 Housing ,Unit Type - The US Census reported a total'of 59,529 housing units in the City of Chula Vista in 2000. The 2000 Census indicates 60 percent of Chula Vista's housing units were single family (detached and attached) and 34 percent multifamily. In western Chula Vista, 47 percent of the housing is single family, 43 percent is multifamily, and 10 percent are mobilehomes. In the East the housing market is predominated by single-family housing. Figure 1-4 Eastern Chula Vista Household Type Source: U.S. Census 2000, City of Chula Vista Western Chula Vista Household Type Source: U.S. Census 2000, City of Chula Vista - 13% 1% 9% 47% - . Single family DMultiplefamily ElMobile Home II Other .Single family D Multiple family ElMobile Home II Other ~ Page H- 34 City of Chula Vista General Plan HOUSING ELEMENT PART I By encouraging the provision of a more diverse and balanced housing within both eastern and western Chula Vista, areas are better able to provide opportunities for all income levels, household sizes and types. 2.4.2 Large Bedroom Units Units with a large number of bedrooms (comprising of 3 or more bedrooms) are primarily found in single family owner-occupied units. Approximately 72 percent of owner-occupied units had 3 or more bedrooms compared to 17 percent of renter-occupied units had 3 or more bedrooms. The lack of units with a large number of bedrooms, especially for rental housing limits housing choices for large families and can contribute to overcrowding. _?~~}_. ~g~_ ()(tloy~!ng In Chula Vista, 22% of the City's housing units were built prior to 1960. Approximately 63% of housing units were built prior to 1980. Due to the development patterns of the City, most housing built in eastern Chula Vista was more recent (81% since 1980), while 83% of housing in the west was built before 1980. This statistic indicates that substantial rehabilitation or replacement of housing in the western portion of the city may be needed in the next twenty-five (25) years. ... 2.5 Increasing Housing Opportunities in Western Chula Vista At the same time demand for new housing is increasing, the availability of vacant land for new housing is decreasing. Most of the land in eastern Chula Vista has received the necessary discretionary approvals and are ready to build and many of the master planned communities completed. With limited opportunities for affordable housing in the East it will be necessary for the City to promote urban infill and redevelopment for the future production of housing, including affordable housing, in western (hula Vista. Page H-35 ~V~ - - ~ 0lY Of 0-IU1A VISTA - HOUSING ELEMENT PART I - In order to provide for additional housing opportunities to meet the increasing demand, the update of the Cit)fs General Plan in 2005 represented the Cit)fs first step in recognizing and setting the framework to facilitate revitalization and redevelopment in western Chula Vista. A primary focus of the City of Chula Vista General Plan is to facilitate Chula Vista's evolution to a more urban form in strategic areas as a means to providing for the Cit)fs future needs for housing. - The extensive new development and rapid growth that placed Chula Vista as one of the fastest growing cities in California and the nation occurred mostly in the eastern part of the City, on large, vacant tracts of land developed as master planned communities. In the coming decades, emphasis on development will shift to revitalization opportunities in the developed areas of western Chula Vista. - Natural tensions arise when looking at "built out" areas to redevelop at higher residential densities to meet the Cit)fs growing housing demand. Existing residents, many who have limited financial resources such as seniors and the working poor, face potential adverse impacts resulting from revitalization. Moving from suburban lower densities to a more urbanized form also represents a shift from the comfortable and familiar, which is perceived by some as a threat to their quality of life. Yet at the same time, increased housing provides for greater and safer housing opportunities and helps to revitalize and improve the area. The City will face numerous and significant challenges in its efforts to encourage new housing, particularly affordable housing for low- and moderate-income households, within western Chula Vista including the following: · Availability and size of land; · Economies of scale; · Potential consolidation of residential and non-residentially zoned parcels; · Relocation and displacement of existing residents; · Development impact fees' impacts on development feasibility; · Higher land and construction costs in the current market · Limited city-sponsored financial resources; and, · Perceived resistance to higher development densities. - - - Revitalization is unlikely to occur without a catalyst and development of affordable housing is difficult without direct subsidies and assistance from the City and the Redevelopment Agency. - - Page H-36 City of Chula Vista General Plan HOUSING ELEMENT PART I 3.0 APPROACHES TO MEET IDENTIFIED NEEDS Chula Vista housing policy and development activity over the past decade has encouraged new residential development which was focused in the newly developing communities of eastern Chula Vista, and housing preservation in western Chula Vista. Market rate housing makes up most of the housing produced and has even exceeded the projected needs for this market segment While federal and state programs have provided some subsidies for the development of affordable housing for very-low and low-income households, these resources have been insufficient in meeting the identified needs of this market segment Moderate-income families have also found it difficult to acquire housing that is affordable. Over the next few decades, the City's housing policies must shift to address the challenges of a high cost market and increase the production of housing for all economic levels. Future growth projections for the San Diego region forecast a need for over 100,000 new housing units by 2010. Chula Vista's share of the needed housing is approximately 11,300 new units, with 58 percent or 6,550 units needed for very-low and low-income households. The need for affordable housing is even greater when considering the lack of affordable housing choices for the current population. ((The City's housing policies must shift to deal with a high cost market and increasing the production of housing for all economic levels but more particularly for very low, low and moderate income households. " It is expected that development trends will continue in this planning period and therefore, significant new residential development for upper income households will be constructed in the East by the private market The City's and the community's efforts, through the City's General Plan and other efforts, will focus increased attention on the housing needs of very- low, low and moderate-income households, which are not typically addressed by the private market and to revitalization and development opportunities in western Chula Vista as a means to provide for the growing demands for housing while still trying to achieve a balanced and diverse housing stock, with respect to pricing and housing types, throughout the City. Page H-37 ~I ft.. -TI- ~~:if~ 0lY OF CHUlA VISTA - HOUSING ELEMEtiT PART I The City has begun to lay the appropriate policy and regulatory framework to facilitate infill and revitalization opportunities that yield compact integrated development and greater housing choice. - The City has undertaken a bold, proactive approach to the planning and design of development in western Chula Vista through the adoption of the General Plan update in 2005 and the development of a Specific Plan for the historical center of the City, known as the Urban Core. These planning efforts seek the preservation, enhancement and overall livability of the City's neighborhoods. In order to preserve and protect Chula Vista's stable residential neighborhoods and overall community character, future growth opportunities are directed within strategic areas identified as "Focused Areas of Change". These Focused Areas of Change are located in portions of the Northwest and Southwest Planning Areas along major activity corridors, including Interstate-5, - Broadway, E Street H Street Third Avenue, and Main Street In the East Planning Area, these areas are within the future planned communities of Otay Ranch. The proximity and availability of current and future transportation choices and opportunities for mixed use development and increased - residential densities further the planning area's ability to absorb a significant amount new housing development Policies and programs of this Housing Element promote increased housing production throughout the City and promote diversity in housing choice, particularly in the Southwest Bayfront and East Planning areas. The following is a partial list of these policies and programs, specified in greater detail in Part II of the Housing Element - - - Page H-38 City of Chula Vista General Plan - Maintain and Enhance Housing & Neighborhoods The City will seek to provide assistance to maintain and enhance housing for low- and moderate-income households through the rehabilitation of existing single family and mobilehomes occupied by very-low and low-income households, as well as neighborhoods. A majority of the existing housing stock in the City will be 30 years or older (63%) by year 2010, primarily in western Chula Vista. Therefore, rehabilitation and repair will be required to maintain the value and quality of this aging housing stock and to preserve neighborhood quality. Preservation of UAt-Risk" Affordable Housing HOUSING ELEMENT PART I "Rehabilitation and repair will be needed to maintain the value and quality of this housing and to maintain the quality of neighborhoods. " The City will initiate efforts to preserve, to the greatest extent feasible, existing affordable rental housing that is deed restricted for occupancy by very-low and low-income housing and monitor and replace housing occupied by low- and moderate-income households within the Coastal Zone and Redevelopment Project Areas. The City's existing affordable housing stock plays an important role in housing lower-income households. There are approximately 216 "at-risk" housing units that are restricted for continued occupancy and afFordability by lower income households due to expire by 2010. The loss of the afFordability of these units as a result of conversions to market rate prices would impact the current residents of these communities and decrease the availability of affordable housing in the city. The preservation of these units, when financially feasible and practical, is needed to maintain an adequate supply of affordable housing opportunities. "The existing affordable housing stock plays an important role in housing lower income households. " Page H-39 .s-l~ -n- ~ 01Y OF 0iUlA VISTA - HOUSING ELEMEf\rf PART I Loss of Rental Housing The City will initiate policies supporting the evaluation and provIsion of resources that minimize impacts to residents of losing mobilehome/trailer parks and rental housing through demolition or conversion to other uses and how these policies can positively influence the availability of rental housing.. Within the City, there are mobilehome/trailer park communities and other non-traditional rental properties providing reasonably priced housing opportunities for residents. These housing types are not deed-restricted as a means to provide ongoing affordable housing for lower income households. It is anticipated that as revitalization occurs and the demand for more reasonably priced first time homebuyer opportunities grows, existing rental housing may be lost and replaced by higher cost for-sale housing developments. The loss of such units may continue to negatively impact the availability of reasonably priced housing in the City. "As revitalization occurs, existing rental housing may be lost to make way for higher density and for-sale housing developments. " - Evaluating the loss of affordable housing options and preserving existing housing opportunities for all economic segments of the community and the implications to losing these opportunities is a priority concern for the City. Efforts that minimize the impacts of losing housing units, especially those for very low and low income residents should be implemented when appropriate and financially feasible. - - - Page H-40 City of (hula Vista General Plan - HOUSING ELEMENT PART I New Rental Housing Opportunities The City will initiate efforts that expand rental housing opportunities for very low and low income households. Under the current real estate market current and future residents with limited economic means are likely to need assistance to continue to live in Chula Vista. With approximately 44 percent of Chula Vista households considered very-low and low -income, the City's efforts are focused on increasing rental housing opportunities for these income groups. The gap between housing costs and what a low-income household can afford is significant for owner-occupied housing. Rental housing represents the most effective and efficient method of housing very-low and low-income households based upon their limited financial resources. The lower the housing costs for very-low and low-income households, the more discretionary income is available to meet other necessary living expenses, such as food, transportation, healthcare and childcare. "Rental housing represents the most effective and efficient method of housing very low and low income households based upon their more limited financial resources. " The disparities in household income and housing stock that currently exist between the East and West areas of the City suggest a need for greater diversity in housing opportunities in terms of pricing and housing types within each of these geographic areas. More particularly, more rental housing, especially large bedroom units (3 bedrooms or more), is needed in the eastern areas of the City to provide for greater diversity and housing opportunities for all households unable to afford homeownership in the East but wishing to reside within these communities. Additionally, the Bayfront masterplan should include opportunities for multifamily housing that would allow for the development of rental housing. ~Ql!l~ownersh!p O~portun!!!e~__. The City will initiate efforts to promote homeownership opportunities in areas with significant rental housing to provide a diverse and balanced housing, stock and encourage neighborhood stability. "Homeownership is the cornerstone of a healthy community and the basis for positive community involvement. " Page H-41 ~!f? --- -=.: 0lY Of CHUIA VJSrA - HOUSING ELEMENT PART I Homeownership is seen as a traditional starting point for American families to accumulate wealth and provides important social as well as economic benefits. It is the cornerstone of a healthy community and the basis for positive community involvement - For most homeowners, their home is the largest investment they will make in their lifetimes. Homeownership creates an incentive to stay involved with and invest in the community. Less likely to move and with so much invested, homeowners contribute to neighborhood stability and are more likely to be advocates for quality of life issues, such as reducing crime, childhood education and neighborhood upkeep. Chula Vista's overall homeownership rate of 57.5% is slightly higher than San Diego County (55.4%). However, in Western Chula Vista the rate is lower, 55%, than the citywide rate. Lastly, homeownership opportunities are now slipping out of reach of even moderate-income households. The City's efforts to increase homeownership opportunities in the next five years will focus primarily in the Northwest and Southwest Planning Areas of the City and promoting homeownership for moderate-income households. Special Needs Housing The City will initiate policies that encourage the development of housing, facilities and services to meet the specialized needs of certain population groups. Special needs population groups constitute a significant portion of the demand for housing and require additional support services and amenities. These special needs groups include seniors, persons with disabilities, homeless or the near homeless, emancipated foster youth, single parents, students, and athletes at the Olympic Training Center. Many of these groups may overlap such as seniors who have disabilities. By increasing the amount of affordable housing, especially housing accompanied by access to services and transportation, these special needs groups can be assisted. - "Special needs population groups constitute a significant portion of the demand for housing and require additional support services and amenities. " ... - - Page H-42 City of (hula 'vista General Plan Government's Role The City must attempt to address development challenges, particularly in the West through the provision of incentives and assistance for development advocating for more flexible and appropriate development standards, and evaluating new and updated tools (Le., inclusionary housing, expanding Redevelopment Project Areas) to facilitate housing development There are many challenges to preserving and expanding housing opportunities, especially for very-low, low and moderate-income households. Without involvement from the City or Redevelopment Agency, or a catalyst for development it is unlikely that the private sector alone would be able to provide more housing. HOUSING ELEMENT PART I " Without involvement from the public sector or a catalyst for development, it is unlikely that the private sector alone would be able to provide for more housing. " Page H-43 ~!~ --- ~~~ OIY OF QIUlA VISTA HOUSING ELEMENT PART I BLANK Page H-44 City of Chula Vista General Plan ... - - - - - - - - - - Chula Vista Vision 2020 HOUSING ELEMENT PART II 1.0 OVERVIEW: POLICY & IMPLEMENTATION PLAN This section of the Housing Element describes the "Plan of Action" the City of Chula Vista will implement during the 2005-2010 planning period to implement its Vision and Themes, satisfY the community's present and future housing needs, and meet the specific requirements of State law. In developing the goals, objectives, policies, and programs described in this Plan, the City assessed its housing needs, evaluated the performance of existing programs, and received input from the community through participation in housing workshops. The Policy and Implementation Plan establishes three primary goals that guide the policy program toward providing housing opportunities for Chula Vista residents. These goals are: Goal 1: A Maintained and Enhanced Housing Stock and Neighborhoods; Goal 2: Housing Opportunities that Meet the City's Diverse Needs; and, Goal 3: Maximized Funding and Implementation of Services Vital to Community Housing Needs. To realize these goals, the Policy and Implementation Plan details objectives, policies, and implementing programs according to three major policy focus areas: 1) Maintain and Enhance Housing and Residential Neighborhoods; 2) Balanced and Diverse Housing Opportunities; and, 3) Government Role and Process. While the plan covers a broad array of housing issues that are applicable Citywide, the emphasis of the 2005-2010 Policy and Implementation Plan is on actions enabling the City to maintain and increase housing opportunities affordable to very low, low, and moderate income households, particularly in the urbanized Northwest and Southwest Planning Areas. ~I~ --- ~ Page H-45 01Y OF CHULA VISTA - HOUSING ELEMENT PART II BLANK Page H-46 01y of Chula Vista General Plan JII:: - o ~ CI) E ca - LL c: ca - a.. c: o .- .... ca .... c: CI) E CI) - c. E - "- "- \ \ I I I I en I - en I -+ I e: () I E e I e:o.. ..... I I > 0 I I <.9 I I I I I I I I ~ I I I I I I I I I I I I I I I I I I I I I I I I I ~ I I I I I I I I I I () I e: m en "0 I I ..c:~o e: 0 I W O)..c: I "0 .!: 0 I e:en.c I m~..c: I e:00) I "m I "0; - z I I e: om I :2 I / / - en ->, - C3 ..c: 0) - en "!: Q) "0 ~ ~ ~ O":::z Im<l> t..c:en 0-..... c..en<l> c.. 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'0 ~3l OlC .~~ :J 0 oa> .clF .~~ ro; E<<s ~"8 '" E ~E ~ 8 :J U 8'" c W ,y:i;':;:;J'::":::~:"';'" Chula ,/ "-.....:, ',:./ '\~'.' . !.!~P"':,i Vlsta "\ .:~.".,< V. . \:>;~__:. ->.;; lSlon ~.-c' 2020 HOUSING ELEMENT PART II 2.0 POLICY FOCUS AREAS The following three policy focus areas provide the foundation for implementing the Citys Vision of providing housing opportunities for existing and future residents of Chula Vista and establishes a framework for decision-making to implement this vision. Policy Focus 2.1 Maintain & Enhance the Quality of Housing and Residential Neighborhoods in the City: Rehabilitation of the City's housing stock and preserving the integrity of residential neighborhoods by preventing deterioration and providing necessary capital improvements. Utilize community-based rehabilitation programs such as CHIP to encourage the maintenance and enhancement of residential quality. Policy Focus 2.2 Support Housing Opportunities to Meet the City's Diverse Needs: Utilizing available resources, seek to preserve and provide sufficient suitable, and varied housing by small and large family size, type of unit and cost particularly permanent affordable housing that meets the diverse housing needs of existing and future residents of Chula Vista. Policy Focus 2.3 Fund and Implement Services that Provide Vital Community Resources for Lower Income Residents: Utilizing available resources, fund and implement services and programs that improve residents' ability to secure and maintain quality housing. Page H-49 ~\~ --- =:: cnv Of CHULA VlSl'A - HOUSING ELEMENT PART II 3.0 POLICY FOCUS AREAS, OBJECTIVES, POLICIES AND PROGRAMS - The three policy focus areas provide the foundation for implementing the City's overall housing goals : 1) Maintain and Enhance Housing and Neighborhoods; 2) Balanced and Diverse Housing Opportunities; and, 3) Government Role and Process. These policy focus areas are further described below. _ Each policy focus area is accompanied by at least one objective, or focused goal, and each objective has at least one policy, describing how the City will meet the objective. Objectives and policies are general in nature and serve as the framework for decision-making and priority setting. They address specific needs and are followed by related implementing programs and actions. For each identified policy action, a level of priority has been assigned, a lead City Department identified, possible funding sources described, and an implementation timeline identified. The programs and policies in the Policy and Implementation Plan are categorized into two levels of priorities. · Level 1 Priorities are those that the City is dedicating to address during the 2005-2010 planning period utilizing anticipated resources. · Level 2 Priorities are those that the City acknowledges as important to address and will supplement Levell Priorities, based upon available resources. Some of these policies and programs are currently being implemented, ongoing, and will continue through this planning period. However, many programs are newly proposed and will be implemented within this 2005-2010 planning period. A summary of all the objectives, policies and programs discussed in Part II is provided in Appendix E. - Page H-SO City of (hula Vista General Plan - ,'{>):'::'j:~"'~:~~, Ch ula ,.7" .~';K.'.', ,?, '\~'.: Vt- t ~ sa '\/........ '....:"-..... . /,/ Vision \>J:'~" 2020 HOUSING ELEMENT PART II ... 3.1 Maintain and Enhance Housing and Residential Neighborhoods The City's existing housing stock plays an important role in a providing a decent safe and sanitary living environment for lower income households and in maintaining the quality of residential neighborhoods. With a majority of the existing housing citywide being 30 years or older (63%) by year 2010, there is a potential loss in value and quality as a result of deterioration. A significant number (22%) of the City's housing stock will be 50 years old by year 2010 and more likely to require major repairs. Within the West (area west of 1-805), 33% of the housing stock is already 50 years old. Programs to enforce building, health, and housing codes and the funding minor repairs and rehabilitation of housing will encourage the provision of decent safe and sanitary housing and preserve neighborhood quality. The particular focus of the 2005-2010 Policy and Implementation Plan is repair, rehabilitation and improvement of housing and neighborhoods in the City's Northwest and Southwest Planning Areas. f)l)je~h'e.".~'iH'~ Enforce maintenance of safe and decent housing, enhance the quality of existing housing, and maintain the integrity of residential neighborhoods. Policies & Programs H 1.1 Facilitate rehabilitation of the City's existing housing stock to correct housing deficiencies and increase the useful life of existing housing. Page H-51 ~l~ --- ,,~~~ 0lY OF CHUIA VISTA - HOUSING ELEMENT PART II 1.1.1 Rehabilitation of Owner Occupied Housing: Continue successful implementation of the City's Community Housing Improvement Program (CHIP), which provides favorable loans to low income homeowners and also provides grants for minor repairs to preserve and rehabilitate deteriorating homes and to provide greater accessibility for those with physical disabilities. Eligible rehabilitation activities also include improvements for water conservation, energy efficiency, and lead based paint abatement Assistance will be targeted to homeowners residing in the Northwest and Southwest Planning Areas with priority given to those single- family and mobilehome owners of very low income, special needs and/or senior households. - - - The City will also increase marketing and outreach efforts for the CHIP, especially in lower-income neighborhoods and mobilehome parks. Priority Level: Quantified Objective: Lead City Department: Funding Sources: Implementation Timeline: 1 200 low income units Community Development Department Existing CHIP Revolving Loan Fund Ongoing 1.1.2 Neiqhborhood Revitalization: Continue to implement a pro-active program focusing financial resources and efforts that improve the conditions and appearances of identified target neighborhoods primarily through the 'Neighborhood Revitalization Program' (NRP). This on-going program will target specific low and moderate income neighborhoods within the Southwest Planning Area that exhibit deficiencies in infrastructure. This program will prioritize needs of the neighborhood and provide funding for repair of infrastructure such as paving, curbs, gutters, sidewalks, and drainage facilities. City staff will develop a schedule of provisions of such improvements and combine it with available resources to provide financial leverage of all efforts and achieve maximum results. - Priority Level: Lead City Department: Funding Source: Implementation Timeline: 1 General Services DeptlEngineering Dept HOME, CDBG, other federal and state programs. FYs 2006 & 2007 - Castle Park FYs 2008 & 2009 - Yet to be determined within the Southwest Area - - Page H-52 City of Chula Vista General Plan - <"1'" c,,,... Ch 1 .f,')''''-~'<~'''''c", U a '" ". "" .... / '\\, .:.: ~.-.-'~ 1:%:....-....:..'. \.;i.\\..,. VI- st ~.. a \\2-'..f. '~/'}' Vision -oF-' ........ 2020 <~.-::;;,... :;;;~;~..,.- HOUSING ELEMENT PART II 1.1.3 Rental Housing Acquisition and Rehabilitation: Allocate local funds for affordable housing developers to acquire existing rental housing that is substandard, deteriorating or in danger of being demolished. A minimum of twenty percent of the units, once rehabilitated, will be set aside for very-low income households at affordable rents. Assistance will be targeted to rental housing within the Northwest and Southwest areas of the City, with priority given to those within Redevelopment Project Areas. Priority Level: Quantified Objective: Lead City Department Funding Source: Implementation Timeline: 2 100 housing units Community Development Department HOME; Redev Low Mod Housing Set aside Ongoing 1.1.4 Pursue Funding for Housing Related Environmental Hazard Control: Proactively pursue available Federal or State funding to reduce housing related environmental hazards, including lead hazard control, building structural safety, electrical safety, and fire protection to address multiple childhood diseases and injuries in the home, such as the Healthy Homes Initiative. Priority Level: Lead City Department Funding Source: Implementation Timeline: 2 Community Development Department Department Budget 2008 H 1.2 Eliminate, to the greatest extent feasible, overcrowded, unsafe, and unsanitary housing conditions through the enforcement of building, safety, and housing cod es. 1.2.1 Multifamily Housing Inspection: Provide for the continuance of a multifamily 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. Priority Level: Lead City Department 1 Code Enforcement Division Page H-53 ~lf? --- - 0lY OF CHUlA VlS(A - HOUSING ELEMENT PART II - Funding Source: Implementation Timeline: Department Budget Ongoing - - 1.2.2 Mobilehome Inspection Program: Provide for the continued 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. For those lower income mobilehome owners, where necessary work is fairly extensive, referrals to the City's Community Development Department and Housing Division are made to assist in compliance with Title 25 Regulations. - - Priority Level: Lead City Department Funding Source: Implementation Timeline: 1 Code Enforcement Division Department Budget I Ongoing - - 1.2.3 Code Enforcement Activities: Continue Code Enforcement activities that proactively monitor housing and neighborhood conditions for adherence to minimum standards of habitability and appearance by responding to service requests from concerned citizens. More proactive Code Enforcement Division efforts shall be focused within older neighborhoods in the Southwest Planning Area exhibiting deferred maintenance issues. Extensive code violations noted in owner-occupied homes of very low and low income households shall be referred to the City's Community Development Department for information related to the CHIP. Priority Level: Lead City Department Funding Source: 1m plementation Timeline: 1 Code Enforcement Division Department Budget Ongoing - - Page H-54 City of Chula Vista General Plan - ,,f/j:""'~\, Chula .Y' ~' ;;,K......... \\... V. .....~~':' lsta :"\~....' .".'''.'' ~>/ Vision ~.: .,< 2020 HOUSING ELEMENT PART II Objective -H2 Promote efficient use of water and energy through adopted standards and incentive-based policies to conserve limited resources and reduce long-term operational costs of housing. Policies & Programs H 2.1 Encourage the efficient use and conservation of water by residents, 2,1.1 Water Conservation Practices: Promote the inclusion of state-of-the art water conservation practices in existing and new development projects where proven to be safe and environmentally sound. Priority Level: Lead City Department: Funding Source: Implementation Timeline: 2 Planning & Building Department Department Budget Ongoing 2.1.2 Landscapinq: Promote the use of low water demand (xeriscape) landscaping and drought tolerant plant materials in existing and new development Priority Level: Lead: Funding Source: Implementation Timeline: 2 Planning & Building Department Department Budget Ongoing 2.1.3 Water Conservation Plans for Development Pursuant to the City's Growth Management Program, continue to require the preparation and implementation of Water Conservation Plans for large development and redevelopment projects in accordance with the City's Water Conservation Plan Guidelines or its equivalent Page H-55 ~l f.t.. --- -...." OIY Of CHUlA VJSrA - HOUSING ELEMENT PART II - Priority Level: Lead City Department Funding Source: Implementation Timeline: 1 Planning & Building Department Department Budget Ongoing - 2.1.4 Public Education for Water Conservation: Promote water conservation by residents through appropriately targeted education and community programs. - Priority Level: Lead City Department Funding Source: Implementation Timeline: 1 Conservation & Environmental Services Department Budget Ongoing - H 2.2 Promote the efficient use of energy. 2.2.1 Buildinq Energv Efficiency into Housing: Encourage residential developers/builders to maximize energy efficiency through appropriate site and building design and through the use of energy efficient materials, equipment and appliances. Priority Level: Lead City Department Funding Source: 1m plementation Timeline: 1 Planning & Building Department Department Budget Ongoing - 2.2.2 Public Education for Enerqv Conservation: Develop and distribute pertinent information about the benefits of energy conservation and available energy conservation incentive programs to residents and developers and builders of housing. - - Priority Level: : 2 Lead City Department Conservation & Environmental Services Funding Source: I Department Budget Implementation Timeline: .. Ongoing - 2.2.3 Residential Title 24: Continue to perform a Residential Title 24 Energy Analysis and enforce these requirements as part of building plan check procedures. - - Page H-56 City of Chula Vista General Plan - ..,.1:'....:..................:j: ......-:............':...,~.~'....C hula ..,,~. ...v.. ,\ .... " .... ", V. :! -:;;.:__.-'. lsta ':':'.. ?c.-." ...:..[". ..: VI. SI. on \',>:.~ .~. '>~,'" -c.,>>. ....:.:.:.::. 2020 ,..,~::,,-:~~;~.,. HOUSING ELEMENT PART II Priority Level: Lead City Department Funding Source: Implementation Timeline: 1 Planning & Building Department Department Budget Ongoing 2.2.4 Green Building: Promote the development of high-performance, sustainable buildings that meet LEED (Leadership in Energy and Environmental Design) certification requirements through land use development standard incentives as may be adopted in Specific Plans for the Northwest Southwest and Bayfront planning areas and General Development Plans and Sectional Planning Area Plans for the East planning area. Priority Level: 12 Lead City Department Community Development Department Funding Source: I Department Budget Implementation Timeline: i 2007 ... 3.2 Balanced and Diverse Housing Opportunities Chula Vista is a community with a diverse population and housing stock, particularly in the western area of the City. Housing should be preserved and created to maximize housing opportunities for larger households, a growing senior population, special needs groups, and very low and low income families. The disparities in household income, age and types of housing available between the eastern and western portions of the City demonstrates a need to promote greater diversity in housing choices related to pricing and housing type within each of these geographic areas. When areas of the City are predominated by one type of housing or tenure (owner versus renter occupied), it limits the housing choices of residents and perpetuates the established disparities and associated socials issues. The provision of a variety of housing types in terms of density, size, and more importantly tenure and providing these units in appropriate locations to minimize the creation of economic housing enclaves, will enable the City to accommodate the varied needs and desires of the community in order to achieve more balanced residential communities and to meet underserved housing needs of lower income households. Page H-57 ~l~ - - " 0 0lY Of CHULA VISTA - - HOUSING ELEMEf\IT PART II - The provision of new housing opportunities within mixed-use areas and at higher density levels, particularly in transit focus areas and identified town centers, is encouraged. Mixed use and compact developments can result in easier access to goods and services, and increased employment and business opportunities, and the creation of vibrant community places. - - Objective - H .3 As required by State law, preserve existing affordable housing opportunities, when feasible and practical, to maintain an adequate supply of affordable housing. - - Policies & Programs _. H 3.1 Preserve publicly assisted rental housing "at-risk" of converting to market rate rents. 3.1.1 Expiring Affordability Restrictions: Proactively work with property owner(s) of two (2) "at-risk" assisted housing developments whose affordability restrictions are due to expire by 2010 (Canterbury Court and Eucalyptus Parkview) 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. Priority Level: Quantified Objective: Lead City Department Funding Source: I m pi ementation Timeline: 1 216 low income housing units Community Development Department HOME; Redev Low and Mod Housing Set aside 2007;2009 - - - - Page H-58 City of Chula Vista General Plan - .1':>"':1' ~".""<, Ch ula ,/~ '. "', .,~. ~ i,',f ~ ~;;,~,,;,,. '\ V. t --:::31 ',' 1 S a :'::'" ;7;>;['~'} Vl" sian \~~,,' ~( ',/// "'"i""', .,,>>' 2020 ",~.~;:".' ::;;:;~.,. HOUSING ELEMENT PART II 3.1.2 First Right of Refusal to Maintain Affordable Housing: Evaluate the appropriateness of and modify the terms within required Affordable Housing Agreements that will allow opportunities to maintain the housing as affordable beyond the termination date of the Agreement and providing residents notice prior to termination dates of Agreements. Such opportunities could include a first right of refusal to the City/Agency to purchase the housing for the purpose of continuing the affordability and/or adequate noticing to residents prior to expiration of Agreements to offer them alternative housing options. Priority Level: Lead City Department: Funding Source: Implementation Timeline: 2 Community Development Department Department Budget Beginning in 2006 and ongoing H 3.2 Monitor housing located in the Coastal Zone and Redevelopment Project Areas occupied by low and moderate income households and mitigate the loss of housing in these areas. 3.2.1 Monitorina of Units Lost: Comply with State Law regarding the monitoring and reporting of housing units occupied by low or moderate income households demolished within the Coastal Zone and Redevelopment Project Areas. Priority Level: Lead City Department: Funding Source: 1m plementation Timeline: 1 Community Development Department Department Budget Annually Page H-59 ~,~ --- -...= " 01Y OF CHUlA VISTA - - HOUSING ELEMENT PART II - - 3.2.2 Replacement Housing: Where conversion or demolition of housing units in the Coastal Zone or Redevelopment Project Areas occupied by low or moderate income households is proposed, replacement of such housing will be completed in accordance with State Law and the City's adopted Local Coastal Plan and Redevelopment Plan. - - Priority Level: Lead City Department Funding Source: Implementation Timeline: 11 Community Development Department HOME; Redev Low Mod Housing Set aside Ongoing - - '. ,. ;.'0' ...b....'..ct./:... ..... ...................::N.......C... .......... .<.... '.' Ie 'Ive._. ...... ';..';.....'.. :y. :",.;-'-.;..-',- " ,-";"',' , .'. .., .'. ';::C.":" ......",;..~"..<.,...<..:..... ::......:';..t...; . ..c..... Minimize impacts on housing choice within each of the four geographic planning areas, especially to very low and low-income residents, that result from conversion or demolition of rental housing units. - Policies & Programs H 4.1 Promote an equitable distribution of housing types (e.g., multi-family rental and owner occupied housing) based upon identified needs within the Northwest Southwest and East Planning Areas to provide a range of housing opportunities for all income levels. - - - - Page H-60 City of Chula Vista General Plan - .Y:/"~cl: r~~:,~ Ch uIa ,'/ -'. '. "-'- ~,. . ,:-. .. .......> .J./.' Y' t~;~ ~'~;"~i V. t ..........:Ja..:'.- 18 a ;\ /...:.....,...'.~x..." ,:/ Vision ",,,,,,:...,,:~~ 2020 HOUSING ELEMENT PART II 4.1.1 Community Impact Report Consider requiring a "Community Impact Report" ("ClR") on a project-by-project basis to evaluate and determine a projects impact on the availability of adequate rental housing within the geographic Planning Area and to very low and low income residents. Equitable standards and criteria to determine when a CIR is required by development applicants and the specific review procedures and submittal requirements for CIRs would need to be established. If determined to have a negative impact, consider mitigation measures such as a fee to develop new rental housing or relocation assistance for those impacted low income residents. The preparation of a CIR could be applicable to condominium conversions, mobilehome park c1osureslconversions and demolition of existing housing developments to be replaced by new housing. Priority Level: Lead City Department Funding Source: Implementation Timeline: 1 Community Development Department Department Budget Ongoing 4.1.2 Mitiaation Fee for Lost Units: Evaluate feasibility of establishing a fee to be paid by those residential developments, such as condominium conversions and demolition of housing for the purposes of new development that negatively impact the availability of rental housing stock within the geographic Planning Area. Funds would be used to facilitate the development of new affordable rental housing. When establishing a potential mitigation fee, the City should consider a fee that facilitates the new construction of affordable rental housing while not impeding other housing development opportunities. Priority Level: Lead City Department Funding Source: Implementation Timeline: 2 Community Development Department Department BudQet 2008 H 4.2 Provide resources to very low and low income households based upon household size and income level displaced as a result of the rental housing loss, particularly the most economically vulnerable - the working poor, seniors age 62 or over, and persons with disabilities. Page H-61 ~I~ --- ~",'l::'::: OIY OF CHUlA VISTA .. - HOUSING ELEMENT PART II - - 4.2.1 Mobilehome Park Conversion: Continue to enforce C\lMC Chapter 9.40 to protect the rights of residents as mobilehome/trailer parks are closed or converted to other uses. Evaluate the appropriateness of amendments to the Municipal Code to enhance the protection of the most economically vulnerable residents where the park serves as their primary residence. Consider such elements as adequate bilingual noticing and relocation assistance, to afford some level of protection for very low and low income residents. When establishing relocation assistance, the City should consider requiring appropriate assistance for residents while not impeding alternative development opportunities on the site. - - - Priority Level: Lead City Department: Funding Source: Implementation Timeline: 1 Community Development Department Department Budget 2006-07 - . 4.2.2 Condominium Conversion: Evaluate the appropriateness of amendments to Chula Vista Municipal Code Chapter 15.56 (Condominium Conversion) to evaluate and determine a projeds impact on the availability of a balance of housing opportunities, in terms of tenure of housing, within the geographic Planning Area and provide a heightened level of protection and assistance for those households where the housing serves as their primary residence, particularly the most economically vulnerable. Such provisions may address: adequate bilingual noticing, relocation assistance, requiring a portion of the units as affordable to low and moderate income households, a threshold requirement related to the availability of rental housing for the conversion of rental units, and a physical elements report Also refer to related Policies 3.1 and 7.1.4. - - Priority Level: Lead City Department: Funding Source: Implementation Timeline: 1 Community Development Department Department Budget 2007 - - - - - Page H-62 City of (hula Vista General Plan - Chula Vista Vision 2020 HOUSING ELEMENT PART II 4.2.3 Tenant Rental Assistance: Develop and fund a short-term rental assistance program to provide rent subsidies for a maximum of 24 months for those residents displaced as a result of the conversion or demolition of their housing or unsafe and/or substandard conditions as identified in the California Housing Code and Fire Code. Assistance will target those most economically vulnerable including: very low income residents, low income residents with minor children and residents with a head of household who is permanently disabled or a senior citizen age 62 or over. Establish standards and criteria to prioritize households who are most economically vulnerable and level of assistance based upon household size and income. Priority Level: Lead City Department Funding Source: Implementation Timeline: 2 Community Development Department HOME 2006 4.2.4 Housing Resource Program: Develop a "Housing Assistance Resource Program" which could provide tenant education of rights and procedures for conversions of rental housing to condominium or market priced housing and mobilehome/trailer parks to other uses and offer informational services to any displaced very low and low income renters, such as rental listings and moving assistance referrals. Priority Level: Lead City Department Funding Source: Implementation Timeline: 2 Community Development Department Redev Low Mod Housing Set aside 2007 ......~:_ :';:..~:~X~~1;t'-.~~;lTI.~~If!~~!Bl'~~~~~-.:[1.}'~~lF1:B,.~....'1~~~.: Encourage the provision of a wide range of housing choices by location, type of unit and price level, in particular the establishment of permanent affordable housing for low and moderate income households. Page H-63 ~{~ --- ~=''''.::; CIY Of CHULA VISTA .. - HOUSING ELEMENT PART II - Policies & Programs - H 5.1 Balanced Communities-Affordable Housing: Require newly constructed residential developments to provide a portion of their development affordable to low and moderate income households. - 5.1.1 Affordable Housing C'lnclusionary") Policy: Continue to implement the Balanced Communities-Affordable Housing Policy first adopted by the City's Housing Element in 1981. Current requirements include the provision of 10% (5% low- income and 5% moderate-income) affordable housihg within the development ("on-site"). This policy shall apply to projects consisting of 50 or more dwelling units. Alternatives to the on-site provision of housing include, in order of priority, "off-site" provision of affordable housing and payment of an in-lieu fee. Such alternatives can be considered, at the sole discretion of the City, upon determination of a finding of "unreasonable hardship" to the development and such alternative being in the "public interest'. - - Priority Level: Quantified Objective: 1 300 low-income units and 300 moderate income units. Community Development Department Department Budget Ongoing - Lead City Department: Funding Source: Implementation Timeline: - 5.1.2 Affordable Housing Policy for Infill Development: Evaluate the appropriateness of revising the Balanced Communities - Affordable Housing Policy to more appropriately reflect its application to infill urbanized housing developments. Possible amendments may include lowering the unit threshold of applicability, increasing the percentage of affordable housing units required, targeting velY low and low income households, encouraging flexibility in the methods of compliance, ensuring consistency with the affordable housing requirements of Community Redevelopment Law, and project based incentives for developments that provide additional public benefit such as housing on-site, deeper affordability levels, large family units, and/or an increase in the number of affordable units. - - - Priority Level: Lead City Department: 1 Community Development Department - Page H-64 City of (hula Vista General Plan - '.. ~~:~o"~, Chula hi ~, . , .r \\ Vista \l~~J' Vision ~. . ,'",. 2020 HOUSING ELEMENT PART II Funding Source: Department Budget Implementation Timeline: 2007 5.1J Affordable Housing Policy - Adoption of an Ordinance: Consider implementation of the City's Balanced Communities - Affordable Housing Policy 5.1.1) through the adoption of an Ordinance. Priority Level: Lead City Department Funding Source: Implementation Timeline: 1 Community Development Department Department Budget 2007 H 5.2 Encourage the development of sufficient and suitable new rental housing opportunities within each of the City's four geographic Planning Areas, particularly for very low and low income households. ..t. 5.2.1 New Rental Housing: Promote, through incentives (i.e., fee reductions/deferrals, streamlined project approvals, etc1 the development of new rental housing affordable to very low and low income households where such housing will provide a balanced inventory of housing types (e.g., multi-family rental and owner occupied housing) within the Northwest Southwest East and Bayfront Planning Areas. Unit mix, in terms of number of bedrooms should be consistent with the identified need with a particular emphasis on large family units (3 or more bedrooms) Encourage the inclusion of housing for very low and low income households within the actual development ("on-site") and/or in areas that offer residents easy access to goods, services, jobs, transportation, education and recreation. Lead City Department Funding Source: Implementation Timeline: 1 50 lower-income units in the East 260 lower-income units in the West Community Development Department HOME; Redev Low Mod Housing Set aside Ongoing Priority Level: Quantified Objective: Page H-65 ~Ift.. --- ~c~O' 01Y Of CHUlA VISfA - - HOUSING ELEMENT PART II - - 5.2.2 Incentives for Rental Housing: Consider the formal adoption of project-based incentives that encourage development of additional new rental housing opportunities, particularly to accommodate very low income households, large families, and special needs populations. Also refer to Policies H 7.2 and 7.4 for possible assistance and incentives. - - Priority Level: 11 Lead City Department: i Community Development Department Funding Source: I HOME; Redev Low Mod Housing Set aside Implementation Timeline: . Ongoing 5.2.3 Incentives for Housing Located in Redevelooment Proiect Areas: Provide incentives for projects located in redevelopment project areas to provide affordable housing within the proposed project ("on-site") and to exceed affordable housing requirements established by the Community Redevelopment Law (CRU, particularly for those income categories least served. Also refer to Policies H 7.2 and 7.4 for suggested assistance and incentives. - Priority Level: 11 Lead City Department: . Community Development Department Funding Source: I I' Redev Low Mod Housing Set aside Implementation Timeline: Ongoing - H 5.3 Support efforts to increase homeownership rates, particularly in the Northwest and Southwest Planning areas, meeting or exceeding the regional average as a means to build individual wealth and stabilize existing residential neighborhoods. . - 5.3.1 First Time Homebuyer Assistance: Continue assistance to low income households in purchasing their first home through the Cityts First Time Homebuyer Down Payment and Closing Cost Assistance Program. Consider amendments, as necessary, to the Program to adequately reflect real estate market conditions. - - Priority Level: Quantified Objective: Lead City Department: Funding Source: 1 30 low income households. Community Development Department Department Budget Program funded through HOME funds - Page H-66 City of (hula Vista General Plan - ,,y/." ,'j': iO,:,:;,~~, .Ch uIa <' \;..~. ",;/ '\'\ it ~~ 1~w.r:;.... 0 V. :__'"ii''' ", lsta $" -~..... . Vision 2020 HOUSING ELEMENT PART II Implementation Timeline: I 2007 5.3.2 Continued Occupancy for Homeownership Units: Consider enhancements to policies and programs that further encourage long-term occupancy of housing by a low income household, where practical. Priority Level: Lead City Department Funding Source: Implementation Timeline: 1 Community Development Department Department Budget Ongoing 5.3.3 New For Sale Housing: Promote and support the development and sale of new entry-level homes, including non-traditional land use and financial approaches such as cooperatives, community land trusts, and manufactured housing, that are affordable to low and moderate-income households where such housing will provide a balanced inventory of housing types (e.g., multi-family rental and owner occupied housing) within the Northwest Southwest and East Planning Areas. Unit mix, in terms of number of bedrooms should be consistent with the identified need, with a particular emphasis on large family units (3 or more bedroom units). Encourage the inclusion of housing for low and moderate income households within the actual development (lion-site"). Lead City Department Funding Source: Implementation Timeline: 1 200 low and 200 moderate-income units in the East 30 to 50 low and moderate income units in the West Community Development Department Private resources Ongoing Priority Level: Quantified Objective: 5.3.4 Mortgaae Credit Certificates (MCO Continue to participate with the County of San Diego and other cities to issue and renew Mortgage Credit Certificates (MCC) to qualified first-time low and moderate-income homebuyers. First-time homebuyers are referred by the Community Development Department to the administrating agency. Priority level: Quantified Objective: Lead City Department: Funding Source: 1 25 households Community Development Department Federal Tax Credits Page H-67 ~l~ --- 01Y Of CHUIA VJSI'A - - HOUSING ELEMENT PART II - - Implementation Timeline: I Ongoing - 5.3.5 Homebuver 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. - - - Priority Level: Lead Agency: Funding Source: Implementation Timeline: 2 Community Development Department HOME Ongoing .... 5.3.6 Support Private Financial Assistance Programs: Support and encourage lenders, community development organizations and others to use non-traditional financial approaches to assist low and moderate income first time homebuyers such as Individual Development Accounts and other emerging financial approaches. - - Priority Level: Lead City Department Funding Source: Implementation Timeline: 2 Community Development Department Private resources Ongoing - 5.3.7 Pursue Additional Financing Sources: Proactively pursue Federal, State or private _ funding to provide additional resources specifically targeting teachers and public safety personnel. Priority Level: Lead Agency: Funding Source: Implementation Timeline: 2 Community Development Department Department Budget 2008 ..., - - Page H-68 Oly of Chula Vist:! General Plan - ,,;::/:'" ~""'':'''~, Ch uIa J \<'S ,\~ !L..:t~ \:' Vista '"/ Vision 2020 HOUSING ELEMENT PART II H 5.4 Support mobilehome parks as an affordable homeownership opportunity, consistent with the General Plan. 5.4.1 Mobilehome Soace Rent Review: Continue to enforce CYMC 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 affordable housing alternative. Monitor and revise this Ordinance, as necessary, to ensure the provision of fair and reasonable rents for residents and a reasonable rate of return for park owners. Priority Level: Lead City Department: Funding: Implementation Timeline: 1 Community Development Department Department Budget Ongoing 5.4.2 Resident Ownershio of Mobilehome Parks: When mobilehome park owners want to sell their parks, promote the purchase by park residents through technical assistance in preparing applications for funding sources such as the State Mobilehome Assistance Program and in accordance with CYMC Chapter 9.60, supporting California Civil Code Section 798.80. 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 of a purchase with the mobilehome park owner. Financial assistance provided by the City, Agency, State, or other funding sources may be limited to income eligible residents and require affordable housing costs. Focus assistance on uses that are consistent with the General Plan within Mobilehome Park (MHP) zone designations; not those that are non-conforming uses. Priority Level: Lead City Department: Funding: Implementation Timeline: 2 Community Development Department State MPROP; HOME Ongoing Page H-69 ~I~ --- ::;;"\~j OIV OF CHUlA VISfA - - HOUSING ELEMENT PART II - ...' 'Obj~~ti~e':"~~-':6 . Promote the development of a variety of housing choices, coupled with appropriate services, to meet the needs of special population groups, including the homeless, those lIat-risk" of becoming homeless, persons with physical and/or development disabilities, emancipated foster youth, students, athletes at the Olympic Training Center, single-parent households, farmworkers and seniors. - - - - Policies & Programs - H 6.1 Support the coordination of existing and new regional and local efforts to provide housing and services for the homeless through a continuum of care model. 6.1.1 Homeless & "At-Risk" Homeless-Reqional Planning: Continue to participate in regional planning efforts to address needs of the homeless, including the Regional Task Force for the Homeless and the South Bay Homeless Coalition. - Priority Level: Lead City Department Funding Source: Implementation Timeline: 1 Community Development Department Department Budget Ongoing - 6.1.2. Homeless & "At-Risk Homeless" - Regional Funding: Continue to support regional funding efforts to develop new housing facilities for the homeless and maintain existing facilities and services, including the Regional Continuum of Care Council for San Diego County and its application for funding through the Federal Supportive Housing Program, local FEMA Board, County of San Diego Hotel/Motel Voucher Program and temporary winter shelters. - Priority Level: Lead City Department 1 Community Development Department - - Page H-70 City of (hula Vista General Plan ,1(:::: r::;~\ Ch ula .,; ..~ .~~;.. \\\ V. ,,_....;~,:< .. \11 lsta Vision 2020 HOUSING ELEMENT PART II Funding Source: I CDBG, HOME, Redev Low Mod Housing Set aside, I FEMA, other federal programs, and private sector i programs. I Ongoing I Implementation Timeline: 6.1.3 Existing & New Emerqency Shelters & Transitional Housinq: Continue in-kind and financial assistance for existing and new emergency shelters and transitional housing facilities that serve the City by providing technical assistance, siting opportunities, grants, or low cost loans to operating agencies. Priority Level: Lead City Department Funding Source: 1 Community Development Department CDBG, HOME, Redev Low Mod Housing Set aside, FEMA, other federal programs, and private sector programs. Ongoing Implementation Timeline: 6.1.4 Information of Resources for Basic Needs: Develop publicly distributed informational materials to provide contact information regarding basic needs, such as emergency food, shelter, and services for the homeless. Priority Level: 2 Lead City Department Community Development Department Funding Source: CDBG and private sector programs. Implementation 2008 Timeline: H 6.2 Encourage the development of alternative housing types in locations with easy access to goods, services, transportation, recreation and other appropriate services to accommodate the special needs of seniors, persons with disabilities, emancipated foster youth, students, athletes, and single person households. 6.2.1 Second Dwelling Units: Continue to allow construction of new accessory secondary dwelling units in areas where the units do not compromise the neighborhood character, as defined in Section 19.58.022, Accessory Second Dwelling Units, of the Chula Vista Municipal Code. Priority Level: \1 Page H-71 ~{f?- --- ;: =" 01Y OF CHUlA VISrA ... ..... HOUSING ELEMENT PART II - - Lead City Department Funding Source: Implementation Timeline: Planning & Building Department Department Budget Ongoing - - 6.2.2 Shared Living: Support programs for shared living that connect those with a home and are willing to share living accommodations with those that are seeking housing, particularly seniors, students, and single person households. - Priority Level: Lead City Department Funding Source: Implementation Timeline: 1 Community Development Department CDBG Ongoing - 6.2.3 Co-Housing: Evaluate the viability of co-housing where residents share common facilities (e.g., cooking facilities) and amendments to Title 19 of the Chula Vista Municipal Code and other documents, where appropriate, to facilitate its development - Priority Level: Lead Department Funding Source: Implementation Timeline: 2 City Community Development Department - Department budget Ongoing - 6.2.4 Farmworker Housing: Continue to monitor the continued availability of farmworker housing at the Brisa del Mar development to ensure the continued provision of housing to meet the needs of the City's farmworker population. - -, Priority Level: Quantified Objective: Lead City Department Funding Source: Implementation Timeline: 1 34 rental housing units Planning & Building Department - Department budget Ongoing -, - Page H-72 City of (hula Vista General Plan - Chula Vista Vision 2020 HOUSING ELEMENT PART II 6.2.5 University Housing: Encourage the development of a variety of housing types in the University Village Focus Area in the East recognizing the need for higher residential densities and the need for varied housing resulting from the proposed university, such as housing for students, faculty and employees. Priority Level: Lead City Department Funding Source: Implementation Timeline: 2 Community Development Department Private Resources; HOME Ongoing 6.2.6 OlymDic Training Center Housing: Encourage the development of housing located at the Olympic Training Center (OTe) for athletes and employees participating in programs at the Center. Priority Level: Lead City Department Funding Source: Implementation Timeline: I ~ommunity Development Department Private Resources Ongoing 6.2.7 Accessible Housing Regulations: Continue to maintain and implement California Title 24 provisions for the review and approval of residential developments. Priority Level: Lead City Department Funding Source: Implementation Timeline: 1 Planning & Building Department Department Budget Ongoing 6.2.8 Senior Housing Services: Encourage the development of senior housing developments through incentives (Le, expedited processing, fee waivers, etc.) that provide a wide range of housing choices from independent living to assisted living with access to services on-site, including healthcare, nutrition, transportation and other appropriate services. Priority Level: Lead City Department Funding Source: 2 Community Development Department Department Budget ~lft. - - -= = ~ 01Y OF CHUlA VlSfA Page H-73 ... - HOUSING ELEMENT PART II - - Implementation Timeline: I Ongoing - - ... 3.3 Government Role & Process Local Government plays a significant role in fostering the development of affordable and special needs housing. Conversely, in its efforts to protect and enhance the overall community, local government can implement land use controls, building codes, development standards, permit and processing procedures, and fees and exactions, that constrain the operations of the private, nonprofit and public sector when introducing new housing products to market These constraints can result in limiting the supply of housing and increasing the costs of development (see Appendix B). Programs aimed at mitigating these constraints and evaluating the necessity of these requirements can assist in decreasing the overall cost of housing production while at the same time protecting the community and the environment - - ';'2"';""=!;B~='iiE'"~^ifl"'iiE~~' . a:::Ii;;;i1;~. ~..~;::^ ,:;~:1;:~G.~i~':\&8i~~'~(:?':~E,-;:;]L::~',~::,.:R~:~' ~-"~ Facilitate the creation, maintenance, preservation and conservation of affordable housing for lower and moderate-income households through comprehensive planning documents and processes, and the provision of financial assistance and other incentives. - Policies & Programs - H 7.1 Ensure (hula Vista's plans and policies addressing housing, such as the Zoning Ordinance, Sectional Planning Area Plans, and Specific Plans, encourage a variety of housing product that responds to variations in income level, the changing live- work patterns of residents and the needs of the City's diverse population. - - Page H-74 City of Chula Vista General Plan - ,,f/':':~O''''''~ Chula -t' '. ;~~ (,c'~~. Vista -::"'.<: Vision 2020 HOUSING ELEMENT PART II 7.1.1 Specific Plans: Develop and consider for adoption Specific Plans for the Urban Core and Southwest Planning Areas in order to implement the General Plan Update which will allow the development of higher density housing, particularly within identified mixed use residential and mixed use transit focus areas. Priority Level: Lead City Department: Funding Source: Implementation Timeline: 1 Community Development Department Department Budget 2006-07 (UCSP) 2007-08 (Southwest) 7.1.2 Zoning: Update Title 19 of the Chula Vista Municipal Code, to implement housing-related land use policy contained in the General Plan Update of 2005. Priority level: Lead City Department: Funding Source: Target Year(s): 1 Planning &. Building Department Department Budget 2008 7.1.3 Remove Constraints to Housing for Persons with Disabilities: Review and update applicable sections of the Chula Vista Municipal Code and Building code and other City processes to remove identified constraints, if any, to allow reasonable accommodations for persons with disabilities. Priority Level: Lead City Department: Funding Source: Implementation Timeline: 1 Planning &. Building Department Department Budget 2008 H 7.2 Ensure the entitlement process and infrastructure levies do not affect the feasibility of affordable housing development 7.2.1 Priority Processing: Assign priority processing of the necessary entitlements and plan checks to expedite the development process for residential developments, which do not require extensive Engineering or environmental review, with at least 15 percent of the units as affordable for very low and low income households. Priority Level: I 2 Page H-75 ~l~ --- -'.',= 01Y Of CHUlA VISTA - - HOUSING ELEMENT PART II - - Lead City Departments: Planning & Building Department; Community Development Department Fee Ordinance I Ongoing - Funding Source: Implementation Timeline: - 7.2.2 Development Fees: Continue to consider subsidizing, waiving, or deferring fees for affordable units for very low and low income households on a case-by-case basis. Requests are evaluated based upon the developmenfs effectiveness and efficiency in achieving the City's underserved housing needs and as allowed by the City's Municipal Code. Also refer to related H Policy 7.4.5. - - Priority Level: Lead City Department: Funding Source: Implementation Timeline: 2 Community Development Department Department Budget Ongoing - 7.2.3 Flexible Development Standards: Continue to encourage the provision of flexible development standards in residential zoning districts as part of the City's discretionary review process to facilitate the development of housing for very low and low income households. - Priority Level: Lead City Department: Funding Source: Implementation Timeline: 1 Planninq & Building Department Department Budget Ongoing - - 7.2.4 Article XXXIV: Assess the applicability of Article XXXIV of the California Constitution to certain housing developments where the City and/or Agency are considering financial assistance or other incentives to assist in the development of affordable housing. Evaluate the appropriateness of a possible referendum to obtain more aUthori1y for the Ci1y/Agency's development construction or acquisition of "low rent housing." Priority Level: Lead Ci Department: Funding Source: - - Page H-76 City of Chula Vista General Plan - HOUSING ELEMENT PART II Implementation Timeline: 12007 H 7.3 Pursue opportunities to expand financial resources assisting housing development for lower and moderate-income households. 7.3.1 Expand Redevelopment Proiect Areas: Evaluate the viability of expanding redevelopment project areas to include more residential areas. Priority Level: Lead City Department Funding Source: Implementation Timeline: . 1 Community Development Department Department Budget 2007 7.3.2 Maximize Redevelopment Funds: Develop financial strategies that maximize redevelopment income streams, such as bond financing. Priority Level: Lead City Department Funding Source: Target YearCs): 2 Community Development Department Department Budget 2007 7.3.3 California Reinvestment Act Work with local financial institutions to meet their community reinvestment obligation under the Community Reinvestment Act Priority Level: 2 Lead City Department Community Development Department Funding Source: Department Budget Implementation Ongoing Timeline: 7.3.4 Pursue Affordable Housing Fundinq: Proactively pursue available Federal or State funding to increase, preserve, and enhance housing affordable to low income households. Priority Level: Lead City Department Funding Source: 1 Community Development Department Department Budget Page H-77 ~\~ --- ~~ = ~ CJl\'Of CHUIA VISTA - HOUSING ELEMENT PART II - - Implementation Timeline: 12008 - H 7.4 Provide financial assistance and incentives for the preservation and creation of affordable housing to address the underserved financial needs of very low and low income households throughout the City. - - 7.4.1 Density Bonus: Amend Title 19 of the Chula Vista Municipal Code to authorize a density bonus and/or other incentives for new housing developments and condominium conversions providing the required affordable housing as specified in the California Government Code. - Priority Level: Lead City Department: 1 Community Development Department Planning & Building Department Department Budget 2007 - Funding Source: Implementation Timeline: - 7.4.2 Land Banking: Actively identify and pursue the acquisition of sites located in proximity to goods, services, jobs, transportation, education, recreation and/or other amenities for permanent affordable housing. - Priority Level: Lead City Department: Funding Source: Implementation Timeline: 1 Community Development Department Redev Low Mod Housing Set aside Ongoing - 7.4.3 Public Pro De rty: Evaluate the viability of providing affordable housing on City or Redevelopment Agency owned property that becomes available or is deemed surplus property. Priority level: Lead City Department: Funding Source: Implementation Timeline: - 1 Community Development Department Department Budget Ongoing Page H-78 Cily of (hula Vista General Plan - ,f/'cC:~''-'2,~~ Ch uIa ? ~ .~ \, . i..~., "~' \~ V lsta Vision 2020 HOUSING ELEMEtif PART II 7.4.4 Affordable Housing in Public or Quasi-Public Zones: Evaluate the appropriateness of allowing affordable housing within public or quasi-public zoning designations, when appropriate. Priority Level: Lead City Department: Funding Source: Implementation Timeline: 1 Planning & Building Department Department Budget Ongoing 7.4.5 Financial Assistance: Continue evaluating on a case-by-case basis requests from developers for financial assistance to provide affordable housing opportunities for very low and low income households. Requests are evaluated based upon the developmenfs effectiveness and efficiency in achieving the City's underserved housing needs, such as very low income households and rental housing for large families. Assistance will be offered to the extent that resources and programs are available. Priority Level: . Lead City Department: Funding Source: Implementation Timeline: 1 Community Development Department CDBG; HOME; Redevelopment Agency Low Mod Fund Ongoing , . ^~;-;7~""'";~:-.- -_~--' ,;-._~,,:: ~,~.~-~,:'~''''''~~:'~~)'!-',tr::';.'C~::':::::->:-;:'<-:>~'' 7-:o:~r"'7"'.'.''''::~-\.:C7.::<'~-~-~::'~~::H-::;:;,- _~:;"..... "'''. . ..' ..... ...." ,,' ......"....Dfj..'."'..."'~.^..~."'~.:,~'jC ..)L~.;~,;.~.:. A..:':':...1iii~,fi(~::::;~;!:;EEii?~&~~;!~~~~~~~~1 Ensure the availability of housing opportunities to persons regardless of race, color, ancestry} national origin, religion, sex, disability, marital status, and familial status, source of income or sexual orientation. Policies & Programs Page H-79 ~I~ --- ~ cmOf CHUlA VISTA - HOUSING ELEMENT PART II - - H 8.1 Ensure equal housing opportunities to prevent housing discrimination in the local housing market - 8.1.1 Affirmative Marketing & Leasing: Require affordable housing developments for low and moderate income households to comply with the following policies: · In marketing and leasing efforts, require outreach to minority communities, including advertising in multi-lingual media; · Require the monitoring of lease and sales efforts for compliance with affirmative marketing; and, · Require periodic reporting to the Community Development Department on the composition of resident populations in units, income levels and affordability of the units. - Priority Level: Lead City Department Funding Source: Implementation Timeline: 1 Community Development Department Department Budget Ongoing - - 8.1.2 Fair Housinq Education & Counseling: Support programs for outreach and education on housing rights, counseling and mediation of discrimination complaints. Where appropriate, refer to other agencies, including State and Federal enforcement agencies. Priority Level: Lead City Department Funding Source: Implementation Timeline: 1 Community Development Department CDBG Ongoing - - ,;.~~ji~~r ..v~I'II., 1lt" }t~~~'~;~S;tl7';;@t.~j -, .;. Promote and facilitate early, transparent public input and participation emphasizing community awareness of the City of Chula Vista's goals, tools, available resources and programs for lower income households. - - - Page H-80 City of (hula Vista General Plan - :=~~~ Chula i ~t V. ':\\ ~ ~ ;;: lsta \~~ ~~/' Vision "'~>~-J .--<.,> 2020 '..."::;;:" :;;.~;::.,. HOUSING ELEMENT PART II Policies & Programs H 9.1 Encourage meaningful public participation by all segments of the community, including low and moderate income residents, the business sector, social service agencies, renters and homeowners, when reviewing and developing City housing policies and affordable housing projects. 9.1.1 Public Input & Participation: Incorporate public input and participation in the design and development of City housing plans and policies. Priority Level: Lead City Departments: Funding Source: Implementation Timeline: 1 Planning & Building Department Community Development Department Department Budget Ongoing 9.1.2 Bilingual Noticing: Expand the City's bilingual noticing requirements for pending actions, meetings, and workshops sponsored by the City and/or Agency related to affordable housing for low and moderate income households. Priority Level: Lead City Department Funding Source: 1m plementation Timeline: 1 Planning & Building Department Community Development Department Department Budget Ongoing 9.1.3 Public Outreach & Education of Resources: Initiate a bilingual educational campaign to Spanish speaking lower income renters in the Northwest and Southwest Planning Areas to provide information on the City's housing resources and programs. Priority Level: 2 Lead City Department Community Development Department Funding Source: Department Budget Implementation Timeline: Ongoing Page H-81 ~((?- --- =:: cnv OF CHUlA VISTA .. - HOUSING ELEMENT PART II - - - 9.1.4 Marketing of Affordable Housinq Sites: Require through conditions of approval on discretionary permits, the development of outreach or other appropriate marketing materials identilYing the location and type of affordable housing sites citywide to ensure existing and potential residents are aware of affordable housing opportunities. - - Priority Level: Lead City Department: Funding Source: Implementation Timeline; 2 Planning & Building Department Department Budget Ongoing - 9.1.5 Annual Housing Report: Provide an annual report to an oversight body to advise the City Council on the City's existing housing stock and policies. The annual report shall provide for a monitoring and reporting of updated housing data relative to housing starts, demolition and conversion of rental housing, affordability levels, market trends, existing housing by tenure and type and by geographic areas, and other relevant data and an evaluation of progress in implementing the policies of the Housing Element The annual report shall also be made available for review in public locations. - Priority Level: 1 Lead City Department Community Development Department Funding Source: I Department Budget Implementation Timeline: Annually - - - Page H-82 City of Chula Vista General Plan - ,.f:/:'cj:~C~"~~ Chula ,H ,,'I. :"'.>'. ,;.. ~:',' ',"" .~'''.,,' \'y. . i......i~..... 'i'.~...' "i-. .'.".' V t " ~ ...., 1S a ~/~.~' ';,~~,,'~.'.".i~;:'~.~:~;Y Vision "',',-" \ ,.;.J:, ',""C"; ..<.:<,/ 2020 ><~~ ::,::.>" HOUSING ELEMENT PART III 1.0 OVERVIEW: QUANTIFIED OBJECTIVES California Housing Element Law requires jurisdictions to estimate the number of affordable housing opportunities that will be created over the five-year planning period. The City has two sets of numerical housing goals; the Cityls share of the SANDAG Regional Housing Needs Assessment (regional share goals) and the Quantified Objectives for Affordable Housing Production. The total regional share goal is to provide adequate land resources to accommodate approximately 11,300 new housing units, 6,550 of which are for low and very low income households. To determine the adequacy of land for very low and low income households, the City must demonstrate the availability of land zoned for 30 dwelling units per acre or greater.. The analysis of adequacy of available land resources is provided in Appendix C of the Housing Element This total housing need is greater than the City has available resources to facilitate. Therefore, the City establishes a quantified objective for the actual creation of affordable housing opportunities and the provision of other housing assistance. Page H-83 ~\ft.. - - ~=;t,,~ 01Y~ CHlIA VISTA - - HOUSING ELEMENT PART III - 2.0 QUANTIFIED OBJECTIVES Part II of the Housing Element outlines policies and programs that range from the new construction of housing, rehabilitating housing, and other housing assistance programs such as rental assistance, homebuyer assistance, and homeless services. These programs and policies are categorized into two levels of priorities: - · Level 1 Priorities are those that the City is dedicated to addressing within the five years with the expected resources. · Level 2 Priorities are those that the City acknowledges as important to address should resources allow. - Many programs and policies reduce barriers and create opportunities for a balanced community. These goals are essential to meeting the City's housing needs, but are more qualitative in general. The quantified objectives adopted by the City of Chula Vista are based upon the Level 1 goals, policies and programs outlined within the City's Plan of Action, as outlined in Part II. The City reasonably expects that a total of 5,171 households will be assisted, as summarized in Table 111-1 below. A more detailed summary of the specific programs and the associated priority level and quantified objective is provided in Appendix E. - - - Activity Table 11I-1 Summary of Objectives 2005-2010 Very-Low Low - Moderate - First time Homebuyer Assistance Mortgage Credit Certificates Shared housing 25 30 25 300 300 Mobile Home Space Rent Review Local Rental Assistance 80 80 20 100 80 Page H-84 City of (hula Vista General Plan ~")l"''':;':\", Ch la /l~ji':i'~\ "':l ...~" Vlsta " .' ..:.-~" \;, "/.....;.'..'..,.A..~ /.; Vl.sion \'^\ '.';/ "....... . 2020 "->.:_ ".0.::'::'" HOUSING ELEMEf\IT PART III Activiw Table 11I-1 Summary of Objectives 2005-2010 Very-Low Low Moderate TOTAL By Activiw 80 105 Education, Referrals, Fair Housing Homeless Services 105 80 Reha bil i1ation "At-Risk" Units Condominium Conversion Farmworker Housing :flreservatioll' Multi-Family/Mobile Home Inspection Code Enforcement (owner) Code Enforcement (rental) 1,122 3,300 If additional resources become available, the CiW reasonably expects that up to an additional 1,680 households will be assisted. These quantified objectives were derived for the Level 2 goals, policies and programs outlined within the City's Plan of Action, Part II of the Housing Element Additionally, there are housing programs and services available to Chula Vista residents that the CiW does not administer. For example, approximately 2,500 Chula Vista residents receive Section 8 rental assistance through the Counw of San Diego. These households pay an affordable rental rate while residing in market rate rental housing. These wpes of programs and services were not included in the City's Plan of Action or the quantified objectives, as the CiW does not directly provide support Page H-85 ~!~ --- "O'~"I- C1Y Of OlUlA VISrA - HOUSING ELEMEI\IT PART III -, 3.0 PLANNING FOR NEW CONSTRUCTION - - Table 111-2 shows the new construction goals for the City during the planning period from 2005-2010 based upon Chula Vista's share of the Regional Housing Needs Assessment (RHNA). New construction is heavily dependant on market demands, Federal, State, and County programs, and private funding. Even with very aggressive policies and programs, given that areas in western Chula Vista are primarily mature and built-up and the remaining large tracts of vacant land in the east are already planned and ready for development the previous years' housing production record and limited public financing for affordable housing, these objectives are likely to be unachievable. Therefore, the City cannot guarantee these needs will be met Table 111-2 also provides the RHNA goals. The availability of land suited to meet this goal is described in Appendix C - The City anticipates that much of the new construction will result from building out the newly developing master planned communities in the East Planning Area and increased pressure for infill development redevelopment and mixed-use development especially in the City's Urban Core Specific Plan Area. It is anticipated that nearly 1,000 housing units or 8% of the anticipated construction of market rate or above moderate construction will be built within the Northwest and Southwest Planning Areas. Previous housing production has demonstrated that new construction of housing for very low and low income households falls short of the projected need. The estimated gap between the costs of producing a unit and what a very low or low income household can financially support is enormous. Capital subsidies, primarily from federal, state, and local funding programs, are necessary for the production of housing for these income groups. With the availability of future public subsidies impossible to predict the City assumes an anticipated funding level that sustained the last decade's affordable housing production. However, setting the goals to be more "realistic" and achievable" does not accurately reflect the need. Additionally, due to the delays in determining the regional allocations of new construction need by jurisdiction in the SANDAG region, the actual planning period is a 7 1fz year period, beginning in January of 2003. As a result of this delay in regional allocations, the City of Chula Vista may count as credit those units constructed during the period January 2003 through June 2005. Page H-86 City of Chula Vista General Plan ,y;;::'~~ .~~~,,~ Ch ula /1 ,,!l:(i/.;''iJ. e '" J!'.~,- \~\ Vl.sta ,':i_. . \',1 Vision 2020 HOUSING ELEMENT PART III Table 111-2 NEW HOUSING CONSTRUGlON OBJEOlVES 2005-2010 Income Category RHNA Construction New Units Constructed Remaining RHNA Need (Jan 2003 - June 30, 2005) Construction Needed Very Low 3,875 30 3,845 Low 2,945 241 2,704 Moderate 3,255 538 2,717 Above Moderate 7,148 5,107 2,041 Total 17,223 5,916 11,307 Chula Vista will use the RHNA new construction goals as a long-term target that it hopes to achieve but will annually assess its housing priorities against the reality of available resources. Each year as resources are known to be, or reasonable expected to become available, shortfalls in achieving goals and actions outlined within Part 11 and the quantified objectives specified within this Part can be assessed, program targets shifted appropriately and resources allocated effectively and efficiently. Page H-87 ~!f.?. --- ~~"~~ 0lY Of CHUlA VISTA - HOUSING ELEMEtif PART III 4.0 IMPLEMENTATION TOOLS -- The City of Chula Vista has a number of federal, state, and local resources available for housing activities. Table 111-3 summarizes the resources available to the City to achieve the housing goals, objectives, policies, and program actions in this Housing Element Table 111-3 SUMMARY OF RESOURCES AVAILABLE FOR HOUSING AcnvmES erTY OF CHULA VISTA Program Local Resources CHIP Loan Fund CHIP Grants I Description - The Community Housing Improvement Program (CHIP) proVides funds to income-qualified homeowners to address health and safety-related issues within the home. CHIP funds are available to make improvements to owner-occupied residences within the City of Chula Vista. Eligible residences that may be assisted include: single family homes, mobilehomes, townhomes and condominiums. The CHIP Loan will provide up to $24,000 for low-income homeowners to make health and safety related repairs and improvements and then to address cosmetic issues. The CHIP Grant provides assistance on a first-come first-seNe basis to very low-income homeowners and is money that does not have to be repaid. Grant funds are only available once to each eligible household and must be used for health and safety related repairs and improvements. I Eligible Activities · Home Improvement . Rehabilitation · Home Improvement · Rehabilitation Page H-88 City of Chula Vista General Plan 1/)"'1: r"'":~"..", Chula ':;."". ~.H~..~' i.,.'\\"" Vi- sta " ..; .' \(~>"'.?:;,~),: Vision .."'.........,. 2020 ,,:-.-..;.:..;:.::.,., HOUSING ELEMENT PART III Table 111-3 SUMMARY OF RESOURCES AVAILABLE FOR HOUSING ACTlvrnES CflY OF CHULA Y1SfA Program Description Eligible Activities Chula Vista Funds received from increased . Residential rehab loans Redevelopment property taxes generated by . Replacement housing Agency Low Income improvements by the City's . Neighborhood Set-Aside Fund redevelopment project areas, Twenty Improvement programs percent of these property tax fu nds . Neighborhood capital must be set aside for the development improvement programs preservation, or rehabilitation of . Mortgage assistance affordable housing . Downpayment assistance . Rehabilitation . Mobile home Rehab Redevelopment T ax- The Redevelopment Agency has the . Housing Development Increment Financing authority to issue tax exempt bonds, Bond proceeds are used to develop affordable housing General Fund The City's General Fund may be used . Program Development to provide programming, planning and . Program Administration administration of housing programs City/Agency Owned If available and appropriate, the City of . Housing Land Redevelopment Agency may utilize . Community Facilities owned land for housing development San Diego Regional The San Diego Regional Mortgage . Homebuyer Assistance Mortgage Credit Credit Certificate Program allows Certificate (MCC) qualified first-time homebuyers to Program reduce their federal income tax by up to 20 percent of the annual interest paid on a mortgage loan. An MCC may only be used to purchase single- family detached homes, condominiums, and town homes. State Resources Mortgage Credit Certificate (MCC) Federal tax credit for low and moderate-income homebuyers who have not owned a home in the past three years. Allocation for MCC is provided by the State . First time homebuyer assistance Page H-89 ~Ift.. --- ~~~;:: 01Y OF CHUA VISTA - HOUSING ELEMENT PART III Table 111-3 SUMMARY OF RESOURCES AVAILABLE FOR HOUSING AcnvmES CflY OF CHULA VISTA - Program Description Eligible Activities Emergency Shelter Grants awarded to non-profit . Support Services Prog ra m organizations for shelter support services CHFA California CHFA sells tax-exempt bonds to . Homebuyer Assistance Housing Finance provide below-market loans to first Agency time homebuyers. Program is operated via participating lenders that originate loans purchased by CHFA L1HTC Low Income Tax credits available to individuals and . Rehabilitation Housing Tax Credit corporations that invest in low-income . New Construction rental housing. Tax credits are sold to . Acquisition corporations and people with high tax liability, of which the proceeds are utilized for housing development Tax Credit for Low- Provides tax credits for owners of or . New Construction Income Rental investors in low-income rental . Rehabilitation Housing Program housing. Tax credits are available for use of 10-year period. Tax credits are typically sold to investors to help finance initial development of a project Preservation This program for non-profit . Acquisition Mortgage Program organizations can be used as acquisition financing for projects that employ tax-exempt bonds and tax cred its Acquisition and A component of the Multi-family . Acquisition Loans Rehabilitation Housing Program. Acquisition and . Construction/Rehab Loans rehabilitation of existing affordable . Long-Term Loans rental housing. Priority is given to . Rent Subsidies projects currently subject to regulatory restrictions that may be terminated. CHFA 100% Loan Provides 100% of the financing needs . Acquisition Loans Program (CHAP) of eligible first-time homebuyers by . Downpayment Assistance providing a below market interest rate . Long-Term Loans first mortgage combined with a 3% - - - Page H-90 City of (hula Vista General Plan HOUSING ELEMENT PART III Table 111-3 SUMMARY OF RESOURCES AVAILABLE FOR HOUSING AcnvJT1ES erJY OF CHULA V1SfA Program Description Eligible Activities 'silent second'. Mortgage to purchase newly constructed or existing (resale) housing. CHFA Affordable Provides below market rate mortgages . Acquisition Loans Housing Partnership to qualified low-income, first-time . Long-Term Loans Prog ra m (AH PP) homebuyers who also receive direct financial assistance from their local government such as down payment assistance or closing cost assistance. CHFA Bridge Loan A 2nd Loan program designed to . Acquisition Loans Program provide tax-exempt funds necessary to . Construction/Rehab Loans meet the 50% Basis Test required for 4% Tax Credits. CHFA Program offers single-family . Long-Term Loans Homeownership homeownership loans requiring as . Acquisition Loans Program little as 3% down payment at below- . Downpayment Assistance market interest rates (BMIR) to first- time low- and moderate-income buyers to purchase new or existing (resale) housing. Eligible borrowers can simultaneously access such down payment assistance as may be available from CHFA or localities. Cal-Vet Home Loan Program provides low downpayment . Acquisition Loans Program (2%) below market interest rates to . Construction/Rehab Loans qualified active duty personnel and . Long-Term Loans veterans. Financing through bond funding at no cost to the tax payer. 1% loan origination fee paid by buyer or seller. CalHome Program Grants to local public agencies and . Grants nonprofit developers to assist . Construction/Rehab Loans individual households through . Acquisition Loans deferred-payment loans; direct forgivable loans to assist development projects involving multiple ownership Page H-91 ~\f~ --- "'t:"''I:-~ CIIY OF CHULA VISfA - HOUSING ELEMENT PART III - Table 111-3 SUMMARY OF RESOURCES AVAILABLE FOR HOUSING ACf\V\TlES CflY OF CHULA VISTA Program Description Eligible Activities units, including single-family subdivisions. CalPers Member Offers eligible CalPers members a . Acquisition Loans Home Loan Program variety of benefits in purchasing or . Downpayment Assistance refinancing a home. . Long-Term Loans Emergency Housing Provides funds for acquisition, . Acquisition Loans Assistance Program construction, or rehabilitation of sites . Construction/Rehab Loans for emergency shelters and . Business Loans transitional housing for homeless persons. Housing Enabled by The HELP Program employs a loan-to- . Acquisition Loans Local Partnerships lender approach to proVide lO-year, . Construction/Rehab Loans 3% simple interest rate per annum, . Pred evelopmentll nteri m minimally restrictive loans to local Finance government agencies. The program challenges local agencies to prioritize their unmet housing needs and to design housing programs that target their particular priorities. This approach allows the local agency to more closely match local housing policy and accountability with project performance. Increasingly, the program is being used to facilitate affordable housing within more targeted comprehensive local programs for neighborhood revitalization and economic development Mobilehome Park Provides loans for preservation of . Acquisition Loans Resident Ownership affordable mobilehome parks by . Long-Term Loans Program conversion from private ownership to ownership or control by resident organizations, non-profit housing sponsors, or local public agencies. CHFA Builder-Lock Builders/Developers may purchase . Long-Term Loans (BLOCK) Program forward commitments (FCs) for . Downpayment Assistance Page H-92 City ofChula Vista General Plan if('~:;:~~~, Chula (7 ..-:..:f$ :~:.-- \\, V. t ,"" ~"""""',, 1S a \,\,,~;[:,;"_}F .. \::~,,,/i.':;.' ...'...." ./: VISIon "'-~ . /' /' "'\"~:'''<':'::<:' 2020 HOUSING ELEMENT PART III Table 111-3 SUMMARY OF RESOURCES AVAILABLE FOR HOUSING ACfJvmES CflY OF CHULA VISTA Program Description Eligible Activities permanent mortgage financing for CHFA eligible borrowers tied to their construction/marketing program at single-family developments. FCs extend downpayment assistance loans and other special programs in CHFA's Homeownership Program to CHFA - eligible borrowers of newly constructed housing. CHFA Self-Help The Self-Help Program offers an . Long-Term Loans Builder Assistance opportuniiy to families and individuals . Construction/Rehab Loans Program with limited down payment resources . PredevelopmenVlnterim to obtain homeownership. The Finance borrower's labor represents the down payment CaIPERS' Housing CalPERS committed $75-100 million to . Equiiy Investment Development each partner to invest in single-family . Construction/Rehab Loans Program housing. Partners were required to match that investment with 10%. These partners form joint ventures with builders or make loans to builders. California Self-Help Provides grants to governmental . Grants Housing Program agencies, non-profits, and cooperatives . Technical Assistance to provide technical assistance to participants that are building their own residence (self-help housing). Downpayment Loan A down payment loan program to . New For-Sale Housing Program assist households in purchasing a . Acquisition home through the California Housing Loan Insurance' Fund (CaHLlF). Predevelopment Provides predevelopment loans for . New Rental Housing Loan Program projects with five or more units of new . Preservation of construction, acquisition or acquisition . Affordable Housing and rehab to non-profit sponsors. . Rehab of Apartments . Acquisition Page H-93 ~lf~ --- ~~~~ 01Y Of CHUlA VISTA - HOUSING ELEMENT PART III - Table 11I-3 SUMMARY OF RESOURCES AVAILABLE FOR HOUSING AcnvmES CflY OF CHULA VISTA Program Description Eligible Activities School Facility Fee This program may entitle you to direct . Downpayment Assistance Downpayment down payment assistance if you are Assistance Program purchasing a newly constructed single family home in California. Special Needs All Multifamily housing projects that . Rehab of Apartments Affordable Housing serve at risk tenants in need of special Acquisition Lending Program services. . New Rental Housing U rba n Provides predevelopment loan for . New Rental Housing Predevelopment purpose of acquisition of land for . New For-Sale Housing Loa n Prog ra m lower-income housing. . Acquisition - Federal Resources CDBG Entitlement program that is award to · Secl08 loan repayment the City on a formula basis. The · Historic preservation objectives are to fund housing . Admin and Planning activities and expand economic . Code Enforcement opportunities. . Public Facilities Improvement . Housing Activities HOME Grant program for housing. Program . Multi-family intent is to expand the supply of Acquisition/Rehab decent safe and sanitary affordable . Single-Family housing. HOME is designed as a · CHDO Assistance partnership program between the · Administration federal, state, local governments, non- profit and for-profit housing entities to finance, build/rehab and manage housing for lower income owners and renters Section 8 Rental assistance program which provides a subsidy to very low-income families, individuals, seniors and the disabled. Participants paya percentage of their adjusted income toward rent Page H-94 City of (hula Vista General Plan ~,':~,<~ Chula '~ V. 'I ,;s>>-}~ 18 ta \~ ~:~~. ("::;}A,. /// ~, /ii'., // V1" S1" on ~~, ~ ~" ". ,.(J~' '-'.""0",..,,,,,,,::/ 2020 HOUSING ELEMENT PART III Table 111-3 SUMMARY OF RESOURCES AVAILABLE FOR HOUSING AcnvmES CflY OF CHULA VISTA Program Description Eligible Activities Section 202 Grants to non-profit developers of supportive housing for the elderly Section 811 Grants to non-profit developers for . New Rental Housing supportive housing for persons with . Rehab of Apartments disabilities, including group homes, . Social Services independent living facilities and . Acquisition intermediate care facilities . Group Homes/ Congregate Care Section 108 Loans Provides loan guarantee to CDBG entitlement jurisdictions for pursuing large capital improvement or other projects. The jurisdiction must pledge its future CDBG allocations for loan repayment ACCESS and ACCCES and NHF are second loan . Downpayment Assistance National programs for downpayment Homebuyers Fund assistance. Allows low and moderate (NHF) Gold Programs income homebuyers to pay for down payment and closing costs up to 7% of the sales price Section 203 (k) Provides mortgage insurance for . Acquisition Loans Rehabilitation acquisition and rehab of 1-4 family . Construction/Rehab Loans Mortgage Insurance houses for owner-occupants or . Loan Guarantee investors. Owner-occupants and non- . Long-Term Loans profits pay 3% down-payment investors' down payment is 4%, plus 15% in escrow until house is sold. 223(t) Mortgage Mortgage insurance for purchase or . New Rental Housing Insurance for refinance of existing multifamily Operation Purchase/Refinance projects. . Administration . Acquisition 241(a) Rehabilitation Provides mortgage insurance for . Rehab of Apartments Loans for Multifamily improvements, repairs, or additions to . Energy Conservation Projects multi-family projects. Page H-95 ~v~ --- ~~~~ 01Y Of OiULA VISTA HOUSING ELEMENT PART III Table 111-3 SUMMARY OF RESOURCES AVAILABLE FOR HOUSING AcnvmES CITY OF CHULA VISTA Program Description Eligible Activities Congregate Housing Provides grants to public agency or . Grants SeNices Program private non-profits to provide meal seNices and other supportive seNices to frail elderly and disabled residents in federally assisted housing. Also supports remodeling to meet physical needs. Continuum of Care Provides grants/rent assistance to . Grants for Homeless Persons assist the homeless through a Rent Subsidies combined NOFA for 3 programs: Supportive Housing, See 8 SRO, and Shelter Plus Care. These programs provide seNices and transitional or permanent housing for homeless persons. Economic Supports guaranteed loans under See . Job Training Development 108 by providing grants for economic . Acquisition Initiative development activities to local . Public Works governments to strengthen the . Rehab of Apartments economic feasibility of projects . Rehab of Owner financed with See 108 funds. . Occupied Housing . Business Start . U ps/Expa nsion/Retention . Downtown Revitalization FDIC Affordable Sell homes and multifamily property to . Grants Housing Program provide homes for very low-, low- and moderate-income households. Fair Housing Provides grants for projects and . Grants Initiatives Program activities that enforce and enhance Fair Housing Act compliance. Funding includes $1 million for education and outreach, $9.3 mil. for private enforcement $1.2 million for new or existing fair housing organizations. Page H-96 Ci~ of Chula Vista General Plan - - - - ,f/3';""",~ Chula !,t \,\ '0' .' '-V\ V. "'~-~ ':,\ lsta ~'i Vision 2020 HOUSING ELEMENT PART III Table 11I-3 SUMMARY OF RESOURCES AVAILABLE FOR HOUSING AcnvmES CflY OF CHULA VISTA Progra m Description Eligible Activities Flexible Subsidy Provides operating assistance and . Construction/Rehab Loans Program capital improvement loans to federally- . Long-Term Loans aided financially-troubled multifamily housing projects. Some funding is set- aside for projects under the Low- Income Housing Preservation program. HOPE 3-- Program provides grants to State and . Grants Homeownership of local governments and nonprofit Single-Family Homes organizations to assist low-income, first-time homebuyers in becoming homeowners by utilizing government- owned or financed single-family properties. HOPE 6- Provides funds for revitalization, . Rent Subsidies Revitalization of demolition and disposition of severely- . Grants Severely Distressed distressed public housing and for See Public Housing 8 tenant-based assistance. HOPE II-- Provides grants to develop programs . Grants Homeownership for allowing mostly low-income families to Multifamily Housing purchase units in multifamily housing projects owned, financed or insured by HUD or other federal. state or local public agencies. John Heinz Provides grants to non-profit . Grants Neighborhood community development organizations Development to leverage funds from local sources to Program implement neighborhood development projects, including development of new housing and rehabbing existing housing. See 202 Supportive Provides capital grants and operating . Grants Housing for the subsidies for supportive housing for . Rent Subsidies Elderly the elderly. . Co nstruction/Reha b . Loans . Long-Term Loans Page H-97 ~!f?- --- ~3-:=t~ 01Y Of CHUlA VISfA HOUSING ELEMENT PART III Table 11I-3 SUMMARY OF RESOURCES AVAILABLE FOR HOUSING AcnvmES CIlY OF CHULA VISTA Program Private Resources I Description I Eligible Activities Federal National A variety of homebuyer assistance, . Homebuyer Assistance Mortgage rehab assistance, minority assistance . Rehab Assistance Association (Fannie programs are available . Minority Homeownership Mae) Assistance CCRC - California Non-profit mortgage banking . New Construction Community consortium that pools resources to . Rehabilitation Reinvestment reduce lender risk in finance of . Acquisition Corporation affordable housing. Provides long term debt financing for affordable multi-family rental housing FHLB - Federal Direct subsidies to non-profit and for- . New Construction Home Loan Bank profit developers, and public agencies . Expand Home Ownership Affordable Housing for affordable low-income ownership to Lower Income Persons Program and rental projects Affordable Housing Bank of America offers a large volume . Acquisition Loans Financing of traditional and special loan · Construction/Rehab Loans products to first time homebuyers, . Downpayment Assistance non-profit and for-profit corporations · Equity Investment and Public Housing Agencies. . Long-Term Loans · PredevelopmenVlnterim Finance · Technical Assistance California The California Community · Acquisition Loans Community Reinvestment Corporation provides · Construction/Rehab Loans Reinvestment Corp. permanent financing to for-profit and · Long-Term Loans non-profit organizations for new · Technical Assistance construction, acquisition, and rehabilitation through a revolving blind loan pool of $211 million. Alt 97 Mortgage Alternatives for Borrowers with Limited · Acquisition Loans Cash for Down Payment · Downpayment · Assistance Page H-98 City of (hula Vista General Plan - - - HOUSING ELEMENT PART III Program Description Eligible Activities Fannie Mae Start-Up Provides low down payment mortgage . Acquisition Loans Mortgage (5% down) and allows interest-only . Downpayment Assistance payments for the first year, after which . Long-Term Loans the payment gradually increases by 2% each year until the loan payment is fully amortizing, which takes about 4-8 yea rs. Fannie Mae Flexible Provides low down payment mortgage . Acquisition Loans 97 Program to help first-time buyers purchase a . Long-Term Loans home. Downpayment is limited to 3%, can be a gift grant or unsecured loan, and program allows more flexible qualifying standards than with a traditional home loan. Enterprise Mortgage Provides reasonably-priced, long-term . Acquisition Loans Investments, Inc mortgages, streamlined processing . Construction/Rehab Loans and 90% loan to value to for-profit . Long-Term Loans and non-profit community organizations. EMI underwrites and services loans. Community Provides real estate construction . Acquisition Loans Reinvestment Act financing, small business loans, . Business Loans Loa n Prog ra m consumer loans. . PredevelopmenVlnterim Finance . Construction/Rehab Loans McAuley Institute Revolving Loan fund and technical . Acquisition Loans assistance to build or rehab housing. . Construction/Rehab Loans . Technical Assistance Mercy Loan Fund Makes loans to non-profit housing . Acquisition Loans developers for projects in which . Technical Assistance conventional financing is not available . PredevelopmenVlnterim or not affordable and promotes Finance innovative and effective financing . Construction/Rehab Loans arrangements. . Long-Term Loans Table 11I-3 SUMMARY OF RESOURCES AVAILABLE FOR HOUSING AcnvmES CflY OF CHULA VISTA Page H-99 ~I~ --- ~...." 01Y Of CHUlA VISTA HOUSING ELEMENT PART III Table 111-3 SUMMARY OF RESOURCES AVAILABLE FOR HOUSING ACTMTIES CflY OF CHULA VISTA Program Description Eligible Activities Multifamily Originates . Acquisition Loans Affordable Financing construction/ reha b/ a cq u isition/bridge . Construction/Rehab Loans Prog ra m loans to finance qualified multifamily . Long-Term Loans projects and subdivisions that serve individuals earning 80% or less of area median income. San Diego Housing Provides low-interest loans to projects . Acquisition Loans Trust Fund developing and preserving affordable . Construction/Rehab Loans housingr primarily as gap funds. . Downpayment Assistance . Equity Investment . Long-Term Loans . Predevelopment/lnterim Finance Vision Forward To provide affordable housing to low- . Acquisition Loans income residents throughout the . Construction/Rehab Loans United States. . Grants . Business Loans . Downpayment Assistance Kresge Foundation Challenge grants for building . Grants construction or renovation projects, purchase of real estate, grants generally to tax-exempt institutions. Adtech assistance Down payment assistance grants for . Acquisition grants first-time homebuyers . New For-Sale Housing Affordable Housing Provides grants or subsidized interest · Construction/Rehab Loans Program rate loans for purchase, construction . Grants and/or rehabilitation of owner- . Long-Term Loans occupied housing by or for very low-r . Technical Assistance low- and moderate-income households and/or to finance the purchaser construction or rehabilitation of rental housing. Page H-IOO City of Chula Vista General Plan - - - - - ?'~~~ Chula ~~. \\,,,, . 'I'V t I' I;', 18 a "\\~' ,~//j , 'i, T/" <;( .;:7 Vision ~".' ~ ~ .-;f/ "',-,,' /.,-' 2020 '.....:....--:.~.. :;;.~;;:::.' HOUSING ELEMENT PART III Table 111-3 SUMMARY OF RESOURCES AVAILABLE FOR HOUSING ACTlVITlES CflY OF CHULA VlSfA Program Description Eligible Activities BankAmerica Support for community development is . Grants Foundation the greatest priority for grant-making, emphasizing affordable housing, community economic development and capacity building for organizations working in those fields. Downpayment Lender will rebate homeowners part of . Acquisition Assistance Rebates the real estate commission paid to the . Mobile Home Park selling agent Purchase Assistance . New For-Sale Housinq FHLB Affordable Bank of America Community . New For-Sale Housing Housing Program Development Bank sponsors . New Rental Housing applications to the Federal Home Loan . Rehab of Apartments Bank (FHLB) Affordable Housing . Rehab of Owner-Occupied Program for grants used in the Housing development of qualified single-family . Acquisition and multi-family projects that serve individuals/families with Section 8 vouchers. Neighborhood NHS is a 3-way partnership among . Grants Housing Services neighborhood residents, local . Technical Assistance government and local businesses. . Construction/Rehab Loans NRC provides direct technical . Business Loans assistance, expendable grants and . Long-Term Loans capital grants to NHS, which makes loans for rehab. ACCESS and Both programs allow low and . Loans National moderate-income homebuyers to Homebuyers Fund borrow money to pay for down (NHF) Gold Programs payment and closing costs in the form of a 20-year fixed-rate second mortgage. Source: California Department of Housing and Community Development Page H-IOl ~I~ --- -"~= 01V OF CHUlA VISTA :=::~ Chula A".~,.\~\ Vista ;:<~, ?........r....."...:. /? Vision ~~;.,C:,FA 2020 HOUSING ELEMENT APPENDIX A 1.0 OVERVIEW: COMMUNITY PROFILE & HOUSING NEEDS Under State Housing Element Law, jurisdictions must evaluate both existing and future needs for all income groups as determined by the jurisdictions Council of Government when preparing the state- mandated Housing Element of the General Plan. This section presents the demographic and housing characteristics that influence the demand and availability of housing. This analysis is necessary to form the basis for establishing programs and goals that seek to address the identified housing needs. The focus of this section is to identify the need for housing according to income, tenure, and special needs groups. In addition, this section attempts to frame the discussion of creating balanced communities throughout the City. This discussion was a recurring theme throughout the General Plan process when identifying the varying needs between the eastern (east of Interstate "1-805") and western (west of 1-805) portions of the City. Primary data sources include the 2000 Census for existing conditions and comparisons between the east and west portions of the Cityl, the Department of Housing and Urban Development (HUD), the Regional Task Force on the Homeless, projections published by the San Diego Association of Governments (SANDAG) and the California Department of Finance. The data used are the most reliable for assessing existing conditions. Furthermore, such standard sources provide a basis for consistent comparison with older data and provide the best basis for forecasts. The data provided presents a general picture of the demographics of Chula Vista and does not necessarily reflect the effects of the booming residential growth in Chula Vista and high cost of housing seen within the last five yea rs. ] Conducted every ten (l0) years, the U.S. Census provides the most comprehensive data source available, but does not necessarily represent existing conditions. Further, in the onalysis of eost and west, the Census tracts ore generally divided by City boundaries. This presents a slight inconsistency when trying to combine census tracts to determine statistics for 0 portion of the City os done in this section. While small portions of census tracts fall outside or within the City, overall it was determined to be the best way to form detailed housing statistics to compare the eastern and westem portions of the City. ~lf?- -1",,~ ' 01Y Of CHUIA VlSfA Page AA- 1 - HOUSING ELEMENT APPENDIX A 2.0 COMMUNITY PROFILE - 2.1 Population Trends and Characteristics Housing needs in Chula Vista are affected primarily by population and employment trends. - 2.1.1 Historical, Existing & Forecasted Growth The City of Chula Vista is one of 18 cities within the County of San Diego. San Diego County is the third-largest county in Southern California with a population of 2,813,833 in 2000. The County has experienced stable growth, with a population increase of 13% from 1990 to 2000. The Department of Finance estimates the County's 2005 population has increased to 3,051,280. Table A-I REGIONAL POPULATION TRENDS 1990-2005 County 1990 2000 20051 Imperial County 109,303 142,361 161,800 Los Anqeles County 8,863,164 9,519,338 10,226,506 Orange County 2,410,556 2,846,289 3,056,865 Riverside County 1,170,413 1,545,387 1,877,000 San Bernardino County 1,418,380 1,709,434 1,946,202 San Diego County 2,498,016 2,813,833 3,051,280 Ventura County 669,016 753,197 813,052 - Notes: I California Department of Finance Estimate, January 1. 2005. Source: us Census 2000 Summary File 1 (SF 1) and 1990 Summary Tape File 1 (STF 1) The City of Chula Vista is growing at a rapid pace in comparison to the rest of the County. Between 1950 and 1960, Chula Vista more than doubled in size. Population growth slowed in the 1970s and 1990s. Between 1990 and 2000, the City experienced a 28% increase in population with an average growth rate of 3% per year. Page AA-2 City of Chula Vista General Plan ,f<-:C~C,:)~ Chula !j~:.~.1~~:.:~\... Vista \~\~:; ",.. // Vl.Sl.on \~- "':^, " /;~' .'.:"""~::""::;" 2020 HOUSING ELEMENT APPENDIX A Figure A-1 HISTORICAL AND ESTIMATED POPULATION INCREASE IN CHULA VISTA AND THE REGION Source: California Department of Finance, Historical Census Populations of California State, Counties, Cities, Places, and Towns, 1850-2000; 20t:ldata from SANDA G Final 2030 Cities/ County Forecast, Dee 2003 180.00% 164.00% 160.00% 140.00% 120.00% 100.00% 80.00% 60.00% 40.00% 20.00% 0.00% . Oty of Chula Vista o San Diego Region e> ~ ~; ~ ~f;:) ~ <j:)f;:)' ~ 'Of;:) ~ , ~f;:) ~ ~f;:) ~ !Of;:)' ~ f;:)f;:) ~ 9f;:)' ,SJ ~ ~ ~f;:)' '19 Fiaure A-2 POPULATION TRENDS IN CHULA VISTA Source: California Department of Finance, Historical Census Populations of California State, Counties, Cities, Places, and Towns, 1850-2000; 2010 data from SANDAG Final 2030 Cities! County Forecast, Dee 2003 247,558 50,000 250,000 200,000 150,000 100,000 o 1950 1960 1970 1980 Year 1990 2000 2010 Page M-3 ~Ift; ~{k.~ C1Y OF GIUl.A VISTA - ~ HOUSING ELEMENT APPENDIX A - As shown in Figure A-3, estimates by the California Department of Finance (OaF) show that from 2000 to 2005 Chula Vista's population increased by 25%, to 217,543. Comparatively, the County's estimated population increased by 8%. The population of Chula Vista makes up a 7% share of the total population in San Diego County. Chula Vista remains the second largest city in the County behind the City of San Diego. - - Figure A-3 POPULATION GROWTH IN CHULA VISTA AND THE REGION (2000-2005) .-. Source: California Department of Finance, Table 2: E-4 Population Estimates for Cities, County and State, 2001-2005 with 2000 DRU Benchmark. 6.0% 5.3% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 . City of Olula Vista o San Diego County It is expected that Chula Vista's population growth will continue to grow rapidly with the continued development of master planned communities in the undeveloped areas east of Interstate 805. SANDAG projections indicate an expected 43% population increase between 2000 and 2010. - Page AA-4 City of Chula Vista General Plan Chula , ... . <'-'i- Vista '~''i:-,::'''''.'<;} Vision ..<.c.......,.. 2020 ,...~~. ::_":-" HOUSING ELEMENT APPENDIX A 2.1.2Age Composition As of 2000, 57% of the City's population were between the ages of 21 to 64. Children and teens aged 0-20 years comprised of 32% of the population, and seniors, 65 and over, represented 11% of the City's population. The greatest population increase was that of persons 45 to 54 years of age, increasing by 2.3% from 1990 to 2000. Fiaure A-4 AGE DISTRIBUTION 1990-2000 S:lure:Otyof OVa lAstaCbnsoliditedPla7 FYZIJS.Z)f)(lBxdon US CEnsts 1lJ)trd~ 60000 c;; l"- i, 10000 c;; ... .1990 o 2000 50000 40000 30000 20000 o Under 5 5 to 20 21 to 24 25 to 44 45 to 54 55 to 59 60 to 64 65 to 74 75 to 84 85 years Notes: years years 1 years2 years years years years years years and owr 1 Due to different category grouping, numbers for U.S. Cenus 2000 are totaled 5-19; 2 Due to different category grouping, numbers for U.S. Census 2000 are for 20-24 totaled. Over the next twenty-five (25) years the SANDAG is projecting that the San Diego region will see a decline in the growth of age groups below 55, while all age groups above 55 will increase. Specifically, the western portion of the City of Chula Vista is expected to see a higher increase in the 55-74 year old age group then the region and a higher increase in the 65-74 year old age group in the western portion of the City than the City as a whole. Page M-S ~! ft... ~-- -- CIIY Of a-tlJIA VJSrA - HOUSING ELEMENT APPENDIX A Figure A-5 EXPECTs) CHANGE (2000-2030) IN AGE DISTRIBUTION FOR 55 AND OVffi AGE GROUP Source: CityofChula Vista Urban Core Specific Plan Market Analysis . Western O1ula Vista III O1ula Vista 6.0% o San Diego Region 5.3% 5.4% 1.0% 5.0% 4.0% 3.0% 2.0% 0.0% 55-64 65-74 75+ 2.1.3 Race and Ethnicity As shown in Figure A-6, Chula Vista is a racially and ethnically diverse community. The City experienced rapid growth of its Hispanic population between 1990 and 2000. The Hispanic population is the largest representative ethnic group in the City, comprising 49% of the total population. The percent of White (non-Hispanic) and Asian populations also increased between 1990 and 2000, by 1% and 2%, respectively. The percentage of Black, American Indian &: Alaska Native, Native Hawaiian &: Other Pacific Islander, and Other census categories decreased during the 1990-2000 period. Page AA-6 City of Chula Vista General Plan 7;/:Cj::-:':"~:'~, Chula :'/ '. '," ~"A' .~~ !L~ ;.~~. :.,\ Vl- sta ~.t...; \~" ~'~f' ?\~;:/ Vision <'.~, " ",..,. ',~:">-.. .....::,;:. 2020 -"-~7--::::.' ~;;.~;>. HOUSING ELEMENT APPENDIX A Figure A-6a 1990 RACIAL AND ETHNIC COMPOSITION Source: Cityo' Chula Vista Consolidated Plan FY 2005-2010 (based on U.S. Census 1990 and 2000) Other/Some other race, 24,446 FOpulation of tw 0 or more races, N/A White (non- Hispanic), 41 ,187 Asian, 11,161 Native Hawaiian & Other Pacific - Islander, 914 American Indian & Alaska Native, 863 Hispanic, 50,376 Figure A-6b 2000 RACIAL AND ETHNIC COMPOSITION Source: Cityo' Chula Vista Consolidated Plan FY 2005-2010 (based on U.S. Census 1990 and 2000) FOpulation of tw 0 or rrore races, 4,76 Other/Some other race, 273 Hspanic. 86,073 Black,7,517 Note: .Population of t WOOf more races" category added In 2000 Census. 2.2 Employment Trends Housing needs are affected by employment trends. Significant employment opportunities within the City can lead to growth in demand for housing in proximity to jobs. The quality or pay of available employment can determine the need for various housing types and prices. Page M-7 ~Vc.. --- ~ 0lY Of CHUlA VISTA - HOUSING ELEMENT APPENDIX A In 2000, educational, health, and social services made up 20% of the labor force, followed by retail trade (12%) and manufacturing (11%). This shows that nearly 30% of those Chula Vistan's in the labor force are in the retail or service industry where lower pay scales predominate. Table A-2 EMPLOYMENT BY INDUSTRY - Industry Number of Percent Employeesl Agriculture, forestry, fishing and hunting, and mining 118 0.2% Construction 4,426 6.2% Manufacturing 7,771 10.9% Wholesale trade 2,348 3.3% Retail trade 8,850 12.4% Transportation and warehousing, and utilities 3,082 4.3% Information 2,103 3.0% Finance, insurance, real estate, and rental and leasing 4,987 7.0% Professional, scientific, management administrative, and waste management services 6,918 9.7% Educational, health and social services 14.423 20.3% Arts, entertainment recreation, accommodation and food services 6,133 8.6% Other services (except public administration) 3,776 5.3% Public administration 6,260 8.8% T 010:11 71,195 100% Notes: 1 US. Census data cited are for the Chula Vista population, and does not represent the number of jobs in Chula Vista. Source: US. Census 2000 SF 3 As shown in Table A-3, the Sweetwater Union High School District is the top single employer in (hula Vista. In aggregate, the education industry employs 48% the employee's on the Major employers list The health industry, and retail and service industry are also very significant employers. Retail and service companies employ 18% of employees in (hula Vista. Following the retail and service industry, hospitals employ 14% of the total employees on the City's major employers list These major employers have a total of 17,093 employees, which make up approximately 24% of the City's total employees. - Page AA-8 City of Chula Vista General Plan - ,.,.1. <...;.....: ...:~.....r.:..:.;.j.~;:.\.~'.......C. hula ....x.r.. .~ /~.~:;;- Vista '\\/....".,....?". ~~/.} Vision ,,,,.,; 2020 HOUSING ELEMENT APPENDIX A Table A-3 MAJOR EMPLOYERS IN CHULA VISTA Business Business Type Employees Sweetwater Union High School District Education 4,131 Chula Vista Elementary School District Education 2,900 BF Goodrich Aerospace Aerospace Manufacturing 1.922 Southwestern College Education 1.283 Sharp Chula Vista Medical Center Hospital 1.221 City of Chula Vista Municipal Government 1.178 Scripps Memorial Hospital Hospital 865 United Parcel Service Parcel Delivery Service 649 Target (3 stores) General Merchandise 604 Costco Wholesale Corp (2 stores) General Merchandise 556 Sears Roebuck & Co. General Merchandise 340 A T C Vancom of California L P Transit Company 284 Wal-Mart Store #3516 General Merchandise 250 Home Depot #658 Building 245 Supplies/Hardware Bayview Behavioral Health Campus Hospital 236 Federated Western Prop Department Store 229 Raytheon Systems Company Communications 200 Source: City of Chula Vista Consolidated Plan, FY 2005-2010 (based on City of Chula Vista Finance Department June 2004), RBF Consulting. Employment rates are an indicator of economic trends in the City. Chula Vista's labor force grew from 79,400 in 2000 to 85,800 in 2004, while the California Employment Development Department reports unemployment rates rose by 1% from 2000 to 2004. Table A-4 shows unemployment rates as a percentage of the total labor force increased from 4.2% to 5.1% in 2004. Page AA-9 ~I~ --- - .'lt~ 01Y OF CHUlA VISTA - HOUSING ELEMENT APPENDIX A Table A-4 LABOR FORCE TRENDS1 - Year Labor Employment Unemployment Unemployment Rate Force 2000 79,400 76,000 3,400 4.2 2001 81,200 77,500 3,700 4.5 2002 83,500 78,900 4,600 5.5 2003 84,600 79,900 4,700 5.6 2004 85,800 81,400 4,400 5.1 - Notes: 1 Data cited are for the Chula Vista population, and does not represent the number of jobs in Chula Vista. Source: State of California Employment Development Department rEDD) 2005. - ... 2.3 Household Characteristics This section provides an overview of the characteristics of Chula Vista's households. The US Census Bureau defines a household as all persons living in a single housing unit One person living alone is considered a household as is a group of unrelated people living in a single housing unit A family is defined as related persons living within a single housing unit The 2000 Census information regarding households seemed to echo Chula Vista's, as well as the regions tightening housing mark.et Household size increased from 2.79 persons per household in 1990 to 2.99 persons per household in 2000. A rapid increase in household formation has also been evidenced with a nearly 21% increase in the number of households. With a median income lower than the San Diego County average, Chula Vista households are finding it more difficult to afford housing in the current residential mark.et - - - - Page AA-IO City of (hula Vista General Plan - f';.:::::cj''''':''~ Chula {' :X' :;,;;C"::~\ . f.--l.:.7"":,~:." VIsta "-,.?....,...."..:. .>;: Vision .,..", ':",c,::.' 2020 ,.-.. ..-,~ HOUSING ELEMENT APPENDIX A 2.3.1 Household Formation &. Composition Chula Vista has been experiencing a rapid increase in the number of households. Between 1990 and 2000 Chula Vista saw nearly a 21% increase in the number of households. In 2000, the City's households were growing 8.6% faster than in the County and 10% faster than in the State of California. Table A-5 TOTAL HOUSEHOLDS Area 1990 2000 % Increase California 10,399.700 11,502,870 10.6% San Diego County 887,719 994,677 12.0% City of Chula Vista 47,869 57.728 20.6% Source: u.s. Census 1990 STF 3 and Census 2000 SF 3 The 2000 Us. Census reported that Chula Vista's average household size was 2.99 persons per household, increasing from 2.79 persons per household in 1990. In comparison, San Diego County had estimated household sizes of 2.69 in 1990 and 2.73 in 2000. This larger household size indicates the need for housing units with more bedrooms. Table A-6 AVERAGE HOUSEHOLD SIZE Area 1990 2000 City of Chula Vista 2.79 2.99 San Diego County 2.69 2.73 Source: us Census 1990 STF 1 and U.s. Census 2000 SF 3 As shown in Figure A-7, two-person households represented the largest group for both renters and owners in 2000, comprising 28% of total households in Chula Vista. Renter households had an average of 2.86 persons per household, compared to 3.09 persons per household in owner-occupied households. Page AA- 11 ~'ft.. - - . = 01Y Of CHUlA VISfA IIIIl HOUSING ELEMENT APPENDIX A - Figure A-7 HOUSBiOLD SIZE DISTRIBUTION Source: U.S. Census 2000 SF3 12000 10000 8000 6000 4000 2000 o ~~o ~o~ ~o~ ~~o ~o~ ~cP ~cP ~4' ~cP ~4' ~o ~o ~o ~o ~o -,,~ ~ ~ ~ ~ --.e<,'<r --.e<'<iP e,<'<iP e,<'cF --.e<'<iP ".,y '}:y ":f~ b8 ~"I- o~ #'~ ~. ~ov e,<,<P <iP~ ~~ e,<' ~o 'O'~ 0<' l' - . Ow ner-Occupied Units o Renter-Occupied Units 2.3.2 Jobs to Housing Balance There often is a mismatch between the location of housing and jobs in Southern California. One way of determining if Chula Vista's households commute out of the City to work is looking at the jobs to housing balance. The jobs to housing balance is the number of jobs in (hula Vista divided by the number of housing units in (hula Vista. In 2000, (hula Vista had a relatively low jobs-housing balance with fewer jobs then there are units located within the City. This indicates that many households have to commute out of the City for their work. - - Table A-7 JOBS-HOUSEHOLD RATIOS Description 2000 Employment 53,731 Housing Units 59,495 Jobs per Household Ratio 0.90 Source: SANDAG. 2000. - Page AA-12 City of (hula Vista General Plan ,f~l~)~,.,Ch l!la .." _:;;>,'.'~. Vista \\'\ ~,~" ":_'<-~':,"-.,i} .,\, ?""~.:'...,:X.'.'" ,;Y Vision ~'>'C.:..::' ......:,::;/ 2020 HOUSING ELEMENT APPENDIX A 2.3.3 Household Income The Federal Department of Housing and Urban Development (HUD) generates an annual median income for the purpose of determining program eligibility. The City of Chula Vista is included in the San Diego County Metropolitan Statistical Area (MSA), for which HUD set the 2005 median family income (MF!) at $63,400 for a family of four persons. The State of California uses four income categories to determine housing affordability. These categories are as follows: · Very-Low income - Less than 50% of the median income; · Low-income - 51% to 80% of the median income; · Moderate-income - 81% to 120 % of the median income; and, · Above-moderate income - Greater than 120% of the median income. Table A-8 shows the income ranges for each income category based on the 2005 HUD MFI for Chula Vista. Figure A-8 shows household income distribution by tenure. According to the 2000 Census, approximately 15% of owner-occupied households and 38% of renter-occupied households earned less than $25,000 a year, which falls in the Very-Low income category, in 2000. Additionally, 40% of owner-occupied households and 76% of renter-occupied households had an income under $50,000, which falls into the Low and Very-Low income categories. The largest owners' income group ($50,000 to $74,999) comprised 25% of the households. The largest group for renters ($35,000 to $49,999) comprised 19% of total households. This indicates that affordable housing is needed for a significant percent of the population, and there is a large need for affordable rental households. Page M- 1 3 ~,~ --- ~ 01V OF OlULA VISTA - HOUSING ELEMENT APPENDIX A - - Table A-8 HOUSEHOLD INCOME DISTRIBUTlON Income Category Percent of County Income Range ($)2 Median1 Very-Low Income < 50% < $31,700 Low-income 50% - 80% $31,701 - $50,720 Moderate Income 80% -120% $50,721 - $76,080 Above-moderate >120% > $76,080 Notes: 1 Based on HCD income categories 2 Based on 2005 HUD MFI of $63,400. - Figure A-8 HOUSBiOLD INCOM E BY TENURE Source: U.S. Census 2000 SF3 - 9000 8000 7000 6000 5000 4000 3000 2000 1000 o (') 0> (') 00 . Ow ner Occupied o Renter Occupied - - <$10,000 $10,000 to $20,000 to $35,000 to $50,000 to $75,000 to $100,000 >$150,000 $19,999 $34,999 $49,999 $74,999 $99,999 to $149.000 The median income for Chula Vista residents more drastically demonstrates the difference in income by tenure and by ethnicity. As shown in Table A-9, Chula Vista's median income of $59,663 in 2000 was higher than that of San Diego County as a whole at $47,067. - Page AA-14 City of Chula Vista General Plan ""':':1" ,.,'::'"- Ch 1 /,// ." .:,~ /y ~:~.~,:<~\ -.;t a :: ...-:,..- \" VIsta ~.i"~-'''''':: :\ '7. '...A..... ,. // Vision >'~."'cL~F 2020 HOUSING ELEMENT APPENDIX A Place City of Chula Vista Owner-Occupied Households Renter-Occupied Households San Diego County Source: City of Chula Vista. 2005 Table A-9 MEDIAN INCOME BYlENURE Median Income $59,663 $30,962 $44,861 $47,067 As shown in Figure A-9, Asians earn considerably higher incomes than all other ethnicities although they represent only 10% of the population. While Hispanics, the largest ethnic group in Chula Vista earn 13% less than the Chula Vista median income and 17% less than the County median. Fiaure A-9 MEDIAN INCOME BY ETHNICITY Source: City of Chula Vista. 2005 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 $62,861 Median Income $44,861 ~CJ !li ~.,~ .~0 ~~ . ~t::- (j:- . ~t::- jbt::- ~ <s-'/j ~ &'" -<-~~ ~0 ~ ~.~ r1f ...~.... ~~ (8' ,q.'/j ~ .~~ <(~o In addition, there is a large disparity of low income households between the eastern and western portions of the City, as illustrated in Figure A-10. Page AA- 1 5 ~Ift; -- 0lY OF CHULA VISfA - HOUSING ELEMENT APPENDIX A - Figure A-10 HOUSBiOlD INCOM E Source: Cityo' Chula Vista Urban Core Specific Plan Market Analysis - 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% ;;F. ..... N C') . Western Chula Vista I!iI Oty of Chula Vista o San Diego Region - ~ ~~~ ~~~ ~~'?J ~1.~' ~~'?J, ~~~' ~'O(\ ~~ \0 ~~~ \0 \..e~~ ~1.~~ ~b.~' ~~~ \~~, \0'Si ~~~ ~ro\)' o~e o~~ ~~\) ~\~~' - ... 2.4 Housing Inventory and Market Conditions - Current housing trends must be understood before anticipating future housing needs. This section describes Chula Vista's existing housing stock and market conditions. - - 2.4.1 Housing Stock Profile - The US Census Bureau reports 59,529 housing units in the City in 2000. Chula Vista's housing stock has increased an average of 968 housing units per year from 1990 to 2000. This total increase was significantly higher than the County, which increased only by 10% from 1990-2000. It is estimated that Chula Vista's housing units have increased to 73,115 in 2005, which is 6.6% of the region. - - - Page M-16 City of (hula Vista General Plan - <'1''''>' Ch 1 ,f;"~'~\, U a ',,"" \;,,', '''' ./,' "," u -,:\1; :~,"'~' '\" V. i:-,~ v' lsta '\,,,'7,',/ ."["f-Z' ,/' Vision "<,~.>. .,<:,.,,:/ 2020 ,._'.~--- ::.~.>,. HOUSING ELEMENT APPENDIX A Table A-10 HOUSING INVENTORY CHULA VISTA AND SAN DIEGO COUNTY Year City of Chula Vista San Diego County Chula Vista as % of the Region 1990 49,849 946,240 5.3% 2000 59,529 1,040,149 5.7% 20051 73,115 1,104,989 6.6% Notes: I 2005 quantities are estimates from the California Department of Finance, Sources: Us. Census 1990 STF 3, Us. Census 2000 SF 3. and the California Department of Finance, Unit Type The US Census reported a total of 59,529 housing units in the City of Chula Vista in 2000. The 2000 Census indicates 51% of Chula Vista's housing units were single-family detached, representing an increase of 4% of the City's total housing inventory since 1990. The number of single-family attached units increased by 1%. Multi-family units experienced a net increase from 1990 to 2000, although they have decreased 3%, as a percentage of the City's total housing inventory. Mobile-homes and Other housing types experienced a decrease from 1990, as a percentage of the City's total housing inventory. Figure A-11 HOUSING INVENTORY BY TYPE 1990-2000 Source: Cityof Chula Vista Consolidated Plan FY 2005-20tJ (based on U.S. Census 1990 and 2000) 35,000 30,000 25,000 20,000 15,000 10,000 5,000 o " M C\/ o M .1990 [J 2000 a> a> C\/ q- 1.0 ..... O'eO 'O-~~ .~'\, 'I.'O-~ ,,\e cj,\'(\'O O'eO oe\~ .~'\, 'I.'O-~ ~e cj,\'(\($ #'\ ,"-'?> '\\"" ~~\ e'!J -x:-o~ ..:..~e' ~o'" ~c-:'\ ~~,e r<>\'!J' e~~o O~ Page M-l 7 ~(f? -*- 01Y OF CHUlA VJSrA - - HOUSING ELEMENT APPENDIX A - In 2000, the stock of multiple family housing was much higher in the western portion (44%) of the City compared to the eastern portion (13%), as depicted in Figure A-12a & b. This diversity if attributed to the large production of single-family households in the eastern master planned communities. Figure A-12a EAST~ CHULA VISTA HOUSING INVENTORY BY TYPE (2000) Source: Western Chula Vista Revitalization: Population, M arlfet, and Housing Trends (based on U.S. Census 2000) M.Jlti- Farrily 13% Single farrily, detached 73% tvbbile-homes 1% Single farrily, attached 13% - - Figure A-12b WEST~ CHULA VISTA HOUSING INVENTORY BY TYPE (2000) Source: Western Chu/a Vista Revitalization: Population, Marlfet. and Housing Trends (based on U.S. Census 2000) M.Jlti-Farrily 44% Single farrily, detached 40% tvbbHe-homes 9% Single farrily, attached 7% - Unit Size Figure A-13a & b shows the number of bedrooms in occupied housing units by tenure. In 2000, 71.4% of renters occupied 1- and 2-bedroom units, compared to owners who generally occupied larger 3-4 bedroom units. Approximately 72% of owner-occupied units had 3 or more bedrooms, whereas only 17% of renter-occupied units. Page M-18 Cily of (hula Vista General Plan - f>'1: ..-,'~\\, Ch ula './' ,c: ~;." . \'~ . .... ~.-' ,;;;;C: \". VI t ~~~. s a ':'\. .'P.......~',[.;".:.' :).: Vision -<>,~;,?;;Y' 2020 HOUSING ELEMENT APPENDIX A Figure A-13a OWNER-OCCUPIED UNIT SIZE Source: U.S. Census 2000 SF3 5 or rrore bedrooms Studio 1 bedroom 7% 3% 6% 2 bedroom 20% 4 bedroom 26% :1!lllllllllllllllllllllllllllllllllllIlh'.~" ..'.. ......_._...:.:.:.:~:;::::: 3 bedroom 38% Figure A-13b RB>lTER-OCCUPIED UNIT SIZE Sourr;e: U.S. Census 2000 SF3 4 bedroom 4% 1 bedroom 34% 2.4.2 Tenure The 2000 Census reported that 58% of housing units in Chula Vista were owner-occupied and 43% were renter-occupied. As shown in Figure A-14, the United States had a higher percentage of owner- occupied housing units than Chula Vista. 66% percent of America's housing units were owner- occupied. In comparison, San Diego County and California both had a lower percentage of owner- occupied housing units than the City. Page M-' 9 ~l~ --- ~~:c.:::- CnY OF CHUlA VISfA - - HOUSING ELEMENT APPENDIX A Figure A-14 also displays a great disparity between the supply of owner-and renter-occupied housing between the east and west portions of the City. While the City of Chula Vista retains an overall balance of renter- and owner-occupied housing in line with the San Diego region, the majority of the rental housing supply is contained in the western portion (55%) of the City, while owner occupied units in the east (84.2%) is very high. - Figure A-14 TENURE CHULA VISTA AND THE REGION Source: Western Chula Vista Revitalization: Population, Market, and Housing Trends (based on U.S. Census 2000) 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% City of Chula Vista - California 57.5% 42.5% Eas tern Chula Vista 84.2% Western Chula Vista - San Diego ; '~J;ij.~~~+,~; 55.4% Region 44.6% United States - [J Ow ner-Occupied . Renter-Occupied - As shown in Figure A-15a & b, approximately 76% of the owner-occupied housing units were single- family, detached. In comparison, only 18% of renter-occupied housing units were single-family, detached. According to the 2000 Census approximately 58% of renter-occupied units were multi- family housing with five or more units in a building. - Page AA-20 City of Chula Vista General Plan - '/'x~.'~"'\'" Chula ," ,'- :.,' "', ;:',?': ,..-":.<,.-: :;~~- \\, . - '. .... .. .".;- VIsta ';:~., ';Ic,:!Z /;'~; Vision ""'.<,cc, """,::::/ 2020 HOUSING ELEMENT APPENDIX A Figure A-15a OWNER-OCCUPIED UNIT TYPE Source: U.S. Census 2000 SF3 MJlti-Farrily (2-4 units) 3% MJlti-Farrily (5+ units) 3% rvt>bile- horres, Others 9% Single farrily, detached 75% Figure A-15b RENTER-OCCUPIED UNIT TYPE Source: U.S. Census 2000 SF3 MJlti- Farrily (5+ units ) 59% Single farrily. detached 18% Single farrily, attached 8% .- 2.4.3 Vacancy Rates Vacancy rates are an indicator of supply and demand. Low vacancy rates suggest households may have trouble finding housing with an affordable monthly payment A high number of vacant units indicate an over supply of housing units. A 4-6% vacancy rate is considered "healthy". As indicated in Table A-ll, of the 59,529 housing units in the City, 2000 U.S. Census data shows 3% were vacant in 2000. Of the total vacant units, 47% were for rent 23% were for sale, and 30% were other vacant Other vacant may be comprised of units that are rented or sold, but not occupied; seasonal, recreational, or occasional use; and other unspecified uses. Page M-21 ~,~ _.A._ 01V OF GlUlA VISIA - - HOUSING ELEMENT APPENDIX A - Table A-l1 HOUSING INVENTORY BYTENURE 2000 - Occupancy Units Percent Total Occupied Housing Units 57,728 96.9% For sale only 416 - For rent 842 - Other Vacant 543 - Total Vacant Housing Units 1,801 3% Total Housing Units 59,529 100% - - Source: u.s. Census 2000 SF 3 - 2.4.4 Age of Housing Stock The age of housing is often an indicator of housing conditions. In general, housing that is 30 years or older may need minor repair. Housing over 50 years old is considered aged and more likely to generate major repairs. In Chula Vista, 22% of the City's housing units were built prior to 1960. Approximately 63% of housing units were built prior to 1980. - Table A-12 AGE OF HOUSING STUCK Year Built Units Percent 1999 - March 2000 2,414 4.1% 1995 - 1998 4,484 7.5% 1990 - 1994 5,061 8.5% 1980 - 1989 10,204 17.1 % 1970 - 1979 13,126 22.0% 1960 - 1969 10,958 18.4% 1950 - 1959 8,845 14.9% 1940 - 1949 2,969 5.0% 1939 or earlier 1,468 2.5% Total 59,529 100% - - - Source: City of Chula Vista Consolidated Plan FY 2005-2010 (based on U.s. Census 1990 and 2000) - - Page M-22 City of Chula Vista General Plan - ,,?:,:':::'" {"""""- Chula /;:://C 'X..~:: ,~~<K"~\ . ",,,,~.c' ":.".er :.\.". Vista :, ..-:,: .'.......r.'. ','\ ""~'l~.i..' :'\., r.' 'J.......,.."'.;;.':"...'\... ,/ Vi si 0 n -<:-,-- ' /~/. '<;Co> .<.'./ 2020 - .-.'~ HOUSING ELEMEm APPENDIX A When comparing the eastern and western portions of the City, as depicted in Figure A-16a & b, it can be seen that in 2000 the housing stock in eastern Chula Vista had been more recently built (81% since 1980), while 83% of housing in the west was built before 1980. With the continued build out of the master planned communities in the east the current mix of housing age is even more pronounced. This statistic indicates that substantial rehabilitation or replacement of housing in the western portion of the city may be needed in the next twenty-five (25) years. Figure A-16a EAST~ CHULA VISTA YEAR HOUSING STRUCTURE BUILT Source: Western Chula Vista Revitalization: Population, Market, and Housing Trends (based on U.S. Census 2000) Figure A-16b WEST~CHULA VISTA YEAR HOUSING STRUCTURE BUILT Source: Western Chula Vista Revitalization: Population, Market, and Housing Trends (based on U.S. Census 2000) 33% 19% . 1980 - 2000 0 1960 - 1980 0 Before 1959 .1980 - 2000 81960 -1980 0 Before 1959 2.4.5 Housing Conditions Housing is considered substandard when it is below the minimum standard of living conditions defined in the Uniform Housing Code, Section 1001. In addition to structural deficiencies and standards, the lack of infrastructure and utilities often serves as an indicator for substandard conditions. According to the 2000 US Census, 367 units (344 occupied) in Chula Vista lacked complete plumbing facilities. Of the occupied units 42% were owner-occupied and 58% were renter-occupied. Additionally, 332 units, 305 that are occupied, lacked complete kitchen facilities. Of the occupied units a majority or 70% were renter-occupied and 30% were owner-occupied. It should be noted that there may be some overlap in the number of substandard housing units, as some units may lack both complete plumbing and kitchen facilities, Page AA-23 ~!~ --- ~:. ~~ 01Y OF CHUIA V1SfA ... - HOUSING ELEMENT APPENDIX A - - 2.4.6 Housing Costs & Rents This section discusses the price of new and existing housing as well as average costs of rental housing in Chula Vista. - New and Resale Housing - The US Census lists the median value for all owner-occupied housing units in Chula Vista at $187,000 in 2000. Data indicates that 27% of Chula Vista's owner-occupied housing units were worth under $100,000, 32% were valued at $150,000 to $199,999, 31% were valued at $200,000 and $299,999, and 10% were valued at $300,000 or above. - Table A-13 2000 VALUE FOR OWNER-OCCUPIED HOUSING UNITS Price Range Number of Units Percent of Total $49,999 or less 2,739 8.3% $50,000 to $99,999 1,677 5.1% $100,000 to $149,999 4,613 13.9% $150,000 to $199,999 10,465 31.5% $200,000 to $249,999 6,456 19.4% $250,000 to $299,999 3,796 11.4% $300,000 to $399,999 2,294 6.9% $400,000 to $499,999 642 1.9% $500,000 or more 513 1.5% Total 33,195 100% - - Source: u.s. Census 2000. SF 3 - Due to the rapid development in Eastern Chula Vista, it is difficult to analyze the average price of a new home. Therefore, the available supply of resale units in the City serves as the basis for the analysis of housing costs and its relationship to the ability to pay. Figure A-17 shows the median price for resale housing in Chula Vista and surrounding cities. In January 2005, the median cost of resale housing in the City of Chula Vista was $550,000, which is higher then the City of San Diego and the County as a whole. Data shows that resale housing prices have increased by 29% in the City since January of 2004. This increase in price is generally consistent with the price increases for both the City and County of San Diego. - - Page AA-24 City of Chula Vista General Plan - f/(<l~~\Chl!la '\.~' Vlsta '\;>.>.)'., :,.0:....'<,' Vision <":''0<.'. .,;.:,y' 2020 '-..:':' :::..-" HOUSING ELEMENT APPENDIX A Figure A-17 MEDIAN SALES PRICE Source: City of Chula Vista Consolidated Plan FY 2005-20tJ (based on Caliofnria A ssociation of Realtors (CA R) 2005) $600,000 " $500,000 ~ $400,000 $300,000 $200,000 $100,000 $0 o o o o L!) L!) fh ...s.\~\?> ~?> 0'(:\ ~c}~l, ~o'(\ ~?J. o~ ,,0' <j\~,'''' C!:J?>{\ \}{\~ cP ,,0, <j\e'" r::,7>{\ . Jan-Q4 o Jan-05 Rental Prices According to the Spring 2005 Rental Rate SUNey by the San Diego County Apartment Association, the average monthly rent for a studio apartment in Chula Vista was $589, down from $632 in Spring 2004, possibly indicating a decrease in demand for studio size apartments. All other size apartments increased during this same period, as indicated in Table A-14. The average monthly rent in Spring 2005 for a I-bedroom unit was $803, 2-bedroom was $933, and 3 or more bedroom unit was $1,459. In comparison, average monthly rents are generally lower in Chula Vista then San Diego County. Table A-14 AVERAGE MONTHLY RENTS City of Chula Vista San Diego County Unit Type Spring 2005 Spring Spring Spring 2004 2005 2004 Studio $589 $632 $650 $637 1-bed room $803 $733 $816 $796 2-bedrooms $993 $899 $1,058 $1,023 3 or more bedrooms $1,459 $1.204 $1,480 $1,372 Source: San Diego (oun1y Apartment Association. Spring 2005 Vacancy and Rental Rate Survey Page AA-25 ~Vc.. _-0-_ 01V Of CHUlA VISTA - - HOUSING ELEMENT APPENDIX A - Affordability Gap Analysis - The cost of home ownership and renting can be compared to a household's ability to pay for housing. Housing affordability is defined as paying no more than 30% of the household income on housing expenses. Based on the 2005 HUD median income of $63,400 for San Diego County, Table A-15 identifies affordable rent payments and purchase prices for each income group. Affordable purchase price assumes a 10% down payment a 7.5% interest rate, and 1.25% tax and homeowners insurance. - - Table A-IS AFFORDABLE RENT AND PURCHASE PRICE BY INCOME CATEGORY - Affordable Estimated Income CategOlY Annuallncome1 Rent Paymenf Affordable Purchase Price3 Very-low income < 50% MFI4 < $792 < $100,673 Low-income 51% - 80% MFI $793 - $1,268 $100,674 - $161,179 Moderate Income 81 % -120% MFI $1,269 - $1,902 $161,180 - $241,896 Above-m od erate > 120% MFI > $1,903 > $241,897 - - - 1 Income limits established by State of California HCD. 2 Based on 30% of income J Assumes 10% down payment and 7.5% interest rate, 115% tax and homeowners insurance 4 MFI- Median family income - .,., Rental Affordability In 2005, affordable rents for the Very-Low income group coincide with the average rents for studio and one-bedroom apartments shown in Table A-14. Larger units fall in the Low, Moderate, and Above-Moderate income groups. This data indicates lower-income families and large households have limited options in finding affordable housing. - - Ownership Affordability The median price of resale housing in Chula Vista, as shown in Figure A-17 and Table A-IS, exceeds the affordability range for all income categories except Above-Moderate income households. This indicates that there is an affordability gap for ownership housing. Very-Low, Low, and Moderate- income households may have trouble finding affordable housing that they can afford to purchase. - Page M-26 City of (hula Vista General Plan I,'~:',~~, ~', ,Ch uIa :~~iir.;w \\, · " ',,',' >~ ';'- V 1S t a " ," "'r~;'" .> ?,', :',: ,,'.',:~'-: ,( Vision '\~,,'-_//' 2020 HOUSING ELEMENT APPENDIX A ... 2.5 Summary & Conclusion This section summarizes the demographic characteristics of Chula Vista and how they relate to the supply and demand of the City's housing. The major findings of this analysis are as follows: Population and Household Growth, Between 1990 and 2000, the City experienced a 28% increase in population. The numbers of households are growing just as fast as the population, with a 21% increase in the number of households from 1990 to 2000. SANDAG projections indicate that there will be a 43% population increase from 2000 to 2010 bringing the total population of Chula Vista to 247,558 persons. Aqe Distribution, 57% of the population was 21 to 64 years old, in 2000, which is considered the prime buying age. It is expected that over the next twenty-five (25) years, the San Diego region will see an increase in the growth of age groups above 55. Specifically, the western portion of the City of Chula Vista is expected to see a higher increase in the 55-74 year old age group then the region and 65-74 year old age group is higher in the western portion of the City than the City as a whole, Ethnicity. In 2000, the Hispanic population was the largest ethnic group in the City, representing 50% of the total population. The Hispanic population grew from 37% to 50% from 1990 to 2000. Income, Approximately 15% of owner-occupied households and 38% of renter-occupied households earned less than $25,000 a year in 2000, which falls in the Very-Low income category. Approximately 40% of owner-occupied households and 76% of renter-occupied households had an income under $50,000, which falls into the Low and Very-Low income categories. Western Chula Vista (57%) had a much higher percent of low-income (earning $40,000 or less) households than eastern Chula Vista (32%). Page M-27 ~fft.. --- - 01Y OF CHULA VISTA - - HOUSING ELEMENT APPENDIX A - Tenure and unit size. The 2000 Census reported that 58% of the units in Chula Vista were owner- occupied and 43% were renter-occupied. A large amount of renters occupied 1 and 2-bedroom units, compared to owners who generally occupied larger 3-4 bedroom units. In comparison, the United States had a higher percentage owner-occupied housing units than Chula Vista. 66% percent of America's housing units were owner-occupied. San Diego County and California both had a lower percentage of owner households than the City. However, in 2000 western Chula Vista reported a much higher (55%) renter-occupied rate and multiple family (44%) households than eastern Chula Vista (15.8% and 13%, respectively). - - Households. A rapid increase in household formation is evident with a 21% increase in the number of households from 1990 to 2000. Household size is also increasing. According to the 2000 Census, household size increased from 2.79 in 1990 to 2.99 in 2000. This larger household size indicates the needs for larger housing units. · Housing Affordability. With a median income lower than the San Diego County average, Chula Vista households are finding it more difficult to afford housing in the current residential market Data indicates that lower-income families and large households have limited options in finding affordable rental housing. In addition, the median price of resale housing in Chula Vista exceeds the affordability range for all income categories except Above-Moderate income households. Very-Low, Low, and Moderate-income households may have trouble finding affordable housing that they can afford to purchase. - - - - - - Page M-28 Ci1y of (hula Vista General Plan - //<'1:'''' Ch uIa ," \c.> ,."/ \,. t.~ ;";:~~,'~':. Vista ';,;, "i~'l'~" '"' V' . ":"" "'..::.....<."' /) lSlon ~::>~:.:.::::::'<!' 2020 HOUSING ELEMENT APPENDIX A 3.0 HOUSING NEEDS This section provides an overview of existing housing needs in the City of Chula Vista. Housing need can be described in four categories: · Housing need resulting from households overpaying for housing; · Housing need resulting in overcrowding; . · Housing need resulting from population growth and demolition of the existing housing stock; and, · Housing need of "special needs groups" such as elderly persons, large households, female- headed households, disabled persons, homeless persons, and farm workers. ... 3.1 Households Overpaying for Housing Overpayment is defined as households that pay more than 30% of their gross income on housing related expenses. This includes rents or mortgage payments, electricity, and gas. The high cost of housing eventually causes lower-income households to use a disproportionate percentage of their income for housing. This may result in financial problems, deferred maintenance, or inappropriately sized units that do not meet the needs of the household (Le. overcrowding). As shown in Table A-16, 38% of Chula Vista's households overpaid for housing in 2000. 42% of renter-occupied households overpaid for housing and 34% of owners overpaid. Page M-29 ~'f? :;-- CJ1Y Of CHUlA VISTA - HOUSING ELEMENT APPENDIX A - - Table A-16 OVERPAYMENT BY TENURE AND INCOME - Owner-Occupied Renter-Occupied Total Percent of Income House- Percent House- Percent House- Percent holds holds holds < 30% 17,880 65.0% 13,093 53.5% 30,973 60.0% 30 - 50% 6,423 213% 5,616 210% 12,039 212% >50% 3, 029 11.0% 4,562 18.6% 7,591 146% Not Computed 180 <1% 1,209 5.0% 1,389 2.7% Total 27,512 100% 24,480 100% 51,992 100% - - Source: u.s. Census 2000 SF3 ... 3.2 Overcrowding As a result of rising housing prices, lower-income households are often forced to accept smaller housing units, which may result in overcrowding. Overcrowding is defined as households having an average of more than 1 person per room. Overcrowding puts a strain on public facilities and services, reduces the quality of the physical environment and can eventually cause conditions that contribute to deterioration of the housing stock. - As shown in Table A-17, 14% of Chula Vista households were considered overcrowded in 2000. As is the case in housing overpayment overcrowding was found in more renter households than owner households. Approximately 8% of owner-occupied housing units and 23% of renter-occupied units were considered overcrowded. - -- - - Page M- 30 City of Chula Vista General Plan Chula Vista Vision 2020 HOUSING ELEMENT APPENDIX A Table A-17 OCCUPANTS PER ROOM BY TENURE Owner-Occupied Renter-Occupied Total Occupants per Units Percent Units Percent Units Percent Room < 0.50 19,634 59.1 % 8,062 32.9% 27,696 48.0% 0.51 to 1.00 10,906 32.9% 10,857 44.3% 21,763 37.7% 1.01 to 1.50 1,671 50% 2,393 98% 4, 064 70% 1.51 to 200 674 20% 1,902 78% 2,576 4.5% >201 310 09% 1,319 54% 1,629 28% Total 33,195 100% 24,533 100% 57,728 100% Source: us. Census 2000 SF3 ... 3.3 2005-2010 Growth Needs The allocation of hOLJsing needs begins with the State Department of Finance's projection of the total statewide housing demand, which is then apportioned by the State Department of Housing and Community Development (HCD) to each of the state's regions. Each region is usually represented by a Council of Governments (COG), responsible for allocating future housing needs. The San Diego Association of Governments (SANDAG) is responsible for allocating housing needs to each jurisdiction in San Diego County. A Regional Housing Needs Assessment (RHNA) prepared by SANDAG for the years of 2005-2010 identifies Chula Vista's housing production goals. The housing goal is determined by the number of additional units needed to accommodate the anticipated growth in the number of households, to replace expected demolitions and conversions of housing units to non-housing uses, and to achieve a future vacancy rate that allows for healthy functioning of the housing market The allocation is divided into four income categories defined by state government Very-Low income, Low-income, Moderate income, and Above Moderate income. The allocation is further adjusted to avoid an over-concentration of lower-income households in any one jurisdiction. Page AA-31 ~I~ --- ~ 01Y Of OiUlA VISTA - HOUSING ELEMENT APPENDIX A The following table shows the CitYs housing goals for each income category, based on HUD's median family income (MF!) for San Diego County. - Table A-I8 REGIONAL HOUSING NEEDS ASSESSMENT Income Category Percent of Counw Median Income Housing Income Range ($) Goal Very-Low income < 50% < $31,700 3,875 Low-income 51% - 80% $31,701 - $50,720 2,945 Moderate Income 81% -120% $50,721 - $76,080 3)55 Above-Moderate > 120% > $76,080 7,148 - - Notes: 2005 HUD MR for San Diego MSA: $63.400 Source: SANDAG and Fiscal Year 2005 HUD Income Umits ... 3.4 Special Needs Groups Certain segments of the population may have more trouble finding decent affordable housing due to their special needs. This section identifies the needs of specific groups, including: elderly persons, large households, female-headed households, disabled persons, homeless persons, farmworkers, and students. 3.4.1 Elderly Persons Elderly persons are defined as a special needs group because most are retired and have fixed incomes. As shown in Table A-19, elderly persons, 65 and older, comprised 11% of the total population of Chula Vista in 2000. - - Page AA-32 City of Chula Vista General Plan - ,1;'::'''''' :.:",;:-,~"" Chula /;: ~ ~:~~\\ . f.__~H '!: -""'" ';;\ Vlsta \1:, ,~:J.,'.?""~~F;ir . '(~ P:~:,. ;).""!!! .. \~,,/;'2 ';"c;~ VlSIon v"~~,>.>' ----.:;:/ 2020 <~...> .~:::::.>., HOUSING ELEMENT APPENDIX A Elderly persons often have additional restraints to housing in regards to location and choice of unit type. In terms of location, elderly persons often require access to medical facilities and public transit Housing may need to be equipped with ramps, handrails, elevators, lower cabinets and counters to accommodate elderly persons with self-care limitations and go-outside-home disabilities and special security devices to allow for greater self-protection. Of the elderly population in Chula Vista, 32% had a self-care disability or a go-outside-home disability in 2000. Percent of Type of Disability Persons Elderly Population Total disabilities for elderly persons 17,588 92.0% Sensory, physical. or mental disability 11,564 60.5% Self-care disability and Go-outside-home disability 6,024 31.5% Total Elderly Persons (65+) 19,119 100% Table A-19 ELDERLY PERSONS (65+) WITH DISABILmES Notes: I Total Population = 173.556 Source: Census U.s. 2000 SF 3 The primary housing concerns regarding the elderly persons living in the City of Chula Vista are summarized as follows: . Income - The elderly population is generally on a fixed income; . Household Composition - The elderly, especially women, often live alone; . Transportation - The elderly population are more likely to utilize public transportation; and, . Health Care - The elderly have a significantly greater need for health care. -- 3.4.2 large Households Large households are defined as having five or more persons within the same household. The 2000 Census reported 9,867 large households, representing 17% of total households in Chula Vista. Of these households, 63% were owner-occupied and 37% were renter-occupied. Census data shows the number of large households has increased from 14% in 1990 to 17% in 2000. The increasing number of large households requires more housing units of 3-or-more bedrooms. Finding larger units at an affordable price is a concern primarily for households with lower-incomes. Page AA- 33 ~If.t.. --- - em OF CHULA VISTA .. HOUSING ELEMENT APPENDIX A - - Table A-20 LARGE HOUSEHOLDS1 BYTENURE - Owner-occupied Renter-occupied Total Type of Household Units Percent Units Percent Units Percent Large Households 6,172 18.6% 3,695 15.1% 9,867 17.1 % Total households 33,195 100% 24,533 100% 57,728 100% - - Notes: 1 Defined as 5 or more persons living in a single household. Source: Us. Census 2000 SF 3 3.4.3 Female-Headed Households Female-headed households are a special needs group due to their low rate of homeownership. As shown in Table A-21, 4,951 or 9% of total households were female-headed with children under the age of 18. In addition, there were 3,526 female-headed households without children in the City of Ch u I a Vista. Table A-21 FEMALE-HEADED HOUSEHOLDS Type of Female-headed Number of Percent of Female- Percent of Total Household Household headed Households Households1 Female householder with no children 3,526 41.6% 6.1% Female householder with children 4,951 58.4% 8.6% Total Female-headed households 8,4 77 100% 14.7% Notes: 1 Total Households - 57.728. based on Us. Census 2000 SF 3 Sou rce: Us. Census 2000 SF 3 3.4.4 Persons with Disabilities - -" _._-~., ~--~-'-"---,- --.--------.-..---------,..------.-. ..., '-'--~" - '--'-_...-,-- Access and affordability are two major needs of persons with disabilities. Access is important for the physically disabled both within their homes and to/from the site. This often requires specially designed dwelling units. Additionally, there is also the desire to be located near public facilities and public transit Page M- 34 City of Chula Vista General Plan - HOUSING ELEMENT APPENDIX A Table A-22 shows the number of persons between the ages of 16 to 64 with disabilities in 2000. Persons with sensory, physical, or mental disabilities comprised 7% of the total population. Persons with self-care and go-outside-home disabilities represented 6% of the population. Table A-22 PERSONS WITH DlSABILmES Percent ofT otal Type of Disability Persons Population1 Sensory disability 2,016 1.2% Physical disability 5,905 3.4% Mental disability 3,458 2.0% Self-care disability 1,954 1.1% Go-outside-home disability 8,013 4.6% Employment disability 13,418 7.7% Notes: 1 Total Population = 173.556. based on US Census 2000 SF 3 Source: US. Census 2000 SF 3 Comparing the east and west portions of the City, referencing Figure A-18a & b, a larger (23%) portion of the population reported a physical, or mental disability in the western portion of the City. Figure A-18a EASTERN CHULA VISTA DISABILITY STATUS Source: Western Chula Vista Revitalization: Population, Market, and Housing Trends (based on U.S. Census 2000) 12% 88% [J Disability . No disability Figure A-18b WESTERN CHULA VISTA DISABILITY STATUS Source: Western Chula Vista Revitalization: Population, Market, and Housing Trends (based on U.S. Census 2000) 77% [J Disability . No disability Page AA-3 5 ~I~ -~- 01Y OF CHUlA VlSfA - HOUSING ELEMENT APPENDIX A - 3.4.5 Hom_~less Population - The San Diego Regional Task Force on the Homeless reported in July 2004 that there were approximately 9,667 homeless persons in the San Diego County area. Within the City of Chula Vista, the homeless population was estimated at 474 persons. The Task Force also estimated families account for approximately 32% of the urban homeless population in the San Diego region. - Of the urban homeless, 30% had alcohol/ drug abuse issues, 19% had severe mental illnesses, and 19% were chronic homeless. Figure A-19 TYPES OF URBAN HOM a.ESS IN THE SAN DIEGO REGION Source: Regional Task Force on the Homeless. 2004 Victims of Dorrestic Violence, 531 Veterans, 902 Other, 507 O1ronic I-t>meless, 1,383 - --....-.-.:-:.:.:::::::::::::::::::::::::::::::::::::::.;... //~z:;>:::::::::::::::::::::::::::::.:.~..... -- /' ~ "/'" ~:. .....-.- .~.._._-..""~. . \ ' :..i t_ . _.oil __ .~ - Persons with severe mental illness, 1,417 Persons with HIV I AIDS, 424 Substance Abusers, 2,159 Table A-23 identifies shelters for the homeless in the San Diego/South Bay region. The region provides 266 beds in a number of facilities with specialties varying from general homeless shelters, victims of domestic violence, substance abuse, and at-risk with disability. South Bay Community Services (SBCS) is the primary social service agency that provides homeless shelters within the City of Chula Vista. SBCS operates ten facilities in and around Chula Vista. The Ecumenical Council of San Diego County and MAAC Project operate other facilities in the area. - Page AA-36 City ofChula Vista General Plan - ,1'/:": ~,-:,,~~, Ch ula ,-- X--} \~ );~~.;-! ':;\ V. t " "'Yb~,,;,- 1S a '~, u~ ,~ ,N V1. s1.on '~, '," ,a~' "'~>,'-.-....:i::' 2020 ..~~.~~ ~;;.~;;:... HOUSING ELEMENT APPENDIX A Agency TABLE A-23 SHELTERS FOR THE HOMELESS SAN DIEGO - SOUTH BAY Program Name Target Special Population Needs Emergency Shelters Location Ecumenical ISN Rotl Shelter South Bay (mid- General General 12 Regional Council of SO October - March) Population Homeless County SBCS Casa Nueva Vida I Families General 54 Chula w/children Homeless Vista SBCS La Nueva Aurora Families Victims of 12 Chula w/children Domestic Vista Violence MAAC Project Nostros Adult Men Substance 13 Chula Abuse Vista SBCS Casa Nuestra Shelter Homeless Youth General 8 Chula Homeless Vista SBCS Casa Segura 1&11 Women Victims of 50 Chula w/Children Domestic Vista Violence SBCS Casas Families General 7 Chula w/Children Homeless Vista SBCS Casas de Transition Families General 73 Chula w/Children Homeless Vista SBCS Trolley Trestle Adult Men/and General 10 Chula or Women Homeless Vista SBCS Trolley Trestle Families General 10 Chula w/Children Homeless Vista SBCS Victorian Heights Women Victims of 38 National w/Children Domestic City Violence Winter Hotel ote ouc ers ovem r roUQI ~Dn MAAC Project Hotel/Motel Vouchers Families At-Risk N/A w/Children w/disabilitv SBCS Hotel/Motel Vouchers Families General N/A Chula w/Children Homeless Vista Transitional Shelters /M I V< h (N beth h A 'I) Tom I Beds 266 Source: City of Chula Vista Consolidated Plan FY 2005-2010 (based on the Regional Task Force on the Homeless) Page M-3 7 ~l~ --- -~~~ CI1Y Of CHUIA VlSfA - HOUSING ELEMENT APPENDIX A 3.4.6 Farm Workers - The 2000 Census shows there were only 118 persons in the agriculture, forestry, fishing and hunting, and mining industry, making up less than 1% of Chula Vista's population (see Table A-2). Farm workers are considered a special needs group due to the seasonal nature of employment The limited amount of agricultural land within the City of Chula Vista makes this group a very small minority. - - 3.4.7 Students The Land Use and Transportation Element of the General Plan defines a University Study Area within the Otay Ranch community. Students are considered a special needs group because of their unique requirements for housing. University students are generally on a fixed-income and live in non-family households. The development of student housing will be an integral component of the development of the University Study Area. - ... - 3.5 Summary & Conclusion - This section of the Housing Element provides a summary of existing housing needs, future housing needs, and special needs groups. Table A-24 is a summary of the needs identified in this section. Table A-24 Summary of Existing Housing Needs 2005-2010 Growth Needs Special Needs Groups Very Low Income 3,845 Elderly Persons 19,119 Low Income 2,704 Large Households 9,867 Moderate Income 2,717 Disabled Persons wi go- 9,967 outside-home or self-care disability Above-Moderate Income 2,041 Female Headed 4,951 Households wi Children Total 11,307 Farm Workers 118 - - Page M- 38 City of (hula Vista General Plan HOUSING ELEMENT APPENDIX A Table A-24 Summary of Existing Housing Needs 2005-2010 Growth Needs Special Needs Groups Overcrowding Overpaying Households Renter 5,614 Renter 19,630 Owner 2,655 Owner 9,452 Total 8,269 Total 29,082 The major findings of this section are: . Overpavment Data shows that 38% of Chula Vista's households overpaid for housing in 2000. It is estimated that 42% of renters overpaid for housing and 34% of owners overpaid. . OvercrowdinQ. In Chula Vista 14% of households were considered overcrowded. Approximately 8% of owner-occupied housing units and 23% of renter-occupied units were overcrowded in 2000. . Elderlv persons. There were 19,119 elderly persons, making up 14% of the total population of Chula Vista in 2000. Of the elderly population, 32% had a self-care disabili1y or go-outside-home disabili1y. . Large households. The number of large households has increased from 14% in 1990 to 17% in 2000. The 2000 Census indicated that 63% were owner-occupied and 37% were renter-occupied. Page M-39 ~lft.. --- -"'C~~ OIY OF OiUlA VISTA - HOUSING ELEMENT APPENDIX A - BLANK ... -, - Page M-40 City of Chula Vista General Plan ,,f'/:":~"::~, Ch ula ," ""..l ,# \" " ...st ,'~,' ,'io C,,;;,' . :-',':' Vista Vision 2020 HOUSING ELEMENT APPENDIX 8 OVERVIEW: CONSTRAINTS TO THE PROVISION OF HOUSING 1.0 Actual or potential constraints on the provision of housing and the cost of housing affect the development of new housing and the maintenance of existing units for all income levels. Governmental and non-governmental constraints in (hula Vista are similar to those in other jurisdictions in the regional and are discussed below. One of the most if not the most significant and difficult constraint to housing in (hula Vista and elsewhere in the San Diego region is the high cost of land. One of the most significant and difficult constraint to housing in Chula Vista and elsewhere in the San Diego region is the high cost of land. Page AB-l ~\ft. --- CI1Y OF CHUlA VISTA - HOUSING ELEMENT APPENDIX 8 2.0 GOVERNMENT CONSTRAINTS - - -, Governmental constraints can limit the operations of the public, private and nonprofit sectors making it difficult to meet the demand for affordable housing and limiting supply in the region. Governmental constraints are policies, standards, requirements and actions imposed by the various levels of government upon land and housing ownership and development These constraints may include land use controls, growth management measures, building codes, fees, processing and permit procedures, and site improvement costs. ... 2.1 Land Use Controls Land use controls take a number of forms that affect the development of residential units. These controls include General Plan policies, zoning designations (and the resulting use restrictions, development standards, and permit processing requirements), development fees and local growth management programs. 2.1.1 General Plan Each city and county is required by California Law to create a General Plan, which establishes policy guidelines for development The General Plan is the foundation of all land use controls in a jurisdiction. The Land Use Element of the General Plan identifies the location, distribution and density of the land uses within the City. General Plan densities are expressed as dwelling units per acre. The (hula Vista General Plan identifies eleven residential land use designations, as shown in Table B-1. Page AB-2 City of Chula Vista General Plan <"1" C'>" Ch 1 ,1''-'' ::~":'%. u a '..! \:..'''~~ ,v./.' \~.' "i ",x .:..,.,~. .11 V. ..c.?"i.' ';; IS ta ~i Vision 2020 HOUSING ELEMENT APPENDIX B Table B-1 GENERAL PLAN RESIDENTIAL LAND USE DESIGNATIONS Desig nation Descriotion Acreaqe Density Ranqe Low Residential Single-family detached dwellings on 6,972 o to 3 units larqe rural, estate type lots per acre Low-Medium I Single-family detached dwelling units on 8,200 3.1 to 6 units Residential medium sized lots per acre Medium Single-family detached homes on smaller 1,201 6.1 to 11 units Residential lots, zero-lot-line homes, patio homes, per acre and attached units, such as duplexes and town homes, and mobile homes Medium High Multi-family units such as townhomes 734 11.1 to 18 Residential and garden apartments, and mobile units per acre homes High Residential Multi-family units such as apartments 417 18.1 to 27 and condominium-type dwellings in units per acre multi-stoN buildinQs Urban Core Multi-family dwelling units in an urban 84 27.1 to 60 Residentiall environment units oer acre Mixed-Use Multi-family residential, retail shops, 727 N/A Residentiall financial, business and personal services, restaurants, entertainment and office opportunities Mixed Use High intensity mixed residential, office, 122 N/A Transit Focus and retail uses Areal Eastern Urban Medium-High to Urban Core residential, 240 N/A Center and a variety of integrated mixed use, commercial, cultural, public, and office uses Resort May include hotels, resort-oriented 275 N/A commercial services, restaurants and retail shops, cultural and recreational uses, conference centers and permanent residences Town Center 169 N/A Notes: I New zoning district is needed, which will include appropriate FAR and density Source: (hula Vista General Plan Land Use and Transportation Element Page AB-3 ~I'?- -n- - 01Y Of GlULA VISrA - HOUSING ELEMENT APPENDIX B - According to the General Plan's Land Use and Transportation Element a total of 113,987 dwelling units are anticipated within the City's planning areas. The Department of Finance (DOF) reports that 73,115 units have been developed as of January 2005. - Depending on land costs, to make a housing project economically feasible, certain densities are required. The California Housing and Community Development Department has established affordability standards based on density. - Very-Low and Low Income: minimum of 30 units per acre Moderate-Income: minimum of 11-30 units per acre Above-moderate Income: Up to 11 units per acre (Market rate housing) 2.+.2:z()n il1g Code The Zoning Code is the primary tool for implementing the General Plan. It is designed to protect and promote the public health, safety, and welfare of the people. Chula Vista's residential zoning designation controls both the use and development standards, and influences the housing to be developed. Classification Max. Height - 2 1/2 stories or 35 feet Ma ,but not less than 8 acres R-E 4A 4 acres 200 R-E 2A 2 acres 200 40% 2 1/2 stories or 28 feet R-E 40,000 40,000 150 R-E 20,000 20,000 100 85 70 40% 2 1Jz stories or 28 feet - - Page AB-4 City of Chula Vista General Plan /'j' C'>. Ch 1 f'/' ;~;~~ U a ,/:/':-"'"~" ,:,:~{" \~ . ,,_-~ J~ \\ VIsta Vision 2020 HOUSING ELEMENT APPENDIX B Table B-2 RESIDENTIAL DEVELOPMENT STANDARDS Classification Min. Lot Min. Lot Lot Coverage Max. Height Area (sq. ft) Width (ft) R-1-7 7,000 60 6,000 R-1-5 5,000 50 One- and Two-Family ResidenUal Zone R-2 7,000 60 R-2-T 3,500 -- 2 50%3 2 1/2 stories or 28 feet R-2-X 7,000 60 Exclusive Mobile Home MHP I By plan Apartment ResidenUal Zone I By plan I By plan I By plan R-3 7,000 65 R-3-M 7,000 65 50% 2 VI stories or 28 feef R-3-T 2,000 22 R-3-G 7,000 65 No building can be R-3-H 10,000 80 25% less than 46' feet or 5- stories R-3-L 7,000 65 50% 2 l1z stories or 28 feet' Planned Communi P-( By plan By plan By plan By plan Notes: 1 To be consistent with the General Plan Update, the agriculture zone will be revised. 2 Minimum lot width shall be 30 feet for all lots developed with single-car garages and 40 feet for lots developed with two-car garages. 3 All building including accessOlY buildings and structures in the R-2 zones shall not cover more than 50 percent of the lot 4 A maximum of 45' may be approved by the design review committee. Residential uses are conditionally allowed within the Administrative and Professional Office, Central Business, Central Commercial, Research Industrial, Limited Industrial, General Industrial, and Public! Quasi Public zones. Table B-3 describes the wpe of residential uses that are conditionally allowed in the CiW. Page AB-5 ~\f.?. -n- ~ 01Y OF 0fUlA VJSrA - HOUSING ELEMENT APPENDIX B CONDmONALLY APPROVED RESIDENTIAL USES Table B-3 Zone Residential Uses Allowed Conditions for Residential Uses Administrative and R-3 residential uses Per R-3 regulations Professional Office Central Business R-3 residential uses Must be above ground floor commercial uses Central Commercial Mixed commercial- CUP approval required residential projects Research Industrial Single-family unit as an Must be for the exclusive use accessory use of a caretaker Limited Industrial Single-family unit as an Must be for the exclusive use accessory use of a caretaker General Industrial Single-family unit as an Must be for the exclusive use accessory use of a ca reta ker Publici Quasi Public Single-family unit as an Must be for the exclusive use accessory use of a caretaker - - Source: City of Chula Vista 2.1.3 Parking Requirements Table 8-4 summarizes the parking requirements that exist in the City. Parking requirements do not strain the development of housing directly. However, since parking in the City of Chula Vista is required to be located on the same lot or property, these requirements may reduce the amount of available lot area of residential development Table B-4 RESIDENTIAL PARKING REQUIREMENTS - Type of Residential Required Parking Spaces Comments Development Single-Family, Duplex Two spaces per dwelling units Both spaces shall be within a garage with a minimum area of 400 sq. ft Townhomes Two spaces per dwelling unit Both spaces shall be in a garage or carport with a minimum area of 400 sq. ft Multi-Family One and one-half spaces per For every 10 spaces one may unit for a studio or I-bedroom, be compact 2 per unit for 3-bedrooms or larqer unit Mobilehome Two spaces on each pad, 1/3 At the community center one - - - Page AB-6 City of Chula Vista General Plan -7:/'1' C':";'~ Ch uIa I:' "..'it "Ii./. '\ .'.~~'- ~\, V. t ,'-'.. ~L-.;:- 1S a \\~"" ~.';:!{ 2~.'-,j Vision "'~>..' . <.c:::.':' 2020 '..';~:..1 ~;;";~'" HOUSING ELEMENT APPENDIX B Table 8-4 RESIDENTIAL PARKING REQUIREMENTS Type of Residential Required Parking Spaces Development Comments guest space per mobilehome located within 400 feet of the farthest unit Source: City of Chula Vista Municipal Code, Title 19. space for each five pads up to 50 pads and one space for each 10 pads thereafter. ... 2.2 Growth Management The following programs and plans have been adopted to guide future development of Chula Vista: Growth Management Element:: The Growth Management Element of the General Plan is designed to guide the demands for growth and development revitalization and environmental protection to improve the quality of future for current and future residents of Chula Vista. Growth Management Program: . The Growth Management Program was adopted in 1991 as serves as the primary mechanism for the Growth Management Element of the General Plan. The program sets the foundation for carrying out City development policies by directing and coordinating future growth to ensure timely provision of public facilities and services. The program establishes thresholds for eleven areas affecting Chula Vista, including traffic, police, fire and emergency services, schools, libraries, parks and recreation, water, sewer, drainage, air quality, and economics. Growth Management Ordinance: This ordinance was adopted in 1991 and codifies Growth Management intents, standards, requirements, and procedures related to the review and approval of development projects. ... 2.3 Density Bonus State law allows a developer to increase the density of a residential development by at least 25% if provisions are made to allocate 20% of the units for Low and Moderate-income housing. An additional incentive or financial equivalent (such as modified development standards or reduction/ wavier of application or development impact fees) is granted to all residential development meeting the 20% density bonus requirement for Low and Moderate-income housing. Page AB-7 ~v~ --- ::: 0lY OF CHUlA VISTA - HOUSING ELEMENT APPENDIX B - ... 2.4 Accessory Second Unit Requirements Accessory second dwelling units provide additional opportunities to provide affordable housing, primarily focusing on "granny flats" intended for the elderly or family of the primary owner. In response to state mandate, an accessory second dwelling unit ordinance was adopted in 2003 to allow accessory dwelling units in A R-[ R-1 and P-C zones provided certain conditions are met ... 2.5 Senior Housing - Housing development for seniors may be allowed in any zone except R-l, R-2, C-V, C-T and industrial zones. Since elderly persons require different dwelling characteristics, developments for seniors require a conditional use permit Additionally, the Planning Commission and City Council can make _ exceptions to development standards for senior developments, such as parking, density, and setbacks. ... 2.6 Building Codes and Enforcement Building and safety codes are adopted to preserve public health and safety, and ensure the construction of safe and decent housing. They also have the potential to increase the cost of housing construction or maintenance. Building Codes: The City of Chula Vista has adopted the 2001 edition of the California Building Code, which establishes certain construction standards for all residential buildings. These codes are designed to protect the public health, safety, and welfare of Chula Vista's residents. Code enforcement in the City is performed on a complaint basis through the Code Enforcement Section of the Planning and Building Department - Americans with Disabilities Act: The Federal Fair Housing Act of 1998 (FHA) and the Americans with Disabilities Act (ADA) are federal laws that are intended to assist in providing safe and accessible housing. The City of Chula Vista has the authority to enforce laws and regulations (California Code of Regulations (CCR) Title 24) when evaluating construction projects. Compliance with these codes may increase the cost of housing construction as well as the cost of rehabilitating older units, which may be required to comply with current codes. - - Page AB-8 City of (hula Vista General Plan ..,f~;:...'~':i: ::!:.~, .Ch uIa i/ '~!t'i!rf, \" . '(..."$.~:=..\\. Vista '" ~if'" / .. '\(:.;l',);? V~~~on HOUSING ELEMENT APPENDIX B Uniform Housing Code: The Uniform Housing Code provides complete requirements affecting conservation and rehabilitation of housing, It is compatible with the Uniform Building Code, Implementation of the requirements contained in the Uniform Housing Code may influence the feasibility of conservation and rehabilitation efforts of existing housing units in the City. ... 2.7 Development Fees Various development and permit fees are charged by the City and other agencies to cover administrative processing costs associated with development These fees ensure quality development and the provision of adequate public services. However, often times, these fees are often passed down to renters and homeowners in the renVpurchase price of the unit and therefore, affect the affordability of housing. The Building Industry Association of San Diego County (BIA) publishes the results of a survey of the development fees jurisdictions charge for residential development One method of determining whether fees are excessive and represent barriers to affordable housing is by comparing fees to jurisdictions in the region. Table B-5 summarizes the findings of the Building Industry Association of San Diego County for the City of Chula Vista and three other cities within San Diego County. Table 8-5 DEVELOPMENT FEESl Type of Fee Chula EI Cajon Carlsbad San Diego, Vista City Planning I General Plan Amendment $8,0002' $2,900 $5,125 $8,0002 Rezone Application $2,0002' $2,800 $5.535 $8,0002 Desiqn Review wi Public Hearinq $4,0002' -- -- - Planned Unit Development $15,0002' $4,000 $6,960 $8,0002 Specific Plan $10,0002' $3,300 $29,2208 $8,0002 Conditional Use Permit wi Public $4,0002' $3.500 $2,020 $5,0002 Hearing Variance wi Public Hearing $4,0002' $750 $2,355 $2,0002 Environmental I Initial Study $4,0002' $400 $790 + --- $1,440 E1R Processing $15,0002' $10,000 $16,7008 --- EnQineerinQ and Subdivision I Tentative Tract Map $13,0002' $3,700 + $13,705 $5,0002 $701 lot Page AB-9 ~\~ --- - OIY OF CHUlA VJSrA - - HOUSING ELEMENT APPENDIX B - - Table 8-5 DEVELOPMENT FEESl - Type of Fee Chula EI Cajon Carlsbad San Diego, Vista City Final Tract Map $16,0002 $4,5005 $6,225 + $3,0002 $5/ac Gradinq Plan Check $8,0002 $1,000 $4,865 $6,9002 Grading Permit $10,000" -- $2,765 $6,9002 Improvement Plan Check $10,0004 $1,000" $31,980 $17,4002 Improvement Inspection $14,0002 $3.5% of $19,030 $17,4002 est. cosf Other FeeS --- ---- ---- --- - Notes: 1 Based on 50 lots on 10 acres. 100.000cy-grading quantity. $1.500,000 total improvement costs. 2 Deposit based fee. Additional fees may be charged if project costs exceed the initial deposit J Fuli cost recovery. $14.000 grading inspection 4 included with final map deposit 5 $4,500 for 1" slots + $145 each additional lot > 5 6 minimum $1.000 or 6.5% of 1" $50K + 4% of value between $100K and $250K + 1% of value > $250K ) of construction with a minimum of $500 S Base fee + fully burdened hourly 9 Other fees vary considerably by jurisdiction and are not included in this analysis Sources: Building IndusUy Association of San Diego County. 2005-2006 Fee Survey. 'City of Chula Vista. Planning and Engineering Departments An evaluation of fees indicated that the City of Chula Vista charges development fees comparable to the surrounding jurisdictions. Many of Chula Vista's development fees require an initial deposit Any additional fees over the deposit may then be charged to the applicant - ... 2.8 Local Processing and Permit Procedures - Considerable holding costs are associated with delays in processing development applications and plans. The City of Chula Vista's development process is designed to accommodate applicants. _ Three levels of decision-making bodies govern the review process in Chula Vista: the City Council, Planning Commission, and Design Review Committee. Smaller, less complex projects do not require - a public hearing and may be approved through the Zoning Administrator. - - Page AB-IO City of Chula Vista General Plan -- HOUSING ELEMENT APPENDIX B Table 8-6 LOCAL DEVELOPMENT PROCESSING TIME LIMITS CflY OF CHULA VISTA Item Approximate Length ofllme from Submittal to Public Hearing Minor Cases (without a Public Hearing) I Conditional Use Permit 3-4 months Minor Variance 2-3 months Design Review 4-5 months Major Cases I Conditional Use Permit 4-5 months Desiqn Review 6 months Subdivisions 8 months Variance 3-4 months Rezone Application 13 months Precise Plans 10-11 months Source: City of Chula Vista. Department of Planning and Building. 2005. As shown in Table 8-6, processing times vary considerably depending on the complexity of the project Single-family homes and tenant improvements can be processed in 2 to 5 months. Other more complex projects, like subdivisions, rezoning applications, and other discretionary projects necessitate a higher level of review and thus have a longer processing timeline. Page AS-II ~I~ --- ':l: 01Y Of CHUlA VJSrA - - HOUSING ELEMENT APPENDIX B - ... 2.9 Environmental and Infrastructure Constraints Due to Chula Vista's natural resources, sensitive habitats and coastal location, there are areas within the City that may be exposed to a variety of environmental hazards and resources which constrain development Additionally, with many lands east of 1-805 vacant and undeveloped and proposed increased densities in the older western Chula Vista, providing adequate levels of service for the infrastructure needs of the community can pose a challenge. 2.9.1 Environmental Constraints The City of Chula Vista has identifies area where land development should be carefully controlled. The following hazards may impact future development of residential units in Chula Vista. - Seismic Hazards: No known Alquist-Priolo Earthquake Fault Zones, or active faults traverse Chula Vista, traces of the potentially active La Nacion fault zone cross the City in a generally north-south direction through the central portion of the City. The nearest active fault is located 14 miles northwest of the City. Seismic activity within the region can cause strong ground motion, seismically-induced liquefaction, ground surface rupture, landslides, and seismically induced settlement - Flooding: The floodplains of the Sweetwater and Otay Rivers and several of their tributaries have the potential to flood during a 100-year storm. Portions of the City are also subject to flood inundation in the event of failure of the Sweetwater, Upper Otay, or Savage (Lower Otay) dams. The potential for significant wave damage (Le. tsunamis) is considered low due to the City's relatively protected part of the San Diego Bay. - Rre Hazards: A large portion of the City of Chula Vista is located within a High and Very High hazard area for wildfires. Implementing appropriate techniques, consistent with the Chula Vista MSCP Subarea Plan and the City's UWIC can reduce such hazards. - Hazardous Materials and Waste: Hazardous materials are used, transported, produced, and stored for a variety of purposes in Chula Vista. Federal. state, and county agencies closely regulate hazardous materials to protect health and the environment In addition, the City uses zoning regulations, environmental review of proposed projects in accordance with the California Environmental Quality Act and the issuance of business licenses to regulate facilities that use, store, and handle hazardous materials and waste. - - Page AB-12 City of Chula Vista General Plan - .-:f<":i~'~~,Chula , \;...), ,.i.< \\ V. .',i "NI ~~ \\ 1 t 'c-__.. ", s a ,. ::,:-;""~~"''"'",., 11\ 1'~t!' ~ if! .. '\C.,~ ",);? VIsIon "~'> ,".><.' 2020 .....~~.. :;;.~;-", HOUSING ELEMENT APPENDIX B Contaminated sites are also identified as an environmental hazard. The majority of the known and potentially contaminated sites in (hula Vista are located in older industrial and commercial areas west of Interstate 805 and along Main Street east of Interstate 805, Noise: Residential land uses are considered the most sensitive to loud noise, In Chula Vista the most prevalent source of noise is from the transportation system, including the freeways, the San Diego Trolley, and freight service, 2.9.2 Infrastructure Constraints (hula Vista strives to maintain existing infrastructure and meet future demands, Challenges posed by new development include extending service to unserved areas, keeping pace with construction, and adjusting for changes in designated density, Challenges posed by density increases in older parts of the City include repairing existing deficiencies and maintaining and pOSSible upsizing older infrastructure. Water: The majority of the region's water supply must be imported in order to meet demands, Chula Vista has historically received the majority of its water supply from the San Diego Water Authority (CWA). The CWA generally imports from 75 to 95 percent of its water from the Metropolitan Water District (MWD) of Southern California. Imported water comes from the Colorado River and the State Water Project Chula Vista's primary water agencies are the Otay Water District and the Sweetwater Authority, A third water agency, the California American Water Company, also provides water to a small portion of Chula Vista. Sewer: The City maintains and operates sewer facilities that feed into a larger regional City of San Diego Metropolitan Sewage System for treatment and disposal. Chula Vista currently operates and maintains approximately 400 miles of sewer pipelines, In addition the City must also address system upgrades and expansion to accommodate new sewer connections, especially in the Eastern Chula Vista. The City has purchased 19,8 million gallons per day of capacity rights from the Metropolitan Sewage System. Based on 2030 estimates, the City is currently working on acquiring additional treatment capacity to meet future demands. Drainage: (hula Vista is part of the San Diego watershed area. The City maintains a system of storm water pipelines, box culverts, lined and natural channels, and water detention facilities, Current facilities have adequate capacity for projected short and mid-term development although drainage infrastructure may need to be constructed or modified to meet the San Diego watershed area's National Pollutant Discharge Elimination System (NPDES) permit requirements, Long-term build-out includes major development in the eastern portion of the City that will add significant amounts of storm water to the existing system. Page AB-13 ~\~ --- - cnv Of CHULA VlSfA HOUSING ELEMENT APPENDIX B 3.0 NON-GOVERNMENT CONSTRAINTS A number of private sector factors contribute to the cost of housing. These constraints include the availability of land and costs of land and construction. The following is a discussion of these factors and their impact on affordable housing development 3.:1. Vacant and Underutilized Land Chula Vista's eastern area provides an extensive stock of developable land. Most of the development occurring within the eastern area is contained within master planned developments. Additionally, vacant land in the western area of the City is minimal due to its built out conditions. Therefore, the limited availability of raw vacant land has a direct affect on land prices. A thorough analysis of vacant and underutilized land is conducted in Appendix C of this Housing Element ... 3.2 Housing Costs and Land Prices The cost of land directly influences the cost of housing. Land prices are determined by a number of factors, most important of which are land availability and permitted development density. As land becomes more scarce, the prices of land increase. In terms of development land prices have a positive correlation with the number of units permitted on each lot In recent years, land prices have increased due to the success of the housing market in Southern California. Housing prices in the San Diego region have experienced expansive growth in recent years. The relatively low employment rate and job creation trends in the region have influenced the demand for housing. Since much of the region has not been able to keep up with the rate of demand for housing, available supply has been limited. This limited supply has had a direct influence on the cost of housing. Although housing price appreciation has cooled, the trend is predicted to continue as the job market and favorable interest rates influence the demand for new housing. Tables B-7 through B-9 provide a summary of housing price trends in (hula Vista through the fourth quarter of 2005. Page AB-14 City of (hula Vista General Plan - - - - - - - - - - - - - - Y-'~~~ Chula #.,~, V. ,.-'\: 18 ta \\:\ ~, ,~, //,! .. \~\ .T~.~' -;,' Vision '~".j) . A' '.~",...<.,:;;:' 2020 ....,;;:. :;;:.:~.. HOUSING ELEMENT APPENDIX B Table B-7 RESALE SINGLE-FAMILY HOME PRICE TRENDS CHULA VISTA 2004-2005 Location ZIP Median Price Median Price Percentage Code 2004 2005 Change (%) ($) ($) Chula Vista (north) 91910 $500,000 $560,000 12.0% Chula Vista (south) 91911 $450,000 $504,000 12.0% East Lake-Otav Ranch 91913 $570,000 $628,000 10.2% Chula Vista (northeast) 91914 $640,000 $718,000 12.2% Chula Vista (southeast) 91915 $575,000 $620,000 7.8% Source: DataQuick Infonnation Systems/Union Tribune Table 8-8 RESALE CONDOMINIUM HOME PRICE TRENDS CHULA VISTA 2004-2005 Location ZIP Median Price Median Price Percentage Code 2004 2005 Change (%) ($) ($) 04-05 Chula Vista (north) 91910 $346,000 $390,000 12.7% Chula Vista (south) 91911 $315,000 $350,000 11.1% East Lake-Otay Ranch 91913 $349,000 $399,000 14.3% Chula Vista (northeast) 91914 $402,500 $438,500 8.9% Chula Vista (southeast) 91915 $415,500 $444,000 6.9% Source: DataQuick Infonnation Systems/Union Tribune Table B-9 NEW SINGLE-FAMILY/CONDOMINIUM HOME PRICE TRENDS CHULA VISTA 2004-2005 Location ZIP Median Price Median Price Percentage Code 2004 2005 Change (%) ($) ($) 04-05 Chula Vista (north) 91910 $340,000 $351,500 3.4% Chula Vista (south) 91911 $361.750 $357,500 -1.2% East Lake-Otav Ranch 91913 $525,000 $465,500 -11.4% Chula Vista (northeast) 91914 $631.000 $745,000 18.1% Chula Vista (southeast) 91915 $516,250 $602,250 16.7% Note: price trends do not indicate product type, which may influence the cost of housing units. Source: DataQuick Infonnation Systems/Union Tribune Page AS-15 ~\f? --- - CJIY OF CHUlA VJSrA - HOUSING ELEMENT APPENDIX B - ... 3.3 Construction and Land Costs Construction costs are primarily determined by the cost of materials and labor, but are also influenced by market demands and market-based changes in the cost of materials. The cost of construction depends on the type of unit being built and on the quality of the product being produced. Therefore, suburban garden apartments will have lower per unit construction costs than apartments built in more dense urban environments. - - Construction costs can be strongly influenced by a variety of factors and have a direct correlation with the cost of housing. Table B-10 provides a summary of estimated construction and land costs for San Diego County. - Table B-10 CONSfRUOlON AND LAND COST ESTIMATES SAN DIEGO COUNJY! - Development Tvoe Estimated Cost (2006 dollars) Sinqle-Familv Residential $125 oer square foot Town homes $180 oer square foot Garden Apartments $200 per square foot Stacked Flat (wi structured parkinq) $250 oer square footl Land Costs (multi-familv) $25,000 oer unit Land Costs (single-familv) $150,000 per unit - - Notes: 1. Construction cost estimates indude hard and soft costs, exduding land 2. Calculated per square foot of non-parking component. 3. Land costs increase per unit as density increases. Source: RBF Consulting 2006 - - ... 3.4 Financing -- Mortgage interest rates have a large influence over the affordability of housing. Higher interest rates increase a homebuyer's monthly payment and decreases the range of housing that a household can afford. Lower interest rates result in a lower cost and lower payments for the homebuyer. - - - Page AB-16 Cily of Chula Vista General Plan - ~:~"~, Ch uIa . ~, V. \\, ::': ,,~:; lsta .'. ~,~ 'V.. \\\ T;'" /,,' 18100 \~, !,\ ,'~-~~' '<>." ,<,.,',;.' 2020 '.:..::; ~::'-:~." HOUSING ELEMENT APPENDIX B Typically when interest rates rise the market compensates by decreasing housing prices. Similarly, when interest rates decrease, housing prices begin to rise. Often times, there is a lag in the market So when interest rates rise, housing prices continue to stay high until the market can catch up. It is this period when it is the most difficult for lower-income households to purchase a home. As shown in Table B-11, the percentage of persons denied for a home loan in the San Diego region increases as income decreases. Approximately 20 percent of Very-Low Income households were denied a loan, while only 9 percent of Above-Moderate Income households were denied. Table B-11 MORTGAGE LENDING RAlES SAN DIEGO REGION Income Group Total Loans Applications Percentage (% of Median Income) Applications Originated Denied Denied <50 % MFI 334 151 68 20.4% 51-80% MFI 2008 1348 293 14.6% 81-100% MFI 2830 1982 314 11.1 % 100-120% MFI 3956 2745 424 10.7% > 120% MFI 31414 22624 2960 9.4% TOTAL 40542 28850 4059 10.0% Source: Home Mortgage Disclosure Act (HMDA) 2003 Draft Data Interest rates are determined by national policies and economic conditions, and there is little that local governments can do to affect these rates. Figure B-1 shows interest rates have generally risen throughout 2005. There are a few dips in rates around June and September, but overall rates have been increasing. Jurisdictions can, however, offer interest rate write-downs to extend home purchase opportunities to lower income households. Additionally, government insured loan programs may be available to reduce mortgage down payment requirements. Page AB-17 ~I~ --- ~"'~~ cnv Of CHUIA VISTA .. HOUSING ELEMENT APPENDIX B 6.5 6 5.5 5 4.5 \ \ ,..r ..i 4 ...l~~~..l~~ 3.5 3 - . 30yr FRM "....... 15 yr FRM 1 yr Adjustable - - 10 10 10 10 10 10 co 0 0 0 0 0 0 0 I ..!.. I I I I I C >. "5 a. > c co co co Q) 0 co ...., ~ ~ ...., CJ) z ...., Rgure 8-1: Mortgage Rate Trends - - - - Page AS-18 City of Chula Vista General Plan - /....,.,.,..'j." ".""".""'" . Chula ':;:/~/':'~/' ';'.;..(~)\~~,:- . ;'~.~'~o.I'" V 1S ta ;~,/'r'" / Vision '~'>"'>'- ...,,;;:)'" 2020 -, "::~;::.' ~~,::,~.::.." HOUSING ELEMENT APPENDIX C 1.0 OVERVIEW: HOUSING RESOURCES More specifically, this section discusses the following: Opportunities for development in the City include vacant and underutilized residential sites. This section evaluates the potential opportunities for various types of residential development for all income levels and energy conservation within such developments. The analysis primarily looks at development that could occur based upon the Chula Vista General Plan and Zoning Ordinance. · An inventory of available vacant and underutilized land for residential development to accommodate the City's Regional Share Goals; · Opportunities for homeless shelter and transitional housing; · An inventory of assisted housing units and efforts to preserve; and · Opportunities for energy conservation. Page AC-l ~I f?. =-- 01Y OF CHUlA VISTA - HOUSING ELEMENT APPENDIX C 2.0 LAND AVAILABILTY - - State Housing Element Law mandates that a jurisdiction must show that it has adequate sites that _ will be made available through appropriate zoning and development standards and with the required public services and facilities for a variety of housing types and incomes. This evaluation of adequate sites represents a planning goal and not a goal for the actual production of housing within the five-year period. The City must demonstrate that it has the capacity, or adequate sites, to accommodate the projected need for housing. The projected need for housing used for this evaluation is defined as the City's share of the region's housing needs for 2005-2010. ... 2.1 Regional Housing Needs Assessment State Housing Element Law requires that each jurisdiction, in preparing its Housing Element develop local housing programs designed to meet its share of existing and future regional housing needs for all income groups. This requirement ensures that each jurisdiction accepts responsibility for the housing needs of its current and anticipated future residents, particularly lower-income households, and plans for a variety of housing choices. 2.1.1 2005-2010 Growth Needs The State Department of Finance (DOF) is responsible for projecting the total statewide housing demand, with the State Department of Housing and Community Development (HCD) apportioning this demand to each of the state's regions. This demand represents the number of additional units needed to accommodate the anticipated growth in the number of households, to replace expected demolitions and conversions of housing units to non-housing uses, and to achieve a future vacancy rate that allows for healthy functioning of the housing market _ The San Diego Association of Governments (SANDAG), the Council of Governments (COG) representing the region, in cooperation with the local jurisdictions, is tasked with the responsibility of _ allocating the region's projected new housing demand to each jurisdiction. The allocation is further divided into four income categories: - Page AC-2 City of (hula Vista General Plan ''<'j'''''''' Ch 1 ""'"''''''''.''''''' u a ,'.- . '.'" ::!(~.:G'-.I::,/;~~> _ ".. "."...... .....fI5........''''.. .... .....'... V t ..~~.!' 18 a z~,:...r....~.. "j/ Vision ....... r:..>... 2020 "_.----,,, HOUSING ELEMENT APPENDIX C · Very-Low Income - 0% to 50% of the median income; · Low-Income - 51% to 80% of the median income; · Moderate-Income - 81% to 120% of the median income; and, · Above Moderate Income - more than 120% of the median income. This process is known as the Regional Housing Needs Assessment (RHNA), and the goals are referred to as either the RHNA goals or the "regional share" goals for new housing construction. The allocation takes into account factors such as market demand for housing, employment opportunities, the availability of suitable sites and public facilities, commuting patterns, type and tenure of housing need, and others. In determining a jurisdiction's share of new housing needs by income category, the allocation is adjusted to avoid an over-concentration of lower income households in anyone jurisdiction, A Regional Housing Needs Assessment (RHNA) prepared by SANDAG in February 2005 for the period beginning January 1, 2003 to June 30, 2010 (a 7 l/z year period) identifies Chula Vista's share of the region's housing needs as 17,224 new housing units. To determine the regional housing needs for the 2005-2010 planning period, the needs are adjusted by the actual number of units constructed from January 1, 2003 to June 30, 2005, a total of 5,916 housing units. Based upon this adjustment the regional housing needs for 2005-2010 is 11,307 housing units, with 58% allocated for lower income households. Figure C-I CHULA VISTA'S RHNA GOALS BY INCOME CATEGORY 2005-2010 ~ Low 24% Moderate 24% Very Low Above 34% Moderate 18% Source: Regional Housing Needs Assessment SANDAG 2005 Page AC-3 ~I~ --- - OIY Of CHULA VISTA - - HOUSING ElEMEI\IT APPENDIX C - As required by State Housing Law, the City must plan for its share of the region's new housing needs in all four income categories by identifying an adequate supply of land zoned at the appropriate density levels to accommodate each income category. The RHNA goals do not represent a requirement for actual housing production, but rather seek to ensure the City has, or plans to add, zoning capacity to accommodate new housing growth. - - To address the City's needs for very low and low income housing, Chula Vista must demonstrate that it has an adequate supply of land for higher density housing (30 or more dwelling units per acre). Although zoning land for higher density development does not guarantee the construction of housing that is affordable to low and moderate income families, without such higher density zoning, the opportunity to use subsidies and implement affordable housing programs for such families would not exist ... 2.2 Capacity to Meet Regional Share Goals - Due to the diverse nature of the eastern and western Chula Vista, the analysis of available sites for housing has been customized to each area. Most of the vacant land is located in eastern Chula Vista and will be developed under the Planned Community (PC) Zone. These Master Plan communities have the capacity to accommodate 19,241 dwelling units as shown in Table C-2. The City of Chula Vista General Plan Land Use and Transportation Element identifies six residential land use designations. The availability of land suited to accommodate the various income levels is based upon the allowed density. Table (-1 GENERAL PLAN RESIDENllAL LAND USE DESIGNATIONS Income Level Land Use Designations Densily Very Low Urban Core Residential 27.1 to 60 units per acre Low High Residential 18.1 to 27 units per acre Moderate Medium High Residential 11.1 to 18 units per acre Medium Residential 6.1 to 11 units per acre Above Moderate Low-Medium Residential 3.1 to 6 units per acre Low Residential o to 3 units per acre - Page AC -4 Cily of Chula Vista General Plan - /;...._..".....i:.........'..........Chula .....~~/ Vista ?'y'....~....... Vision ...... f> 2020 HOUSING ELEMENT APPENDIX C 2.2.1 Availability of Sites in Eastern (hula Vista Table (-2 is divided into type of unit using the General Plan's Land Use Designations. The majority (52.4%) of the units will be high density residential followed by 18.0% medium- high, 17.3% low- medium, 7.7% medium, and 4.6% low density residential. Page AC-5 ~v~ ~-- Oft' Of CHllA VISrA o 1;; :> o :; .J::. () '0 ~ U , " .. - HOUSING ELEMENT APPENDIX C r ~ ~ ~ > t; f5 ~ ~ ~ g g c 5 ~.,g~ ~:ff~~ 9:sg;j'~-1?'s;-~ g fS-i!!?..~~~ "g .3o.5l (;l!?8 ~al ~ }DODOIOODHID ~ o~ 0"- '" ...: ~ ~ '" - - - - - - N U ~ :;:, 0) LI: - ! ! ~-_. ! ! .--.. ,,- '--~ ! ! a i II: ~ i t. :-'-&--... / :e~ ~ ..... c.......! ""'1 f6 i ~ : .. t.-......... .. i \ ) ~ , \ \,..i\ \ r'\ ~ ~..' \ -~ t..... ....~:. ! ! ! i r-- ! ! ! ! ! ....... ~ i ! ,._~ i :-0.:- i L~ ii .,.1 - - Page AC-6 - ~ .. ~ ... \ .,.,.,."'rJ'. l I City of (hula Vista General Plan - 1" Chula ...........~..............~.. ............ Vista ~..... ..i'...;~.....' Vision ........ ...... 2020 HOUSING ELEMENT APPENDIX C Table C-2 MASTER PLANNED COMMUNfTY RESIDENTlAL CONSTRUGlON CAPACfTY 2005 Low Low- Med Med- High Totals Med High Project 0-3 3-6 6-11 11-18 18-27+ dulac dulac dulac du/ac du/ac Rancho Del Rey SPA I SPA II SPA III East Lake I 1: I I I I I 3 17 Greens 606 606 Trails Woods & Vistas 157 82 32 600 871 Otay Ranch (Otay Valley Parcel) SPA 1 Mllages 1. 1 West & 5) The Otay Ranch Company McMillin 24 24 The Otay Ranch Co. 1 (1 West) Village 2 709 1.801 2,510 Village 4 453 453 Village 6 34 40 662 736 Village 7 977 448 1,425 Village 8 565 1.017 1.582 Village 9 365 622 254 1.241 2,482 Village 11 30 509 379 641 1.559 Village 12 (EUC) 3.313 3.313 Otay Ranch (Proctor Valley Parcel) Birch Patrick 128 128 Estates San Miguel Ranch 284 177 129 590 Freeway Commerdal 475 475 ~Ift.- =t.:a:fJ::e-.;:: OIl' OF QUA VI5rA .. - HOUSING ELEMENT APPENDIX C - Table C-2 MASrER PLANNED COMMUNITY RESIDENTlAL CONSTRUCTION CAPACIlY 2005 - Sunbow II Rolling Hills Ranch (Salt 434 58 116 608 Creel<;) Bonita Meadows Bella Lago 140 140 Total 879 3,558 1,348 3,067 8,196 17,048 - Sources: General Development Plans and approved SPAs Major Projects Development Status Report July 01, 2005 The eastern Chula Vista area provides for significant development potential for market rate units, as indicated by the density standards indicated in Table C-2. Although a significant level of market rate units can be accommodated in the eastern area, the City of Chula Vista desires an equitable distribution of affordable housing throughout the City. To provide for this, the City initiated an inclusionary requirement for all development exceeding 50 dwelling units. The City requires all projects of 50 or more units to provide ten percent of the housing for low and moderate-income household, with five percent affordable to low-income households. It is the master planned communities, as shown in Table C-2, which are primarily affected by this requirement - Based upon existing approved projects, approved maps and indusionary requirements for development in the eastern Chula Vista area, it is estimated that approximately 6,454 units will be provided for very-low, low and moderate-income households upon buildout of master planned communities in eastern Chula Vista. - - - Page AC-8 City of Chula Vista General Plan - >1"" Chula ~~.~... Vista ~., ~.'."'. !.. ..'."....:.. .. Vision ,> 2020 HOUSING ELEMENT APPENDIX C Vacant Land Resources - Eastern Chula Vista As shown in Table (-3, vacant residential land not within a master planned community comprises 17.39 acres in eastern (hula Vista. A development potential of 148 dwelling units is estimated for these vacant lands. Table (-3 VACANT LAND IN EASTERN (HULA VISTA General Plan Land Use Acres of Vacant Estimated Units Land Low Residential (0-3 du/ac) 4.41 13 dwellinq units Low-Medium Residential (3.1-6 1.52 9 dwelling units du/ac) Medium Residential (6-11 du/ac) 11.46 126 dwellinq units Total 17.39 148 dwellinq units Source: City of Chuta Vista. 2005 2.2.2 Availability of Sites in Western (hula Vista Approximately 73 acres of residentially designated land in western (hula Vista remains vacant with a development potential of 834 dwelling units. Figures (-3 and (-4 indicate the location of vacant residential land within the Northwest and Southwest planning areas. ~Vt- -...- %.~::;e-~ em Of 0ILlA VJSrA .2 ~ o '5 ~ u '5 ~ U ;;; <.> 2 F o ~ !I s - HOUSING ELEMENT APPENDIX C - &15 f.' .. ~ '" ~ 5 ~ " :R , Q J '" - '. \ ~.....*\ . .,..."".1 \ ..~ ;~ '1 ,--~ t,~~ ...... ".~ f.....:::;. :." ~2- \ ':.~ ! = ." ! ....; ! ~ .-~... ~ ! ... ; , i ......... ........;.! f ........,j t(" l ~-:'\.'; .... ,,- . ..-......'.# . .; ....111' ~M#" ! ~ ! ~ i ! ; .' ~ .....1.. " , \ .. \ ~ .- \ .- . ............-~ '-.... .. '\. ~~ ,.....,.-.... " ;~ ':. ..... ,,,......... .....................:. ~ '\. . \ " ;. ......:J ..... .... ! '\. '\. \. \ ... ';9' .... ." - , ~ .,r:Jt? ~ f . .. ~. ... ~ 01 \ .., - f~~"~ ('\") u ~ ::I O'l u:: ~ ... ~ \ . . .. -l' ........"E 'l/i-C"'- ~.."" -.. f~~ ... ~ f'!""""" ... 'So 0 ~ .., . ... ... .. ... .. , '" . <II .. .. " ~ - .. .., ...~ efIII".p - \ , - Page AC-IO City of Chula Vista General Plan - Chula Vista Vision 2020 .2 5 o :; .c U '0 ~ U <; " JJ 'tl -" jl * " ~ HOUSING ELEMENT APPENDIX C -: ~ X!~ d ~ ~,,' n '!: : g ~ ~ ~ ,~::. - ~. c -: ~ ~: c: s i '" . i ~ 9 1 I r .. ~~ ~ ."....""...... ~"'" .. . .I .".etJiP..... " -.. ~ ~..... ~~'if. ... ~ ~ s ~ ...,? ~ ... " ~ ... ... \ ... 'i '% ... ~ \ . \ -.........1 ~..-....,,_.....,. ~ ~ i ! i ! ~.__.-'! ! I : :...L._..l ~ i '...-.--1 i ! ; '----' i !~""" ! ! ! ! ! I ! ! ! ! ! ! ! ! ! i ! ! i :".-........'" ! ! i ! .....___'f ! -..-....... r-...... fH....... i ~ u ~ .... ~ C) u:: ~\~ ~:-l:::lf~ Cll\'0f CHl..V. VJSrA .;"'" t ~~..,. "\ . \-~- ~--.,.. ..-- -.... .-. ..... t; z i . .. ... ~ " ." . . ., .. "t... I . It -; .. "1' i -. . . . - HOUSING ELEMENT APPENDIX C Table C-4 identifies the vacant lands within Western Chula Vista. - Table C-4 VACANT LANDS VVESfERN CHULA VISTA - Zoning Acres of Vacant Land Estimated Units Residential Estate 10.77 32 dwelling units (up to 3 du/ac) Single-Family Residential (up to 11 du/ac) 53.59 589 dwelling units One- and Two-Family Residential 3.29 59 dwelling units (up to 18 du/ac) Apartment (up to 27 du/ac) 5.74 154 dwelling units Total 73.39 acres 834 dwelling units - Source: City of Chula Vista. 2005 - The majority of land Within western Chula Vista has been developed. Therefore, future residential development potential must be realized through infill, redevelopment and intensification of developed properties. The Land Use Element of the General Plan identifies the City's desire to increase urban vitality and pursue infill/redevelopment for the western Chula Vista Area to enhance its emergence as a dynamic hub of south San Diego County. To this end, the City has made significant revisions to the General Plan Land Use Element to allow for residential and mixed use development in the City's key activity centers. Development is directed within areas comprising of transit and commercial corridors, multi- family areas, vacant lands and underutilized areas. The Land Use Element distributes more intensive residential and mixed use development to designated focus areas of change where higher density and higher intensity development will establish mixed use urban environments that are oriented to transit and pedestrian activity. A thorough land use analysis was conducted as part of the General Plan Update process to evaluate the development potential for these focus areas of change. The methodology utilized to conduct this analysis included the evaluation of current market interest in high-density residential development recent development applications and the existence of older commercial developments that currently are inconsistent with market demands. - - Page AC -12 City of Chula Vista General Plan . ;f Ch1!la . ....,;..:.',......... Vlsta ~!r~ Vision .......,. 2020 HOUSING ELEMENT APPENDIX C The majori1y of redevelopment and infill potential is located within the Northwest and Southwest Planning Areas, as shown in Exhibits (-5 and (-6. Table (-5 identifies future development capacities for lands in western (hula Vista. Page AC-13 ~V,c... -Jl-- ""-- ow OF CHlJl.A VISTA c 7;; > c "3 .r:::. o '0 ~ U - HOUSING ELEMENT APPENDIXC r: ~ C: I~~~I? (.9 _ ~ ~ ~ ] j ! s; ! .E oii '" '" Q <r. :!;l :::! _lllii ;1 t ~ j ~ i \....-\ . ........1 \ .~ .. i... '\ ,"'" 1 ~.... -,. ~"'..'_.j. ....~ ;t~~"". ....... .~ it- .....-1 \. i i . : i ~ l ....r..... " l 0;........... ......" \ f .......i iI,.' ~ ./ ;~..':. ..~... .' -- . ",..; .... ~..-- ! ... ! ! ! ! ; : / ../ \ \ 'to ....-: . ......... ~ ,,-- \ i .h J. q~t"- ~. .......::. .... ~ ......... ~ \ '\ '\ -. .._11'0"? ..... ..' ~ ... '\ " '\ '\ , \. .., . ~ \ o;dt~ ~ al ::l t: al ~ '2 :E - al o Ie (5 ~ ~ c;; s :E: ~ L.t') u ~ ::l Ol u: ~'{/I.4f' \ '; , r >- ~ (I) o (!) ~ c;; :E: >- o ~ '0 ~ CD '0 ~ Page AC-14 City of (hula Vista General Plan Chula Vista Vision 2020 ,g u> ;> o "'5 .&:. U '0 ~ u 1; 3 ~ ~ iJ ~ .~ .l!1 ~ it '_ S " " (; ~jjij }IIII HOUSING ELEMENT APPENDIX C t " ~I~ t ~ ~ J , . g ~ ~ - :; ~ g !: e j ~ , e ..........""! ! ! ._.._..-..~ A__-' ~ ! ! ; ! ! ! i........._~ ! .-. --~ - ! ! i i .., \0 U 0) .... ::l Cl u:: i ~ ., ~ I .. 0J0.t#",;If- .. i ... '; ~ 'to .. 't '% ... '\ ~ . ~v~ ~-- ow Of CHllA Vl5rA .,;-ofii' ,;If- ~~~ ... . !. ~~ ~ ... ~ >- ~--.p ~,.. .&:."0 'Sg -.... o~ <n a:l Page AC-15 - HOUSING ELEMENT APPENDIX C Table (-5 Western (hula Vista Planning Areas Development Capacities (1) District/Focus Area Development Densi Potential Units (2) N rth est PI A 0 w annmQ rea E Street Visitor 27-60 du/ac 1.534 units North Broadway Harbor \,.few H Street Gatewav 40-60 du/ac 2,060 units Mid-Broadway 40 du/ac 538 units Mid-Third Avenue H Street Office 40-60 du/ac 1,845 units Downtown Third Avenue 40 du/ac 1277 units TOTAL 7,254 units 50th u west PlanninQ Area Palomar Gatewav 27-40 du/ac 2,002 units South Broadway 30 du/ac 176 units West Fairfield South Third Avenue 30 du/ac 1.166 units Main Street Corridor 27 du/ac 94 units TOTAL 3.438 uris Notes: (1) Planning Areas are defined in the City of Chula Vista General Plan, Chula Vista Vision 2020, adopted December, 2005. (2) PotenUal units represent aggregate development potenUal and considers new land use desiqnaUons and existinq development with each Planninq Area. Source: City of Chula Vista, 2005 - - Pa 9 e A C -16 City of Ch u la Vista General Pia n .....'.-..................L............:...............:........'.....'.C. hula ..' :x.. ....,.~ .. · ::...... VIsta <;1> V~~~on HOUSING ELEMENT APPENDIX C 2.2.3 Comparison of RHNA Housing Need to Development Capacity A comparison of existing RHNA need to future development capacity of residential land provides an indication of Chula Vista's ability to provide adequate sites to meet the projected housing need over the 2005-2010 planning period. Consistent with HCD's guidelines, appropriate densities based on RHNA affordability levels area as follows: · Very Low and Low Income - Minimum of 30 dwelling units/acre · Moderate Income - 11 to 30 dwelling units/acre · Above Moderate Income - Market Rate Units In determining the new housing construction objective for the Housing Element Planning period, the City of Chula Vista has credited construction accomplishments that have occurred during the current 7.5-year planning period. Table C-6 provides a summary of the revised RHNA construction objectives: Table C-6 New Housing Construction Objectives 2005-2010 Housing Unit Very Low Moderate Above Total Description Low Moderate Units Constructed from Jan 2003 to June 30, 2005 FY 2003-2004 Units Constructed 3,066 3,066 FY 2004 2005 Units Constructed 2,041 2,041 Sierra Camden Apartments 122 122 Heritaqe Town Center 30 241 271 The Missions Apartments 240 240 Tivoli 21 21 Bella Sol 108 108 Country Club Villas 21 21 Ada Villas 14 14 Ada Terrace 12 12 TOTALUNrrsCON~UOED 30 241 538 5,107 5,916 2003-20051 RHNA New Construction 3,875 2,945 3,255 7,148 17,223 Objectives 2005-2010 REVISED NEW CON~UcnON 3,845 2,704 2,717 2,041 11,307 Page AC-17 ~v~ ~~ OIfOf QUA VISrA ... HOUSING ELEMENT APPENDIX C Table C-6 New Housing Construction Objectives 2005-2010 Housing Unit Very Low Moderate Above Total Description Low Moderate OBJECTIVES - Source: City of Chula Vista. 2005-2006 1. To be used as credit toward achieving housing element quantified objectives through 2010. Current RHNA is a 7 lh year planning period and construction achievements from January 2003 through June 2005 can be counted as credit in achieving new construction objectives. In comparing the RHNA need versus the capacity of the (ity of (hula Vista's current land use policy, Table (-7 provides a summa/y of development capacity, based on affordability levels. Table (-7 RHNA HOUSING NEED! VS. DEVELOPMENT CAPACrTY Affordability Units Density Range Estimated Development Level CapacityZ Very Low and 6,549 30+ dwelling 7,062 Units Low units/acre Western Chula Vista 504 Units Eastern (hula Vista3 Moderate 2,717 11-30 dwelling 2,309 units units/acre Western (hula Vista 5,950 units Eastern (hula Vista4 Above 2,041 Up to 11 dwelling 621 units Moderate units/acre Western (hula Vista 5,695 units Eastern Chula Vista 9,992 Units Total 11,307 Western (hula Vista 12,149 Units Eastern (hula Vista Page AC-18 City of (hula Vista General Plan Chula Vista .. Vision 2020 HOUSING ELEMENT APPENDIX C Table C-7 RHNA HOUSING NEEDl VS. DEVELOPMENT CAPACfTY Afford a bility Units Density Range Estimated Development Level Ca aci Source: City of Chula Vista, 2005 Notes: 1 RHNA need includes credits for performance achieved from January 2003 to June 2005. 0). Development capacity includes all estimated units in four Planning Areas for densities exceeding 30 dwelling units/acre. (2) Assumes total estimated development potential for units in eastern Chula Vista planned communities. Affordability levels determined by zoning classification (3) Assumes 5% of units zoned 'high' density shall be developed as low income units per City's inclusionary housing policy. (4) Assumes 5% of units zoned 'high' density shall be developed as moderate income units per City's inclusionary housing policy. ... 2,3 Availability of Public Services and Facilities At the core of the City of Chula Vista's Growth Management Program, lie Threshold Standards imposed to assure adequate infrastructure and services are in place as development occurs, and to control the rate of growth. Therefore, prior to the approval of future residential development the provision of adequate infrastructure is a required finding. Chula Vista currently has adequate public services and facilities to serve all new residential development that may occur throughout the City. Additionally, fees are collected for new and infill development to maintain Threshold Standards. Page AC-19 ~If.t.- -A- ~ - 01Y OF QUA VlSrA - - HOUSING ELEMENT APPENDIX C 3.0 HOMELESS SHELTERS AND TRANSITIONAL HOUSING - State Housing Law requires that cities identify sites that are adequately zoned for the placement of homeless shelters and transitional housing. Additionally, they must not unduly discourage or deter these uses. Currently, the City would classify a homeless shelter as a facility that provides supportive services and housing needs, including emergency shelter, transitional housing, social services, mental health services and general health services. Table C-8 provides a summa'Y of homeless shelters in Chula Vista Table C- 8 EMERGENO' AND lRANSmONAL SHELTERS CHULA VISTA Agency Program Name Target Special Needs Total Population Number of Beds MAAC Project Nosotros Adult men Substance 13 abuse SBCS Casa Nuestra Shelter Homeless General 8 Youth Homeless SBCS Casa Nueva Vida I Families with General 54 children Homeless SBCS Casa Nueva II Families with General 80 children Homeless SBCS Casa Segura I & II Women with Victims of 60 children Domestic Violence SBCS Trolley Trestle Homeless General 20 youth Homeless SBCS Hotel Voucher Families with General - Children Homeless Source: San Diego Housing Commission. - Page AC-20 City ofChula Vista General Plan . ....;..~.......................................I.......................'.........Chula ".~ i~ ..... . "".' VIsta <..':~.' Vision .' 2020 HOUSING ELEMENT APPENDIX C The City of Chula Vista Municipal Code allows for the development of homeless shelters on church facilities to aid in the provision of homeless facilities. Specifically, section 19.58.110 establishes provisions for the development of homeless and transitional facilities. Additionally, Section 19.48.025 of the Municipal Code provides specific guidance for the location of homeless services and shelters as a "Community Purpose Facility". Page AC-21 ~Vt.- ~:=1.._ O\T Of CHllA VlSII\ - HOUSING ELEMENT APPENDIX C 4.0 ASSISTED UNITS "AT-RISK" OF CONVERSION - State Housing Element Law requires the analysis of government-assisted housing that is eligible to change from low-income to market rate housing over the next 10 years. State law identifies housing assistance as a rental subsidy, mortgage subsidy, or mortgage insurance, to an assisted housing development Government assisted housing might convert to market rate housing for a number of reasons, including expiring subsidies, mortgage repayments, or expiration of affordability restrictions. As a requirement of State law, this section will address the following: - · An inventory of assisted housing units that are at-risk of converting to market rate housing. · An analysis of the costs of preserving and/or replacing these units. · Resources that could be used to preserve the at-risk units. · Program efforts for preservation of at-risk housing units. · Quantified objectives for the number of at-risk units to be preserved during the Housing Element planning period. ... 4.1 Inventory of Affordable Units An inventory of affordable housing units has been compiled from data from the City of Chula Vista Community Development Department Table C-9 is a summary of the information collected. - Page AC-22 City ofChula Vista General Plan - Chula Vista Vision 2020 HOUSING ELEMENT APPENDIX C Table (- 9 SUMMARY OF AFFORDABLE HOUSING PROJEGS Project Address Total Program Length of Affordability Earliest Conversion Units Controls Date Castle Park Gardens 62 HUD Section 2W 40-vear mortQaQe 12/1991 Oxford Terrace 555 Oxford Street 132 HUD Section 2361 40-year mortgage 03/1993 Apartments Palomar Apartments 171 Palomar 168 HUD Section 2361 40-year mortgage 03/1993 Street Rancho Vista 1419 Tobias Drive 24 HUD Section 2361 40-year mortgage 11/1991 Apartments Silvercrest 75 HUD Section 202 40 vears 2015 Casa Nueva Vida 14 Transitional Housing 30 yea rs after Certificate of 8/2023 Occupancv (8/93) Transitional Housing 12 Transitional Housing 55 years after Certificate of 11/2059 Occupancy (11/94) Canterbury Court Senior 336 C Avenue 207 City Density Bonus 25 years 2010 Apartments Eucalyptus Parkview 56 Fourth Avenue 9 City Density Bonus 25 years 2008 Apartments Park Fifth Avenue 364 Fifth Avenue 48 City Density Bonus 25 years 0212011 Apartments Park Way West Senior 411-415 Parkway 13 City Density Bonus 25 years 10/2016 Apartments A Point of View 54 Woodlawn 6 City Density Bonus 25 years 07/2014 Avenue Oak Terrace Senior 423 Church 36 City Density Bonus 25 years 01/2012 Aoartments Avenue Vista Point Apartments 1051 Broadwav 10 City Density Bonus 25 years 07/2014 Orange Glen 307 Orange 25 County Tax Exempt Term of Bonds (30 years) 1/8/2006 Apartments Avenue Financing Park Plaza Village 28 Low Income Rental 30 years after Effective Date 6/2021 Apartments (6/91) Cordova Village 1280 East J Street 40 Inclusionary Housing 55 years after Effective Date 2052 Apartments (1997) Eucalyptus Grove 75 Tax Exempt Financing Term of Bonds (15 years- 11/2012 Apartments 11/97) Antigua South of Eastlake 130 Inclusionary Housing For-Sale; No restrictions Upon Resale HiClh School Cabo Mount Miguel/ 26 Inclusionary Housing For-sale; No restrictions Upon Resale MacKenzie Creek Sanibelle. W Jammer/ 43 Inclusionary Housing For-sale; No restrictions Upon Resale Montillo Sedona MacKenzie Creek 32 Inclusionary Housing For-sale; Recapture Upon Resale Road Mar Brisa Procter Valley 70 Inclusionary Housing For-sale; Recapture Upon Resale Road, south of Mt Miguel Winding Walk Southeast comer 92 Indusionary Housing For-sale; Recapture Upon Resale of Birch Road and Page AC-23 ~Jfc.. J~~ Cln'0f' CHllA VlSrA - HOUSING ELEMENT APPENDIX C Table C- 9 SUMMARY OF AFFORDABLE HOUSING PROJEGS - Project Address Total Program Length of Affordability Earliest Conversion Units Controls Date Eastlake Parkwav Lofg ren Terrace Miracosta Circle 200 Inclusionary Housing Life of Project; M i1ita i)' Life of Project Housinq Teresina Apartments 1250 Santa Cora 88 Inclusionary Housing 55 years 2055 Avenue Vista Su n risa 1325 Santa Rita 180 Inciusionary Housing 55 years 2058 Avenue Ra ncho Buena Vista 2155 Corte Viste 150 Inclusionai)' Housing 55 years 2060 Apartments Otay Ranch Village 6 Village 6 12 Inclusionai)' Housing No restrictions No restrictions (second dwellina units) Villa Serena Senior 1231 Medical 132 Inclusionai)' Housing 52 years 2052 Apartments Center Drive Rolling Hills Ranch 2290 MacKenzie 104 Inclusionai)' Housing 25 years 2024 Senior Apartments Creek Road Harvest Village Seniors 1325 E Palomar 91 Inclusionai)' Housing 55 years 2058 Street SBCS Transitional Concord Way/ 2 Special Needs - Life of Project Life of Project Housing - Domestic Regency Way Homeless Violence Veterans Home 400 Special Needs- Life of Project Life of Project Multicare for Vets - Notes: I Section 236 projects carry a 4().year mortgage with an option to prepay the remaining mortgage after 20 years and opt out of low-income use control. The earliest conversion date refers to when the prepayment option first becomes available. Source: City of (hula Vista, 2005 There are a total of 2,872 assisted housing units in the City of Chula Vista. Of those units 877 are 'at~ risk" to loose their affordability over the next 10 years. Units receive assistance thorough a number of programs, including: HUD Section 236, City Density Bonus program, Transitional Housing program, HUD Section 8/ Section 202, County Tax Exempt Financing, Low Income Rental, Inclusionary Housing program, and Tax Exempt Financing. ... 4.2 Inventory of At-Risk Units - The State requires jurisdictions to analyze all assisted units over a ten-year period, usually connected to the required implementation date for the Housing Element Update. During this housing cycle, the ten-year period is from 2005 through 2015. - Page AC-24 City of (hula Vista General Plan ~".... Chula /........................... ...........~..~.. Vista . ~,.; . V~~1on HOUSING ELEMENT APPENDIX C The HCD recommends that the inventory be divided into five-year planning periods that correspond to each Housing Element cycle. As shown in Table C-5, 877 affordable units are at-risk of being converted into market rate housing over the next 10 years. Of these 877 at-risk units, 216 are at-risk of losing their affordability during within this Housing Element planning period. At-risk units were developed under HUD Section 236, City Density Bonus program, HUD Section 8/Section 202, County Tax Exempt Financing, and the City's Tax Exempt Financing program. Two projects that are at-risk of converting to market rate housing during this Housing Element cycle are the Canterbury Court Senior Apartments and the Eucalyptus Parkview Apartments, which account for 216 units. Page AC-25 ~V.c- ~l-~ em OF OUA VJSrA - HOUSING ELEMENT APPENDIX C - Project Total Program Length of Earliest # of Units Affordabilily Conversion Date Units at Controls Risk Castle Park 62 HUD Section 2361 4o-year mortgage 12/1991 - 62 Gardens 03/2011 Oxford Terrace 132 HUD Section 2W 4o-year mortgage 03/1993 - 132 0312013 Palomar 168 HUD Section 2361 4o-year mortgage 03/1993 - 168 03/2013 Rancho Vista 24 HUD Section 2361 4o-year mortgage 11/1991 - 24 11/2011 Silvercrest 75 HUD Section 202 40 vears 2015 75 Canterbury Court 207 Ci1}' Densi1}' 25 years 2010 207 Senior Bonus Eucalyptus 9 Ci1}' Density 25 years 2008 9 Parkview Bonus Park Fifth Avenue 48 Ci1}' Densi1}' 25 years 0212011 48 Bonus A Point of View 6 City Densi1}' 25 yea rs 07/2014 6 Bonus Oak. Terrace 36 Ci1}' Densi1}' 25 years 0112012 36 Senior Bonus Vista Point 10 Ci1}' Densi1}' 25 yea rs 07/2014 10 Bonus Eucalyptus Grove 75 Tax Exempt Term of Bonds (15 11/2012 75 Financina vears-ll/97) Table (-10 SUMMARY OF AT-RISK UNrrS - - - Notes: lSection 236 projects cany a 40-year mortgage with an option to prepay the remaining mortgage after 20 years and opt out of low-income use control. The earliest conversion date refers to when the prepayment option first becomes available. Source: (i1y of (hula Vista, 2005 - - - - Page AC-26 City of Chula Vista General Plan - Chula Vista Vision 2020 HOUSING ELEMENT APPENDIX C Table C-11 Units "At-Risk" of Conversion 2005-2010 Development Number of Affordabiliw Total Units Bedrooms/unit Level Eucalyptus Parkview 1 bd rms Low 3 units 2 bdrms Low 6 units Canterbury Court 1 bdrms Low 179 units 2 bdrms Low 28 units TOTAL 216 UNITS Source: RBF Consulting, 2006 (1) assumes average three bedroom home of 1.250 square feet (2) assumed average three bedroom home of 1,250 square feet (3) assumes average 2 bedroom apartment of 1,000 square feet (4) assumes average 2 bedroom apartment of 1.000 square feet ... 4.3 Cost of Preservation Versus Replacement Two projects, which account for 216 units, are at-risk of converting to market rate housing during this Housing Element cycle. A general rule of thumb suggests that the cost of preserving existing units is more cost effective than replacing units through new construction. Replacement of these units with rehabilitated units may be cost effective in some instances. 4.3.1 Preservation Strategies Options to preserve units would involve providing financial incentives to the project owners to extend low-income use restrictions, purchasing affordable housing units by a non-profit or public agency, or providing local subsidies to offset the difference between affordable and market rate. Scenarios for preservation will depend on the wpe of project at-risk. Page AC-27 ~\~ft.. ~/~~ ow Of QUA VISfA - HOUSING ELEMENT APPENDIX C 4.3.2. Local Rental Subsidy An option for preserving the 216 units at-risk during the planning period is to provide a local rental subsidy to residents. This method would be utilized to retain the affordability of the units via the provision of assistance to residents when their affordable units convert to market rate. State or local rent subsidies can be utilized to maintain the affordability of these units. Such subsidies can be a in a form of a voucher or payment similar to the Section 8 program. To determined the need subsidy, Fair Market Rates were compared to "affordable rents", which were determined by utilizing 30% of a lower income unit family of 2 and 3 persons. Table (-12 provides a summary of Fair Market Rents for San Diego County and Table (-13 provides an estimate of the required subsidy by unit type. Table (-12 2005 FAIR MARKEr RENTS Size of Unit Fair Market Rent o bedroom $854 1 bed room $975 2 bedroom $1183 3 bedroom $1725 4 bedroom $2080 5 bedroom $2392 6 bedroom $27 04 - Source: HUD FMR 2005 - - - - Page AC-28 City ofChula Vista General Plan - Chula Vista Vision 2020 HOUSING ELEMENT APPENDIX C mate on IIV u si yto eserve t- is nits U nit Size FMR Affordable Number Difference Monthly Annual Rent of Units Subsidy Subsidy One $975 $690 182 $285 $51,870 $622,440 Bedroom Two $1183 $776 34 $407 $13,838 $166,056 Bedroom TOTAL $788,496 Esti Table C-13 d M thl S b d Pr "A R k" U Source: HUD Income Umits and FMR 2006. RBF Consulting, 2006 Notes: 1. Assumes 2 persons per 1 bedroom unit with maximum income of $27,600 and 3 persons per 2 bedroom unit with income of $31.050. Affordable rent is considered as 30% of income. 4.3.3 Replacement Cost Another option the City of Chula Vista can consider is the cost of replacement of these units with new construction. Based upon information provided by the local development community, brokers and housing developers, replacement costs for multi-family units have been estimated. Construction cost estimates include all hard and soft cost associated with construction in addition to per unit land costs. The analysis assumes the replacement units are garden style apartments with parking provided on-site. Square footage has been estimated as the average unit size per the prevailing sales in the region. Land costs have been determined on a per unit basis. Tables C-14 and C-15 provide a summary of estimated replacement costs per unit eolacement osts)V nit Ivoe Type of Cost per Square Average Replacement Residential Unit Foot ($) Square Cost per FooVUnit 2 Unif 1 Bedroom Unit (low $200 750 SF $175,000 income) 2 Bedroom Unit (low $200 1,000 SF $225,000 income) Table C-14 R C b U l Page AC-29 ~J~ ~~~$' 01Y Of CHllA Vl5rA - - HOUSING ELEMENT APPENDIX C - Type of Residential Unit Table C-14 Replacement Costs by Unit Tvpel Cost per Square Average Foot ($) Square FooVUnit 2 - Replacement Cost per Unir - Source: RBF Consulting, 2006 Notes: 1. Based on prevailing market conditions. Units assumed as garden apartments, with on-site parking. 2. Assumes average square footage of 750 sJ. for 1 Bedroom and 1.000 sJ for 2 bedroom. 3. Includes construction costs, financing and land acquisition costs of $25,000 per unit - Table C-15 R I C f.A R I( U eplacement osts 0 t- is nits Type of Replacement Number of Total Replacement Cost Residential Unit Costs per Unit Units 1 Bedroom Unit $175,000 182 $31.850,000 (low income) 2 Bedroom Unit $225,000 34 $7,650,000 (low income) Source: RBF Consulting, 2006 Notes: - 1. Based on prevailing market conditions. Units assumed as garden apartments, with on-site parking. Assumes average square footage of 750 s.f. for 1 Bedroom and 1.000 s.f. for 2 bedroom. Includes construction costs, financing and land acquisition costs of $25,000 per unit - - ... 4.3 Resources for Preservation A variety of federal. state, and local housing program exist to assist cities acquire, replace, or subsidize at-risk affordable housing units. The following summarizes financial resources available to the City of Chula Vista: Federal Programs .......---....................".........".......................,..,... ...................."""'...--..... - Page AC - 30 City of Chula Vista General Plan - Chula Vista Vision 2020 HOUSING ELEMENT APPENDIX C · CDBG - CDBG funds are awarded to cities on a formula basis for housing activities. Eligible activities include acquisition, rehabilitation, economic development and public services. On an annual basis, Chula Vista had a total of $2,379,000 available in CDBG Funds for 2005. · HOME Investment Partnership - HOME is a flexible grant program, which is awarded to the City on a formula basis for housing activities and takes into account local market conditions, inadequate housing, poverty, and housing production costs. HOME funding is provided to jurisdictions to assist rental housing or home ownership through acquisition, construction, reconstruction and/or rehabilitation of affordable housing. Tenant based rental assistance, property acquisition, site improvements, and other expenses relation to the provision of affordable housing and/or special needs housing may also qualify under the HOME program. The City of Chula Vista has approximately $950,000 available on an annual basis through the HOME program · Section 8 Rental Assistance Program - The Section 8 Rental Assistance Program provided rental assistance payment to owners of private market rate units on behalf of Very-Low income tenants. The City of Chula Vista participates in a consortium to provide assistance to renters based upon a subsidy that is the difference between the tenanfs affordable portion and fair market rent Section 8 rental assistance is provided through the San Diego County Housing Authority to approximately 2,000 Chula Vista residents on an annual basis. . Section 811/ 202 Program - Under the Section 202 program non-profit organizations and consumer cooperatives can receive no interest capital advances from HUD for the construction of Very-Low income rental housing for seniors and disabled persons. This can be used in conjunction with Section 811, which can be used to develop group homes, independent living facilities, and intermediate care facilities. Eligible activities include acquisition, rehabilitation, new construction, and rental assistance. . HUD Low Income Housing Preservation and Residential Homeownership Act (UHPRHA) - L1HPRHA was enacted in response to concern over the prepayment of Section 221(d)(3) and Section 236 assisted housing. Pursuant to L1HPRHA, HUD must offer a package of incentives to property owners to extend the Low-income use restriction. HUD must guarantee an 8% return on the recalculated equity of the property, proVided the rents necessary to yield this return fall within a specified federate cost limit The cost limits are either 120% of the FMR, or the prevailing rent in the local market If HUD can provide the owner with this return, the owner must stay in the program or sell their property to a priority purchaser for a 12-month period, or purchasers for 15 months (a 'voluntary" sale). The owner is required to document this choice in a Plan of Action. If HUD cannot guarantee an 8% return, the owner may prepay only after offering the sale to a priority purchasers for 12 months or other qualified ~Jf? ~/7"!' Page AC-31 O&~ - - HOUSING ELEMENf APPENDIX C - - buyers for 15 months (a "mandatory" sale). Projects that are preseNed under this method are required to maintain affordability restriction for the remaining useful life of the project, generally 50 years. State Programs · California Housing Finance Agency (CHFA) Multiple Rental Housing Programs - The CHFA provides below rate financing to builders and developers of multi-family and elderly rental housing. Tax-exempt bonds provide below market mortgage money. Eligible activities include, new construction, rehabilitation, and acquisition of properties with 20-150 units. - · Low Income Housing Tax Credit (UJ-ITq - This program provides tax credits to individuals and corporation that invest in Low-Income rental housing. Tax credits are sold to those with high liability and proceeds are used to create housing. Eligible activities include, new construction, rehabilitation, and acquisition of properties. · California Community Reinvestment Corporation (CCRC) - The California Community Reinvestment Corporation is a private, non-profit mortgage-banking consortium that provides long-term debt financing for affordable multi-family rental housing. Eligible activities include, new construction, rehabilitation, and acquisition of properties. - Loc:a1f>>rogrCims · Redevelopment Agency Funding - In compliance with State law, the Agency sets aside 20% of its funding for affordable housing activities. Eligible activities include, new construction, rehabilitation, and acquisition of properties. According to the City of Chula Vista's RDA Implementation Plan 2004-2009, total revenues for housing funds are estimated to be approximately $2,000,000 annually through 2009. Total funds available through 2008-2009 are estimated to be approximately $10,421,000. - ... - 4.4 Program Efforts to Preserve At-Risk Units The following housing programs have been developed by the City of Chula Vista to assist the preseNation of Low-income units eligible to convert to market rate housing. - Page AC-32 City of (hula Vista General Plan - Chula Vista Vision 2020 HOUSING ELEMENT APPENDIX C · Monitoring At-Risk Units - The City of (hula Vista monitors the eligibility of affordable housing to convert to market rate housing. ... 4.5 Quantified Objectives Housing Element law requires that cities establish the maximum number of units that can be preserved over the planning period. Two assisted projects with a total of 216 units are at-risk of being converted to market rate housing within the 2005-2010 Housing Element planning period. The City of (hula Vista's objective is to preserve 216 affordable housing units. Page AC-33 ~tft.. -0- ~~~ 0lY OF QUA VlSrA ~ .~, .,',_'_ ...___,~~..~"~."~.~_._..."'_...".._..,.~.~~_~"'~___..,_..._~." ._."....., __n ,'_ __ --. "..,'_...~"~.",_"_ - HOUSING ELEMENT APPENDIX C - 5.0 ENERGY CONSERVATION Energy is essential to maintaining the existing quality of life and economic development and sustainability of the region. The primary sources of energy in San Diego County are electricity and natural gas. At present the region is heavily dependent upon the importation of natural gas to produce electricity locally, as well as the importation of electricity produced outside of the region. - Reducing demand for electricity and natural gas is an important step to help meet the growing energy needs of the region and meeting the intent and spirit of the City's Environmental Goal. The goal is to "Improve sustainability through responsible stewardship of Chula Vista's natural and cultural resources; promotion of environmental health; and protection of persons and property from environmental hazards and the undesirable consequences of noise." Plans and programs currently implemented by regional and local agencies to conserve energy and natural gas are helping to reduce demand. - - The City of Chula Vista "Energy Strategy and Action Plan (Energy Strategy) has nine strategy actions, ranging from continued or expanded conservation and education programs to the formation of a municipal utility to provide energy services. As outlined within the Housing Element the City promotes the efficient use of energy to reduce long term operational costs of housing (see HE Policy 4.2). By reducing operational costs, housing becomes more affordable to the property owner and/or residents. - - - Page AC-34 City ofChula Vista General Plan - ,;?/";::':j:~':o',~~, Ch uIa /" ,,",-,,"'.//' '" :t' "":~ )}~~~ \\ V. ~" lsta 'v' /,~,;,.~::-" i) .. ':;~ T,~ '~'\;? ViSion ~;",,:,,:.\,:,,;/ 2020 HOUSING ELEMENT APPENDIX D 1.0 OVERVIEW: EVALUATION OF PERFORMANCE State Law requires jurisdictions to review the progress and performance of past housing elements goals and objectives. The evaluation should be quantified where possible, but may be qualitative as necessary. Where significant shortfalls between the targeted objective and the City's achievement are identified, the reasons should be discussed. This section discusses the progress of the goals and objectives defined in the 1999-2004 Housing Element Reviewing the progress of the implemented Housing Element is necessary to develop a comprehensive housing program strategy and to identify programs that have been valuable to in reaching goals set. Page AD-l -S-' ft.. --- "'" ~ ~ 01Y Of CHUlA VISTA - HOUSING ELEMENT APPENDIX D 2.0 OVERVIEW: PROGRESS IN IMPLEMENTING THE 1999-2004 GOALS AND OBJECTIVES The 1999-2004 Housing Element contained eight goals. Each goal was associated with specific programs and objectives. The progress of the 1999-2004 Housing Element is analyzed below. A summary of these goals and objectives are provided in Table E-1. - ... GOAL 1: CONSERVE EXISTING AFFORDABLE HOUSING OPPORTUNITIES Program 1.1: Preservation of Assisted Housing at Risk of Converting to Market Rate. - Discussion: The 1999-2004 Housing Element identified the preservation of 32 units in the Meadows project This complex converted to market rate in 2000. Although the City was unable to prevent this project from converting, the City shall revise the current policies and programs to proactively work with two housing developments at risk of conversion. Specifically, the City understands more proactive coordination with affordable housing developers is necessary. Additionally, a resource program for residents of these units should be considered in the case the units cannot be prevented from conversion. Finally, the City considers this issue can be better addressed at the front-end of affordable project development through Affordable Housing Agreements that may allow the City first right of refusal for the purchase of affordable units converting to market rate. - ... Related 2005-2010 Housing Element Policies HE 2.2.1, HE 2.1.2, HE 2.2.3 - Page AD-2 City of Chula Vista General Plan HOUSING ELEMENT APPENDIX D Program 1.2: Condominium Conversions Discussion: Due to the high demand for housing and the need for more affordable housing opportunities the City of Chula Vista, the region has seen a significant increase in condominium conversions. The trend toward increased condo conversions began in 2005, with 432 units converting to condominium ownership. The City views this trend has an important indicator of the need to balance the needs of all income levels while providing more homeownership opportunities for all residents. More importantly, the City sees the loss of low-income rental units as a serious concern. To address this, the City considers revisions to the Municipal Code Chapter 15.56 that address impacts to local planning areas, tenant rights and fee provisions for rental conversions as key program revisions to successfully administer future conversions. Related 2005-2010 Housing Element Polices: HE 2.3.1, HE 3.3.3 and HE 9.1.4 Program 1.3: Single Family and Mobile Home Rehabilitation Discussion: The City's CHIP loan/grant program has been provided for an effective means for the rehabilitation of housing for very-low, special needs and senior households. Since 1999, 191 grants and 23 loans have been utilized by local residents. Of the 214 grants, 111 grants involved elderly households and 147 involved mobile homes. Therefore, the program has been very effective in targeted assistance to the appropriate income levels. The City would like to see more focused efforts in the specific areas most needed for rehabilitation activities. Therefore, the City considers the northwest and southwest planning areas as priority areas for the provision of CHIP resources. Additionally, the City would like to be more pro-active in the provision of loans and grants through targeted efforts in the City's most affected neighborhoods. Related 2005-2010 Housing Element Polices: HE1.1,HE1.1.2 Program 1.4: Rehabilitate Deteriorating and Substandard Rental Housing Page AD-3 ~\~ --- ~ 01Y Of CHUlA VISTA HOUSING ELEMENT APPENDIX D Discussion: The objectives of the previous Housing Element included the rehabilitation of 25 very-low and 95 low-income rental units through the Rental Housing Acquisition and Rehabilitation Program. Since 1999, 24 units of very-low and 94 units of low-income have been acquired and/or rehabilitated. The City will continue to make funds available for affordable housing developers to acquire rental housing that is substandard, deteriorating, or in danger of being demolished. Additionally the City Code Enforcement program has been an effective means for proactively identifying health and safety issues in rental housing. In 2002, the City restarted its Title 25 Mobile Home Inspection Program. The City's Multi-Family Rental Inspection Program was restarted in 200J Since the restarting of these programs, 1,312 units within 233 complexes and 10 mobile home parks with 991 mobile home units have been inspected. These programs have been effective in rehabilitating the existing rental housing stock and the City will continue both programs during in the 2005-2010 Housing Element cycle. Related 2005-2010 Housing Element Policies: HE 1.1.1, HE 1.1.2, HE 1.1.3, HE 1.2.1, HE 1.2.2 and HE 1.2.3 Program 1.5: Preservation of Mobile Home Park Living Discussion: The City's CHIP program has been an effective means at the preservation of mobile home park living through the provision of loans and grants for mobile home residents. Of the 214 CHIP loans/grants provided by the City, 147 were allocated to mobile home park residents. Additionally, the City's Mobile Home Space Rent Review Ordinance has been an effective means for protecting the rights of mobile home residents in preserving affordable housing. In response to recent trends, the City revised Chapter 9.50 of the Municipal Code to include provisions for the limiting of rent increases, more stringent code compliance, greater specificity in allowable rate increase provisions, provisions for "vacancy decontrol", space rents monitoring, and greater clarity in process and definitions of the Ordinance. As a result of these actions, there were no mobilehome/trailer parks converted during the 1999-2005 Housing Element planning period. The City of Chula Vista will continue to give CHIP grants and loans to mobile home residents and will continue to enforce the Mobilehome Space Rent Review Ordinance during the 2005-2010 Housing Element cycle. Page AD-4 City of Chula Vista General Plan - - - - - - - - - - - - /<~..~,"l~::r.'~~, Ch uIa ~~;/~~'l~.-:~ ~\:~ · .c"';;>$':}\\. Vlsta I, ...:.....;;../>. J!' , ~?.5.':I...tr\:..~'-/j: Vision "<""'.,.,' ,....,.",/ 2020 HOUSING ELEMEI\IT APPENDIX D Related 2005-2010 Housing Element Policies: HE 1.2.2, HE 2.2.1, HE 2.2.2, HE 2.2.3, HE 3.3.2 ... GOAL 2: MAINTAIN AND ENHANCE THE QUALITY OF RESIDENTIAL NEIGHBORHOODS IN CHULA VISTA Program 2. J: Reinvest in the City's Well-Established Neighborhoods Discussion: The City's desire to identify and target two residential neighborhoods for c1ean-up/fix-up and rehabilitate 25 homes through Christmas in October were key objective in the prior Housing Element planning period. Through the Neighborhood Revitalization Program, programs to target low and moderate-income households have been implemented. Specifically, the Castle Park Neighborhood Revitalization Area received considerable funding to improve infrastructure, landscape and property. For the 1999-2005 Housing Element planning period, approximately $2,000,000 was expended on the Neighborhood Revitalization Program. During this same period, 35 homes were rehabilitated through the Christmas in October program. In addition to rehabilitation programs, the City's code enforcement function provided monitoring of neighborhood conditions to provide proactive response to potential deterioration of neighborhoods. During the 1999-2005 planning period, 12,000 complaints were responded to, 1,312 rental units were inspected and 991 mobile homes were inspected. The City desires to continue the successful implementation of these programs but desires further integration with the CHIP, Neighborhood Revitalization Program, Capital Improvement Program, and Code Enforcement to enhance the overall effectiveness of neighborhood reinvestment Page AD-5 ~llt-- --- "'~ ~~ 01Y Of OIUlA VISI'A .. - HOUSING ELEMENT APPENDIX D - Related 2005-2010 Housing Element Policies: - HE 1.1.1, HE 1.1.2, HE 1.2.1, HE 1.2.2, HE 1.2.3 ... GOAL 3: ENSURE THAT AN ADEQUATE AND DIVERSE HOUSING SUPPLY IS AVAILABLE TO MEET THE CITY'S EXISTING AND FUTURE NEEDS. - Program 3. J: Affordable Housing Program Discussion: The City's objective for the 1999-2005 planning period was to construct 590 lower-income units, of which 130 units were to be for-sale. Additionally, 470 units for moderate-income households were to be constructed. Due to the effectiveness of the City's inclusionary requirements and the considerable development of master planned communities in the eastern area of the City, 831 low-income units were constructed in the eastern area of Chula Vista. Of these developments, 19% were provided as for-sale units. Additionally 842 moderate-income units were developed. The City shall continue the inclusionary policy for projects of 50 units or more providing ten percent affordable housing to low and moderate-income households. The recent trends in housing opportunities in western Chula Vista and the continued development of the planned communities in eastern area will continue to provide continual opportunities for the provision of affordable units citywide. The City believes considerations should be made to codify the inclusionary policy into an Ordinance. Related 20005-2010 Housing Element Policies: - HE 6.2.1, HE 6.3.1, HE 6.3.2 HE 6.3.3, HE 6.8.1, HE 6.8.2, HE 6.8.3, HE 6.9.1, HE 6.9.2 Program 3.2: Protection of Coastal Housing Page AD-6 City of Chula Vista General Plan - ;~:,~~ Chula ,. '\~\ \~\ V. " _ '."'~:h-<: 18 ta Ii- -~'iJ'~t.~.... i.! .. \~<;'\ ~'-'4?' VIsIon '....c. ....,. 2020 "'--..~:~:. ,~.:;:.--" HOUSING ELEMENT APPENDIX D Discussion: The City has complied with the provisions of state law relative to the monitor and reporting of affordable housing units and new construction of replacement housing in the coastal zone. Since the 1999-2005 planning period, no demolition or conversion of housing units has occurred within the coastal zone. The City shall continue to monitor and report on activities in the coastal zone. Related 2005-2010 Housing Element Polices: HE 2.4.1, HE 2.4.2 Program 3.3: Provide Incentives for Low Income Housing Construction Discussion: The City of Chula Vista views incentives as an effective means in providing benefits to the development community for the provision of affordable housing. To this end, the 1999-2005 Housing Element cycle sought to establish a Density Bonus Ordinance, provide relaxed development standards, provide land write-downs, and pursue alternative funding sources. Currently, the City h.as not adopted a Density Bonus Ordinance, but does follow state guidelines for the provision of density bonuses. All development projects requesting density bonuses have been granted through the City's resolution on density bonuses. To date, three residential developments have received density bonuses and other incentives. A total of 249 units were developed under the density bonus provision, of which 77 were granted as a density bonus. The City wishes to continue pursuing the amendment of Title 9 of the Municipal Code to codify density bonus provisions, consistent with the requirements of Government Code section 65915 and as amended through SB 1818. Although the City was unable to adopt this Ordinance during the last planning period, a target year of 2007 has been set The City has continued to monitor the modification of development standards on a case-by-case basis. To date, nearly all affordable housing developments have been able to meet the requirements. Two developments, Villa Serena (132 units) and Brisa del Mar (106 units) have received modifications to standards, including parking, open space and landscape buffers. The City believes this approach has been effective and will continue the evaluation of standards on a case-by-case basis. The City of Chula Vista has not directly proVided land write-downs or land assemblage, as no request by the development community has occurred during the 1999-2005 planning period. The City believes this policy should be modified in the current Housing Element to discuss financial assistance by the City, of which land-write downs may be appropriate. Additionally, the City believes ~If? --- ~ Page AD-7 CHO'lA~A - HOUSING ELEMENT APPENDIX D - the identification of appropriate housing sites on City-owned property is a more proactive approach to assist the development community. The City of Chula Vista wished to pursue alternative funding sources during the previous Housing Element planning period. During this time, several projects received FHLB funds and the Brisa del Mar project received $2.5 million in Joe Serna Jr. Farmworker Housing Funds. Additionally, the City received State funding from the Jobs-Housing Balance program and Rental Housing Rehab Assistance program. The City believes more intensive outreach to the development community, through marketing of programs and providing descriptions of available assistance programs. As part of this housing element update, the City has included an "implementation tools" section, to provide a summary of local, state, federal and private funding/financing sources to assist in the development of affordable housing. - Related 2005-2010 Housing Element Policies: HE 6.7.1, HE 6.7.2, HE 6.7.3, HE 6.9.2, HE 9.1.5, HE 9.2.1, HE 9.3.2, HE 9.3.3 and HE 9.4.1 Program 3.4: Pursue Housing Opportunities for Lower Income Households, with Attention to Those Who Have Special Needs Discussion: During the previous Housing Element planning period, the City of Chula Vista sought to implement this program through the provision of the Section 8 rental assistance program, Shared Housing Program, second dwelling unit ordinance, relaxed zoning restrictions to special needs housing, construction of mixed used development and redevelopment agency participation in housing construction. - The City of Chula Vista continued to work with the Housing Authority of San Diego. As of March 2005, 2A92 households in Chula Vista were recipients of Section 8 housing vouchers. In addition, the Housing Authority operates four public housing developments in the city, providing 120 units. - The City's Shared Housing Program has been funded through the previous Housing Element planning period, providing assistance to ### Chula Vista residents. The City adopted a second dwelling unit ordinance in 2003, allowing for second dwelling units in the A R-E, R-1 and P-C zones. Through July of 2004, the City has approved the construction of 25 second dwelling units. - Page AD-8 City of Chula Vista General Plan .~ Chula ~ V. ; _ .........p: lsta Ii ,...~';,"~'- .... \'. /.'....;.'..;..'.,..'..... h V1. S1. on \~~~ .~. ... ~~' ',~.:.:.:,Y' 2020 HOUSING ELEMENT APPENDIX D The City has modified its Zoning Code to allow for senior housing in any zone except the R-l, R-2, C- V, C-T and Industrial zones. The City also provides discretion in the granting of exceptions to development standards. Additionally, the City's Inclusionary Housing policy provides for the development of senior housing. Under this program, 36 very-low and 191 low-income units have been constructed during the previous planning period. To further encourage the development of affordable units, the City has aggressively pursued the development of mixed-use commercial/residential projects. Two affordable housing developments have been constructed as mixed-use projects comprising of 377 units total. Additionally, the City has modified its land use designations of the General Plan to allow for two new mixed-use designations; Mixed-Use Residential and Mixed-Use Transit Focus Area. To provide additional opportunities for affordable housing development the City has provided $10.7 million in HOME and agency set-aside funds to construct and/or rehabilitate 123 very-low and 807 low-income units. Pursuant to Proposition C, the City has acquired 11 additional dwelling units with 67 units remaining to be acquired under the provisions of this law. The City of Chula Vista believes the policy direction toward the provision of housing opportunities in the existing urbanized areas will influence the policies of the Housing Element through the encouragement of mixed-use development in the Southwest and Northwest planning areas and provisions to amend Title 9 of the Municipal Code. Additionally, amendments to the Municipal Code that allow for the intensification/reuse of infill sites shall be a policy action of the Housing Element The City will also consider increases in the affordable housing requirements in redevelopment areas to further encourage the development of affordable units. The trend toward more urbanized, infill development requires the City to reevaluate the Balance Communities-Affordable Housing Policy to better reflect its application to urban infill sites. Related 2005-2010 Housing Element Policies: HE 6.1.1, HE. 6.1.2, HE 6.1.3, HE 6.4.1, HE 6.4.2, HE 6.4.3, HE 6.8.1, HE 6.8.2, HE 6.8.3, HE 6.9.1. HE 6.9.2 Page AD-9 ~lft.. --- ,,1<:~~ 0lY Of CHULA VISTA - - HOUSING ELEMENT APPENDIX D "--4 ... GOAL 4: INCREASE OF HOMEOWNERSHIP OPPORTUNITIES FOR LOW AND MODERATE INCOME HOUSEHOLDS. - Program 4.1: Encourage the Construction of a Variety of Housing Types. - Discussion: To encourage the construction of a variety of housing types, the City continued to implement its Affordable Housing Program. Objectives of the previous Housing Element incl uded assistance of 130 low-income first-time homebuyers and the provision of 25 Mortgage Credit Certificates to low and moderate-income households. During the previous planning period, the City assisted in the construction of 162 low-income units in Eastlake and Rolling Hills Ranch. The City has approved the construction of 245 units, scheduled for construction in 2006-2007. Additionally, 85 Mortgage Credit Certificates have been issued and 48 have been reissued.. The City believes the Affordable Housing Policy has been extremely effective in the provision of affordable housing in the City's eastern area. To expand these opportunities citywide, the City believes more focused policy direction should address the need to enhance the Affordable Housing Policy as it applies to infill and mixed-use development in the western area of the City. Related 2005-2010 Housing Element Policies: HE 5.1.2, HE 5.1.3, HE 5.1.4, HE 5.1.5, HE 5.1.6, HE 6.8.1, HE 6.8.2, HE 6.8.3 Program 4.2: Assist Low-Income Households in the Purchase of a Home. Discussion: During the previous Housing Element planning period the City sought to assist first-time homebuyers through direct monetary assistance, homebuyer educationlcounseling, issuance of Mortgage Credit Certificates, issuance of mortgage revenue bonds, and encouragement of sweat-equity projects. Page AD-IO City ofChula Vista General Plan .> Chula .' . ~~- "1 Vis ta \\ -~~;.(. .~"'- /i: .' . ',. T..i i';~" '-0' V lSlon ~~>'-~.... ~ ~...-::7' ........,. 2020 ""::_~~~. . .~;;::.;::. HOUSING ELEMENT APPENDIX D During the previous planning period the City provided $52,000 for down payment and closing cost assistance through the First-Time Homebuyer Program. Additionally, the City provided mailers, informational materials at the public counter, and facilitated public meetings to disseminate the First- Time Homebuyer Program. In 2000, the City held a Homebuyer's Fair that involved the participation by lenders, realtors, and representative from the master planned communities. The City now requires that potential homebuyers in the City's affordable housing units attend a homeowner training program as a condition of their eligibility to purchase the unit To date, potential buyers for 102 units have attended this training. Additionally, through the previous planning period, 85 mortgage credit certificates have been issued and 46 have been reissued. Due to the record low interest rates, the City did not see the need to issue mortgage revenue bonds and shall consider the revision of this program in the 2005-2010 Housing Element The City allocated $179,300 to repair and rehabilitate homes through the Caring Neighbors and Christmas in October programs. These programs provide the ability of homeowners and volunteers to utilize free labor to write down the costs of improving properties. The City feels these two programs have been very successful in engage the community in improving their neighborhoods and will continue the programs in the current planning period. Due to the current cost of housing and the difficulty in providing affordable housing units, the City believes the current policies in the Housing Element should be modified to consider increasing the increase loan amounts under the First-Time Homebuyer Program. Additionally, the City would like to consider revisions to the homebuyer program to require the continuous sale of affordable units versus recapturing of equity only. Related 2005-2010 Housing Element Policies: HE 5.1.1, HE 5.1.2, HE 5.1.3, HE 5.1.4, HE 5.1.5, HE 5.1.6, HE 5.2.1, HE 5.2.2 ... GOAL 5: ENABLE HOMELESS INDIVIDUALS AND FAMILIES TO FIND PERMANENT HOUSING Program 5.1: Participate in Regional Efforts to Address Homeless Needs. Page AD-ll ~Vt- --- ~~~~ 0lY Of CHUIA VISTA - HOUSING ELEMENT APPENDIX D Discussion: The City of Chula Vista understands that homelessness is a regional issue that must be addressed in concert with regional service providers to most effectively provide assistance to the homeless population. During the previous Housing Element planning period, the City of Chula Vista sought to support existing regional services for the homeless and provide local support for regional homelessness efforts throughout the CotJnty. - Throughout the previous Housing Element planning period, the City of Chula Vista made diligent efforts in participating with regional service providers such as South Bay Community Services and MMC SBCS operates four transitional living programs in Chula Vista and the City has allocated annual CDBG funding to this service agency to provide a host of services for the homeless and near homeless. Additionally, $373,000 in HOME funds have been utilized from 1999-2005 to construct 11 transitional housing units in the City. The City of Chula Vista has made significant efforts to continue its coordination with regional homelessness issues through participation with the Regional Continuum of Care Council, Local Emergency Food and Shelter Board, Regional Task Force on Homelessness, FEMA and the San Diego Hotel/Motel Voucher Program. The City would like to further expand its policies in addressing regional homeless issues through the provision of technical assistance, site opportunities, and grants or low-cost loans to provider agencies. Related 2005-2010 Housing Element Policies: HE 7.1.1, HE 7.1.2, HE 7.1.3, HE 7.1.4 Program 5.2: Facilitate Local Facilities That Respond to Homeless Needs. Discussion: During the previous Housing Element planning period, the City of Chula Vista desired to facilitate homeless needs through the evaluation and identification of facilities, providers, and programs that best address the needs homeless persons in Chula Vista. The City of Chula Vista has continued its commitment to collaborating with local and regional organizations such as the Regional Continuum of Care Council, Local Emergency Food and Shelter Board, the Regional Task for on Homelessness, FEMA, and the County of San Diego. The City has also provided South Bay Community Services, a local shelter provider with $87,169 in funds for the support of shelters in Chula Vista. Page AD-12 City of Chula Vista General Plan ..,."f(::l,e/.'.~:.'.:.'.~~\.,.Ch uIa /P~'~1~::,;.,. \~ . !i~-_;;:>,.i:: . VIsta i' J':~.,.. ~'. ' \:\!,;i:.~.;...'.'.~."."' /Y Vision ',,:,:,::,:.:,.:.;;/ 2020 HOUSING ELEMENT APPENDIX D During the previous planning period, the City of Chula Vista has amended the Municipal Code to allow provisions for the use of Church facilities has homeless shelters. To date, one church has requested assistance in the development of a facility for homeless persons. In 1999 and 2005, the City provided $373,000 in HOME funds to assist in the development of an 11 unit transitional housing facility for youth coming out of the County's Foster Care Program. The City believes the current policies should be amended to better reflect the need of identifying appropriate sites and assisting provider agencies in the siting, funding and financing of care facilities. Related 2005-2010 Housing Element Policies: HE 7.1.1, HE 7.1.2, HE 7.1.3, HE 7.1.4 ... GOAL 6: ENCOURAGE ENERGY AND WASTE CONSERVATION AS AN INTEGRAL PART OF HOMES Program 6. J: Institute Conservation as Part of New Construction Discussion: During the previous planning period, the City has continued the application of conservation practices as a component to all residential developments. All new development is required to comply with applicable federal, state and local laws relative to conservation of energy resources. The City has also provided literature to the development community describing the importance of energy conservation and the techniques employed to promote conservation. The City also continues to coordinate with San Diego Gas and Electric in regards to energy conservation programs. To promote the use of reclaimed water, the City of Chula Vista requires the installation of dual-piping systems in all new subdivisions. This requirement has provided significant contributions to the reduction in water demand for irrigation and other applications. For larger development projects, the City now requires water conservation and air quality improvement plans as a standard condition of approval. Page AD-13 .::$.1 ~ - - -l:: ~ 'l;::: 01Y OF CHUIA VISTA ... HOUSING ELEMENT APPENDIX D The City believes the successful application of conservation practices, as a condition of approval for projects is an effective policy and will be continued through the current planning period. Additionally, these conservation policies should also be tailored to target infill residential projects in addition to the large-scaled planned communities. Related 2005-2010 Housing Element Policies: HE 4.1.1, HE 4.1.2, HE 4.1.3, HE 4.1.4, HE 4.1.5, HE 4.2.1, HE 4.2.2, HE 4.2.3, HE 4.2.4 Program 6.2: Promote Conservation in Existing Homes Discussion: To promote conservation of the existing housing stock in Chula Vista, the City has sought to encouraged weatherization of lower income units and provide funding for conservation activities. The City's CHIP program has revised the eligible activities to include weatherization activities. Although these activities are eligible under the CHIP program, limited expenditures have been made due to the priority of mitigating health and safety issues. The City believes the promoting of conservation in existing homes can be best served through the development of outreach materials related to energy conservation including descriptions of the benefits, techniques, and incentive programs available. The City believes existing property owners should be informed of the benefits of energy conservation, as it provides a means to reduce costs borne by property owners, while preserving the existing housing stock. The policy revisions to the current Housing Element reflect a focus toward outreach and education. Related 2005-2010 Housing Element Policies: - HE 4.2.2, HE 4.2.3 - Page AD-14 City ofChula Vista General Plan ~~:;:: ~,:;:)\ Ch ula iP'.,:;~ .~~~- \~\_" V. . ." "w....' lsta i,. ~:.; "!' ~.: ri \~~,~~ ~'."J'/'! Vision ~'''..". .<.oc;/ 2020 "".~'~~:. ::.::~:.- HOUSING ELEMENT APPENDIX D GOAL 7: PROMOTE EQUAL OPPORTUNITY FOR ALL RESIDENTS TO RESIDE IN HOUSING OF THEIR CHOICE Program 7. J: Fair Housing Practices Discussion: During the previous planning period, the City of Chula Vista set a goal of providing fair housing assistance to 150 residents through Fair Marketing Plans, City-initiated fair housing services, counseling/education, and the assessment of fair housing issues. The City requires affordable housing developments of more than 20 dwelling units to prepare an affirmative fair marketing plan to attract prospective homebuyers. During the previous planning period, the City has been very successful in marketing alternative housing choices and seeks to continue this policy. The City of Chula Vista has been an active participant with the Fair Housing Council of San Diego in hosting and providing additional support for educational activities, outreach programs and housing referrals. From January 2003 to March 2003, FHCSD assisted 154 Chula Vista residents with fair housing complaints. The City also allocates $39,000 per fiscal year to provide assistance to Chula Vista residents. The City believes continued coordination with the Fair Housing Council of San Diego and provision of yearly funding to fair housing issues should be continued through the 2005-2010 planning period. Related 2005-2010 Housing Element Policies: HE 10.1.1, HE 10.1.2 ... GOAL 8: REDUCTION AND/OR REMOVAL TO THE GREATEST EXTENT POSSIBLE OF INDENTIFIED CONSTRAINTS TO THE DEVELOPMENT, MAINTENANCE AND IMPROVEMENT OF HOUSING. Program 8. J: Streamline Development Processing Page AD-15 -S-l f.t.. - - ~~~~ 0lY OF 0iUIA V1SI"A - HOUSING ELEMENT APPENDIX D - Discussion: During the prior planning period, the City of Chula Vista sought to provide a streamlined development process through development fee waivers, reduced processing timelines, development subsidies, and the granting of flexible development standards. The City has considered development fee waivers for a 281-unit senior/family housing development allowing for a 10-year deferral of development and park fees totaling over $1 million. The City believes the case-by-case process provides for a flexible method to apply fee waivers as they apply to a project and enables the City to negotiate based on project feasibility rather than blanket fee waivers that may not apply to all circumstances. The City believes this approach has been successful in addressing the needs of the development community and will continue this during the 2005-2010 planning period. - To provide for expeditious processing, the City has employed a team approach to the processing of discretionary approvals. To ensure the expeditious processing of affordable housing projects, the City assigns an entitlement project manager and community development project coordinator to process housing projects. The City also employs a priority system allowing affordable housing developments to take precedent in the approval process. To further this, the current Housing Element shall proVide policies that assign priority processing of developments with 50% or more of the units affordable to low and moderate-income households. To provide development subsidies for projects, the City has developed a first-come first-served basis and considers the following factors; (1) project efficiency, (2) effectiveness in addressing housing needs, (3) developer capacity and (4) design and location. The City has found this process is successful in prioritizing assistance to affordable housing developments and will continue to utilize this approach in the 2005-2010 planning period. As a supplement to this policy, the City will proVide for review and monitoring of development fees to ensure they fee are cost-effective and do not negatively influence the feasibility of affordable housing projects. - - Flexible development standards are encouraged in the development of affordable housing. The majority of affordable units (78%) have been developed in the City's master planned communities, in addition to the 117 units developed in the western, urbanized area of Chula Vista. Two projects requested and were granted relaxed development standards, with the remainder able to develop without the need to relax standards. The City will continue to monitor the need for flexible development standards, especially in the urbanized areas, where infill development will require more creative site planning. - Page AD-16 City ofChula Vista General Plan ,..,~~.~~...'l.~-...~..'.'.'/'.-'.''''~,...Ch uIa ," ~~~j~~,y \\' L~.~:;~_~~: - Vista \:'?"l;:~. '~-p Vision ""~...>~ ..--..:.-;:;:' 2020 .....:~:~;;.. :;;.~:::. HOUSING ELEMEtiT APPENDIX D Related 2005-2010 Housing Element Policies: HE 9.2.1, HE 9.3.1, HE 9.3.2, HE 9.3.3 and HE 9.4.1 Page AD-17 ~!~ --- ~::,.:~ 0lY OF 0iUlA VISrA ~~ ~o LJ.JZ cd~ ~c.. z<( Vi ::J o :J: ~~ ~~ eo =.>-c.9 N 1""'1 Cf) 0 ~ .~N U __~" ,~,.~ .!ft~..,... .-._':;~~ /fl" \\\ c ~ ~ ..;c~. ';.c :s III c o =e <( 10 0- :g ~.; "0 ..cc:: a.. :::: (U C ~ E c::: 9:: .s -t:: g-.2 "-V10-V'I a E ~ ~ ~ <lJ ~~" c:: -.5g~0)8 ~ 0.. =e .~ t5 '~-ge5~ e::: I'V o....c .;:: 0) ~ -.5 .E: '5 .~ :g I'V c:: 0 eo..c c..:;::; ll) ~ 0.. ~::o K o ._ I'V 0 (li"E"E-cv ~g@~ o U I'V" c:: c::_:G ,g (iJ .- ~..c ~ ~_c::~"O~ ~'5.<;"'" c:: U ,2 c:: ~.- 0) .0 X 0 ::::l<lJ:!::::::lo..uc:: I'V<lJVl 0) '~:g en 3: ll)'Vi 'E ~ ~ - . c:: 0.. 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'-' <Ii ..0 'E......24-.c::~ w c:: w .- :5: '1'0 EE~5'tJ> g- t:: "0 E :s 1'0 "W ~~ E'~ ~ >w:eoCl)G ~"O ~U:?~ ~ :?::: ~ 's.. ~ ..0'- 0 c:: ~'.- 'x ;g w ~ -g -E ~~~C[~.:=: """ ....... 00 - HOUSING ELEMEtiT APPENDIX D BLANK - - - Page AD-54 City of Chula Vista General Plan - :?(r;>~ Ch l!la -.......~ V 1S ta \,~I)j V~~i~~ HOUSING ELEMEI\IT APPENDIX E 1.0 SUMMARY OF HOUSING GOALS, OBJECTIVES & POLICIES California Housing Law requires jurisdictions to estimate the number of affordable housing opportunities that will be created over the 5-year planning period. The following provides a summary of the goals, objectives, policies and programs to be implemented by the City of Chula Vista for the 2005-2010 planning period. The programs and policies are categorized into two levels of priorities. Level 1 Priorities are those that the City is dedicated to addressing within the five years with the expected resources. Level 2 Priorities are those that the City acknowledges as important to address should resources allow. Page AE-l ~l~ ~.JI__ 0lY OF CHULA VISTA HOUSING ELEMENT APPENDIX E Quantified Obiective Policies and Proarams I Level1 I Level 2 Policy HE 1.1 Facilitate the rehabilitation of the City's existing housing stock "C Objective HE1: 1.1.1 Community Housing Improvement Program (CHIP) 200 600 l: Enforce 1.1.2 Castle Park ctI maintenance of safe Neighborhood Revitalization Program- Improve neighborhoods. neighborhood- 0) and decent housing. S9.5m l: enhance the quality 1.1.3 Rental Housino Acouisition and Rehabilitation 100 "in of existing housing, 1.1.4 Pursue Fundino for Housinn Related Environmental Hazard Control x ~ and maintain the Policy HE 1.2 Eliminate overcrowded, unsafe, and unsanitarv housina conditions 0 integrity of 1.2.1 Multifamilv housino inspection 1,300 J: residential 1.2.2 Mobilehome insoection prooram 2000 0) neighborhoods 1.2.3 Code Enforcement activities to monitor housing and neighborhood l: 10000 "0 conditions c: In Policy HE 2.1 Encourage the efficient use and conservation of water by residents. ctI "C 2.1.1 Promote water conservation practices in existing and new J: 0 development. X l: 0 W J: 2.1.2 Promote the use of low water demand landscaping and drought X ~ tolerant plant materials in existino and new development. "C 0 l: .c 2.1.3 Continue to require Water Conservation Plans for large X ctlJ: development and redevelopment oroiects 0).2>> 2.1.4 Promote water conservation by residents through education and X c: Q) communitv oroorams. "- Z l: Policy HE 2.2 Promote the efficient use of energv. "n; ctI Objective HE2: 2.2.1 - :.;: Promote the Encourage residential developers/builders to maximize energy l: l: efficient use of efficiency through appropriate site and building design and through X ctI Q) the use of energy efficient materials, equipment, and appliances. :!: :2 water and energy to "" In conserve limited 2.2.2 '"'" Q) resources and Develop and distribute pertinent information about the benefits of ctI 0::: reduce long term energy conservation and available energy conservation incentive X Q) operationa I costs of programs to residents and developers and builders of housing. ~ <( housing. 2.2.3 Continue to perform a Residential Title 24 Energy Analysis and In enforce these requirements as part of building plan check X ~ procedures. (.) 2.2.4 0 Green Building: Promote the development of high-performance. LL sustainable buildings that meet LEED (Leadership in Energy and >. Environmental Design) certification requirements through land use (.) "- development standard incentives as may be adopted in SpecifiC X 0 Plans for the Northwest. Southwest, and Bayfront planning areas Q. and General Development Plans and Sectional Planning Area Plans for the East planning area. Page AE-2 City of Chula Vista General Plan - - - - - - - - - - - ~(r;\,. Chl!la ----..-....- V 1 S t a / r'; Vision .. 2020 HOUSING ELEMENT APPENDIX H Policy 3.1 Preserve publicly assisted rental housing "at risk" of converting to market rate rents. 3.1.1 Expiring Affordability Restrictions. Proactively work with propertv owner(s) of two (2) "at-risk" assisted housing developments whose affordability restrictions are due to expire by 2010, Canterbury Court lfI and Eucalyptus Parkview, and affordable housing developers to 216 Q) evaluate the viability of continuing the affordability of such housing E through owner participation, public subsidies or participation bv t: affordable housing developers. :J 3.1.2 1:: First Right of Refusal to Maintain Affordable Housing: Evaluate the 0 appropriateness of and modify terms within required Affordable 0. 0. Housing Agreements that will allow opportunities to maintain the 0 housing as affordable beyond the termination date of the Agreement X en and noticing to residents. Such opportunities could include a first t: right of refusal to the City/Agency to purchase the housing and lfI adequate noticing to residents of the terms of affordabillty and prior :J to such date, the intent to convert the housing. 0 3.2.1 Monitoring of Units lost: Comply with State law regarding the J: Q) monitoring and reporting of housing units occupied by low or X lfI Objective HE 3: As moderate income households demolished within the Coastal Zone ~ and Redevelooment Pro'eet Areas. Q) required by State .~ law, preserve C existing affordable Policy HE 3.2 Monitor housing located In' the Coastal Zone and Redevelopment Project Areas "C housing occuDled by low and moderate income households and mitigate anY loss of such housing. t: opportunities, where 3.2.2 ~ feasible and Replacement Housing: Where conversion or demolition of housing "C practical, to units in the Coastal Zone or Redevelopment Project Areas occupied Q) maintain an by low or moderate income households is proposed, replacement 0 X (J adequate supply of such housing will be completed in accordance with State law and t: ~ affordable housing. the City's adopted local Coastal Plan and Redevelopment Plan. ~ OJ Policy H 4.1: Promote a balanced Inventory of existing housing types (e.g., multi-family rental and "" owner occupied housing) within the Northwest, Southwest, and East Planning Areas to provide a N range of housing opDOrtunities for all residents. ~ 4.1.1 Q) Community Impact Report (CIR): Consider requiring preparation of ~ <( a CIR on a project-by-projeet basis to evaluate and determine the lfI impact, if any, of such project on the availability of adequate rental :J housing within the geographic Planning Area and to lower income (J residents. If determined to have a negative impact. consider X 0 mitigation measures such as a fee to develop housing or relocation U. assistance. The preparation of a CIR could be applicable to >. condominium conversions, mobile home park closures/conversions "~ and demolition of large existing housing developments to be 0 replaced by new housing. a.. 4.1.2 Mitigation Fee for lost Units. Consider establishing a fee to be paid by those residential developments, such as condominium conversions and demolition of housing for the purposes of new X development, that negatively impact the availability of rental housing stock within the geographic Planning Area. Funds would be used to facilitate the development of an affordable housing rental project. Page AH-3 ~I~ :::.!!Ii__ 01Y OF CHUlA VISTA - - HOUSING ELEMENT APPENDIX E Policy HE 4.2 Provide resources to those lower income households dis laced. 4.2.1 Mobilehome Park CDnversiDn: Continue tD enforce CVMC Chapte 9.40 tD prDtect the rights of residents as mDbilehDme/trailer parks are closed Dr cDnverted tD Dther uses. Evaluate the appropriateness of amendments tD the CDde to enhance the X protection Df the mDst eCDnomically vulnerable residents. CDnside such elements as adequate bilingual nDticing and relocatiDn assistance, tD affDrd some level Df protection fDr the mDst eCDnDmicallv vulnerable residents. If) 4.2.2 CDndDminium CDnversion: Evaluate the apprDpriateness of and Q) Objective HE 4: amend Chula Vista Municipal Code Chapter 15.56 (Condominium :e C Minimize the ConversiDn) tD better articulate provisiDns fDr adequate bilingual :;, impacts assDciated nDticing, relDcation assistance', requiring a pDrtiDn Df the units as X ~ with the cDnversiDn affDrdable tD IDW and moderate income hDusehDlds, and a physical 0 Dr demolitiDn of elements report to provide some level of protection and assistance Q, rental housing on for residents, particarly the most economically vulnerable. Q, 0 the availability of 4.2.3 Tenant Rental Assistance: Develop and fund a shDrt-term rental Cl such housing and assistance program to provide rent subsidies for a maximum of 24 C very low and low months for those residents displaced as a result of the conversion 0 income residents. demolition of their housing. Assistance will target those mos If) 80 ~ economically vulnerable including: very low income residents, low 0 income residents with minor children and residents with a head 0 ::I: household who is permanently disabled or a senior citizen age 62 0 Q) over. If) 4.2.4 Housing Resource Program: Develop a "Housing Assistance ... Q) ResDurce Program" which could proVide tenant education of rights .~ and procedures fDr conversions of rental housing to condominium or C market priced housing and mobilehomeltrailer parkS to other uses 800 "C and offer informational services to any displaced very low and low C income renters, such as rental listings and moving assistance CU referrals. "C Q) (,) Policy H 5.1: Balanced Communlties-Affordable Housing: Require ten percent of new residential C CU developments comprising 50 units or more to be affordable to low and moderate Income CU households. with five oereent for low income and five percent for moderate income, CD 5.1.1 Affordable Housino (aka "Inclusionarv") Policv: Continue to .. ('II implement the Balanced Communities-AffDrdable Housing Policy CU Objective H5: first adopted by the City's Housing Element in 1981. Current Q) requirements include the provision Df affordable hDusing within the ... EncDurage the <( provision Df a wide development ("on-site"). Alternatives tD the on-site provision of 600 If) range of housing housing include, in Drder of priority,"off-site" provisiDn of affordable ~ choices by location, housing and payment of an in-lieu fee. Such alternatives can be (,) type Df unit, and considered, at the sole discretion Df the City, upon determination Df 0 a finding Df "unreasonable hardship" to the development and such LL price level, in >- particular the alternative being in the"public interest". .~ establishment of 5.1.2 AffDrdable Housino PDlicv for Infill DevelDDment: Evaluate the "0 permanent appropriateness of revisions to the Balanced Communities _ 0- affordable housing Affordable Housing Policy that more appropriately reflect its for low and applicatiDn to infillurbanized housing developments, including moderate income households. lowering the unit threshold of applicability, increasing the percentage X of affordable housing units required, targeting very low and low incDme households, flexibility in the methods of compliance. and cDnsistency with the affordable housing requirements of Community Redevelopment Law. 5.1.3 Affordable Housino Policv Adootion of an Ordinance: Consider implementation of the City's Balanced Communities - Affordable X Housing Policy (H 5.1) through the adoption of an Ordinance. - -- - - - -, - Page AE-4 City of Chula VIsta General Plan - ..f<~>ro~:,:~\.....c. hula .....~, /. . ----..~ Vlsta \',(.' ...,."......) Vision "'.'... >.....0.. 2020 HOUSING ELEMENT APPENDIX H Policy HE 5.2 Encourage the development of sufficient and suitable new rental housing opportunities within each of the City's four geographic Planning Areas, particularly for very low and low income families. 5.2.1 New Rental Housino: Promote the development of new rental housing affordable to very low and low income households where such housing will provide a balanced inventory of housing types III (e.g., multi-family rental and owner occupied housing) within the Q) Northwest, Southwest, and East Planning Areas. Encourage the 100 E inclusion of housing for very low and low income households within C the actual development ("on-site") and/or in areas that offer ;:, 1::: residents easy access to goods, services, jobs, transportation, 0 education and recreation. C. 5.2.2 Incentives for Rental Housing: Consider incentives to encourage C. 0 the development of adequate new rental housing opportunities, X C'l particularly to accommodate large families. Also refer to Policies H C 7.2 and 7.4 for possible assistance and incentives. III 5.2.3 Provide ;:, Incentives for Housing in Redevelopment Project Areas: 0 incentives to developers in redevelopment project areas to provide ::I: Objective H5: affordable housing within the proposed project ("on-site") and to X Q) Encourage the exceed affordable housing requirements as established within III Community Redevelopment Law (CRL), particularly for those "- provision of a wide Q) range of housing housing income categories least served. "~ C choices by location, Policy H 5.3 Support efforts to increase the homeowners hip rate, particularly in the Northwest and type of unit, and Southwest Planning areas, up to the regional average to build individual wealth and to stabilize "C price level, in existing residential neighborhoods. C ~ particular the 5.3.1 "C establishment of First Time Homebuyer Assistance: Continue to provide low income Q) permanent househoids with assistance to purchase their first home through the (.) affordable housing City's First Time Homebuyer Down Payment and Closing Cost 30 C for low and Assistance Program. Consider amendments, as necessary, to the ~ moderate income Program to adequately reflect real estate mar1<et conditions. ~ households. OJ 5.3.2 Continued Occupancy for Homeownership Units: Evaluate the 0" N appropriateness of amendments to current City homeownership X ~ policies and programs to encourage the long-term occupancy of the Q) housing unit by a low income household, where practical. "- <C 5.3.3 New For Sale Housing: Promote the development of new entry level III homes for sale and affordable to low and moderate income ;:, households where such housing will provide a balanced inventory 0 (.) 0 housing types (e.g., multi-family rental and owner occupied housing) X u.. within the Northwest, Southwest, and East Planning Areas. =-- Encourage the inclusion of housing for low and moderate income "~ households within the actual develonment ("on-site"'. 0 5.3.4 Mortgage Credit Certificates: Continue to participate with the a.. County of San Diego and other cities to provide Mortgage Credit Certificates (MCC) to qualified first-time low and moderate income homebuyers. MCCs are certificates issued to home buyers 25 authorizing them to take a credit against their federal income taxes of up to 20 percent of the annual mortgage interest paid. First-time homebuyers are referred by the Community Development Department to the administrating agency. Page AH-S ~lf?. ~J1__ ow OF CHUIA VISTA - HOUSING ELEMENT APPENDIX E - 5.3.5 Homebuyer Education & Counseling: Support and encourage developers, lenders and social service organizations to provide educational programs, loan counseling. and materials fo C'l homeowners and potential homeowners on home maintenance. c: improvement. and financial management. The purpose of the 80 lfj educational programs will be to help first-time homebuyers. prepare ::I for the purchase of a home. and to understand the importance 0 0 J: maintenance, equity and appreciation. and personal budgeting to Q) avoid foreclosures. lfj 5.3.6 Support Private Financial Assistance Programs: Support and ... Q) encourage lenders. community development organizations and .~ Objective H5: others to use non-traditional financial approaches to assist low and X C moderate income first time home buyers such as Individual 'C Encourage the Development Accounts and other emerging financial approaches. c: lfj provision of a wide n:I Q) range of housing 5.3.7 Pursue Additional Financing Sources: Proactively pursue Federal. 'C E choices by State or private funding to provide additional resources specifically X Q) location, type of taraetina teachers and Dublic safety personnel. 0 c: c: ::::J unit. and price Policy H 5.4 Support mobilehome parks as an affordable homeownershlp opportunity, particularly n:I ~ level, in particular where consistent with the General Plan. "i 0 the establishment 5.4.1 Mobilehome Space Rent Review: Continue to enforce CVMC al C- of permanent Chapter 9.50 to protect mobilehome residents' investment in thei C- .. 0 affordable housing home while at the same time providing a reasonable return to the N n:I for low and park owner in order to preserve this affordable housing alternative. 100 Q) moderate income Monitor and revise this Ordinance. as necessary, to ensure the ... households. provision of fair and reasonable rents for residents and a reasonable < rate of return for Darkowners. lfj 5.4.2 ::I Resident Ownership of Mobilehome Parks: When mobilehome park C.) 0 owners want to sell their parks. promote the purchase of parks by LL park residents through technical assistance in preparing applications >. for funding sources such as the State Mobilehome Assistance C.) Program. Financial assistance provided by the City. Agency, State. X (5 or other funding sources may be limited to income eligible residents 0.. and require affordable housing costs. Focus assistance to parks where consistent with the General Plan within Mobilehome Park (MHP) zone designations: not those that are non-conforming uses. - - - - - - - - - Page AE-6 City of Chula Vista General Plan - ~(l ~"Ch1;11a :..1.::- VIS t a '~,':/-.'r\i: Vision '<':-.-cCc ,c.-::,':'" 2020 HOUSING ELEMENT APPENDIX H Policy H 6.1: Support the coordination of existing and new regional and local efforts to provide "C Objective H 6: housing and services for the homeless through a continuum of care model. e lfj Promote the 6.1.1 CU Q) development of Homeless & "At-Risk" Homeless-Regional Planning: Continue to "C:o:; varied housing, participate in regional planning efforts to address needs of the X Q) .- homeless, including the Regional Task Force for the Homeless and (.) e coupled with the South Bay Homeless Coalition. e ~ appropriate CUt:: 0 services, to meet 6.1.2 CU Co the needs of special Homeless & "At-Risk Homeless" - Regional Funding: Continue to m Co population groups, support regional funding efforts to develop new housing facilities for ., 0 including the the homeless and maintain existing facilities and services, including N CU C) homeless, those "at- the Regional Continuum of Care Council for San Diego County and 11 Q) e risk" of becoming it's application for funding through the Federal Supportive Housing ... lfj homeless, persons Program, local FEMA Board, County of San Diego Hotel/Motel < ~ with physical and/or Voucher Program and temporary winter shelters. lfj 0 development ~J: I 6.1.3 Existing & New Emergency Shelters & Transitional Housing: (.) Q) disabilities, 1 Continue in-kind and financial assistance for existing and new o lfj students, athletes at emergency shelters and transitional housing facilities that serve the X LL ... the Olympic City by providing technical assistance, siting opportunities, grants, or >.Q) Training Center, (.) > low cost loans to ooeratino aoencies. =0 single-parent 6.1.4 0 households, and Information of Resources for Basic Needs: Develop informational D. seniors. materials that provide contact information regarding basic needs, X such as emergency food, shelter, and services for the homeless. Page AH-7 ~Vt.- ~~-- OlY Of CHUIA VISTA ._,~~._..",,>,_,_.~._..__..__~___">_.",~~MM_'" ,__""~_'___'_'_~ Cl C In j o :I: Q) In ~ Q) .~ C "C C In ns Q) "CE Q) C () j ~t:: - 0 ns e. me. NO ns Q) ~ < In j () o LL >. .~ '0 a.. Objective H 6: Promote the development of varied housing, coupled with appropriate services, to meet the needs of special population groups, including the homeless, those "at- risk" of becoming homeless, persons with physical andlor development disabilities, students, athletes at the Olympic Training Center, single-parent households, and seniors. - - HOUSING ELEMENT APPENDIX E - - Policy HE 6.2 Encourage the. development of alternative housing types in . locations with easy access to goods, services, transportation, recreation and other appropriate services to accommodate the special needs of seniors, persons with disabilities, students, athletes, and single person households. 6.2.1 Second Dwelling Units: Allow construction of new secondary dwelling units in areas where the units do not compromise the neiohborhood character. 6.2.2 Shared Living: Support programs for shared living that connect those with a home and willing to share living accommodations with those that are seeking housing, particularly seniors, students, and sinqle person households. 6.2.3 Co-Housina: Evaluate the viability of co-housing and amendments to Title 19 of the Chula Vista Municipal Code and other documents, where annronriate to facilitate its develonmenl. 6.2.4 Farmworker~: Continue to monitor the continued availability 0 farmworker housing at the Bnsa del Mar development to ensure the continued proviSion of housing to meet the needs of the City's farmworker coculation. 6.2.5 University Housing: Encourage the development of a mix and variety of housing types in the University Village Focus Area in the East, recognizing the need for higher residential densities and the need for vaned housing resulting from the proposed university, such as housing for students, faculty and employees. 6.2.6 Olympic Training Center Housing: Encourage the development 0 housing located at the Olympic Training Center (OTC) for those athletes participating in programs at the Center and its employees. 6.2.7 Accessible Housing Regulations: Continue to maintain and implement Califomia Title 24 provisions for the review and approval of residential develooments. 6.2.8 Senior Housinq Services: Encourage the development of senior housing developments through incentives (i.e, expedited processing, fee waivers, etc.) that provide a wide range of housing choices from independent living to assisted living with access to services on-site, including healthcare, nutrition, transportation and other appropriate services. x - 200 - 100 34 - x - x x - x - - - - Page AE-8 - City of Chula Vista General Plan ?\.J )~~.Chl!la ---...;...~ V 1S ta . 7; ,"/" Vision 2020 HOUSING ELEMENT APPENDIX H Policy H 7.1: Ensure that all housing related City plans and policies encourage residential development by provIding a variety of housing product 7.1.1 Specific Plans: Develop and consider for adoption specific plans fo the Urban Core and Southwest Planning Areas in order to implement the General Plan Update which will allow the X development of higher density housing. particularly within identified mixed use residential and mixed use transit focus areas. 7.1.2 Zoning: Update Title 19 of the Chula Vista Municipal Code. to X implement the General Plan Update of 2005. Ul 7.1.3 Remove Constraints to Housing for Persons with Disabilities: Ul Review and update Title 19 of the Chula Vista Municipal Code and Q) to) other City processes to remove constraints, if any, identified to allov. X 0 reasonable accommodations for the provision of housing for ... I oersons with disabilities. 0.. "0 Policy HE 7.2 Ensure the entitlement process and infrastructure levies do not affect the feasibility l:: of affordable houslna develoDment. 1'0 7.2.1 Assign priority processing of the necessary Q) Objective H 7: Priority Processing: "0 Facilitate the entitlements and plan checks to expedite the development process " creation, for residential developments with 50 percent of the units as X maintenance. affordable for low and moderate income households which do not - l:: preservation and require extensive Engineering or environmental review. Q) conservation of 7.2.2 Development Fees: Continue to consider subsidizing, waiving, 0 E l:: affordable housing deferring fees for affordable units on a case-by-case basis. ... for lower and Req uests are evaluated based upon the development's Q) moderate income effectiveness and effiCiency in achieving the City's underserved X > households through 0 housing needs and as allowed by the City's Municipal Code. Also C) comprehensive refer to related H Policv 7.4.5. "" planning documents 7.2.3 (") and processes and Flexible Development Standards: Continue to encourage the use 0 1'0 the provision of flexible development standards through the Planned Community X Q) financial assistance (PC) Zone and Precise Plan (P) Modifying District to facilitate the ... development of housing for very low and low income households. < and other Ul incentives. 7.2.4 Article XXXIV: Assess the applicability of Article XXXIV of the :::s California Constitution to certain housing developments where the to) 0 City and/or Agency are considering financial assistance or other LL incentives to assist in the development of affordable housing. X >- Evaluate the appropriateness of a possible referendum to obtain to) more authority for the City/Agency's development, construction or 0 acquisition of "low rent housing". 0.. Policy H 7.3 Pursue opportunities to expand financial resources for housing for lower and moderate Income households. 7.3.1 Expand Redevelopment Project Areas: Evaluate the viability 0 expanding redevelopment project areas to include more residential X areas. 7.3.2 Maximize Redevelopment Funds: Develop financial strategies that maximize redevelopment income streams, such as bond financing. X 7.3.3 California Reinvestment Act: Work with local financial institutions to meet their community reinvestment obligation under the Community X Reinvestment Act. 7.3.4 Pursue Affordable Housing Funding: Proactively pursue available Federal or State funding to increase. preserve. and enhance X housinq affordable to low income households. Page AH-9 ~lf?- ~.!'l__ 0lY Of CHUlA VlSfA - - HOUSING ELEMENT APPENDIX E -- Policy H 7.4 Provide financial assistance and incentives for the preservation and creation of affordable housing for the underserved needs of very low and low income households throughout the City. 11I 7.4.1 Density Bonus: Amend Title 19 of the Chula Vista Municipal Code 11I Objective H 7: to authorize a density bonus and/or other incentives for new housing Q) Facilitate the developments and condominium conversions providing the required X (,) creation, affordable housing as specified in Califomia Govemment Code 0 '- maintenance. Section 65915. a.. preservation and 7.4.2 'C conservation of Land Banking: Actively identify and pursue sites located in proximity C affordable housing to goods, services, jobs. transportation. education. recreation and/or X lU for lower and other amenities for permanent affordable housing. Q) moderate income 7.4.3 Public Property: Evaluate the viability of providing affordable '0 households through housing on publicly owned property that becomes available or is X 0::: comprehensive deemed surolus orooerty. - planning documents 7.4.4 Affordable Housing in Public Zones: Evaluate the appropriateness C Q) and processes and of allowing affordable housing within..public. or .semi-public. zone X E the proviSion of desionations. where appropriate. C financiai assistance 7.4.5 Financial Assistance: Continue to evaluate on a case-by-case basis '- and other requests from developers for financial assistance to provide Q) > incentives. affordable housing opportunities for very low and low income 0 households. Requests are evaluated based upon the X (!) development's effectiveness and efficiency in achieving the City's C") underserved housing needs. Assistance will be offered to the exten lU that resources and programs are available. Q) Policy H 8.1: Ensure equal housing opportunities to prevent housing discrimination in the local '- Objective H 8: market. <( 11I Ensure the :J availability of (,) housing 8.1.1 0 opportunities to all Affirmative Marketing & Leasing: Require affordable housing LL persons regardless developments for low and moderate income households X >. of race. color, .~ ancestry. national 8.1.2 0 origin. religion. sex. Fair Housing Education & Counseling: Support programs for a.. disability, marital outreach and education on housing rights and counseling and status. familial mediation of discrimination complaints. Where appropriate refer to X status. source of other agencies, including State and Federal enforcement agencies. income. or sexual orientation. - - - - - - - Page AE-IO City of (hula Vista General Plan - ......~<,1- ;;,;;"Ch~la ~~ VIsta .\~r.x.... ;;? Vision .:. 2020 - t:: Q) E t:: '- Q) l/l > l/l o Q) <.:> CJ M e ~o.. Q)"C ~ ~ ~ ~ 00:: LL >- .~ "0 0.. Objective H 9: Promote and facilitate early. transparent public input and participation emphasizing community awareness of the City of Chula Vista's goals. tools, available resources and programs for lower income households. HOUSING ELEMENT APPENDIX H Policy H 9.1 Encourage meaningful public participation of all segments of the. community, Including low and moderate Income residents, the business sector, social service agencies, renters and homeowners, in the review and development of City housing policies and affordable housing projects. 9.1.1 Public Input & Participation: Incorporate public input and participation in the design and development of City housing plans and Dolicies. 9.1.2 Bilingual Noticing: Expand the City's bilingual noticing requirements for pending actions. meetings. and workshops sponsored by the City and/or Agency related to affordable housing for low and moderate income households. 9.1.3 Public Outreach & Education of Resources: Initiate a bilingual educational campaign to non-native speaking lower income renters in the Northwest and Southwest Planning Areas to provide information on the City's housing resources and programs. 9.1.4 Disclosures of Affordable Housing Sites: Require through conditions of approval on discretionary permits and/or maps the provision of disclosures to new residents of master planned communities of orooosed affordable housina sites. 9.1.5 Annual Housing Report: Provide an annual report on the City's housing efforts, to the City Council and ensure the annual report is available for review in public locations. x x x x x Page AH- 1 1 ~\f? ~_::t._ 01Y Of CHULA VISTA HOUSING ELEMENT APPENDIX E BLANK Page AE-12 City of (hula Vista General Plan - - - - - - - - - ;;(j:::>~>,Ch l!la ---..____. Vlsta ..;'; r~/ V~~~On HOUSING ELEMENT APPENDIX F 1.0 GENERAL PLAN CONSISTENCY ANAL YSIS California State law requires General Plans to be internally consistent Therefore, the goals and policies of each Element must provide a level of consistency so that specific goals and policies contained in one element are not in conflict with those contained in another. Chula Vista's General Plan consists of seven elements required by State Law An analysis of internal consistency summarized in Table F-l. Through this analysis, it has been determined that the Housing Element provides consistency with the policies set forth' in the General Plan and its associated elements. Page AF-l ~\f? ~-- CIlYOf CHULA VISTA - - HOUSING ELEMENf APPENDIX F - BLANK - - - Page AF-2 City of Chula Vista General Plan - ~~ ~~ ~LI.J LLJO- 00- z<X:: V5 ::J o :I: ~ ~ ~ t:; Q 0 :J -'1'""4 .9 N ..c: > .~ ~ U,,,,,..:.,:,r /f~j ;~ .~ ~ . '\ >~ ," "~~>^". ...>--; . ~.,.':. ....: <.: - ._.. ,_n._" ~ c:: a += ~ c:: ~ E ~ 0. 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Qi:JO) >c:<{ Q)~U o<l: _ >-..c: ell :=:too c: :J"- EO> ELLl!1 oCO,E u~u - - - ~ ~If~:l 0> 7ll ~~: 6~ J: U - - - - -, - - - - - - - - - - - - - - - - 2 - Loading 3 - - - - - - - - - 4 ~V?- -.- r~"",,-~~ -- ~- ~ ellY OF CHULA VISTA CHULA VISTA HOUSING ELEMENT UPDATE 2005-2010 STAKEHOLDERS CONSULTATION November 7, 2005 12:00 noon - 4:00 p.m. Participants: Crossroads II Interfaith Community Downtown Business Association Chula Vista Community Collaborative Environmental Health Coalition Roosevelt Coalition/ Residential Property Owner Chula Vista Civic Solutions South Bay Community Services City ofChula Vista Katz & Associates Invitees Not Present: Greenfield Developers Infill Developers Affordable Housing Developer Building Industry Association Chula Vista Elementary School District South County Economic Development Council Chula Vista Chamber of Commerce Mobilehome Park Resident Mobilehome Park Owner Affordable Housing Advocates Affordable Housing Consultant San Diego Housing Federation Sam Longanecker Dr. Richard Freeman Jack Blakeley Mary Jo Buettner Laura Hunter Earl Jentz Patricia Chavez Kathy Lembo Dana Smith Amanda Mills Leilani Hines Ken Lee Ed Batchelder Mark Stephens Lewis Michaelson, Facilitator Eastlake Company The Otay Ranch Company Urban Housing Solutions Wakeland Housing - Housing Element Update 2005-2010 Stakeholders Consultation Meeting Notes November 7,2005 - CREATING & EXPANDING HOUSING OPPORTUNITIES .:. Who is responsible for providing housing ~ Non profits (sponsorship) · Commitment · Services ~ Community commitment ~ Collaborative approach ~ Businesses ~ Developers don't create demand · Supplier of product ~ Private enterprise should build. ~ Problem not solved without Government intervention .:. "Balanced communities" outdated term ~ Think of it as creating a variety of densities and housing product .:. Expand all housing opportunities .:. Programs & products to meet needs/demographics ~ Target extremely low and very low income consistent with our demographics .:. Aging in place ~ Family zone ~ Growing & staying .:. Location of affordable housing ~ Don't concentrate low income in one area · Concentrating soCial issues · Need to promote diversity ~ May need to concentrate for access to services · Could mitigate the social issues concerns by including appropriate social services & programs to address these issues ~ Flexibility in location where is it appropriate .:. Lack of large family units ~ Grant additional credit. .:. Coop housing .:. Employee assisted housing ~ Teachers ~ Medium sized employers .:. Lack of additional credit for low - V Low .:. Tools/incentives to build ~ Incentive based zoning ~ Density bonus ~ Give to receive some benefits .:. In lieu fees ~ Sufficient in-lieu fees. · Adequate to accomplish a defined objective for needed housing in C.V. · Counter high in-lieu fees with other fee waivers or offsets - - - - - - - - - - - - Housing Element Update 2005-2010 Stakeholders Consultation Meeting Notes November 7,2005 ~ As an alternative to in lieu fees allow projects to combine their efforts .:. Ensure affordable units are built concurrently with market rate units .:. Need to keep local $ in our local economy ~ Improve neighborhoods, services. ~ Provide activities and services for families, younger generation, etc. · Restaurants, clubs, etc .:. More housing in core to create a walkable vibrant community to keep people local. .:. Public outreach and education program ~ "Who" is low income ~ Need an active housing advisory group · Working on the Housing Element and Advocacy . Example: Poway Housing Solutions working with the community and the City on the following issues: [J Coalition o Advocacy o Education ~ Communication & dialogue wi community · Tools · Resources · What city is doing & what are community's needs .:. Need a Non profit/watchdog/advocate OVERCOMING BARRIERS TO HOUSING DEVELOPMENT .:. Higher priority to housing fees. .:. Eminent Domain - Strategy to overcome fears ~ Emphasize good points ~ Dispel myth .:. Need to have regulations in place ~ Developers require "predictability" on costs & requirements ~ Evaluate how much development costs can be born. (Especially for the first several redevelopment Projects) ~ Need to kick start redevelopment engine to generate $ for affordable housing. .:. C.D.C. - process improvements. .:. Amount of overall development Cost & balance - how to get projects started. .:. Affordability impacted by increased land costs & stagnant income. ~ City can do little to affect ~ Can adopt city policies to address income . Living wage in Redevelopment Project Areas · Priority for hiring CV residents. ~ More density needed to counter land costs ~ Buy land now and hold in trust ..,. - Housing Element Update 2005-2010 Stakeholders Consultation Meeting Notes November 7, 2005 - .:. Streamline non-profit funding processes, number of agencies to get $. (ex. = prevailing wage, etc.) .:. More assistance (city) in putting deals together = hsg., redevel, etc. Rather than private consult $. .:. Redevelopment boundaries generally doesn't include non- commercial (residential uses) ~ Ability/effort to consider housing outside redevelopment areas .:. Available $ - Most area commercial · Increase redevelopment tax increment, increases housing $ .:. Financing for affordable housing requires multiple funding sources ~ Too many parties ~ Too many" regs" and requirements tied to each .:. Pool $ for non-profits affordable housing developers .:. Allocate a greater % of tax increment for Redevelopment Set-Aside (20% - 30%) - - - .:. PRESERVING HOUSING AND NEIGHBORHOODS .:. Lead based paint concerns ~ Cannot place new units within 500ft. of Highway .:. Safety oflower income neighborhoods ~ Lighting ~ Sidewalks .:. "Healthy Homes" or other grants .:. Collaborations with existing comm. groups .:. Utilize existing efforts of inspection .:. Code violation efforts .:. Affordable vs. Inexpensive .:. East vs. West ~ Continue to allow 2nd. Units .:. Condo conversion concern ~ Inclusionary - increases prices ~ Size ~ Link to vacancy rate .:. Give residents displaced as a result of projects first right of refusal to purchase/resident in new units - - - Conversion Issues - ISSUES Ensuring an adequate supply of rental housing BENEFITS Provides more ownership opp. - Fees Private property rights - Owners of apartments should be able to decide how their property can be developed/used - - Housing Element Update 2005-2010 Stakeholders Consultation Meeting Notes November 7,2005 Conversion Issues ISSUES Impact on residents who are displaced and $$$ to find new housing and relocate Could end up with condos being rented and then having multiple landlords rather than one. BENEFITS Mobilehomes .:. Relocation solutions .:. Interest in preserving affordable housing, not the actual park itself. .:. Concern about displacement · Places, prices · Social services · Land trust Housing Element Update 2005-2010 Stakeholders Consultation Meeting Notes November 7, 2005 - - - BLANK - - - - - - - - - - NOTICE OF COMMUNITY MEETINGS HOUSING ElEMENT UPDATE NOTICE IS HEREBY GIVEN THAT the City of Chula Vista will be holding two public workshops in November 2005 to provide information and receive input from the public on the City's 2005-201 0 Housing Element Update. PRO) ECT DESCRI PTION: 2005-10 Update of the Housing Element of the City~ General Plan Pursuant to State Law, the City of Chula Vista is preparing a Housing Element that covers the period of July 1, 2005 through June 30, 2010. The Housing Element is an important planning tool of the City that: (a) analyzes the City's present and projected housing needs; (b) identifies potential constraints and opportunities to meeting the City's housing needs; and (c) sets policy goals and objectives, and a five-year work program for meeting the City's housing goals and needs during the 2005-2010 period. WORKSHOP INFO: PUBLIC WORKSHOP / COMMUNITY MEETING DATE Monday, November 14,2005 TIME 6:00 pm LOCATION Norman Park Senior Center 270 F Street, Chula Vista, CA 91910 JOINT WORKSHOP OF THE PLANNING COMMISSION AND HOUSING ADVISORY COMMISSION DATE Wednesday, November 16, 2005 TIME 6:00 pm LOCATION Chula Vista Civic Center Council Chambers 276 Fourth Avenue, Chula Vista, CA 91910 Please direct any questions or comments to Leilani Hines, Senior Community Development Specialist, in the Community Development Department, Chula Vista Civic Center, 276 Fourth Avenue, Chula Vista, CA 91910, or contact her bye-mail atlhines@ci.chula-vista.ca.us or by phone at (619) 691-5263. Compliance with the Americans with Disabilities Act (ADA) The City of Chula Vista, in compliance with the Americans With Disabilities Act, requests individuals who require special accommodations to access, attend and/or participate in a City meeting, activity or service, to request such accommodations at least 48 hours in advance for meetings and 5 days for scheduled services and activities. Please contact the Community Development Department for specific information at (619) 585-5722. California Relay Service is available for the hearing impaired at (619) 585-5647 (TDD). - - ~~~ ~.- : -< OTYOF CHULA VISTA COMMl/\.Nr-ry M55TINc; CH-l/\.LA VISTA H-Ol/\.SfNC; 5L5M5NT MOV\..!ilCltj, Novevu.ber 1.4,2005 G-g'-pvu. Norvu.ClV\.. t>ClrR seVl..i.or ceV\..ter 27D F street CVluLCl vtstCl, CA - AC15NDA G:OO WeLcoVVle G:i5 !V\,tyov{ucHoV'v 8 overv~ew G:20 stlAff pyeseV'vtlAtLoV'v G:55 H-ous~V'vg womsVlO'p / 6XeYc~se 7:45 RecoV\,veV\,e - 7:50 WYIA-P-U-P 8 Next steps - ~:oo Ac:tjouyV'v - ~V?- -.- r___ __-.;;;: ~~""'C"~ em OF CHULA VISTA HOUSING ELEMENT UPDATE 2005-2010 The following provides a summary of the objectives and action programs currently described in the City ofChula Vista's 1999-2004 Housing Element ofthe General Plan. The objectives have been categorized into three themes: 1. Preserving housing and neighborhoods; 2. Creating and expanding housing opportunities; and, 3. Barriers to housing. PRESERVING HOUSING AND NEIGHBORHOODS Preserve housing restricted for lower income households from changing to market rate housing Implementing Actions: · Financial incentives/assistance to keep units affordability for low income households · Education and outreach to displaced residents of conversion process and available resources. Conversion of Apartments to Condominiums Implementing Actions Allow apartments to be turned into condos for sale if it meets current development standards Protect Housing Along the Coast Implementing Actions: · Monitor the demolition or conversion of housing occupied by low and moderate income households and replace the units. Single Family and Mobilehome Rehabilitation Implementing Actions: · $ to fix houses and mobilehomes · Priority given to Very Low Income, Special Needs, and/or Senior Households. - Housing Element Update 2005-2010 Summary of Objectives & Actions Page 2 . Repair Deteriorating and Substandard Rental Housing Implementing Actions: · Purchase and fix up apartments for lower income households. · Inspect the condition of apartments - Maintaining Mobilehome Park Living Implementing Actions: · Rent Control · Review and approve plans to close or convert mobiIehome parks · Assist mobilehome residents to purchase their park - Improving Well Established Neighborhoods Implementing Actions: · Improve the conditions and appearance of targeted neighborhoods, including street improvements, sidewalks, cleanup and fixing homes · Responding to and resolving code violation complaints - CREATING & EXPANDING HOUSING OPPPORTUNITES Provide Housing for Low and Moderate Income Families Throughout the Community Implementing Actions: · Inclusionary Housing Program o Applys only to the new construction of a project of 50+ units o 10% affordable to low and moderate income households (5% low and 5% moderate) o Priority is to build units rather than paying a fee. o 20% of the affordable units to be provided as 3 bedroom units. Incentives to Build Housing for Low Income Families Implementing Actions: · Increased density · Waive or modify development standards, such as reducing the parking. · Aquire land or $ to pay for land to build affordable housing. · Go after other $ for affordable housing Housing Element Update 2005-2010 Summary of Objectives & Actions Page 3 Alternative Housing Programs/Units for Very Low and Low Income Families Implementing Actions: · Section 8 Rental Assistance in Chula Vista · Fund Shared Housing programs. · Encourage Second Dwelling Units (aka Granny Flats) that don't impact the character and quality of the neighborhood · Put housing for the elderly, disabled and single-parent households near public transportation and community servicees. · Encourage mixed use developments in appropriate locations. Help Low Income Families Buy A Home Implementing Actions: · Build for-sale housing for low and moderate income households. · Help low income households buy their first home · Require people receiving $ to go through a homeowner education and counseling program. · Sweat equity programs (i.e. Habitat for Humanity) Help Homeless Find Permanent Housing and Access to Services Implementing Actions: · $ for services helping the homeless in the South Bay · Participate in regional advocacy groups. · Help and $ to expand or build facilities for the homeless Promote Energy, Water and Waste Conservation in Housing Implementinf]: Actions: · Water and energy conservation in new housing · Use reclaimed water in new housing · Weatherization programs for low income households · Include energy conservation when fixing up houses - - Housing Element Update 2005-2010 Summary of Objectives & Actions Page 4 OVERCOMING BARRIERS TO HOUSING DEVELOPMENT Promote Equal Access to Housing for All Residents Implementing Actions: · Marketing plan to attract persons regardless of gender, age, race, national origin, or religion. · Respond to discrimination complaints. · Education and outreach to residents and housing providers to prevent discrimination. Reduce and/or Mitigate Identified Constraints to the Development, Maintenance, and Improvement of Housing Implementing Actions: · Subsidize or defer development fees for affordable housing · Expedited processing · $ for affordable housing for large families (5+ persons) and very low income households. · Flexible design standards. - IilII!IlfilI"'> - - - - 2 3 - - - - - - 4 - Loading 5 - BLANK - - - - - - AGENDA JOINT WORKSHOP MEETING OF THE PLANNING COMMISSION AND HOUSING ADVISORY COMMISSION OF THE CITY OF CHULA VISTA 6:00 p.m. Wednesday, November 16, 2005 Council Chambers Chula Vista, CA CALL TO ORDER Planning Commission: Felber_ Bensoussan Nordstrom_ Tripp_ Cortes_ Madrid_ Hom_ Housing Advisory Commission: Zasueta_ Worth Alabado_ Chavez_ Reese_ Martin del Campo_ ROLL CALUMOTIONS TO EXCUSE ORAL COMMUNICATIONS Opportunity for members of the public to speak to the Planning Commission on any subject matter within the Commission's jurisdiction but not an item on today's agenda. Each speaker's presentation may not exceed three minutes. WORKSHOP TOPIC: 2005-10 Update of the Housing Element of the City~ General Plan Pursuant to State Law, the City of Chula Vista is preparing a Housing Element that covers the period of July 1, 2005 through June 30, 2010. The Housing Element is an important planning tool of the City that: (a) analyzes the City's present and projected housing needs; (b) identifies potential constraints and opportunities to meeting the City's housing needs; and (c) sets policy goals and objectives, and a five-year work program for meeting the City's housing goals and needs during the 2005-2010 period. Project Manager: Leilani Hines, Senior Community Development Specialist Adjournment of Planning Commission Workshop to a regular meeting of the Planning Commission of November 30, 2005 and the Housing Advisory Commission on December 28, 2005. COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT The City of Chula Vista, in complying with the American with Disabilities Ad (ADA), requests individuals who require special accommodations to access, attend, and/or participate in a City meeting, adivity, or service, request such accommodations at least forty-eight hours in advance for meetings, and five days for scheduled services and adivities. Please con tad Diana Vargas for specific information at (619) 691-51 01 or Telecommunications Devices for the Deaf (TDD) at 585-5647. California Relay Service is also available for the hearing impaired. - JOINT WORKSHOP OF THE PLANNING COMMISSION AND THE HOUSING ADVISORY COMMISSION - Public Services Building Council Chambers 276 Fourth Avenue Chula Vista, CA 6:00 p.m. Wednesday, November 16, 2005 . CALL TO ORDER: - Planning Commission Members Present: Madrid, Nordstrom, Tripp, Bensoussan, Felber, Hom - Members Absent: Cortes HAC Members Present: Martin Del Campo, Zazueta, Alabado, Chavez - Members Absent: Reese, Worth ORAL COMMUNICATIONS: No public input. WORKSHOP TOPIC: 2005-10 Update of the Housing Element of the City's General Plan 61600 PM Mandy Mills, Housing Manager and Leilani Hines, Senior Community Development Specialist gave an overview of the 2005-10 Update of the Housing Element as outlined in staff's report. - 6:39:15 PM Commission Discussion: 6:40:02 PM Cmr. Nordstrom stated the key questions is how do we provide affordable housing and inquired what is the practice of other jurisdictions in the country. 6:4111 PM Mandy Mills stated it's a very complex matter and many variables come in to play; it depends on the community, and what the needs and resources are. For example, inclusionary housing might be applied to smaller scale projects. Currently, our trigger is 50 units or more; this trigger could be lowered. Another example might be to require a higher percentage; instead of 10%, they might require 15%. Additionally, they might require a lower level of affordability; right now we're at moderate to low; other jurisdictions may be low to very low income. 6:44:28 PM Cmr. Bensoussan inquired if the figure of $63,000 for median family income comes from HUD, and that perhaps the figures are skewed and they should reflect the most current census track, which reflects a median income of $42,970 for zip code 91910 and $38,000 for zip code 91911. Its important that our policies be based on real figures. Ms. Mills stated that for definition and consistency sake, we should stick to the State median income figures, however, we can certainly target our programs and policies to the lower end of that median income spectrum. Currently, we target low to moderate, and we could make a shift to target very low income. Minutes - PC / HAC Workshop November 16, 2005 Page 2 64844 PM Cmr. Zazueta inquired what other jurisdictions have done to balance condo conversions to provide low income purchasing options as well as maintaining for-rent housing options. Ms. Mills stated that as an example that the City of EI Cajon has an over-abundance of rentals and in order to create home-ownership, they encourage condo conversions. The opposite is true for the City of Encinitas that has said "no" to condo conversions because they don't have enough of a rental stock. Ms. Mills indicated that one option would be to split the policy; for example, you could narrow it down to a certain area of town where you could have more of a concentration of rental property. 651 :13 PM Cmr. Alabado stated that the present housing market excludes a large population of the workforce, i.e. public sector employees (teachers, public safety and civil servants) who cannot afford to purchase homes at today's prices, therefore, he'd like further consideration to be given to manufactures homes and would like to see that addressed and included as an element in the General Plan. 6:52:10 PM Cmr. Chavez stated that if staff has not already done so, they should look at the County of San Diego's Ten-Year Plan, which addresses affordable housing and the research they've done would be helpful. 652:39 PM Cmr. Martin Del Campo inquired about the number of condo conversions currently in Chula Vista. Ms. Mills responded that to-date there have been 432 units that were approved and 702 units are pending. 65331 PM Public Speaking Opened. 65407 PM Jackie McQuaid, spoke of the displaced mobilehome residents who many of them are on fixed incomes of $700 per month or less, with health problems and the need to plan ahead for ways to address the housing needs of these people before they are forced to become homeless. 65759 PM Tim Burton addressed the plight of the needy and urged the policy-makers to carefully consider their role in seeking solutions to serve the housing needs for the entire community they represent. 70127 PM Nick Aguilar focused his comments on the low, to very low-income sector of the population. Mr. Aguilar stated he is on the board of directors for three non-profit projects and stated that the waiting list for housing for all three projects is between 3 to 5 years. Mr. Aguilar offered the following criteria for consideration: Low income housing should be integrated into established neighborhoods in order to avoid creating slums or ghettos: subsidized rental and for sale housing should be provided; seriously consider the environmental impacts of low income housing, specifically, homelessness and ensure that Chula Vista gets its fair share of the regional need for low income housing. 705:17 PM Laura Hunter, Environmental comments/recommendations: Health Coalition offered the following . Chula Vista should look into increasing their tax increment that goes into affordable housing. - Minutes - PC I HAC Workshop November 16, 2005 Page 3 · The City of Chula Vista has not met its goals in the past five years for providing low income and very low income units. · Concurs with Cmr. Bensoussan's comments about the AMI figures reflecting census figures for this area. · Regarding condo conversions, the goal is to provide first-time home-ownership, · We need to be careful that we are not trading low-income rentals for high-income rentals because once the unit is sold they can turn around and rent it out at market value. · Need to be attentive to the balance of rental units vs. condo for-sale units and you may want to tie the number of conversions to what your rental occupancy rate is. · Improving the safety of the current housing stock, i.e. lead abatement · New housing should be constructed in safe zones (500 foot zone from freeways) · Building affordable housing concurrently as new development is being constructed. - - 71055 PM Pat Aguilar, representing Crossroads II, inquired why the City isn't forcing the mobilehome park owners to bring their parks into code compliance. Ms. Hines responded that the City does have a Mobilehome Inspection Program and they are actively inspecting each park in the City and are holding them accountable for issues of non- compliance. Ms. Aguilar, representing Crossroads /I stated that the Housing Element is not a stand-alone document, but an integral part of the General Plan Update and must be considered in light of what the GPU is calling for in the way of displacement. - Ms. Aguilar further stated that Crossroads /I is requesting the support of both Commissions for their request that the Housing Element of the General Plan acknowledge and include an analysis of the at least 5,000 or more people who will be displaced if the plan is implemented as proposed. Our request is that the Housing Element contain baseline data that includes information on the mix of housing units that will be displaced, i.e. how many apartments, mobilehomes, single-family homes, condos; where they are located throughout the City and what the range of rent or market value is of those homes. The analysis should include the various programs that are available to people who are displaced. Ms. Bensoussan stated that since the GPU used the current Housing Element she asked for clarification as to how the new Housing Element will be incorporated into the existing GPU? John Mullen responded that once the GPU is adopted, the existing Housing Element remains in full force and effect. When the new Housing Element is adopted, it will replace the former one in the GPU. 7:2549 PM Michelle Rewerts stated the Housing Element update fails to address the extremely low income bracket, which according to HUD figures is $16,000 to $24,000, but there are many who are living on much less than this. She stated the Housing Element fails to recognize that people who live in a trailer park prefer to live there by choice rather than apartment buildings; they have a community and they have pets and gardens. If Broadway is too valuable of a redevelopment area, then perhaps alternative sites for displaced mobilehome owners would be the SDG&E lot next to the South Library. Perhaps FEMA could offer some assistance in selling at a reduced price some of the thousands of mobilehomes that were purchased to assist Katrina victims. Once those mobilehomes are no longer needed, perhaps they could be sold at a reduced price in 2 to 3 years. The poor will always be among us and it behooves policy-maker to not make their lives any more difficult by displacing them and removing housing that is affordable to them. - - - - Minutes - PC I HAC Workshop November 16, 2005 Page 4 728:53 PM Commission Comment: 7:29:17 PM Cmr. Felber offered the following comments/suggestions: · would like to see more at the forefront the first-time home-buyers program as part of the policies and programs that are available; · maintain a good balance of rental and for-sale housing stock; · condo conversions is a means by which to provide opportunities for first-time homebuyers and at more affordable prices; · the need to be mindful to provide adequate parking, not only for the residents that will be living in multi-family complexes, but also provide parking for friends and families of the residents. 734:01 PM Cmr. Bensoussan offered the following comments/recommendations: · That affordable housing should be integrated into established neighborhoods so as not to create slums; · Since mobilehome parks are an integral part of the west, although they may not be appropriate along Broadway, we need to study alternate locations to relocate them as in-fill projects within the west; · We should voluntarily increase the tax increment that goes to affordable housing; · We should peg the rate of condo conversions to vacancy rates and have a flexible policy that goes up and down depending vacancy rates; and · We should change figures of the AMI to more accurately reflect the numbers for Chula Vista 7.37:54 PM Cmr. Madrid offered the following comments/recommendations: · Look at reducing the 50 unit or above requirement that triggers designating a portion to affordable housing; · On condo conversions, designate a percentage to be affordable for-rent apartments; · Agree with doing a housing displacement analysis · We ought to address the extremely low-income segment of the population · Look for ways to have development pay a part of subsidizing relocation programs as part of development impact fees. · Look at areas that we know, based on the General Plan designation, will be phased out, identify the people and place them on a waiting list for Section 8 now, rather than later 74332 PM Cmr. Horn asked for a breakdown in funding sources received by the City for affordable housing. Ms. Mills responded that the City receives approximately $1 million of federal funding through the Home Program, which is a Block Grant for affordable housing. We also receive COBG funds, which in certain cases can be used for affordable housing, but are mostly designated for capital improvement projects in low income areas. We receive a small Emergency Shelter Grant in the amount of $43,000 and the money received in tax increment funding for redevelopment is approximately $800,000. 745:05 PM Cmr. Nordstrom stated that the key element comes down to money. Recognizing that we have a segment of our population to protect, we don't have the funding sources to do all of the things we'd like to and we're dealing with a much larger social issue than we're going to be able to resolve tonight as commissioners. Without raising taxes, we've got enough talent and expertise to come up with creative ways to make at least some of the many good suggestions brought up tonight, become more of a reality. - Minutes - PC I HAC Workshop November 16, 2005 Page 5 7:46:31 PM Cmr. Tripp commented that he was disappointed to see that the participants who were in attendance at the Stakeholders Consultation on 11/7th were more on the "need" side of the equation instead of the "provide" side. He also inquired if we have an in-lieu fee. - Ms. Mills stated that an in-lieu fee is allowed for in the policy, however, to date, no fee has been approved. At this point the functionality is there, but a fee structure has yet to be brought forward and adopted. His recommendation is that the in-lieu fee be a realistic one so that implementation and those on the providers side can help make it happen. - 7:49:48 PM Cmr. Bensoussan inquired what is the role of the consultant and could he work on finding different sources of funding. - Ms. Hines responded that she does not believe that doing research and analysis in identifying funding sources is part of the consultant's scope of work under the current contract. The consultant was hired to assist staff in the preparation of the Housing Element and they are working in conjunction with staff in developing the public participation program, in analyzing the data and in developing the programs and policies. - - 7:53:53 PM David Bark, RBF Consultant gave a brief overview of qualifications and scope of work program for the Housing Element update. 7:56:25 PM Meeting adjourned. Submitted by Diana Vargas, Secretary to the Planning Commission - - DATA POLICIES & PROGRAMS ANALYSIS ~":;0'" I.....~....r".. , .;~...,,' ! .:"d~'" .. - - - - - - - - - - - 2 DATA pouaES & PROGRAMS ANALYSIS ~"~ l." ....',.....'... ?()! ~ .'.... ' 3 - - - - - - - - - - - - - - - 4 5 - - BLANK - - - - - - - - - - ~ Vt.- -.- ~--- ---- ~~~~ CllY OF CHULA VISTA HOUSING ADVISORY COMMISSION AGENDA REVISED FRIDAY, JANUARY 20,2006 3:30 P.M. PUBLIC SERVICES BUILDING CONFERENCE ROOMS 2 AND 3 CALL TO ORDER/ROLL CALL Steve Zasueta Dina Chavez Alabado , Margie Reese Barbara Worth , Armida Martin Del Campo , Gregory 1 ) APPROVAL OF MINUTES .:. November 16, 2005 - Special Joint HAC/Planning Commission Workshop .:. January 11, 2006 2) WORKSHOP TOPIC: 2005-10 Update of the Housing Element of the City's General Plan. (The Tol/ow/ilg is Tor worKshop/;ilTormattCJ/7 pt/rposes only. No pt/blic comment is reqt/ired./ Pursuant to State Law, the City of Chula Vista is preparing a Housing Element that covers the period of July 1, 2005 through June 30, 2010. The Commission will review the 1999-2004 Housing Element Goals, Policies and Objectives and provide recommendations to incorporate, as appropriate, to the 2005-2010 update. 3) MEMBERS COMMENTS 4) ORAL COMMUNICATIONS Opportunity for members of the public to speak to the Planning Commission on any subject matter within the Commission's jurisdiction but not an item on today's agenda. Each speaker's presentation may not exceed three minutes. 5) ADJOURNMENT - To the next Special meeting of February 1, 2006 Dated: 1/13/06 COMPLIANCE WITH AMERICANS WITH DISABILITIES ACT (ADA) The City of Chula Vista, in complying with the Americans with Disabilities Act (ADA), request individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service request such accommodation at least forty eight hours in advance for meetings and five days for scheduled services and activities. Please contact Palmira Montiel, Community Development Department for specific information at (619) 585-5722 or Telecommunications Devices for the Deaf (TDD) at (619) 585-5647. California Relay Service is also available for the hearing impaired. J:\COMMDEV\Hsg Advisory CommissionlAgendas\2006\ 1-20-06 agenda.doc - - CITY OF CHULA VISTA MINUTES DRAFT HOUSING ADVISORY COMMISSION MEETING - Wednesday, January 20, 2006 3:30 p.m. CALL TO ORDER/ROLL CALL - 3:30 p.m. Council Chambers Public Services Building - PRESENT: Members: Steve Zasueta, Margie Reese, Gregory Alabado, Dina Chavez Barbara Worth, Armida Martin Del Campo STAFF: Leilani Hines, Senior Community Development Specialist Mandy Mills, Housing Manager Stacey Kurz, Senior. Community Specialist Palmira Montiel, Senior Secretary 1. APPROVAL OF MINUTES Member Martin Del Campo moved to approve the minutes of November 16, 2005 Vice Chair Reese second the motion. All members were in favor. - Member Martin Del Campo moved to apl:lrOve the minutes of January 11, 2006 Member Worth second the motion. All members were in favor. -- 2. WORKSHOP: 2005-10 UPDATE OF THE HOUSING ELEMENT OF THE CITY'S GENERAL PLAN Chair Zasueta stated the objective of the meeting was to review Goals 1 through 4 and for the February 1st meeting, Goals 5 through 8. The following goals were reviewed and discussed: 1.1 - Preservation of Assisted Housinq At-Risk of Convertinq to Market Rate - 41 low-income units, which have expired. There is only one complex whose time is expiring in the upcoming period. All efforts will be made to keep the units affordable. However, with the current real estate market, retaining affordability covenants is financially difficult. The Commission recommends the following be considered: D Continue to work with property owners to maintain properties as affordable when financially feasible and of most benefit to the community. - - 1.2 - Condominium Conversions - The City will continue to regulate and monitor the conversions. The Commission recommends the following be considered: o Units meet current codes to ensure the quality of the development for the homeowner and community. D Require a minimum of 10% of the units be available and affordable to low and moderate income households, consistent with the City's existing Balanced Communities Affordable Housing Program. D Continued affordabilityof the units to each subsequent low and moderate-income homebuyer. Do not allow the resale of the unit at market rate price. D Tenants be provided with first right of refusal to purchase, assistance to purchase, and relocation assistance. - - - - Housing Advisory Commission Page 2 of 2 o Regulate and monitor number of conversions to provide adequate rental housing within the community. 1.3 - Sinqle Family and Mobilehome Rehabilitation - 191 grants and 23 loans were issued in the past five years to rehabilitate the homes. The Commission recommends the following be considered: o Maintain the program and look at more opportunities to advertise program and outreach to the community. 1.4 - Rehabilitate Deterioratinq and Substandard Rental Housinq - Assisted one development, St. Regis in rehabilitating a 119 unit with 24 very low income. The program was reinstated in 2003, to date over 1300 rental units within 233 complexes have been inspected. Mobilehome park inspections totaled 10 for a total of 991 mobilehome spaces. 1.5 - Preservation of Mobilehome Park Livinq - Member Worth requested a copy of the City Ordinance on selling the mobilehome park to the tenants. Chair Zasueta asked what could be done to the displaced tenants if a park owner decided to sell. Staff Mills stated the Ordinance relocation only refers to Mobilehome owners and not those that only rent. The Commission recommends the following be considered: o Relocation assistance to all residents (including renters). o Increase relocation assistance to residents based on family size and ownership of the mobilehome. o Require notice to residents of a park when it is for-sale with option to purchase. Residents should not just be notified of a sale and notice to vacate. 2.0 - Reinvest in the City's Well-established neiqhborhoods No change 3.0 - Ensure that an Adequate and Diverse Housinq Supply is Available to Meet the City's Existinq and Future Needs- 3.1 - The Commission recommends the following be considered: o Decrease the threshold from the existing 50 dwelling units or more. o Look at alternative methods of compliance such as in-lieu fee, particularly for infill developments. 3.2 - No change 3.3 - No change 3. PUBLIC COMMENTS 4. MEMBER COMMENTS Members requested the following meeting be held at 3:00 p.m. and end at 6:00 p.m. to complete reviewing the Housing Element prior to their joint meeting with Planning on February 22, 2006. 5. ADJOURNMENT - To the next special meeting of February 1, 2006 Recorder, Palmira Montiel J:\COMMDEV\Hsg Advisory Commission\Minutes\2006\1-20-06 MINUTES.doc - - BLANK - - - - - - - - REVISED ~V?- -.- ~--- ---- ~~~~ ellY OF CHUIA VISTA HOUSING ADVISORY COMMISSION AGENDA WEDNESDAY, FEBRUARY 1, 2006 3:00 P.M. PUBLIC SERVICES BUILDING CONFERENCE ROOM 2 CALL TO ORDER/ROLL CALL Steve Zasueta Dina Chavez Alabado , Margie Reese Barbara Worth , Armida Martin Del Campo , , Gregory 1 ) APPROVAL OF MINUTES .:. January 20, 2006 2) WORKSHOP TOPIC: 2005-10 Update of the Housing Element of the City's General Plan. (The /o//owing is Tor worKshop/in/ormation pl/rposes only. No pl/blle comment is reql/tred.J Pursuant to State Law, the City of Chula Vista is preparing a Housing Element that covers the period of July 1, 2005 through June 30, 2010. The Commission will review the 1999-2004 Housing Element Goals, Policies and Objectives and provide recommendations to incorporate, as appropriate, to the 2005-2010 update. 3) MEMBERS COMMENTS 4) ORAL COMMUNICATIONS Opportunity for members of the public to speak to the Planning Commission on any subject matter within the Commission's jurisdiction but not an item on today's agenda. Each speaker's presentation may not exceed three minutes. 5) ADJOURNMENT - To the next regular meeting of February 22, 2006 Dated: 1/30/06 COMPLIANCE WITH AMERICANS WITH DISABILITIES ACT (ADA) The City of Chula Vista, in complying with the Americans with Disabilities Act (ADA), request individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service request such accommodation at least forty eight hours in advance for meetings and five days for scheduled services and activities. Please contact Palmira Montiel, Community Development Department for specific information at (619) 585-5722 or Telecommunications Devices for the Deaf (TDD) at (619) 585-5647. California Relay Service is also available for the hearing impaired. J:\COMMDEV\Hsg Advisory CommissionlAgendasI200612-01-06 agenda.doc - CITY OF CHULA VISTA MINUTES DRAFT HOUSING ADVISORY COMMISSION MEETING Wednesday, February 1, 2006 3:00 p.m. CALL TO ORDER/ROLL CALL - 3:00 p.m Council Chambers Public Services Conf Rms 2 & 3 PRESENT: Members: Steve Zasueta, Margie Reese, Gregory Alabado, Dina Chavez Barbara Worth, Armida Martin Del Campo STAFF: Leilani Hines, Senior Community Development Specialist Mandy Mills, Housing Manager Stacey Kurz, Senior. Community Specialist Palmira Montiel, Senior Secretary 1. APPROVAL OF MINUTES Member Worth moved to approve the minutes of January 20, 2006. Chair Zasueta second the motion. All members were in favor. - 2. WORKSHOP: 2005-10 UPDATE OF THE HOUSING ELEMENT OF THE CITY'S GENERAL PLAN Chair Zasueta stated the objective of the meeting was to review Goals 3.4 through 8 and although public questions and comments were extremely important, he would like to minimize them until the end of the meeting. - The following goals were reviewed and discussed: 3.4 - Pursue Housinq Opportunities for lower-income households [] Not much could be done with Section 8. This is handled by the County for Chula Vista. o Objective of affordable housing developments is to be near or close to public transportation, schools, stores, etc. o No changes 4.0 - Increase Home Ownership Opportunities for low and Moderate Income hAffordable projects receive an incentive to build up (3-4 stories) vs. single family dwelling. ::::J Incentive for developers, reduce parking and open space requirements to allow for more units on site o Motion was made by Member Alabado for the City to encourage developers to build manufactured homes as a means of affordable housing. Member Worth second the motion. All members were in favor. 4.2 Rental assistance (24 months per household) is very limited. Rental units is available for 50 years. All members were in agreement that development of rentals was priority with a 70% distribution of funds and 30% for homebuyers. o The Down Payment Assistance program should be adjusted to the current market conditions 5.0 Mandy to get information on home repairs to be made on Senior group homes. 6.0 No change 7.0 8.0 No change - - - Housing Advisory Commission Page 2 of 2 3. PUBLIC COMMENTS 4. MEMBER COMMENTS 5. ADJOURNMENT - To the next meeting of March 22, 2006 Recorder, Palmira Montiel J:\COMMDEV\Hsg Advisory Commission\Minutes\2006\2-01-06 MINUTES.doc - - BLANK - - - - - - - - - REVISED ~ff?- -.- y~- ---..;: ~~-~~ CllY OF CHUlA VISTA HOUSING ADVISORY COMMISSION AGENDA WEDNESDAY, MARCH 22, 2006 3:30 P.M. CITY HALL BY COUNCIL CHAMBERS CONFERENCE ROOM #C101 CALL TO ORDER/ROLL CALL Steve Zasueta Dina Chavez Alabado , Margie Reese Barbara Worth , Armida Martin Del Campo , Gregory 1 ) APPROVAL OF MINUTES .:. February 1, 2006 2) DRAFT - 2005-2010 HOUSING ELEMENT POLICY AND PROGRAM 3) MEETING PLACE AND TIME 4) MEMBERS COMMENTS 5) ORAL COMMUNICATIONS Opportunity for members of the public to speak to the Housing Advisory Commission on any subject matter within the Commission's jurisdiction but not an item on today's agenda. Each speaker's presentation may not exceed three minutes. 6) ADJOURNMENT - To the next regular meeting of April 26, 2006 Dated: 3/15/06 COMPLIANCE WITH AMERICANS WITH DISABILITIES ACT (ADA) The City of Chula Vista, in complying with the Americans with Disabilities Act (ADA), request individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service request such accommodation at least forty eight hours in advance for meetings and five days for scheduled services and activities. Please contact Palmira Montiel, Community Development Department for specific information at (619) 585-5722 or Telecommunications Devices for the Deaf (TOO) at (619) 585-5647. California Relay Service is also available for the hearing impaired. J:\COMMDEW1sg Advisory Commission\Agendas\2006\3-22-06 agenda.doc - - BLANK - - - - - - ~{~ ~~:--: -..;:: -.:... """'-""" ~~~~ CllY OF CHUlA VISTA MOBILEHOME RENT REVIEW COMMISSION AGENDA THURSDAY, FEBRUARY 23,2006 6:30 P.M. COMMUNITY ROOM POLICE DEPARTMENT (4TH & F ST) Note: Change in time & location CALL TO ORDER/ROLL CALL Thomas Teagle Cesar Padilla , Jerrold Siegel , Rosa Maria Robles , Edmond LaPierre , Joanne D. Clayton , Steve Epsten 1. APPROVAL OF MINUTES - April 21, May 36 and November 17, 2005 2. BA YSCENE MOBILEHOME PARK - Consideration of proposed rent increases for spaces 19, 50, and 96 at Bayscene Mobilehome Park, located at 100 Woodlawn Avenue in Chula Vista, and a request for additional information related to an analysis of the rate of return earned by the park owner as determined by a fair market appraisal for such spaces. 3. WORKSHOP TOPIC: 2005-10 Update of the Housing Element of the City's General Plan. (The following is for workshop/information purposes only. No public comment is required.) Pursuant to State Law, the City of Chula Vista is preparing a Housing Element that covers the period of July 1, 2005 through June 30, 2010. The Commission will review the 1999-2004 Housing Element Goals, Policies and Objectives related to mobilehome issues and provide recommendations to incorporate, as appropriate, to the 2005-2010 update. 4. NEW MEETING DATE, TIME & LOCATION - Change in date, time and venue is required due to the scheduled meetings of the Chula Vista Redevelopment Corporation. 5. STAFF COMMENTS .:. Upcoming Agenda .:. CPI Release Dates: February 22, 2006 and August 16, 2006 6. MEMBERS COMMENTS 7. PUBLIC COMMENTS 8. ADJOURNMENT Dated: 2/15/06 COMPLIANCE WITH AMERICANS WITH DISABILITIES ACT (ADA) The City of Chula Vista, in complying with the Americans with Disabilities Act (ADA), request individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service request such accommodation at least forty eight hours in advance for meetings and five days for scheduled services and activities. Please contact Palmira Montiel for specific information at (619) 585-5722 or Telecommunications Devices for the Deaf (TDD) at (619) 585-5647. California Relay Service is also available for the hearing impaired. J:\COMMDEV\Mobilehome Rent Review Commission\MHRRC Agendas\2006\AGENDA 02-23-06.doc - - CITY OF CHULA VISTA DRAFT MINUTES MOBILEHOME RENT REVIEW COMMISSION - - Thursday, February 23, 2006 6:00 p.m. CALL TO ORDER/ROLL CALL - 6:00 P.M. COMMUNITY ROOM POLICE DEPT. (4th & F St) - PRESENT: Thomas Teagle, Pat Lapierre, Jerrold Siegel, Cesar Padilla, Rosa Maria Robles, Joanne D. Clayton - ABSENT: Steve Epsten STAFF: Mandy Mills, Housing Manager Leilani Hines, Sr Comm Dev Specialist Stacey Kurz, Sr Comm Dev Specialist Palmira Montiel, Sr Secretary - 1. APPROVAL OF MINUTES April 21 Member Clayton made a motion to approve the minutes. Member Siegel second the motion. Member Robles abstained. Remaining members approved unanimously. Mav 26 Member Siegel made a motion to approve the minutes. Member Clayton abstained. Remaining members approved unanimously. November 17 Member Clayton made a motion to approve the minutes. Member Robles second the motion. All members approved unanimously - 2. BA YSCENE MOBILEHOME PARK Staff Hines stated she could not make a recommendation at this time and requested the members include spaces 19, 50 and 96 in the analysis of the rate of return. Public was given the opportunity to speak at which time they expressed concern over having received a 10% increase last year and were now given an additional 10% this year. Chair Teagle stated and requested Member Robles translate the following to the residents of Bayscene present at the hearing: The Mobilehome Rent Review Commission is listening to the resident's concerns and have contracted a third party to do a survey on the mobilehomes. This is done to consider all aspects before making a decision. This City is paying for an expert, Dr. Kenneth Bard, of Berkeley University to do a study on the mobilehome parks in the City Of Chula Vista. He will then give his recommendation to the City Of Chula Vista, whom in turn will give a recommendation to the Mobilehome Commission. - - Staff Hines wanted to remind those present that the long term lease and the proposed increases in accordance with that lease, do not fall under the Commission, but is rather a civil matter between two private parties and tenant/landlord issues. The Commission cannot assist in determining the rent increase. - - Mobilehome Rent Review Commission Minutes Page 2 of 2 Member Padilla commended the residents for their appearance and encouraged all present to 3. WORKSHOP 2005-1 0 UPDATE OF THE HOUSING ELEMENT OF THE CITY'S GENERAL PLAN 4. NEW MEETING DA TE, TIME & LOCATION 5. STAFF COMMENTS 6. MEMBER COMMENTS Chair Teagle requested Staff send a new calendar to all members of the Commission to review meetings dates for 2006. 7. PUBLIC COMMENTS 8. ADJOURNMENT - To the next scheduled meeting of March 16,2006 Recorder, Palmira Montiel J:\COMMDEV\Mobilehome Rent Review Commission\MHRRC Minutes\2006\02-23-06 MINUTES.doc - - BLANK - - - - ~~~ ~:: ;...,.;~~~ ~~~~ CllY OF CHUlA VISTA ~'~''';r.~<~. ..' '. 'O:::"J': .......~\.. ,~~, - .., ~.a . '~,.:.,': t:: '.. fiff,~,~ ' '-c:::J1 It:?- .... "\1 i~:hf~~{",~~j IJI.(.~:~''{'~~'''.J: ~.~~~."";'T ,.~;;..::.~:.~.; ~ ~ ~~ '.~;~f~..~~4 ;.c -~-lit1~;;.,I;.~ftI ~1"';";'(~'J r,'., l::~ ...:. ~:''C''',~~ _ _ :.:r~"';'1.::-..!?'f~~.:.o..:.~ . """''''~''z;;- '~7>>' - -,.b~ Report to the City Council and Redevelopment Agency Western Chula Vista Revita I ization: Population, Market, and Housing Trends Prepared: February 2, 2006 Submitted by: Dana M. Smith, Assistant City Manager /Community Development Director Prepared by: Amanda Mills, Housing Manager Ken Lee, Principal Community Development Specialist Stacey Kurz, Senior Community Development Specialist Via: David D. Rowlands, Jr., City Manager - - TABLE OF CONTENTS I. INTRODUCTION.. ....... ...... ....... ........ ............. ..... .................. .......... ........ ............. .......... ................. 1 II. THE LIFE CYCLE OF A COMMUNITY ..............................................................................................3 A BRIEF REVIEW OF CHULA VISTA'S LIFE CyCLE.............................. ......................................... ................ ..... 3 - III. CHULA VISTA'S POPULATION AND HOUSING STATiSTiCS............................................................. 5 POPULATION CHARACTERISTICS ........... ........... ............ ......... .... ............. ...... ..................... .................. ...... 5 HOUSING CHARACTERISTICS ............... ................. ....... ........ .... .............. ...................... ..... ..... ........... ....... 7 - IV. PRIVATE MARKET FORCES AND THE ROLE OF REDEVELOPMENT ..................................................11 LONG-RANGE PLANNING DOCUMENTS.................................... ........... ............. ....................................... 11 MARKET INFLUENCES AND VARIABLES... ................... ...... .................. ............... ..................... ................. .... 13 REDEVELOPMENT AS A CATALYST FOR PRIVATE INVESTMENT.......................................................... ................. 14 REDEVELOPMENT & AFFORDABLE HOUSiNG................ .............. ............... ....... ................... ....... ........... ..... 15 RELOCATION AsSISTANCE & REPLACEMENT HOUSING... ............... ............. ............ .................... ............... ... 15 - V. REVIT AUZA TION AND HOUSING ....................... ................. .......... ........ ...... ...... ............. .... .... ..... 18 PROVIDING AND MAINTAINING AFFORDABLE HOUSING .................... ........... ..... .......................................... 18 PRIVATE MARKET REVITALIZATION..... ............... ............. ............. ............. ........................... ................. ..... 18 VI. CONCLUSIONS AND HOUSING POLICY ALTERNATIVES ............................................................. 22 CONCLUSIONS... ..................................................................................................... ..........................22 HOUSING POLICY ALTERNATIVES... ......................................................................................................... 22 APPENDIX A: TERMINOLOGy............................ ............... .............. ..................... ...... ............... ....... 26 - I - I. INTRODUCTION This white paper is the outgrowth of concerns expressed by the Chula Vista community, City policymakers, and staff about the speed of land use changes in western Chula Vista and the effect on our existing citizens. This paper raises policy concerns and highlights the challenges of wrestling with competing priorities in urban revitalization efforts. It confronts the tension between private market forces and property owner rights to buy, sell, and develop their property, and government intervention into the market to protect citizens against any potential adverse impacts. As discussed in numerous city planning documents, Chula Vista's older areas - located primarily in western Chula Vista - continue to age and experience declining commercial activity, some deteriorating housing stock (primarily multi-family), and a limited market for attracting new investment. At the same time, California and the San Diego County region continue to experience unmet demand for housing, high housing prices, and shrinking availability of "raw" land for new housing. In recent years, a broad cross section of community leaders have joined with City leaders in renewed calls to update infrastructure, attract higher value businesses, and provide commensurate amenities such as parks and open space on the west side. In response, the City Council has directed the City and its Redevelopment Agency to step up strategic planning efforts to revitalize and reenergize the older developed areas of the west. Fundamental to revitalization is increased housing density around commercial core areas, better utilization of existing vacant or underutilized lands, enhanced infrastructure to support the needs of businesses and residents, and attention to the physical form and urban design that create places of interest. The City's current planning efforts, including the recent update of the General Plan and the preparation of the Urban Core Specific Plan (UCSP), take the necessary planning steps to implement this vision by providing the blueprint for future development over the next 25 years. These planning efforts, coupled with a healthy real estate market and renewed developer interest in the urbanized City center, will be the catalyst for western Chula Vista revitalization. This report discusses the role of both the public and private sector in shaping the revitalization of western Chula Vista and provides a broad discussion of potential effects on existing populations as change occurs. It also provides a discussion of housing policy alternatives available to the City Council to assist in tracking and addressing unintended effects on our most vulnerable citizens, those of limited financial means. This report: q Reviews the cycle of growth and renewal of urban areas q Provides statistics on population and the types and age of housing in western Chula Vista q Discusses the City's new General Plan and upcoming Urban Core Specific Plan and Housing Element as they may affect redevelopment, affordable housing, and the encouragement of new dev.elopment Q Addresses the Redevelopment Agency's role in encouraging revitalization and providing new public infrastructure, parks and open space, and affordable housing. It also addresses the legal requirements to relocate existing uses and residents when the Redevelopment Agency is a partner in development (as distinguished from private revitalization) - 1 - ... c::> Discusses housing issues that may result from public and private development activity: :> Creation of adequate supply of affordable units for lower income households within Western Chula Vista. :> Generation of additional tax increment through redevelopment to fund necessary public improvements in western Chula Vista, including the creation of new rental and for-sale affordable housing. :> Provision of proactive services and programs in the community to assist lower income residents. :> Ensuring a balanced community with a mix of housing options for all income levels. :> Addressing the potential negative impacts of revitalization activities on the supply of rental housing and on lower income households that may be required to move. c::> Provides a discussion of possible policy alternatives available to the Council to address these housing issues Various key terms and phrases used in this report to describe aspects of the City's planning and redevelopment activities are defined in Appendix A. - 2 - II. THE LIFE CYCLE OF A COMMUNITY A little more than one year ago, the Chula Vista City Council and Planning Commission held a joint workshop on the various planning efforts for the revitalization and redevelopment of Chula Vista's Urban Core. The workshop included a comprehensive presentation from Planning & Building Department and Community Development Department staff on the General Plan Update, Urban Core Specific Plan, and the role of redevelopment in the revitalization efforts for western Chula Vista. Lucetta Dunn, Director of the California Department of Housing and Community Development, also appeared as a special guest speaker to share the state's views on current housing trends and the future necessity for cities to promote urban infill and redevelopment to house future residents as California's population expands and land resources shrink. The central theme of the November 1 7, 2004 -.-~-THRI:lIJNG= workshop was the concept of "The Life Cycle of a Community," as depicted in the illustrative model on the right, which takes a city through four distinct stages of evolution Emerging, Thriving, Maturing, Declining before the cycle leads back to the re-emergence of the city through careful reflection, reevaluation, repurposing, and re-planning. Below is a brief revisit of Chula Vista's own life cycle to date, which provides the context for the issues framed in this paper. The Life Cycle of a Community MATURING Stability Risk.aversion Growth . -=- - - ... Contraction Renew - - - . a::: Instabi lity Investment ~'(t. ~ odX~ I!"n", De.investment =- - ~ ...D.EC.UIlIING- =:: II 111 t ~ - - ~ ~nE:,l~ tal(Ir;;}~ A Brief Review of Chula Vista's Life Cycle Once the largest lemon growing center in the world, Chula Vista has rapidly grown, developed, and expanded to become one of the nation's fastest growing cities. Initially incorporated in 1911, much of the City's historical growth and development traces back to World War II and the relocation of Rohr Aircraft Corporation to Chula Vista in early 1941. The presence of Rohr and the post-WWII boom brought extraordinary population growth to Chula Vista, along with the demand for housing, services, and retail services (e.g., shops, restaurants, markets, banks, etc.). ~' . ~" '-c., .' ~ ...... "..;.:__":1: '"1-" to l-~.~.:<;~.tB~ _~ ,... ~." ..'......,,'" ~ JIj'" ; . :~,>J .,.~',. :~,..-..- '. : roads, schools, public - 3 - - With an established but growing population and employment base, Chula Vista's urban core and business economy thrived with commercial activity and spawned additional housing opportunities for newcomers. As the size and needs of the community continued to grow, local downtown businesses flourished and additional community amenities were created in response to the increasing service and governance demands of local citizens. Over the next several decades, California's continued rate of population growth and housing production, coupled with Chula Vista's regional and waterfront location between the Mexican border and downtown San Diego, spurred the City's outward expansion and development to the east (east of Interstate-805). Now home to nearly a quarter-million residents, Chula Vista is the second largest city in San Diego County. As the City has continued to expand outward, and eastern Chula Vista has begun to thrive and mature during the past 15 years, western Chula Vista has experienced a decline in commercial activity and community reinvestment as residents have sought business and retail services elsewhere, including eastern Chula " Vista, downtown San Diego, and Mission Valley. The decline in private investment in the urban core has led toward decreased small business retention and attraction, reduced private investment, and a loss of external confidence in the area's housing market. It has also led to the ongoing physical deterioration of some of the City's housing stock, shrinking tax revenues to the City, and a greater need for infrastructure improvements. To evolve past western Chula Vista's cycle of decline, and create a path toward the reemergence of a thriving economy and housing market, the City Council has cast a vision for the revitalization of the City's downtown urban core through the update of the City's General Plan and the preparation of the Urban Core Specific Plan. - 4 - - III. CHULA VISTA'S POPULATION AND HOUSING STATISTICS As communities age, their population and housing characteristics change. Cities can use several key indicators to understand the effect of age on communities. One important measure is the overall age of housing and commercial stock. Property that is greater than 50 years in age will typically require substantial financial reinvestment, repair, and maintenance by owners. Rental properties, because they are frequently owned by absentee owners for investment purposes, are often not as well-cared for as owner occupied residences and businesses. Chula Vista's west side has many stable and great single family neighborhoods which reveal tremendous care and investment by owners. The stability and overall reinvestment into single family homes and commercial areas is often reflected in the ratio of owner occupied homes to rental units. To provide context to the discussion, several data sources were reviewed, including: q City of Chula Vista General Plan, adopted December 13, 2005. Provides detailed population for 2004 and 2030 projections for the western and eastern portions of the City. q City of Chula Vista Urban Core Specific Plan Market Analysis, June 2, 2005. Provides demographic statistics for population age and household income for the western portion of the City and the urban core planning area. q United States Census, 2000. Provides detailed housing statistics by census tract. Conducted every ten (10) years, the U.S. Census provides the most comprehensive data source available. Census tracts are generally divided by City boundaries, but not always. This presents a slight inconsistency when trying to combine census tracts to determine statistics for a portion of the City as done in this section of the report. While small portions of census tracts fall outside or within the City, overall it was determined to be the best way to form detailed housing statistics for the western portion of the City. q SANDAG Population and Housing Estimates, January 1, 2005. Provides current (2004) population and housing occupancy for the San Diego County region and its jurisdictions. Population Characteristics Expected Population (2000-2030) The entire San Diego County region is expected to experience a tremendous amount of growth over the next 25 years with an estimated 20.9% (803,805) increase in population. This growth is primarily due to natural births from within the region. Chula Vista is expected to absorb over 11 % of these new residents. Between 2004 (209,200) and 2030 (299,900), the City's population is expected to increase by 30.2%. Eastern Chula Vista is Chula Vista Projected Population in 2030 Urban Core . 74,900 Western CV ~ Eastern CV r Chula Vista ~.... , 136,700 I 160,700 8,710 09.200 __. ~ I 299,900 -, ~ <:> <:><:><:> <:><:><:> <:><:><:> ~<:>. ,,<:><:>' ,,~<:>. <:><:><:> ~<:>. 'l: <:><:><:> $:)<:>' ~ <:><:><:> <:><:>. rp .2004 Estimate t:I Projected Increase by 2030 - 5 - - expected to increase its population by 38.6% (98,710 I 160,700) while western Chula Vista is expected to increase its population by 19.2% (110,490 I 136,700), including a 24% (56,930 I 74,900) increase in the Urban Core. Age The SANDAG chart to the right shows the anticipated changes in population age groups over the next 25 years. The average age of the population in the San Diege> County region was 33.2 in 2000 and this average age is projected to increase over the next 25 years. All age groups below 55 years are expected to decrease, as a percentage of the total population, during the period, while there is an expected average increase of nearly 4% of residents age 55 and above. In Chula Vista this phenomenon is expected to be more profound with an approximate 5.4% increase in the 55-64 age group. The population increase of 65-74 year olds in western Chula Vista and in the urban core is expected to be higher than the entire City (4.6%) and the San Diego County region (5%). This shift may lead to an increased need for facilities and housing projects that can accommodate and include amenities for this older population. Expected Change (2000-2030) in Age Distribution 0-9 6.0% 1 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% J 10- 20- 35- 55- 65- 19 34 54 64 74 75+ l;I Urban Core .Western CV tJCV tJSan Diego Region Special Needs Groups In addition to the age of the population, another important issue is the provision of housing for special needs groups, including individuals with physical, emotional, or psychological disabilities. With a large portion of census tracts in the western portion of the City reporting a quarter of their population with disabilities, accommodations for this population may need to be considered with future housing options. Citywide Disability Status Western CV Disability Status 19% 81% tJ Disability 77% . No disability [;;J Disability . No disability - - 6 - Housing Characteristics Housing Types In 2000 the housing stock in western Chula Vista (west of 1-805) consisted of a fairly even mix of single family residences (18,864 units / 47%) and multifamily residences (17,345 / 43%). The remaining 10% of the housing stock of western Chula Vista were mobilehome and trailer parks. Citywide Housing Mix 6% Western CV Housing Mix 60% 10% 47% ~~ 34 Yo ~~ 43% o Single farrily . r.AJltiple farrily CJ Mobile Herre CJ Single farrily . MJltiple farrily CJ Mobile He Citywide in 2000, Chula Vista had 60% single family residences (35,707), 34% multifamily (19,990), and 6% mobilehome and trailer parks. The Citywide average nearly matches the San Diego County regional average of 60% single family, 35% multifamily, and 4% mobile homes. The eastern portion of the City far exceeds the countywide ratio of single family to multifamily residences. The mix of renter occupied to owner occupied units in the San Diego County region was 45% renter to 55% owner in 2000. The City of Chula Vista as a whole almost mirrored the regional ratio with renter occupied units totaling 43% of the City's housing stock. However, of the approximately 40,366 housing units in western Chula Vista, 55% were renter occupied and 45% were owner occupied. This means that eastern Chula Vista has a higher percentage of owner occupied housing than the regional average. The ratio of renter to owner in the east is likely higher now due to the number of condominium conversions that is underway there. In addition, with the continued building of single family housing units in the east, it is projected that the current citywide ownership rates are approximately 63%. These statistics also suggest that for the east to achieve a renter to owner ratio commensurate with the region, the City would need to protect the existing rental properties and encourage new rental development in that part of the City. Conversely, to achieve a similar balance on the west, the City may want to encourage more entry-level opportunities for homeownership there. Housing Ownership Patterns Citywide Ownership Patterns Western CVOwnership Patterns 57 Of< 45 Of< .. - _.-~ - -~ - --~-~ ~ 43% 55% [J Renter Occupied. Ow ner Occupied . Ow ner Occupied o Renter Occupied - 7 - - Vacancy Rates] The industry standard for a healthy vacancy rate is approximately 5%. The estimated vacancy rate for all housing units in the San Diego County region as of January 1, 2005 was 4.3%. The City of Chula Vista averaged 3%. The low vacancy rate suggests an unmet demand for flousing and means that renters who may be displaced by private market forces may have difficulty relocating within Chula Vista. The vacancy rate is an important statistic for the City to monitor as revitalization takes hold. - Household Income & Poverty Level In 2000, the City of Chula Vista's mix of household income was fairly consistent with the San Diego County region. According to the 2000 census, 42.1 % of households in the San Diego County region were considered low income (less than $40,000 per year). Approximately 31 .6% of households in eastern Chula Vista were low income. In western Chula Vista, including the Urban Core, 57.2% of households were low income. These statistics show a growing disparity between household income in the east and west of the City, as well as a high number of low income households in the west compared to the region In addition to household income data, the Census provides poverty status of the population. The San Diego County region averages 13% of the population living below poverty level2. In 2000, the City of Chula Vista overall averaged 11 % of the population living below poverty level while the western portion average. Household Income (2000) 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% - !;)() ~'! lIslrv rlJ-<:- xs: f?~ ",0 pjO:J C!) :>:>O:J- lIsl ,0 !;)() ~'! lIslrv pjO:J C!) ~O:J- G:si ,0 !;)() ~ \>.()- ~ !;)() !;)'! ,,~ lIsl ,0 !;)() ';:)'! lIslfd ~0 ~o 0' !;)() !;)'! ,,~ lIsl C Urban Core . Western CV i:I CV ii San Diego Region Citywide Poverty Status 11% Western CV Poverty Status 15% 89% 85% i:J Abo~ Po~rty . Below Powrty CJ Above Poverty . Below Poverty , SANDAG - San Diego County region City/County Population and Housing Estimates 1/1/2005 2 Poverty thresholds are set by the U.S. Department of Health & Human Services and are determined by family unit size and income level. 2000 Poverty Thresholds were: one person = $8,794; two persons = $11,239; three persons = $13,738; etc. - 8 - of the City averaged 15%. While not much higher than the regional average, when examined at the census tract level, some revealing statistics arise. Out of the twenty-six (26) census tracts used in this analysis for the western portion of the City of Chula Vista, eight (8) tracts reported 20% or more of their population below poverty level. These census tracts were in the extreme northwest and southwest of the City, suggesting a need to assist families and those of special needs who are below the poverty level in attaining safe and decent housing, as well as to increase overall densities to attract a broader array of income levels. Structural Age As described earlier, the structural age of housing units is an important determinant of reinvestment requirements. Property that is 50 years or more in age typically requires substantial financial reinvestment, repair, and maintenance. In 2000, 83% of the housing units in the western portion of Chula Vista were reported as being built prior to 1980, including 33% before 1959. In other words, one-third of western Chula Vista's housing stock is approaching 50 years in age, as shown below. This is a critical statistic because, over the next 25 years, a substantial amount of property and City infrastructure in the west (83%) will require either complete replacement or substantial reinvestment and repair. Census Tracts with 20% or Higher Below Poverty Level Citywide - Year Housing Structure Built Western CV - Year Housing Structure Built Western CV. 2030 Housing Age Projection 17% 33% 50_,7% 22% .1980.2000 C 1960 - 1980 C Before 195 83% .1980.2000 Q 1960 - 1980 C Before 195! lJ Under 50 years old . Over 50 years old Summary These statistics provide a snapshot of Chula Vista's current (2000) and future population and housing trends. The data shows that western Chula Vista is currently providing a higher amount of multifamily rental stock than the regional average, and significantly higher than that of eastern Chula Vista. It further suggests that a substantial amount of reinvestment will be required to avoid dilapidation and an increase in unsafe housing conditions. The City should encourage rehabilitation or removal of unsafe and low value properties, development of new affordable units and new multifamily units, as well as new entry level home ownership opportunities. Finally, - 9 - - the demographic make-up of western Chula Vista suggests that there is a significant need to serve the City's lower income residents, including elderly and special needs groups. HOUSING POLICY ISSUE #1: Creation of adequate supply of affordable units for lower income households within Western Chula Vista. See Chapter VI of this report for a more detailed description of this policy issue, including policy alternatives to address the issue. - - 10 - - IV. PRIVATE MARKET FORCES AND THE ROLE OF REDEVELOPMENT Long-Range Planning Documents The timing of development patterns is generally driven by private market forces and entities (e.g., developers, lenders, investors, brokers, builders, etc.) and not by government - except possibly in redevelopment project areas (see Page 14). The purpose of a general plan is to serve as a long- range (25-year) blueprint or roadmap for the future physical form, operation, and mobility of a city's built environment by: q Casting a vision for the city by establishing long-range land use goals and policy objectives for future development q Strategically directing the physical location of prescribed land uses and building types q Governing the physical and functional form of development by establishing design guidelines and development standards3 To be effective blueprints, these planning tools are crafted to accommodate changing population, housing, and market trends. In essence, they provide a platform for future development. They do not, however, directly govern, dictate, or influence when development will occur. General Plan Chula Vista's recently adopted General Plan Update ("GPU) changes land use designations in key commercial and residential areas of the City. The GPU's land use designations were strategically focused on three key planning areas of the City encompassing 5,268 acres: Northwest, Southwest, and East. Designations in the remaining 90 percent of the General Plan (53,154 acres) were left unaffected. Within the three planning areas, the GPU made a number of important changes critical to future redevelopment activities, including the addition of new land use designations: Mixed Use Residential, Mixed Use Commercial, Mixed Use Transit Focus Area, Urban Core Residential (28-60 dwelling units/acre). Specifically, the GPU: . q Northwest. Increases mixed use development in the Urban Core, allowing more residential and transit-oriented uses and densities in the vicinity of major transit corridors. q Southwest. Focuses redevelopment within the Montgomery Subarea to facilitate economic development opportunities through appropriate designation of transit-oriented, industrial, commercial and higher-density residential. Promotes mixed use or other appropriate densities to facilitate smart growth planning, and to establish an identifiable town center area. q East. Increases overall densities in the Otay Ranch Subarea for residential use, and increases lands designated for commercial and industrial uses. 3 Design guidelines and development standards include common zoning tools, such as density standards, height limitations, setbacks, parking requirements, and required public amenities. - 11 - Urban Core Specific Plan The upcoming Urban Core Specific Plan (IJUCSP") is on implementation tool for the goals and land uses established in the General Plan. As a zoning document, the UCSP will, upon its adoption, set forth land use and development regulations for the Urban Core that establish the appropriate distribution, mix, intensity, physical form, and functional relationships of land uses in the area. These regulations will encourage and facilitate infill development, mixed uses, pedestrian scale, urban amenities, transit use, creative design, and the overall revitalization of the Urban Core. Similar to the General Plan Update, the UCSP strategically focuses new zoning tools in three key planning districts: the Village, the Urban Core, and the Corridors. The UCSP focus areas are primarily located along existing commercial corridors and would allow mixed use (as opposed to just commercial), thereby increasing the vitality of those areas. In addition, areas west of Broadway are proposed for higher density residential, providing opportunities for older housing stock in need of reinvestment to be rehabilitated or replaced. Each of the three UCSP planning areas are further broken down into sub-districts where the UCSP will establish 0 number of zoning regulations, including floor area ratio, lot coverage, building height, building stepback, street wall frontage, setback, open space requirement, permitted land uses, and parking regulations. ." - - - ~~\:- Hi >>;..-:::-. I'WUil Pl.l(' Housing Element The City's Housing Element Update is expected to come before the Council in March 2006 to address Chula Vista's housing needs through 2010. The Housing Element is a required element of the General Plan overseen by the California Department of Housing and Community Development (HCD) and is typically updated in five-year cycles. The purpose of the Housing Element is to establish goals, policies, and a five-year work program for how Chula Vista will house local citizens as the City's population size and demographic makeup changes. The Housing Element examines existing housing needs, demonstrates sites with adequate density levels to accommodate new housing, and outlines which programs and/or policies will be utilized to serve lower income housing needs. The Housing Element is required to plan for a spectrum of housing types and prices that will accommodate residents of all incomes, as determined by the City's share of the Regional Housing Needs Assessment (IJRHNA"). RHNA establishes housing numbers by income levels that need to be built to accommodate future population growth. These numbers are generated by HCD and distributed among cities in San Diego County by the San Diego Association of Governments (SANDAG). Chula Vista's RHNA allocation for the current Housing Element period is 17,223 housing units. Of these, 3,875 units are for very low income housing, and 2,945 are for low income housing. - 12 - - CHULA VISTA RHNA ALLOCATIONS Income Category I % of County I Income Range ($) I RHNA Median Allocation Very-Low Income < 50% MFI4 < $31,700 3,875 Low Income 51% - 80% MFI $31,701-$50,720 2,945 Moderate Income 81 % - 1 20% MFI $50,721-$76,080 3,255 Above-Moderate Income > 120% MFI > $76,080 7,148 TOTAL 1 7,223 'MFI = Medion Fomily Income Market Influences and Variables The establishment of a planning and regulatory framework for the City is not the only vital ingredient that will allow a new vision for Chula Vista to unfold. Changes to the General Plan and Zoning Code do not mandate that the area must change but instead means it can change in a well thought out, logical manner. For example, over the last 25 years, the downtown Third Avenue area was fairly liberally zoned and permitted to develop to a much greater intensification of its commercial corridor. That change, however, never occurred. The key missing ingredient was the positive market forces that attract new investments and see the change through. The critical and unpredictable influence of market forces is the key to understanding the pace of change and whether the change will have an impact on low income residents. There are a myriad of "risk variables" that can influence market forces and market confidence (or inversely, market risk) in a particular region or city, including: q Local demographics q Existing housing types and prices q Ability of the market to absorb new units (Will they sell?) q Development costs (e.g., construction costs, fees) q Interest rates q Whether the existing housing market has been tested to support similar product types and pnclng. These variables impact the rate at which a local housing market can absorb new units, and therefore also impact the rate of change and revitalization that occurs in a region, regardless of city general plans and zoning codes. Since market variables fluctuate over time, the timing and rate of development will also fluctuate with the unknown cycles of the market. The long-range, 25-year blueprint of a General Plan or an Urban Core Specific Plan, therefore, does not become fulfilled overnight. Depending on market forces, only some elements of the vision may be realized, if any at all. In the Urban Core, the UCSP would allow for a total capacity of more than 7,000 ~ housing units (net increase in units) over 25 years. Of that amount, the City's market studies estimate that only half is likely to be absorbed in the market over the 25-year period, if market trends remain · Median Family Income (MFI) is used as a Federal standard to determine eligibility for affordable housing. - 13 - - - constant. Spread evenly over 25 years, the Urban Core would average about 150 new units each year. If market conditions were to facilitate rapid growth and change within a short period of time (1-5 years), it could impact the ability of existing residents to relocate to comparable housing units. It is important to consider, however, that a proportion of the new units built within the Urban Core will be made affordable to moderate and lower income households. The exact proportion will be known as projects are proposed and the number of units is disclosed. - Redevelopment as a Catalyst for Private Investment Redevelopment plays an important role in the revitalization goals and efforts of a city through the tools it can employ to directly influence the private market, reduce risk, and create market confidence. Redevelopment can facilitate new development that might not normally occur under existing market conditions by helping address the risk variables described above. The tools and requirements of a redevelopment agency include (see Appendix A for definitions of terminology): c:> Tax increment financing to fund public improvements and provide financial assistance to qualifying developers for qualifying projects in the form of gap financing c:> Required 20 percent monetary set-aside of all tax increment revenues for low- and moderate income housing c:> 15 percent affordable housing production requirement c:> Land acquisition and parcel assemblage c:> Relocation assistance and replacement housing With these tools, redevelopment can act as a catalyst to "jumpstart" the revitalization process in conformance with a city's land use plans. Once redevelopment efforts create market confidence, the private market can run its own course and lead the city toward a state of thriving through further risk-taking, renovation, and redevelopment. By law, however, redevelopment is limited to areas of a city that are in a state of decline and are physically and economically blighted. Its direct influence on the private housing market is therefore limited to "project areas" adopted by the redevelopment agency. The following map depicts Chula Vista's redevelopment project areas in colored zones. - - - - ~ ~:~;-;:>~-:"?-" ..". qp . ...., , f ; .,~ ........... , ' "- " , , "',. Vj5-J ll..;' - , I _.- __.....~" / I j) ~__h'______-- -I :------: ;------_.~ I I I I t':I I I I --I -- I - ,) :_U: - - 14 - Redevelopment & Affordable Housing Redevelopment agencies play an important role in the funding and production of affordable housing. Within adopted project areas, redevelopment agencies receive a higher level of property tax revenues that would normally be allocated to the state and other taxing entities. In exchange, the state requires that 20 percent of all of these "tax increment" revenues be set aside for the development of affordable housing. To ensure that these monies are in fact used for the production of affordable housing, the state requires that 15 percent of all new residential units built in an adopted project area be restricted to households of very low-, low-, and moderate incomes. Next to the federal government, redevelopment is the largest provider of affordable housing for California's low- and moderate income families. All tax increment monies generated in adopted redevelopment project areas are allocated among four basic public uses: schools, neighborhood improvements, affordable housing, and other public agencies. The following exhibit provides an example of how $40 million of tax increment revenues is allocated among those four public uses. EXAMPLE: Allocation of $40 Million of Tax Increment Affordable Housing (20% Set Aside) $8,000,000 Schools $6,000,000 $20.000,000J Neighborhood Improvements $6,000,000 Other Public Agencies Relocation Assistance & Replacement Housing Redevelopment Agency participation in a development project occurs when an Agency enters into an agreement with the developer or owner that provides financial assistance for the construction of the project, or facilitates the acquisition and/or disposition of land for the project. When Agency participation in a project results in the displacement of residents or businesses, lawmakers recognized the direct role of the government in causing those impacts and established strict rules - 15 - and regulations to mitigate them. In cases of residential displacement, both Federal5 and state6 relocation rules and regulations require the Redevelopment Agency to find alternative housing for displaced residents, and pay for their relocation costs, including moving expenses and any differences in rent (for two years). To ensure that residents are fully informed about their eligibility to receive relocation assistance and benefits, agencies typically hire experienced relocation consultants to prepare comprehensive relocation plans, meet with residents, and walk them through the relocation process, step-by-step, to find them new residences that are safe and sanitary. Relocation assistance by an Agency provides important benefits and protections to residents, especially those of low- and moderate income. When Agency participation in a project results in the demolition and loss of existing housing stock, the California Community Redevelopment Law7 requires that the Agency replace all units demolished or removed from the project site that previously housed any low- or moderate income persons or families8. State law requires replacement of these lost units on a one-for-one basis, and within four years. Summary The realization of the City's vision and land use plans for revitalization and redevelopment of western Chula Vista will mostly be determined by private market forces. While plans provide a blueprint and the capacity for future development over 25 years, it will be the market that will determine just how much of that capacity will actually be absorbed and built over time. The Redevelopment Agency can play a strategic, albeit limited, role in influencing private market forces. The state recognizes the importance of this role, but also recognizes that the direct participation of government in private market transactions can sometimes lead to unintended impacts on residents and businesses, and that those residents and businesses should be protected through prescribed laws and procedures. The state also recognizes that redevelopment is a critical vehicle for generating much needed local revenues to enhance municipal services and public improvements, including the creation of affordable housing, in the areas of greatest need. To generate these critical revenues, however, new development must occur to increase property values and create tax increment. Currently, the City annually generates approximately $1.5 million in 20 percent set-aside funds. The City should prioritize and support redevelopment activities that will significantly increase these revenue streams and provide greater resources and tools to purchase land, partner with non-profits, and facilitate the creation of new rental and for- sale affordable housing in western Chula Vista. ~: Generation of additional tax increment through redevelopment to fund necessary public improvements in western Chula Vista, including the creation of new rental and for-sale affordable housing. 5 Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (P.L. 91-646; 42 U.S.C. 4601 et seq.) 6 Government Code gg7260 et seq. 7 Health and Safety Code gg33000 et seq. 8 Health and Safety Code g33413 - 16 - - - - - - - - - - - - HOUSING POLICY ISSUE #3: Provision of proactive services and programs in the community to assist lower income residents. See Chapter VI of this report for a more detailed description of these policy issues, including policy alternatives to address the issues. - 17 - .. V. REVITALIZATION AND HOUSING - Providing and Maintaining Affordable Housing Local governments are tasked by the State of California to ensure that a variety of housing options (rental and for-sale) for households of all income levels are made available. Generally, the private market builds adequate housing for above moderate income households, while government and the non-profit sector try to facilitate development of housing for moderate- and lower income families. - New Affordable Housing Currently, the City's Affordable Housing Program (inclusionary housing policy) requires residential projects of 50 or more units to provide 10% of their units at affordable levels. Of the 10%, half must meet the requirements for lower income household (80% of the Median Family Income) and the other half for moderate income households (120% MFI). This 50-unit threshold was intended primarily for large greenfield development in the east and many infill projects in the west may not meet the 50-unit threshold to trigger the affordable requirement. In addition, infill development is often more difficult and expensive to produce than greenfield development. When projects are borderline feasible, developers may choose to build fewer units to avoid the cost of offering affordable housing required by the 50-unit threshold. - - The City's inclusionary policy applies citywide and provides the following direction on how to provide affordable units. e::> First, projects should try to meet the obligation on-site. e::> If this is not financially feasible, the developer must demonstrate why and propose an off- site option. e::> If this is not financially feasible, the developer must show staff why and propose a land dedication for another developer to build the units. e::> If this is not financially feasible, the developer must pay an in-lieu fee. However, currently there is no fee structure in place for this option. - The Council may want to consider amending the existing policy described above to be more flexible and effective for creating affordable units in western Chula Vista. - Private Market Revitalization When a public agency is not a participant in the acquisition, rehabilitation, or development of land, there is no requirement for the public agency, or developer, to relocate renters asked to move by the owner due to development of the property. The existing land uses on these sites are often underutilized and undervalued and are often older, sometimes dilapidated, buildings, mobilehome parks, or trailer parks. Often, the rents in these types of units are lower than market. - - - 18 - The Council will want to consider and balance the long-term value of revitalizing these uses with protections for the City's most vulnerable citizens. Determining whether or not an adverse effect is occurring will be based on two key factors: the availability of comparable units in the vicinity (possibly vacancy rates or development of new affordable units) and the income levels of those affected (fixed income and low income families). Below is a detailed discussion about each of these situations. Apartment Demolition and Rebuild Many concerns have been expressed about the potential acquisition and reconstruction of larger apartment complex properties. Although no formal applications are currently on file for the redevelopment of rental property in western Chula Vista, staff has met with several developers about their interests in redeveloping certain parcels. Most likely projects of this nature would demolish existing rental units in older multi-family buildings and create new homeownership opportunities. The replacement of the building and the creation of new homeownership opportunities on the west side can be a benefit to the neighborhood and residents, but if the loss of rental units citywide becomes significant, it may have an effect on lower income tenants. The City may want to ensure that adequate rental housing is being built citywide, particularly for lower income households. Condominium Conversions The market for attached for-sale residential units has significantly increased over the last few years. In the 1990s, the condominium market was halted for over a decade by litigation over construction liability issues; but with resolution of these issues in the early 2000s, pent up demand for more reasonably valued housing was realized. This coupled with the fact that the cost of detached single family units was slipping further out of reach of the entry-level homebuyer, has resulted in a positive market shift for condominium products. This phenomenon has been more prevalent in the eastern portions of the City which were largely developed following the 1970s, coinciding with the onset of the condominium product type. With the rapid increase of condominium conversions in San Diego County, many jurisdictions are grappling with appropriate policies to address the balance of rental/ownership housing. While condominium conversions offer additional homeownership opportunities at an entry-level price, the loss of inexpensive rental units and the impact on lower income renters could be problematic and should be considered. Based on current development trends, mostly for-sale products are being developed. Continued loss of existing rentals without new rental developments being built in Chula Vista will reduce options for those who cannot or do not want to purchase. To date, Chula Vista has approved four applications to convert 432 rental units to condominiums. Eight applications remain in the pipeline to convert an additional 727 rental units. The applications for conversion have primarily been in eastern Chula Vista. Currently, the City allows conversion to condominiums after consideration that the project meets the following general requirements: c::> Fire protection standards - 19 - e> Storage space e> Uniform Housing Code e> Protective-lighting standards e> Off-street parking requirements e> Design guidelines e> Adequate noticing to tenants of their intent to terminate tenancies for the purpose of converting their developments to condominium ownership e> First right of refusal for renters to purchase their dwelling units as condominiums What is not included in the current review process is a determination of the impact on the rental stock or the lower income population. Additionally, staff recommends a mechanism to ensure that the existing building is structurally sound. Mobifehome and Trailer Park Closure There are 13 mobilehome/trailer parks within the Urban Core, providing space for 1,175 units. Nine of these parks (651 spaces) are legal non-conforming, meaning new mobilehome/trailer parks could not be placed on those parcels if the site was redeveloped because it is not a permitted use under the existing zoning. e> Mobilehome Parks. The mobilehome parks within a designated Mobilehome Park (MHP) zone are fairly stable and have seen infrastructure reinvestment. It is not likely that these parks will change use. e> Trailer Parks. Many of the trailer parks along the Broadway corridor are smaller, run- down parks. Most of the parks were built in the 1940's and 1950's and require infrastructure improvements. Similarly, many of the trailers within these parks are aged as well. Most of the trailers are in such an aged state that they could not be relocated to another park. Turnover and redevelopment is both appropriate and expected for some of the run-down trailer parks, or parks where the land could yield a much higher use. Although no applications are on file with the City, there are several park owners that have discussed potential closure with City staff. While trailer park conversions will revitalize the Broadway corridor, the loss of inexpensive rental units and the impact on individual lower income renters may demonstrate a need for some City intervention. Summary The City of Chula Vista ensures a balanced community by offering a variety of housing options (rental and for-sale) for households of all income levels. As the private market is currently building adequate for-sale housing for the above moderate income categories, planning for the development of for-sale and rental housing for moderate and lower income families remains a City priority. The availability of affordable rental housing is of particular importance because of the potential loss of rental units in the next 25 years, and the impact that might have on existing renters trying to find new housing. HOUSING POLICY ISSUE #4: Ensuring a balanced community with a mix of housing options for all income levels. - 20 - - - - - - - taM; - HOUSING POLICY ISSUE #5: Addressing the potential negative impacts of revitalization activities on the supply of rental housing and on lower income households that may be required to move. See Chapter VI of this report for a more detailed description of these policy issues, including policy alternatives to address the issues. - 21 - VI. CONCLUSIONS AND HOUSING POLICY ALTERNATIVES Conclusions This white paper addresses the role of both the public and private sector in shaping the revitalization of western Chula Vista and provides a broad discussion of potential effects on existing populations as change occurs. As noted in this paper, urban revitalization efforts may present challenges of competing social and economic priorities. This report is intended to set the stage for a dialogue on housing policy alternatives available to the City Council in addressing the balance of revitalization efforts and the needs of our lower income residents. The statistics and market trends identified in this report provide valuable information as the City embarks on the revitalization of western Chula Vista. The western and eastern portions of the City are significantly different in terms of age of housing, income level, need for reinvestment, price of housing and type of housing. Below are a few key findings: c:> Western Chula Vista is currently providing a significantly higher amount of multifamily rental stock than eastern Chula Vista. Over 85% of the multi-family housing is in western Chula Vista. c:> Western Chula Vista is currently home to a much lower income population than that of eastern Chula Vista. c:> Based on the age of the housing, a substantial amount of reinvestment will be required in the west to avoid dilapidation and an increase in unsafe housing conditions. c:> The City should encourage rehabilitation or removal of unsafe and low value properties, development of new affordable units and new multifamily units. c:> Based on the type of private development that is expected to occur, there is a significant need for the City to ensure housing for the next 25 years: ~ Special needs and elderly residents ~ Low income renters ~ Entry level homebuyers Housing Policy Alternatives As change occurs in the west, the Council may want to consider the use of the City's regulatory powers to afford some level of protection for the most vulnerable residents: those on fixed incomes, the working poor, and those with disabilities. Although the City already offers priority to displaced residents for affordable rental and for-sale units, some additional options to consider include changes to the City's Condominium Conversion Ordinance, Mobilehome Park Closure Ordinance, and Affordable Housing strategy. These policy alternatives, as described below, must be weighed to protect existing lower income residents without impeding the rate of revitalization due to inordinate increases in risk and/or the cost of private development. - 22 - - - - - - - - The following alternatives are concepts for workshop discussion and are intended to elicit Council/Agency direction to staff. Staff is recommending that the Council/Agency review the below housing policy issues and refer back to staff the items for which they would like further analysis and policy/program development. HOUSING POLICY ISSUE #1: Creation of adequate supply of affordable units for lower income households within Western Chula Vista. Given population forecasts for western Chula Vista, additional affordable housing will be needed in the next five years. The lack of financial and land resources is a barrier to affordable housing production. The following options are offered for Council!Agency consideration to increase the supply of affordable housing in western Chula Vista. 1.1 Facilitate affordable housing projects within the Urban Core early in the revitalization efforts (e.g., subsidies, site acquisition, etc.). 1.2 Expand the redevelopment project area boundaries to include more residential areas. This would generate additional tax increment revenues, thereby increasing the ability to subsidize more affordable housing. 1.3 Amend the City's Affordable Housing Program (inclusionary housing policy) with any combination of the following: ~ Lower the threshold from 50 units ~ Adopt a fee structure for fees to be paid in lieu of building units ~ Increase the requirement from 10% ~ Lower the low and moderate income target to serve lower income households ~ Apply the program to condominium conversions HOUSING POLICY ISSUE #2: Generation of additional tax increment through redevelopment to fund necessary public improvements in western Chula Vista, including the creation of new rental and for-sale affordable housing. Public improvements are a critical component of successful revitalization. Redevelopment is an important tool for the generation of tax revenues to fund these improvements. The following options are offered for Council! Agency consideration to increase the City's financial capacity. 2.1 Expand the redevelopment project area boundaries to include more residential areas. This would bring in more tax increment revenues to fund important public improvements in western Chula Vista, including affordable housing. 2.2 Develop financial strategies to maximize redevelopment income streams, such as bond financing. - 23 - - - HOUSING POLICY ISSUE #3: Provision of proactive services and programs in the community to assist lower income residents. - Informational services and programs are important resources that should be available to lower income residents, particularly for those that need assistance relocating to new residences. The following options are offered for Council consideration to ensure that lower income residents are fully informed and provided adequate assistance. 3.1 Develop a "Housing Assistance Resource Program" which could offer informational relocation services to displaced lower income renters, including rental listings and moving assistance referrals. 3.2 Increase bilingual noticing requirements of developers. 3.3 Launch a bilingual educational campaign to provide proactive outreach to lower income renters in western Chula Vista about housing resources and programs. 3.4 Develop and fund a short-term rental assistance program to provide rent subsidies for 24 months to displaced lower income tenants. HOUSING POLICY ISSUE #4: Ensuring a balanced community with a mix of housing options for all income levels. The state charges localities with the responsibility of planning for a variety of housing types for all income levels, including special needs populations. Based on population and housing data, the City will need to monitor the rental/for-sale housing balance, particularly between the east and west. The following options are offered for Council consideration to increase the supply of affordable housing to ensure a balanced community. 4.1 4.2 4.3 4.4 - Limit condominium conversions in the east to ensure the availability of rental housing. Require all or some future affordable housing units built in the east through the City's Affordable Housing Program (inclusionary housing policy) to be rental housing. Develop incentives for new rental housing to be built by private developers (e.g., fee deferral program, reduction of development standards). Amend the City's Affordable Housing Program (inclusionary housing policy) with any combination of the following: :> Lower the threshold from 50 units :> Adopt a fee structure for fees to be paid in lieu of building units :> Increase the requirement from 10% :> Lower the low and moderate income target to serve lower income households :> Apply the program to condominium conversions - - ~ - 24 - HOUSING POLICY ISSUE #5: Addressing the potential negative impacts of revitalization activities on the supply of rental housing and on lower income households that may be required to move. The Council should consider and balance the long-term value of revitalizing western Chula Vista with protecting the City's most vulnerable citizens. The following options are offered for Council consideration to address the impacts some revitalization efforts may have on the community: 5.1 Require a Community Impact Report (ClR) on a project-by-project basis to determine if development will impact the supply of rental housing and displace lower income persons. The CIR could include a survey of rental, vacancy and ownership rates, as well as income levels of occupants. 5.2 Require relocation assistance by private developers for the most vulnerable population when necessary and appropriate. 5.3 Reassess relocation requirements in the current Mobilehome Park and Trailer Park Conversions Code (Municipal Code Chapter 9.40.010) for mobilehome residents. 5.4 Amend the Condominium Conversion Code (Municipal Code Chapter 15.56) to require the assessment of the balance of rental stock. 5.5 Require a contribution to a "mitigation bank" for rental unit development from projects negatively impacting the rental housing stock. The City would facilitate an affordable housing rental project and a portion of the subsidies required are advanced by the City in anticipation that future developments will reimburse the City through these fees. - 25 - - APPENDIX A: TERMINOLOGY The following are definitions of terms and phrases used throughout this report. This list has been prepared to reduce confusion and avoid their common misuse to describe the Citls various planning and redevelopment activities in western Chula Vista. - 20 Percent Set-Aside: The California Community Redevelopment Law requires that at least 20 percent of all tax increment revenues generated from a redevelopment project area must be used by the Redevelopment Agency to increase, improve, and preserve the communitls supply of affordable housing for persons and families of low and moderate income (Health and Safety Code g33334.2). Health and Safety Code Section 33334.3 further requires that all set-aside funds are required to be held in a separate Low and Moderate Income Housing Fund until used, including any interest earned and repayments to the Fund. The Agency may spend monies from the Housing Fund either within or outside of the redevelopment project areas, if the Agency finds that the use of the monies outside will benefit the project areas (S33334.2(g)). - Absorption Rates: The rate at which real estate properties are able to be sold or leased within a designated market region or focus area. Absorption rates are .often used to forecast market conditions and analyze the feasibility of a project based on a variety of market factors. Absorption rates are also used to describe the rate of change, turnover of property, and creation of new housing units over an identified period of time. Affordable Housing: Housing that has a deed restriction regulating the maximum income level of occupants and the maximum rent or sales price. AQency Participation: The direct participation of a redevelopment agency in a project through the execution of an agreement with the developer (e.g., Disposition and Development Agreement, Owner Participation Agreement). Such an agreement for a redevelopment project triggers the requirement for an Agency to: (1) provide relocation assistance and benefits to residents and business owners; and (2) replace housing units on a one-for-one basis if the project will destroy housing for low- or moderate income residents. Blight: A primary legislative charge of a redevelopment agency is to eliminate blight. All territory included within a redevelopment project area, subject to the powers and authorities of an agency, must possess blighting conditions as defined by state law. Health and Safety Code Section 33030 defines "blighted area" as one that is: (1) predominately urbanized; (2) underutilized to the extent that is constitutes a serious physical and economic burden on the community; and (3) characterized by one or more physical or economic conditions as described and set forth in Section 33031 : 33031. (a) This subdivision describes physical conditions that cause blight: (1) Buildings in which it is unsafe or unhealthy for persons to live or work. These conditions can be caused by serious building code violations, dilapidatio'n and deterioration, defective design or physical construction, faulty or inadequate utilities, or other similar factors, (2) Factors that prevent or substantially hinder the econamically viable use or capacity of buildings or lots. This condition can be caused by a substandard design, inadequate size given present standards and market conditions, lack of parking, or ather similar factors, (3) Adjacent or nearby uses that are incompatible with each other and which prevent the economic development of those parcels or other portions of the project area, .... - 26 - (4) The existence of subdivided lots of irregular form and shape and inadequate size for proper usefulness and development that are in multiple ownership. (b) This subdivision describes economic conditions that cause blight: (1) Depreciated or stagnant property values or impaired investments, including, but not necessarily limited to, those properties containing hazardous wastes that require the use of agency authority as specified in Article 12.5 (commencing with Section 33459). (2) Abnormally high business vacancies, abnormally low lease rates, high turnover rates, abandoned buildings, or excessive vacant lots within an area developed for urban use and served by utilities. (3) A lack of necessary commercial facilities that are normally found in neighborhoods, including grocery stores, drug stores, and banks and other lending institutions. (4) Residential overcrowding or an excess of bars, liquor stores, or other businesses that cater exclusively to adults, that has led to problems of public safety and welfare. (5) A high crime rate that constitutes a serious threat to the public safety and welfare. California Community Redevelopment Law: The authority to establish a redevelopment agency, and the authorities granted to an agency, including the adoption and implementation of a redevelopment plan, is granted and governed by the California Community Redevelopment Law. The Law is contained in California Health and Safety Code Sections 33000 et seq. Eminent Domain: Eminent domain is considered by the U.S. and California Constitutions as the sovereign right of government to take private property for public use. The U.S. Constitution limits the use of eminent domain by providing that "private property shall not be taken for a public use, without just compensation." Some state legislatures further limit, or establish procedures for, the use of eminent domain. In California, the legislature has enacted a comprehensive statute known as the Eminent Domain Law, contained in Sections 1230.010 et seq. of the California Code of Civil Procedure. The California Community Redevelopment Law provides for the use of. eminent domain to eliminate blight. The Chula Vista Redevelopment Agency has adopted local policies within the City's Redevelopment Plans that prohibit the use of eminent domain on any property that is both zoned and used for residential purposes. Housing Element: The State of California requires cities and counties to prepare a Housing Element as part of their comprehensive General Plans. The Housing Element must address the housing need for all income levels through adequate zoning, policies, and programs. The City of Chula Vista's existing Housing Element (originally created for the 1999-2004 planning cycle) was approved by the State of California in 1999. The City is in the process of updating the Housing Element to address similar housing needs and policy issues for the 2005-2010 planning cycle. Inclusionary Housing Requirement: City policy sets forth inclusionary housing regulations that ensure a balance between affordable and market rate housing opportunities in Chula Vista. The City's Affordable Housing Program requires the provision of 10 percent affordable units (half low income and half moderate income) for new residential developments of 50 units or more. Mobilehome Park (MHP) Zone: Chapter 19.27 of the Chula Vista Municipal Code establishes an exclusive Mobilehome Park Zone. "The purpose of the MHP zone is to provide appropriate locations where mobilehome parks may be established, maintained, and protected. The regulations of this zone are designed to promote and encourage an orderly residential environment with appropriate physical amenities, such as open areas, landscaping, and parking. To this end, the regulation permit, through the conditional use permit process, provides for the establishment of mobilehome parks. (Ord. 1845 S 1, 1978)." - 27 - - Redevelopment Indusionary Housing Requirement: Redevelopment law requires at least 15 percent of all new and substantially rehabilitated dwelling units developed within a redevelopment project area be available at affordable housing costs to, and occupied by, persons and families of low and moderate income. Nine percent must be available to low- and moderate income persons or families. Six percent must be available to very low income persons or families. Redevelopment Project Area: Territories adopted by and placed under the jurisdiction and authority of a redevelopment agency. Within project area boundaries, the Agency may use its general powers to collect tax increment revenues, create a Low and Moderate Income Housing Fund, and conduct other redevelopment activities in accordance with the California Community Redevelopment Law. A project area is a "predominantly urbanized area of a community which is a blighted area, the redevelopment of which is necessary to effectuate the public purposes" of a Redevelopment Agency as set forth under state law (Health and Safety Code g33320.1). - - Relocation Assistance: When applicable, Federal and state laws establish extensive relocation rules and regulations for cities and redevelopment agencies. c:::> The Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act (URA) dictates relocation regulations in relation to the public acquisition of real estate for a Federal project or a project in which Federal funds are used. c:::> California Government Code (beginning at Section 7260) prescribes the process and procedures for relocation assistance by public agencies when applicable. Replacement Housing: Subdivision (a) of Section 33413 the California Health and Safety Code sets forth the Redevelopment Agency's statutory requirements for replacement housing: 33413. (a) Whenever dwelling units housing persons and families of low or moderate income are destroyed or removed from the low- and moderate income housing market as part of a redevelopment project that is subject to a written agreement with the agency or where financial assistance has been provided by the agency, the agency shall, within four years of the destruction or removal, rehabilitate, develop, or construct, or cause to be rehabilitated, developed, or constructed, for rental or sale to persons and families of low or moderate income, an equal number of replacement dwelling units that have an equal or greater number of bedrooms as those destroyed or removed units at affordable housing costs within the territorial jurisdiction of the agency. When dwelling units are destroyed or removed after September 1, 1989, 75 percent of the replacement dwelling units shall replace dwelling units available at affordable housing cost in the or a lower income level of very low income households, lower income households, and persons and families of low and moderate income, as the persons displaced from those destroyed or removed units. When dwelling units are destroyed or removed on or after January 1, 2002, 100 percent of the replacement dwelling units shall be available at affordable housing cost to persons in the same or a lower income category (low, very low, or moderate), as the persons displaced from those destroyed or removed units. Tax Increment: Tax increment is the primary source of revenue that redevelopment agencies have to fund and undertake public improvement and affordable housing projects. It is based on the assumption that a revitalized project area will generate more property taxes than were being produced before redevelopment. When a redevelopment project area is adopted, the current assessed values of the property within the project area are designated as the base year value. Tax increment comes from the increased assessed value of property, not from an increase in tax rate. Any increases in property value, as assessed because of change of ownership or new construction, will increase tax revenue generated by the property. This increase in tax revenue is the tax increment that goes to the Agency. - 28 - ~V~ -.- ~""""1ii:"';;:: ~~~;e- 0lY OF CHUlA VISTA COMMUNITY DEVELOPMENT DEPAIrrMENT April 13, 2006 Dear Community Representative; Previously you were invited to participate in a Housing Element Workshop for Community Stakeholders. Your name was included as a representative of a community organization working in Chula Vista that has an interest in the City's housing goals. On November 7,2005, this group met to provide comments to staff regarding the City's housing needs and potential chonges to policies and programs serving Chula Vista's lower income population. The meeting served as a valuable resource for preparation of the Housing Element Update. After that meeting, City staff conducted a number of community meetings and workshops to hear the public's concerns and ideas. City Stoff synthesized housing needs data with community input to create a document that, not only meets State law, but will also serve as a meaningful working document for the next few years. The Draft Housing Element is now ready to be considered publicly. We want your group to reconvene to review the final policies and goals included within the draft 2005-2010 Housing Element update. On April 18lh, 2006, we will be meeting to review the Policy and Implementation Plan developed by stoff. The meeting is at 8:30 a.m. in the Police Department Community Room. Citizen Particioation Comments The Community Development Deportment solicited community input in preparing and reviewing the City's Five-Year Housing Element. The City held numerous workshops to obtain the views of citizens, developers, social service agencies, and other interested persons on the City's housing needs and possible policies and programs to be implemented to address these needs. Throughout the citizen participation process, the City received comments and suggestions from concerned citizens, residential developers and advocates for affordable housing. A summary of the Stakeholder group comments and the consistent comments received by the public are included os Attachment A and B respectively. Key Issues The City's rapid change and escalating housing market have raised concern from both the Chula Vista community and City policymakers. More specifically, two key housing issues were identified to address in this Housing Element periqd: (1) Given the shortfall of housing, particularly affordable housing, and the ensuing high cost of housing, the City must toke measures to continue to preserve and expand affordable housing not only for future residents but to also accommodate the needs of those existing very low, low and moderate income residents; and (2) While revitalizing western Chula Vista will bring forward opportunities to enliven and enhance the community and provide for future housing needs, such efforts must be mindful of the challenges and the inipad of change on the existing rental housing stock and residents. - April 13, 2006 Page 2 - The Policy and Implementation Plan of this Housing Element, (see Part II), aims to provide the City and the residential development community with policy and program tools that address these issues. Policy and Implementation Plan The centerpiece of the Element is the comprehensive Housing Plan with goals, policies, and implementing programs to address the identified needs. In developing the goals, objectives, policies, and programs described in this Plan, the City assessed its housing needs, evaluated the performance of existing programs, and received input from the community through participation in housing workshops. In substantial compliance with the requirements of State, the City will be striving to provide programs to meet the current and future housing needs of all income levels of the community through the following goals: ..... Goal 1 : A Maintained and Enhanced Housing Stock and Neighborhoods; Goal 2: Housing Opportunities that Meet the City's Diverse Needs; and, Goal 3: Maximized Funding and Implementation of Services Vital to Community Housing Needs. To realize these goals, the Policy and Implementation Plan details objectives, policies, and implementing programs according to three major policy focus areas: 1) Maintain and Enhance Housing and Residential Neighborhoods; 2) Balanced and Diverse Housing Opportunities; and, 3) Government Role and Process. While the plan covers a broad array of housing issues that are applicable Citywide, the emphasis of the 2005.2010 Policy and Implementation Plan is on actions enabling the City to maintain and increase housing opportunities affordable to very low, low, and moderate income households, particularly in the urbanized Northwest and Southwest Planning Areas. Provided for your review os Attachment C is an Executive Summary that includes a summary of the goals. The objectives, policies and programs ore discussed in depth in 3.0 of Port II of the Housing Element. We hope the following attachments will be helpful in preparation for next week's meeting. Thank you for your participation in the process. Should you need any additional information, please call or e-mail StaceyKurz{619.585.5609/skurz@ci.chula-vista.ca.us ). Sincerely, /I U~.L /lcUA Amanda Mills Housing Manager 276 FOURTH AVENUE . CHULA VISTA . CALIFORNIA 91910 . (6191691.5047 . FAX (;;19) 476-5310 ~ ~ ft.- -.- r~_~____ ~~5~ ellY Of CHUlA VISTA COMMUNITY DEVELOPMENT DEPARTMENT Attachment A Citizen Participation Comments The Community Development Department solicited community input in preparing and reviewing the City's Five-Year Housing Element. The City held numerous workshops to obtain the views of citizens, developers, social service agencies, and other interested persons on the City's housing needs and policies and programs to be implemented to address these needs. Throughout the citizen participation process the City received comments and suggestions from concerned citizens, residential developers and advocates for affordable housing. Below are the consistent comments received by the public: Affordable Housinq Production · Chula Vista needs ~ low-income housing · Long-term aHordability . Reach out to non-profit affordable housing developers to build housing. Also to step into HUD projects that are coming to maturity . Have 0 certain % of larger units for larger families . Mixed responses on allowing an in-lieu fee . Pursue a deep targeting strategy to serve the very low income . Mixed responses on reduction of development standards (i.e. parking requirements) . Consider land trusts to keep affordable first-time homebuyer units affordable in perpetuity . Plan infrastructure needed to support additional housing- schools, fires, etc. . Build concurrently low-income and very-low income housing with market rote housing . Every development must include some low and very-low income alternatives even if they ore rentals . Mixed responses on integration of affordable housing into 011 areas of the community . All housing must meet high standards and all codes Mobi/ehome & Trailer Parks . Financial assistance both to mobilehome owners and owners of mobi/ehome parks . Protect mobilehome/ trailer park living . Assist mobilehome pork owners to buy their parks . Assist displaced mobilehome residents Condominium Conversions . Limit condominium conversions -Only aI/ow if there is a high enough percent of rental homes available in the community. . Set percent of conversions must be set aside for low income residents - first priority given to existing renters . Relocation assistance for residents of conversion projects . Conversions must upgrade buildings to current code - Page 2 · Extend noticing requirements to tenants · Allow first buyer incentive programs should apartments be converted to condos Displacement · Concern about the loss of rentaf housing as a source of inexpensive housing · Mitigate fiscal/social impact of revitalization on residents - .... - 276 FOURHf AVENUE . CHULAVISTA . CALIFORNIA 91910 . (619)691-5047 ; FA)((S19)476-5310 ~V~ -".- r__ ___- ~~~~ C1Y OF CHUlA VISTA CHULAVISTA HOUSING ELEMENT UPDATE 2005-2010 STAKEHOLDERS CONSULTATION November 7, 2005 12:00 noon - 4:00 p.m. Participants: Crossroads II Interfaith Community Downtown Business Association Chula Vista Community Collaborative Environmental Health Coalition Roosevelt Coalition! Residential Property Owner Chula Vista Civic Solutions South Bay Community Services City of Chula Vista Katz & Associates Invitees Not Present: Greenfield Developers Infill Developers Affordable Housing Developer Building Industry Association Chula Vista Elementary School District South County Economic Development Council Chula Vista Chamber of Commerce Mobilehome Park Resident Mobilehome Park Owner Affordable Housing Advocates Affordable Housing Consultant San Diego Housing Federation Sam Longanecker Dr. Richard Freeman Jack Blakeley Mary Jo Buettner Laura Hunter Earl Jentz Patricia Chavez Kathy Lembo Dana Smith Amanda Mills Leilani Hines Ken Lee Ed Batchelder Mark Stephens Lewis Michaelson, Facilitator Eastlake Company The Otay Ranch Company Urban Housing Solutions Wakeland Housing Attachment B - Housing Element Update 2005-2010 Stakeholders Consultation Meeting Notes November 7,2005 CREATING & EXPANDING HOUSING OPPORTUNITIES .:. Who is responsible for providing housing ~ Non profits (sponsorship) · Commitment · Services ~ Community commitment ~ Collaborative approach ~ Businesses ~ Developers don't create demand · Supplier of product ~ Private enterprise should build. ~ Problem not solved without Government intervention .:. "Balanced communities" outdated term ~ Think of it as creating a variety of densities and housing product .:. Expand all housing opportunities .:. Programs & products to meet needs/demographics ~ Target extremely low and very low income consistent with our demographics .:. Aging in place ~ Family zone ~ Growing & staying .:. Location of affordable housing ~ Don't concentrate low income in one area · Concentrating social issues · Need to promote diversity ~ May need to concentrate for access to services · Could mitigate the social issues concerns by including appropriate social services & programs to address these issues ~ Flexibility in location where is it appropriate .:. Lack oflarge family units ~ Grant additional credit. .:. Coop housing .:. Employee assisted housing ~ Teachers ~ Medium sized employers .:. Lack of additional credit for low - V Low .:. Tools/incentives to build ~ Incentive based zoning ~ Density bonus ~ Give to receive some benefits .:. In lieu fees ~ Sufficient in-lieu fees. · Adequate to accomplish a defmed objective for needed housing in C.V. · Counter high in-lieu fees with other fee waivers or offsets - Housing Element Update 2005-2010 Stakeholders Consultation Meeting Notes November 7, 2005 ~ As an alternative to in lieu fees allow projects to combine their efforts .:. Ensure affordable units are built concurrently with market rate units .:. Need to keep local $ in our local economy ~ Improve neighborhoods, services. ~ Provide activities and services for families, younger generation, etc. · Restaurants, clubs, etc .:. More housing in core to create a walkable vibrant community to keep people local. .:. Public outreach and education program ~ "Who" is low income ~ Need an active housing advisory group · Working on the Housing Element and Advocacy · Example: Poway Housing Solutions working with the community and the City on the following issues: . Coalition . Advocacy . Education ~ Communication & dialogue wI community · Tools · Resources · What city is doing & what are community's needs .:. Need a Non profit/watchdog/advocate OVERCOMING BARRIERS TO HOUSING DEVELOPMENT .:. Higher priority to housing fees. .:. Eminent Domain - Strategy to overcome fears ~ Emphasize good points ~ Dispel myth .:. Need to have regulations in place ~ Developers require "predictability" on costs & requirements ~ Evaluate how much development costs can be born. (Especially for the rust several redevelopment Projects) ~ Need to kick start redevelopment engine to generate $ for affordable housing. .:. C.D.C. - process improvements. .:. Amount of overall development Cost & balance - how to get projects started. .:. Affordability impacted by increased land costs & stagnant income. ~ City can do little to affect ~ Can adopt city policies to address income . Living wage in Redevelopment Project Areas · Priority for hiring CV residents. ~ More density needed to counter land costs ~ Buy land now and hold in trust - Housing Element Update 2005-2010 Stakeholders Consultation Meeting Notes November 7,2005 .:. Streamline non-profit funding processes, number of agencies to get $. (ex. = prevailing wage, etc.) .:. More assistance (city) in putting deals together = hsg., redevel, etc. Rather than private consult $. .:. Redevelopment boundaries generally doesn't include non- commercial (residential uses) );> Ability/effort to consider housing outside redevelopment areas .:. Available $ - Most area commercial · Increase redevelopment tax increment, increases housing $ .:. Financing for affordable housing requires multiple funding sources );> Too many parties . );> Too many" regs" and requirements tied to each .:. Pool $ for non-profits affordable housing developers .:. Allocate a greater % oftax increment for Redevelopment Set-Aside (20% - 30%) - .:. PRESERVING HOUSING AND NEIGHBORHOODS .:. Lead based paint concerns );> Cannot place new units within 500ft. of Highway .:. Safety of lower income neighborhoods );> Lighting );> Sidewalks .:. "Healthy Homes" or other grants .:. Collaborations with existing comm. groups .:. Utilize existing efforts of inspection .:. Code violation efforts .:. Affordable vs. Inexpensive .:. East vs. West );> Continue to allow 2nd. Units .:. Condo conversion concern );> Inclusionary - increases prices );> Size );> Link to vacancy rate .:. Give residents displaced as a result of projects first right of refusal to purchase/resident in new units - Conversion Issues ISSUES Ensuring an adequate supply of rental housing BENEFITS Provides more ownership opp. Fees Private property rights - Owners of apartments should be able to decide how their property can be developed/used - Housing Element Update 2005-2010 Stakeholders Consultation Meeting Notes November 7,2005 Conversion Issues ISSUES Impact on residents who are displaced and $$$ to find new housing and relocate Could end up with condos being rented and then having multiple landlords rather than one. BENEFITS Mobilehomes .:. Relocation solutions .:. Interest in preserving affordable housing, not the actual park itself. .:. Concern about displacement · Places, prices · Social services · Land trust - Attachment C ",,,>?~? ~'-'!:;~ Ch ula ,if. '\~. . d \\'. Vista I" 10, '\'" ,,:/y Vision ",',-- --',,, 2020 .....;:.-- _....;.~~... HOUSING E~eMENT EXECUTIVE ,SJ,JMMA'RY - - 1.0 EXECUTIVE SU.MMARY ",." - " :",; " , .. ,. - "", .,.. The City of Chula Vista General Plan Housing Element details the City's five-year strategy for the enhancement and preservation of the cor{imunity's ch~racter, identifies strategies for expanding housing opportunities for the City'shiariouse,co'nomic segments and provides the official policy'guidance for local decision-making 'related to housing. The Housing Element of the~neralPJanprovides the implementation mechanisms for effectively addressing housing~eeds in C'hul~Yi.sta throughoutthe 2005-1010 planning period. ,.., '::',: " - , .--.. '" The Housing Element provides in-depth analysis of the City's population, economic and housing stock,qharacteristics as required by State law. The Element also provides a comprehensjyeevaluation of existing programs and policies of the 1999-2005 Housing Element todetermi~ necessary revisions to meet current needs. Through this analysis, the City has identified goals;',objectives, policies and program actions the direc.t..ly address the current needs of q,uJaVista's population. . ," .., . . .,. .. . .... ..-. "." . - ",:::. The HOUsln.~EleTEmfjs organized into four policy components, including: , " · Introducti,c:m - Explains the purpose, process and content of the Housing " Element'.,'" .. · IsstJes & Opportunities - Describes the key issues and opportunities identified froiT1.:,needs assessments and the public pariticpation process upon which the upda~e to the Housing Element should focus. - · Policy & Implementation Plan - Details specific policies and programs the City of,tChula Vista will carry out over the five-year period to address the City's /flousing goals. :,;"~ Quantified Objectives - Specifies the number of households assisted and housing units constructed, rehabilitated, conserved and preserved through the adoption of policies and programs. Page 'H-1 ~,~ ~-- ~~~ an- Of CHUA VISTA - HOUSING ELEMENT EXECUTIVE~pMMARY Additionally, a number of Appendices are included to supplement the Ctevelopment the Housing Element's Policy and Implementation Plal'i." '.. A particular emphasis of this Housing Element i~.~ddressing the City's transition intoa< more urbanized environment. especially in the western portions of the City. The Policy and Implementation Plan provides focused attenti~t1 to needs.,cpallenges and opportunities created as a result of the City's transitf~pto~,~6re'vibrant, urbanized community. '<:;;,>,.,.,'''' .' '''' .":~'. Page H-1 City of Chula Vista General Plan .. Implementation Plan Framework I I I ',,, ;......","".=":;:",, I -------------------------~~~---~/ ! Maintain and Enhance Housing & Neighborhoods ! - ..... Government Role & Process - 1 Objectives and Policies M1_.. blighting lntIu_ and _In h IrM{IrIty of I'88I.....U.1 ...lghbcJrt-.l. ,._... __ or... 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C.-:~'. &ca<n~UIo~nl.'__I' . haumg _""nlin ( 1Ixn__~~"';"';. c Support "_"lftll)l" PNb _ .. _bIoOllPC>rtunlly PIOCftOlo ... cIov.I_III 01._ Ilouslnll. coupl.d with O"""",rlol8 ..rvt.... I'D m.tt h _ of ho_.. __ell' ~on _PI ~ '110 _ <WCllonllllld IOQllollons la pIU'Iit'llallIlnQ Ind _lorllle homoloss --," .'., . . 'C ~_..hou&lng_ta ;" _tello_l_ --------------------- -----------........-- --_/ - Focw_ eII'''-l. houoln; through compnhen.... JIlInnInlr do.......... _"', lInondoJ _nee and OCher 1_. -"...._Ing--- poIlC1o. __ I wrtoqr In h..1Ing - "C. en.=..::~~ . . .. .. _.bIo hcluIlng he ~=~;=* 'C-_I_~~' :.. ". lOt _ t>auoinv llWugllaot... CIty >: )' ) - .. . .'. . . . . ( --=.m~~~~"': - Eno.....oqal ho.....g _0-"_ p,.".nt "'.crtrnl_ PromOlland racll_ public Input.nd poJt!clpallan "'ll/ftPhIIIZIIc"",munIty .du...Uan IbllOl! lIfonlable houslna E~ pubic podicIpotion In.... -- alCIly h-o.g poIlcy end 111. __ore1l'o__U I I ! City of Chula Vista Housing Element - en c: '(3 ft) C:" tV 0 "c 0 C:"c W ... " 0 c:.D tV"c en.~ c: G) 'c z ~ c: 'i :! ftl ;:; c: CI) :5! ft) - CI) tVD:: f" ~ :; ft) en ::J c: u ._ o ft) L&.. ::s >00 .~ :I: '0 Q. " ., 1::' . :..';":!!;;::: u I: I: ::s ftl~ - 0 ftl Q. a:JQ. "N:9 ftlc>.'. G) 1:';. ~.- . ~ ~ fI) 0 ::S:I: u CI) o ft) u.. ... >013) u.~ :,:::" '0 C(:' Q. SUMMARY OF HOUSING POLICIES AND PROGRAMS 2005-2010 Objective HE1: Minimize blighting inftuences and maintain the integrity of residential neighborhoods. x x Objective HE2: Promote the eflicie use of water and energy to conserve limited resources and reduce long term operational costs of housing. x x 2.2.1 Encoarage residentialdetieloperslbuildets to maximize. energy .... . efficienc:y through appropriatesile and building design and througb the use of energy effic:Bit ~aIS, equipment, and a ianoes.' Develop and. distribute pertinent informatiCln' :8b~ the benefits 0 energy conservation and available en~ conservation incentive programs to residents and developers and builders of housing. x x 3.1.1 c....,;. Affo dabo,':'" R'cti P cti I k with "O'!.;:,'''':: '-"t"nng r. Ilty estri ens: rea ve y war pro ":.' '. ~ei{s) .of:1wo (2) "at-risk' assisted housing development whose:affoltiability restrictions are due to expire by 2010, Canterbury Court and Eucalyptus Parkview, and affordabl housing developers to evaluate the viability of continuing the affordability of such housing through owner participation, publi subsidies or participation by affordable housing developers. ':':--:., .'.",.". ObjectMItIE 3: As reqUired by State law, preserve existing affordable housing:::' opportunities, ~ feasible and,:: . ':. practical, to),: .', maintain an lIdequste supply of affordable housing. 216 .~,:t.2 First Right of Refusal to Maintain Affordable Housing: Evaluate ".' ,. the appropriateness of and modify terms within required Affordable Housing Agreements that will allow opportunities to maintain the housing as affordable beyond the termination dale of the Agreement and noticing to residents. Such opportunities could include a first right of refusal to the City/Agency to purchase the hollSing and adequate noticing to residents of the terms of affordability and prior to such date, the intent to convert the housing. 3.2.1 Monitoring of Units Lost Comply with State Law regarding the monitoring and reporting of housing units occupied by low moderate income households demolished within the Coastal Zone and Redevel t Pro' Areas. x x - Objective HE 3 (Contined) SUMMARY OF HOUSING POUCIES AND PROGRAMS 2005-2010 - - Objective HE 4: Mini~~e impac:ts'asSOCiated .with the converSIon' ::'" or demolition of : ., rental housing on ' the availability of. such housing and, very low and loW:::' ..income residlmts> 4.1.1 Community Impact RepoJ"(CIR): COnSlder requiring preparation of a CIR on a project-by-project basis to evaluate and determine the impact, if any, of such project on the S'@IIabllityof adequate rental housing within the geographic Plaming Area and to lower income residents. If determined to have a negSti...e .impact. consider mitigation measures such as a fee to deVelOp housing or . relocation assistance. The preparation of a CIR could be, .! . applicable'to condominium conversions, mobilehome pan(' dOsureSicOrii/ersions and demolition of large existing housing :' :d~pmentSto'tie~ced by new housing. . ,4,1.2 Mitigation Fee for LostUriits::!Coosider establishing a fee to be paid by 'those residential.~I~nts,. such,as oondominiu convers~ and demoliticij1'of housing'for'l:I1e:purposes of developlTie~ that negatively impact ~'..aVailability of rental housing stQdc. with.~.the geographic Planning Area. Funds would be used to :facilitite the development of an affordable housing rental roO cl": ::. - - "0 CD :::J C .. C o o - "::C' X - N C'IS f <( II) :::J U o u.. ~:; -: '1:)' Q. '.. x :~~~;\~i~i;~~~ ~ ;~ffi;~l~-g~~~iJifa~ti~~~l~iIISftii~;~ii;:~l~~~~~j~~~~~~~~_~~ 4.2.1 Mobilehome park+:Conve~: Continue to enforce CVMC Chapter 9.40 io:'.,p~ect the rights of residents as mobilehomeltrailer ,~s are closed or converted to other uses. Evaluate the apPiQpriateness of amendments to the Code ennallcetheprolection of the most economically vulnerabl resici8ntS"C~Dsider such elements as adequate bilingual noticln and relocation asSistance, to afford some level of protection to the most economically VUlnerable residents. 4.2.2 Condominium Conversion: EvalLJate the appropriateness of a amend Chuta Vista Municipal Code Chapter 15.56 (Condomini Conversion) to better articulate provisions for adequate bilingual noticing, relocation assistance, requiring a portion of the units a affordable to low and moderate income hocJSeholds. and a physical elements report to provide some level of protection and assistance for residents. particarly the most economicall vulnerable. 4.2.3 R' fund I Tenant ental AsSlslance: Develop and a short-term renta assistance program to provide rent subsidies for a maximum 24 months for those residents displaced as a result of the conversion or demolition of their housing. Assistance will ta those most economically vulnerable including: very low income residents, low income residents with minor children and residents with II head of household who i:; permanently disabled or a senio citizen age 62 or over. - . . ... X x 80 - - - "C CD ::I c: ~ c o (.) - N ca CD ... < C#) ::I U o LL >- .2 .~:.,. 0'< D., Objective H4: (Continued) Objective H5: Encourage the provision of a wide range of housing choices by location. type of unit, and ~~~~:::., establishment of.' permanent affordable housing . for low and moderate inCOrrle' householdS" : SUMMARY OF HOUSING POLICIES AND PROGRAMS 2005-201 0 Policies and Pro rams 4.2.4 . HOUSIng Resouroe Program: Develop a "Housing As . Resource Program" which could provide tenant education 'of righ and procedures for conversions of rental housing to condorn'lriiurn or market priced housing and mobilehome/trailer .parks to 0 . uses and offer informatiOnal services to any di:sf:llaced very I and low income renters, such as ren1a1 ~gs':and moving assistance referrals. .. ,.., .., 51 1 ."....... .... . .. ;' .. Affordable Housina laka "Inclusion3rV"1 Policv: Continue ~ ',' implement the Balanced Communiti~dable:lioUsing'POlicy first adopted by the City's Housing ElementlnJ98'I. Current requirements indude the provision of affordatlie'l1ousing within the development ("on-site"). Alternatives to the on-Slteprovision of housing include. in order of priority,"off-site" proviSion of affordable housing and payment of an in-lieu fee. . SUch,,: .: alternatives can be considered, at the sole discretionoftileCit,y;U ". upolfdetsrmination of a finding of "unreasonable hardship"'tO:tIie ~'aridsuchaltemative being in the"public int,erest". ..... ._." 5.1:2 Affordable Housina Polievforilnfill Develooment Evaluate the . appropriateness of revisions 10 the Balanced Communities - Affordable Housing PoIicy:th8t more a~~i'eflec\ its application.to infill U~d housing developmtlnls, including lowering the'uoit threShold of applicabili1;Y.,'il!lc:i-easing the percentage Of:8ffoidable housing units :mciuired, targeting very low and low income' households, flexibility in the methods of compliance, and consistency with the affordable housing requirements of Community Redevelopment Law. 5.1.3 Affordable Housin6,PoIicv'Adoction otan Ordinance' Consicler implementation of the,City's Balanced Communities - Affordable Housing Policy (H?;~O'thnough the adoption of an Ordinance. ....600 x x 5.2.1 New Rental Housina: Promote the development of new rental housing affordable to very low and low income households where such housing will provide a balanced inventory of housing types (e.g., multi-family rental and owner occupied housing) within the Northwest, Southwest, and East Planning Areas. Encourage the inclusion of housing for very low and low income households within the actual development ('on-site") and/or in areas that offer residents easy access to gOOds, services, jobs, transportation, education and recreation. 5.2.2 Incentives for Rental Housing: Consider incentives to encourage the development of adequate new rental housing opportunities, particularly ~ accommodate large families. Also refer to Policies H 7.2 and 7.04 for possible assistance and incentives. 100 x - "C II> ~ C ;:; C o (.) - N CIS ! ~ CI) ~ U o LL. >- u '0 Q. ObjectiVB H5: (ContinuBd) - - SU MMARY OF HOUSING POLICIES AND PROGRAMS 200S-2010 Policies and Pro rams 5.2.3 I . to .. R develo t P' Ar P' ncerrtives r Housing ,n e pmen roject eas:, .rovlde incentives to developers in redevelopment project a~ provide afforclable housing within the proPOSed project ron-sitE!~ and to exceed affordable housing FeQuiremel'lls.:.all establis.'le within Community RedevelOpment Law (CRq;' particularly fo those housing income categories least servea.:'\.\ - 5.3.1 First Time Homebuyer AssIsIance: Continue to:,;provide I income households with .assistanCe 10 purchase thBirfilSt h through the City's First T1lT1e HOITiebuyer Down. .Fol~ and Closing Cost Assistance Program.' ;Cc!lsideramendmentS, a necessary, to the Program to adequateiy refteCffeal estate mariee conditions. . ..... 5.3.2 Continued Occupancy for Homeownership U~" Evaluate the appropriateness of amendments to current CilyhOlTIE!OWI'lershi . policies .and programs to encourage the long-termOc:i::qpancy the'~g tlnit by a low income household, where practical.':i',' 5.3.3 ..,:,' .,,,,. ... <,' NeW:for Sale ~s~f;g?'P.romote the development of.:new en level ho4'nes for sale and' a'ffcixIabje to low and moderate income househOids where such houSing Wtlljlrovide a balanced inventory of housing types (e.lilw!ni:JIli-family ierita(andowner occupied housinglWi!hin the.,Nclthwest, Southwest:;and East Planning Areas. Ericourage.:thie'inclusion of houSing for low and moderate income housel'toldSwithin the actual development ("on-site"). 30 - x 5.3.4 Mortgage Credit Certificates: Continue to partiOpate wi1h County of San Diego andOlher Cities to provide Mortgage Credo Certificates (MCC) tQqualified first-time low and moderate income homebuyers. MCOS)are certificates issued to homebuyers authorizing them ,~'1ake a credit against their federal income : .> .taxes. of up to 20 Percent of the annual mortgage interest paid. '.:> : Fiist~ " hlimebuyers are referred by the Community Development Department to the admi nistrating agency. 5.3.5 Ed' & C . S Homebuyer ucalion ounsehng: upport and encourage developers, lenders and social service organizations to provide educational programs, loan counseling. and materials homeowners and potential homeowners on home maintenance, improvement, and financial management The purpose of the educational programs will be to help first-time homebuyers, prepare for the purchase of a home, and to understand the importance of maintenance, equity and appreciation, and personal budgeting to avoid foreclosures. - 25 ... 80 - - - - "C CD = C ;; C o (J - N C'lI CD ~ <( fn :::s CJ o Ll. ~. ..g" "0'" 0. Objective H5: (Continued) Obj~H 6: /PwmOtethe..: . development of': varied housing, coupled with appropriate ,', services, to meet . the needs of speCsl population grouPs. ' . .::including the homeless. those "at- risk" of becoming homeless. Persons with physiealan9l0r developmenf', disabilities. ., students, athletes, . the Olympic Traillin . 'Center, single..' Piuent households, 'and seniors. SUMMARY OF HOUSING POUClES AND PROGRAMS 2005-2010 5.4.1 Mob.I-..... S R R' . I ",rume pace ent ~ Continue to enforce Chapter 9.50 to protect mobilehome residents' inveslment in home while at the same time providing a reascxilibleretum to ~ pari<. owner in order to preserve this affordabletlousingaltemative. Monitor and revise this Ordinance, as ~ry, totiDsure the provision of fair and reasonable r~' for residents and a reasonable rate of retum for parl<.ownel1l. . 5.4.2 ... Resident Ownership of Mobilehome Parl<.s: When. mobileho pari<. owners want to sell Jtieir:.'parI<s, promote the. Purchase parl<.s by pari<. residents tntOugh tecmical assistanc:fljJ1~ring applications for funding sources SUtil:t as the ~tateMobilehome Assistance Program. Financial assistance" provided by the City, Agency, State. or other funding sources matibe'fimited to income eligible residents and require affordable hoUSing costs. Focus assistance to parl<.s where consistent with the General Plan within Mobilehome Pari<. (MHP) zone designations; not' 1hose that are ~forming uses." . x 6'1 ....'.".., .. .}' Homeless & "At-Risk" HomeleSs-Regional Planning: Continue to participate in regional p1anniOg.8fbrts.lo~ddresS needs of the homeleii$;\1nciudin9 the ,A.egional T~~for the Homeless and the SOuth Bay HorrieIess Coalition." . .. 6.1.2 Homeless &:~At--Rial(Homeless" -- Region;;ll Funding: Continue to sUpjX)rt regional.funding efforts to develop new housing facilities for the homeleSs-snd maintain existing facilities and services, including the R.egional Continuum of Care Council for San Diego County and it's ap;)Iicationfor funding through the Federal Supportive Housing .Program, local FEMA Board, County of San Diego HotellMotel Voucher Program and temporary winter shelters. cO. 6.1.3 ~.&;NeWEmergency Shelters & Transitional Housing: Coniinueifl.:kind and financial assistance for existing and new emergency shelters and transi1ional housi ng faci lilies 1hat serve the City by providing technical assistance. siting opportunities. grants. or low cost loans to operating agencies. 6: \4 Information of Resources for Basic Needs: Develop informational materials that provide contact infoonation regarding basic needs, such as emergency food, shelter, and services for the homeless. x 11 x x 6.2.1 Second Dwelling Units: Allow construction of new secondary dwelling units in areas Where the units do not compromise the nei hborhood character. 6.2.2 Shared Living: Support programs for shared living that con lt10se with a home and williOg to share living accommodations with those that are seeking housing, particularly seniors, students, and single person households. x 200 N as ~- c:('g en ::I ::I c: u; o c: LL 0 >.(.) .2- o 0. en en G) u o .. 0. ." c: l"lS G) '0 a:: 1:.<' CDe:" .:E 'c' . ," .. G.l > o C) "',. .~ ..'.<. .!,. <( en ::I u o LL >- ,2 '0 Q. Objective H6: (Continued) ObjectjveH7: :,:'.facilitate 1be. :.'.~ ,', creation..... ." maintenance. " ~ preservation and ': conservation of..: affordable 'housing,' for lower and', moderate in!Xln'ie:' hOUseholds 1hfOugh 'oo(nprehensive p1anrol'lg documents and proCeSses and 1l1e proviSiOn of financial assistailce and other ':,: incentives, - - SUMMARY OF HOUSING POLICIES AND PROGRAMS 2005-2010 - Policies and Pro rams 6.2.3 CC)oHousina: Evaluate the viabili1y of co-housing and amendments 10. Title 19 of the Chula Vista Municipal Code and other documenls. W!lere a riate 10 facilitate its deve ment . 6.2.4 University Housing: Encourage the development of a mix'a variety of housing types in the University Village Focus Area in the' East, recognizing the need for higher residentialoensities and th need for varied housing resulting from the ,proposecl'university, such aS'housing for students, faculty and ealployees, ." 6.2.5 Olympic Training Center Housing: Encourage the development 0 housing located at the Olympic 1:'raning Center (OTC) for th athletes participating in prcgains at the Center and ' em ".,. 6.2.6 Accessible Housing R~tions:.:ContiT1ue to maintain implement Califcmia Title 24 prOvisions for the ,reVIew a oval of residential develo ments.' - 100 - - - x - 7.1.2 '0 ,. Zoning: Update Title 19.'Of .1I1e ChUlaVistar.tunicipal Code, to implement the General.Plan Update of 2~.. ' ... x 7.1.3 Remove Ccinstrailtis to Housing for :ipe'rsons with Disabilities: Review andtlJXlate Trtle 19 of the Chula Vista Municipal Code and other CitY 'Pl'OC8sses to remove constraints, if any, identified to allow reason~ accommodations for the provision of housing for persons with di#abiliti~> x ]7~ 1 .J;'riority Processing: Assign priority processing of the neoessa .'''.' . . 'enti~"2ind plan checks to expedite the developme process tOr ~dential developments with 50 percent of the units as affordable for low and moderate income households which d not require extensive Engineering or environmental review, 7.2.2 Development Fees: Continue to consider subsidiZing. waiving, deferring fees for affordable units on a case-by-case basis, Requests are evaluated based upon the development's effectiveness and efficiency in achieving the City's underserved housing needs and as allowed by the City's Municipal Code, AI referto related H Pol' 74.5. 7.2.3 Flexible Development Standards: Continue to encourage the use of flexible cleveloPment standards through the Planned Community (PC) Zone and Precise Plan CP) Modifying District to facilitate the development of houSin9 for very low and k7N Income households. 7.2.4 Article XXXIV: Assess the applicability of Article XXXIV of the California Constitution to certain housing developments where the City and/or Agency are considering financial assistance or 0 incentives to assist in the development of affordable housing. Evaluate the appropriateness of a possible referendum to obtai more authority for the City/Agency's development, construction 0 acquisition of "low rent housing", x x x -, x - - :; c o (,) - Objective H7: (Continued) .. M ftJ CD ... ~ fI) ::J to) o 11. >. to) '0 ~ ..... Objectiv&H8: Ensure the/;,., availability 6f:'[:: . housing '; 'opportunities to ~t Persons regardleSs ::.:01 race, color, :a~stry, national OPgin, religion, sex, ,.:disability, marital . >"status, familial . :';'status, SOUIt:e of income, or sexual orientation . SUMMARY OF HOUSING POLICIES AND PROGRAMS 2005-2010 7,3.1 Expand Redevelopment PrOject Areas: Evaluate the viabIlill expanding redevelopment project areas to includemOii residential areas. ' ., . 7.3.2 Maximize Redevelopment Funds: Develop firianciat. stra1egies lha1 maximize redevelopment income streams, sud:i .85 bond financin . ., .. 7.3.3 Califomia Reinvestment Act: Wor!< with,locallinancial institutions to meet their community reinvestment obligation under the Commu' Reinvestment Ad. ' ,'. - 7.3.4 Pursue Affordable Housing FUJ'lding: Proactively j)lJlSue availabl Federal or State funding1iD'ii:lCnlase, preserve, "8nd ,enhance housin affordable to towiiACome tiOusehoIds. '" 7.4.1 Density Bonus: Amend Title 19 of the Chula ".Municipal Cod to au1horize a density bonus and/or other incentiveS for new hOusil'\9 developments and condominium conversions providing .' the ~ affordable housing as specified in Califorriia GOvemmentCode Section 65915. . . 7.42 Land Banking: Acti!t'tllyidentify and pursue sites located in :~:,.-:. proxiimty to goods, ~Mces;:jobs, transportation, education, .. recreation and/or other amenitieS for,pennanent affordable housin ;'. ... ,.. ,', 7.4.3 Public Property: Eval~the viability ofprovidi"il affordable housing OripubliclyaWned property that beocJriIes available or is deemed s 'us .' 7.4.4 Affordable H~jllg in Public Zones: Evaluate the appropriateness-of allowing affordable housing within'.public" or "semi-public" zonedesignations, where appropriate. 7.4.5 Financial AssistanCle: ,c:6.',tinue to evaluate on a case-by-case basis requests from developers for financial assistance to provide affordable housing 'oPportunities for very low and low income households. Requests are evaluated based upon th deYe1Opment's .etfectiveness and efficiency in achieving the Ci1y' underservedhousing needs. Assistance will be offered to the extent that resources and programs are available. x x x x x 8.1.1 Affirmative Marketing & Leasing: Require affordablle housing developments for low and moderate income households x 8.1.2 Fair HOUSing Education & Counseling: Support programs for outreach and education on housing rights and counseling and mediation of discrimination complaints. Where appropriate refer to 0lt1er agencies, including State and Federal enforcement agencies. x - ....: t: o () - CO) as CD ~ < U) :;, u o LL >- .~ '0 Q. Objective H 9: Promote and facilitate early and transparent public input and partici pation that emphasizes community education of goals. tools, the pltlCeSSeS for providing affordable housing. and available resources and programs for lower income households. - SUMMARY OF HOUSING POLICIES AND PROGRAMS 2005-2010 - 9.1.1 Public Input & Participation: InCOlpOrate...pub1ic)nput an participation in the design and developmen.to(City housing plan and lieies. ..... ........ . 9.1.2 Bilingual Noticing: Expand the.. ~s bilingual notieing requirements for pending actions,:.:.m6etings, and worksh sponsored by the City and/or ~;reJated to affordable housing for low and moderate income households. 9.1.3 Public Outreach & EdUQrli~(i;f'~ources: Initiate:a,bilingual educational campaign ji'J' non-niiliW.. speaking'laWer":Income renters in the Norll1west and Southw8St';?lanning Aieiis to provide information on the City's housinQ res~:lIndprograms. 9.1.4 Disclosures of Affordable Housing Sitesi'ii: Require lhroug conditions of approval on discretionary permitS: ..8nd/or maps the provision of disclosures to new residents ofm8ster plannecj+:' . communities of d affordable housi sites.;":;::-":' 9.1.5 AnnUall-1ousing Report Provide an annual report on .the Cil.y's hOUsing el'fOitS;1l;) the City Council and ensure the annua.1 RlpOrt j available for revi~]rr b1ic locations. '. . - - x x x - x - - - - - - - - ~V?- -.- "--- ---- ~~=:~~ ellY OF CHULA VISTA CHULA VISTA HOUSING ELEMENT UPDATE 2005-2010 STAKEHOLDERS CONSULTATION April 18, 2006 8:30 -11:00 a.m. Participants: Crossroads II Chula Vista Community Collaborative Downtown Business Association Environmental Health Coalition Environmental Health Coalition Interfaith Community McMillan Companies ODG Law San Diego Housing Federation San Diego Housing Federation South Bay Community Services City ofChula Vista Invitees Not Present: Greenfield Developers Infill Developers Affordable Housing Developer Building Industry Association Chula Vista Elementary School District South County Economic Development Council Chula Vista Chamber of Commerce Mobilehome Park Resident Mobilehome Park Owner Affordable Housing Advocates Affordable Housing Consultant Sam Longanecker Mary Roche Jack Blakeley Georgette Gomez Tony LaPresti Dr. Richard Freeman Todd Galarneau Glen Googins T om Scott Doris Payne Kathy Lembo Amanda Mills Leilani Hines Stacey Kurz Eastlake Company The Otay Ranch Company Urban Housing Solutions Wakeland Housing ~ ..._.~.~-"--,-,,~,,~-,,-_..-~.~_.=~~_._-_.__.-.,-~."-~.-......-~._-----~-----...- - - Housing Element Update 2005-2010 Stakeholders Consultation Meeting Notes April 18, 2006 - Comments provided by Stakeholders Objective HE1 Minimize blighting influences and maintain the integrity of residential neighborhoods. o Use more po;sitive language (i.e. decrease, delete and enhance, improve, etc.). o Active verb. - - Policy Focus Area 1 - Include Lead Abatement o Include in Community Housing Improvement Program (CHIP) and other rehabilitation programs. o Pursue funding opportunities. - Objective HE2 Conservation and Efficiency o Balance prescriptive with incentive based approach. o More requirements can increase the cost. o Link developers with programs and funding. - Objective HE4 Conversions and demolition of rental housing o Separate conversions from demolition. At times you may want demolition and replacement of substandard housing. o Develop threshold for limiting conversions (i.e. tie to vacancy rate). o Consider life-long tenancy for most vulnerable residents (i.e. finance units for rental if conversion to homeownership occurs). - Program 4.1.1 Community Impact Reports o Incorporate into established process (i.e. CEQA, or other existing process requirement). o Cautionary approach. o Establish thresholds for requiring. o Balance mitigation with encouragement of development. - - Policy HE 4.2 Resources for lower income displaced households o Household should be primary residence. o Develop sliding scale for most economically vulnerable. - Policy HE 5.2 Development of rental housing o Monitor rental stock and listings of properties for sale to assist developers and non-profits. o Promote incentives for building units for very low income, building affordable units on-site and larger units. o Look at creative solutions to parking on a project basis and provide incentives (i.e. subsidize parking for affordable units). - - - Housing Element Update 2005-2010 Stakeholders Consultation Meeting Notes Apri I 18, 2006 D Provide opportunities for Master EIRs or other streamlining solutions. Policy H 5.3 Homeownership opportunities D Include creative options (i.e. co-ops, IDAS and community land trusts). D Consider downpayment program for teachers, law enforcement and fire personnel. Policy HE 6.2 Special needs housing and services D Increase housing opportunities. o Provide a full spectrum of services for seniors on-site. Policy HE 7.2 Entitlement Process D Ifpossible, priority processing for affordable projects. D Consider expediting fee. D Consider using tax increment funding for additional staffing to expedite. Policy HE 7.3 Financial resources D Consider increasing redevelopment set aside for affordable housing. Policy HE 9.1 Public participation and reporting D Increase baseline housing data for inclusion in annual housing report. - - BLANK - - - - - - - - - - AGENDA JOINT WORKSHOP MEETING OF THE PLANNING COMMISSION AND HOUSING ADVISORY COMMISSION OF THE CITY OF CHULA VISTA Special Meeting 4:30 p.m. Wednesday, April 19, 2006 Council Chambers 276 Fourth Avenue Chula Vista, CA Planning Commission: Felber_ Bensoussan_ Madrid_ Nordstrom_ Tripp_ Housing Advisory Commission: Zasueta_ Reese Alabado_ Chavez Martin del Campo_ Jentz_ Batterman Cudal ROLL CALUMOTIONS TO EXCUSE PLEDGE OF ALLEGIANCE and MOMENT OF SILENCE ORAL COMMUNICATIONS Opportunity for members of the public to speak to the Planning Commission I Housing Advisory Commission on any subject matter within the Commissions' jurisdiction but not an item on today's agenda. Each speaker's presentation may not exceed three minutes. PUBLIC MEETING Project GPA 06-01 A Draft 2005-10 Housing Element Update of the City's General Plan Pursuant to State Law, the City of Chula Vista has prepared a Housing Element that covers the period of July 1,2005 through June 30, 2010. The Housing Element is an important planning tool of the City that: (a) analyzes the City's present and projected housing needs; (b) identifies potential constraints and opportunities to meeting the City's housing needs; and (c) sets policy goals and objectives, and a five-year work program for meeting the City's housing goals and needs during the 2005-2010 period. Project Manager: Leilani Hines, Senior Community Development Specialist COMMISSION COMMENTS COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT The City of Chula Vista, in complying with the American with Disabilities Act (ADA), requests individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service. request such accommodations at least forty-eight hours in advance for meetings, and five days for scheduled services and activities. Please contact Diana Vargas for specifiC information at (619) 691-5101 or Telecommunications Devices for the Deaf (TOO) at 585-5647. California Relay Service is also available for the hearing impaired. ...."^.>__._,.~"__"..'"m_~"".___~_.""~~~..,.""____~__..--.-..-,-------- - BLANK - - - - - - - - - - '<"j' '-",., Ch 1 ,/Y;::-:<':'~\ u a ,/~ 'v. ,\ ;/'>';~. \~\. V. t ~.""P, 1S a \\, "~""'.r"'~' .i; .. ":~T,','".,-,:',"" ,/ VISIon "':'c.:.:::::/' 2020 HOUSING ELEMENT APPENDIX H 1.0 REFERENCES 1. Building Industry Association of San Diego County, Fee SUNey 2005-2006. 2. California Department of Finance, 2005. 3. City of Chula Vista, Budget Highlights, FY 2004-2005. 4. City of Chula Vista, Community Development Department Consolidated Plan FY 2005-2010. 5. City of Chula Vista, Community Development Department CV Housing Production 1999-2005. 6. City of Chula Vista, Community Development Department General Development Plans and Approved SPAs Major Projects Development Status Report July 1, 2005. 7. City of Chula Vista, Community Development Department Housing Element PowerPoint April 12, 1005. 8. City of Chula Vista, Community Development Department Summary of Affordable Housing Project 2005. ,9. City of Chula Vista, Draft General Plan, December 2004, printed September 2005. 10. City of Chula Vista, Engineering Department Fee Schedule, November 15, 2005. 11. City of Chula Vista, General Plan, December 2005. 12. City of Chula Vista, Planning Department Fee Schedule, January 24, 2005. 13. City of Chula Vista, Redevelopment Division, Bayfront Redevelopment Project Area, Five Year Implementation Plan for Years 2000-2004. 14. City of Chula Vista, Redevelopment Division, Housing Implementation Plan for years 2000-2004. 15. City of Chula Vista, Redevelopment Division, Otay Valley Road Redevelopment Project Area, Five Year Implementation Plan for Years 2000-2004. 16. City of Chula Vista, Redevelopment Division, Southwest Redevelopment Project Area, Five Year Implementation Plan for Years 2000-2004. Page AH-l ~\~ _2'__ em OF CHUlA VISTA _."._~-~-~~.~--- ... HOUSING ELEMENT APPENDIX H - 17. City of Chula Vista, Redevelopment Division, Town Centre I Redevelopment Project Area, Five Year Implementation Plan for Years 2000-2004. 18. City of Chula Vista, Redevelopment Division, Town Centre I Redevelopment Project Area, Five Year Implementation Plan for Years 2000-2004. . .... 19. City of Chula Vista, Zoning Code. 20. Regional Task Force on the Homeless, 2004. 21. San Diego County Apartment Association, Spring 2005 Vacancy and Rental Rate Survey. 22. San Diego Regional Analysis of Impediments to Fair Housing Chs>ice, February 2005. 23. State of California Employment Department (EED), 2005. 24. SANDAG, Resolution No. 2005-17, Final RHNA and Memo, February 25,2005. 25. US Census 2000, STF1 and STF3 - - - - 26. US Census 1990, STF1 and 5TF3. - -. - - Page AH-2 City of (hula Vista General Plan - /j\:)'~"j: :-'.<':':,":',~\\.C hula ,,::'" .... . \\, V. ,~.~-,\> lsta \;> z,': >l:'-' ), Vision '''''c~'''''''<:!/ 2020 ~.-:_~.::.. :::,.:.--- HOUSING ELEMENT APPENDIX I 1.0 GLOSSARY Above-Moderate-Income Household, A household with an annual income usually greater than 120% of the area median family income adjusted by household size, as determined by a survey of incomes conducted by a city of a county, or in the absence of such a survey, based on the latest available legibility limits established by the Us. Department of housing and Urban Development (HUD) for the 98 housing program. Apartment An apartment is one (1) or more rooms in an apartment house or dwelling occupied or intended or designated for occupancy by one (1) family for sleeping or living purposes and containing one (1) kitchen, Assisted Housing, Generally multi-family rental housing, but sometimes single-family ownership units, whose construction, financing, sales prices, or rents have been subsidized by federal, state, or local housing programs including, but not limited to Federal state, or local housing programs including, but not limited to Federal 98 (new construction, substantial rehabilitation, and loan management set-asides), Federal 9s 213, 236, and 202, Federal 9221 (d) (3) (below-market interest rate program), Federal 9101 (rent supplement assistance), CDBG, FmHA 9515, multi-family mortgage revenue bond programs, local redevelopment and in lieu fee programs, and units developed pursuant to local inclusionary housing and density bonus programs, Below-market-rate (BMR). Any housing unit specifically priced to be sold or rented to low- or moderate-income households for an amount less than the fair-market value of the unit Both the State of California and the Us. Department of Housing and Urban Development set standards for determining which households qualify as "low income" or "moderate income." (2) The financing of housing at less tan prevailing interest rates, Build-out That level of urban development characterized by full occupancy of all developable sites in accordance with the General Plan; the maximum level of development envisioned by the General Plan, Build-out does not assume that each parcel is developed to include all floor area or housing units possible under zoning regulations. Page AI-l ~ 1ft... _ll em Of CHUlA VISTA ';!.;'..'.'.'~ '.:.l"":'.'."c.",.,~\,. ,Ch uIa :.~ \;.' c../' \\\ ;. ." '~...' V. ,,~~'." lsta . ;'~;f~' ,. <" -" .,,/. Vision ~-::-, . ,,~/ '''.'.e..... . .c.",,;. 2020 '-~":::'-- ::;:;.::;., HOUSING ELEMENT APPENDIX I Community Development Block Grant (CDBG). A grant program administered by the US Department of Housing and Urban Development (HUD) on a formula basis for entitlement communities and by the State Department of Housing and Community Development (HCD) for non-entitled jurisdictions. This grant allots money to cities and counties for housing rehabilitation and community development including public facilities and economic development Condominium. A structure of two or more units, the interior spaces of which are individually owned; the balance of the property (both land and building) is owned in common by the owners of the individual units. (See "Townhouse.") Covenants, Conditions, and Restrictions (CC&Rs). A term used to describe restrictive limitations that may be placed on property and its use, and which usually are made a condition of holding title or lease. Deed. A legal document which affects the transfer of ownership of real estate from the seller to the buyer. Density Bonus. The allocation of development rights that allow a parcel to accommodate additional square footage or additional residential units beyond the maximum for which the parcel is zoned, usually in exchange for the provision or preservation of an amenity at the same site or at another location. Density, Residential. The number of permanent residential dwelling units per acre of land. Densities specified in the General Plan may be expressed in unites per gross acre or per net developable acre. Developable Land. Land that is suitable as a location for structures and that can be developed free of hazards to, and without disruption of. or significant impact on, natural resource areas. Down Payment Money paid by a buyer from his own funds, as opposed to that portion of the purchase price which is financed. Duplex A detached building under single ownership that is designed for occupation as the residence of two families living independently of each other. Dwelling Unit (du). A building or portion of a building containing one or more rooms, designed for or used by one family for living or sleeping purposes, and having a separate bathroom and only one kitchen or kitchenette. See Housing Unit Page AI-2 City of Chula Vista General Plan - - - - - - - - - - ... ";";';:j':':':,""'" "Chula /,-;;.. \ .'" '" -"~~~~, ';,';' \..,,;:,. ')':',./ ,',"~\" V. ',. <\;. . ,,'-,.~ \\ 1 t .,...,'. ',' s a ~'[''::~;! .. \\,",'," -" ,,',",',""'- /;/ V tston '\"", ,,,Y '.>-,,>_-;',C'.' 2020 .~..- -.-' HOUSING ELEMENT APPENDIX I Elderly Housing. Typically one- and two-bedroom apartments or condominiums designed to meet the needs of persons 62 years of age and older or, if more than 150 units, persons 55 years of age and older, and restricted to occupancy by them. Emergency Shelter. A facility that provides immediate and short-term housing and supplemental services for the homeless. Shelters come in many sizes, but an optimum size is considered to be 20 to 40 beds. Supplemental services may include food, counseling, and access to other social programs. (See "Homeless" and 'Transitional Housing.") Fair Market Rent The rent including utility allowances, determined by the United States Department of Housing and Urban Development for purposed of administering the Section 8 Existing Housing Program. Family. (1) Two or more persons related by birth, marriage, or adoption [US. Bureau of the Census]. (2) An Individual or a group of persons living together who constitute a bona fide single-family housekeeping unit in a dwelling unit not including a fraternity, sorority, club, or other group of persons occupying a hotel, lodging house or institution of any kind [California]. General Plan. A comprehensive, long-term plan mandated by State Planning Law for the physical development of a city or county and any land outside its boundaries which, in its judgment bears relation to its planning. The plan shall consist of seven required elements: land use, circulation, open space, conservation, housing, safety, and noise. The plan must include a statement of development policies and a diagram or diagrams illustrating the policies. Goal. A general, overall, and ultimate purpose, aim, or end toward which the City will direct effort Handicapped. A person determined to have a physical impairment or mental disorder expected to be of long or indefinite duration. Many such impairments or disorders are of such a nature that a person's ability to live independently can be improved by appropriate housing conditions. Historic Preservation. The preservation of historically significant structures and neighborhoods until such time as, and in order to facilitate, restoration and rehabilitation of the building(s) to a former condition. Historic Property. A historic property is a structure or site that has significant historic, architectural, or cultural value. Household. All those persons-related or unrelated-who occupy a single housing unit (See "Family.") Page AI-3 .s.\~ "",- CIlYOf CHUIA VISTA ">':':"1'::"":""" Chula ,::/':':. .~ ""'<~..:. . .. ~ .....>,.~ \, V t .. <~ '''-''''. 18 a I.:;" ;l.:,<",':,; . . . ,~~, ~i[:A/f Vlslon '-'>\;" , .-<:!/ '.--".... ,....... 2020 ......;:...:::., -:,~;::>. HOUSING ELEMENT APPENDIX I Housing and Community Development Department (HCD). The State agency that has principal responsibility for assessing, planning for, and assisting communities to meet the needs of low-and moderate-income house holds. Housing Element One of the seven State-mandated elements of a local general plan, it assesses the existing and projected housing needs of all economic segments of the community, identifies potential sites adequate to provide the amount and kind of housing needed, and contains adopted goals, policies, and implementation programs for the preservation, improvement and development of housing. Under State law, Housing Elements must be updated every five years. Housing Payment For ownership housing, this is defined as the mortgage payment property taxes, insurance and utilities. For rental housing this is defined as rent and utilities. Housing Ratio. The ratio of the monthly housing payment to total gross monthly income. Also Called Payment-to-Income Ratio or Front-End Ratio. Housing Unit The place of permanent or customary abode of a person or family. A housing unit may be a single-family dwelling, a multi-family dwelling, a condominium, a modular home, a mobile home, a cooperative, or any other residential unit considered real property under State law. Housing and Urban Development U.S. Department of (HUD). A cabinet-level department of the federal government that administers housing and community development programs. Institutional. Group quarters include nursing homes, orphanages, and prisons. Non-institutional group quarters include dormitories, shelters, and large boarding houses. Impacted Areas. Census tracts where more than 50% of the dwelling units house low-and very low- income households. Implementing Policies. The Cit)/s statements of its commitments to consistent actions. Implementation. Actions, procedures, programs, or techniques that carry out policies. Infill Development The development of new housing or other buildings on scattered vacant lots in a built-up area or on new building parcels created by permitted lot splits. Jobs-Housing Balance. A ration used to describe the adequacy of the housing supply within a defined area to meet the needs of persons working within the same area. The General Plan uses SCAG's definition which is a job total equal to 1.2 times the number of housing units within the area under consideration. Page AI-4 City of (hula Vista General Plan - - - - - - - - - - - - - ...,,<'~..:c:r~':-.\:~..Ch uIa /:':' .\;~.'I~'~''"~ \'~\ '. . :....... '>..'......~~..;'." ...\.i..... VIsta ~_. '\ ~;r'X)p Vision '~>:C">" ,.....;:,:/ 2020 '-::;-~. :;;:.~.:;,." HOUSING ELEMENT APPEN DIX I Land Use Classification, A system for classifYing and designating the appropriate use of properties, Live-Work Units, Buildings or spaces within buildings that are used jointly for commercial and residential purposes where the residential use of the space is secondary or accessory to the primary use as a place of work Low-income Household, A household with an annual income usually no greater than 51%-80% of the area median family income adjusted by household size, as determined by a survey of incomes conducted by a city or a county, or in the absence of such a survey, based on the latest available eligibility limits established by the US Department of Housing and Urban Development (HUD) for the 98 housing program. Low-income Housing Tax Credits, Tax reductions provided by the federal and State governments for investors in housing for low-income households. Manufactured Housing. Residential structures that are constructed entirely in the factory, and which since June 15, 1976, have been regulated by the federal Manufactured Home Construction and Safety Standards Act of 1974 under the administration of the U. S. Department of Housing and Urban Development (HUD). (See "Mobile Home" and "Modular Unit") Mixed-use. Properties on which various uses, such as office, commercial, institutional, and residential, are combined in a single building or on a single site in an integrated development project with significant functional interrelationships and a coherent physical design. A "single site" may include contiguous properties. Moderate-income Household. A household with an annual income usually no greater than 81%- 120% of the area median family income adjusted by household size, as determined by a survey of incomes conducted by a city or a county, or in the absence of such a survey, based on the latest available eligibility limits established by the US Department of Housing and Urban Development (HUD) for the Section 8 housing program. Modular Unit A factory-fabricated, transportable building or major component designed for use by itself or for incorporation with similar units on-site into a structure for residential, commercial. education, or industrial use. Differs from mobile homes and manufactured housing by (in addition to lacking an integral chassis or permanent hitch to allow future movement) being subject to California housing law design standards. California standards are more restrictive than federal standards in some respects (e.g., plumbing and energy conservation). Also called Factory-build Housing and regulated by State law of the title. (See "Mobile Home" and "Manufactured Housing.") Page AI-5 ~M?- -- ellY Of CHUIA VISfA - '.".\.~."j""'.'.",.""""."."', ..Chula ,j(. .' ;,>, -';-~.~',;; Vista :/""" ,;., ..:".. ". .,/ .. ':~'.';"..'..'.'..' ,/iVlSl0n '~\',,", ,<~,/ ,.>>....-,../ 2020 .-. - . .~ HOUSING ELEMEf\rf APPENDIX I - - Monthly Housing Expense. Total principal, interest taxes, and insurance paid by the borrower on a monthly basis. Used with gross income to determine affordability. - Multiple Family Building. A detached building designed and used exclusively as a dwelling by three or more families occupying separate suites. - Ordinance, A law or regulation set forth and adopted by a governmental authority, usually a city or county. Overcrowding Housing Unit A housing unit in which the members of the household, or group. Are prevented from the enjoyment of privacy because of small room size and housing size. The US Bureau of Census defines an overcrowded housing unit as one which is occupied by more than one person per room. - Parcel. A lot or tract of land. Planning Area. The area directly addressed by the general plan. A citYs planning area typically encompasses the city limits and potentially annexable land within its sphere of influence. - Policy. A specific statement of principle or of guiding actions that implies clear commitment but is not mandatory A general direction that a governmental agency sets to follow, in order to meet its objectives before undertaking an action program. (See "Program.") Poverty Level, As used by the US Census, families and unrelated individuals are classified as being above or below the poverty level based on a poverty index that provides a range of income cutoffs or "poverty thresholds" varying by size of family, number of children, and age of householder. The income cutoffs are updated each year to reflect the change in the Consumer Price Index. - Program An action, activity, or strategy carried out in response to adopted policy to achieve a specific goal or objective, Policies and programs establish the "who," "how" and "when" for carrying out the "what" and "where" of goals and objectives. - Redevelop. To demolish existing buildings; or to increase the overall floor area existing on a property; or both; irrespective of whether a change occurs in land use, Regional. Pertaining to activities or economies at a scale greater than that of a single jurisdiction, and affecting a broad geographic area. Regional Housing Needs Assessment A quantification by SANDAG of existing and projected housing need, by household income group, for all localities within a region. _ Page AI-6 City of Chula VIsta General Plan - "/'"l:C--'~,~,,,Ch ula ...;..... x"':.a..:J. ;'..,{,........ .\~..:\.',. Vl- S t a '. '.". ._. ,..,..~. .- . .. " ~~ ~.;.[. ...;"..'."'~/:i V. ision '-,>. . -,,:/ '...,'.>_....<~..' 2020 -~.- ._,.~' HOUSING ELEMENT APPENDIX I Rehabilitation. The repair, preservation, and/or improvement of substandard housing. Residential. Land designated in the General Plan and zoning ordinance for building consisting of dwelling units. May be improved, vacant or unimproved. (See "Dwelling Unit") Residential Care Facility. A facility that provides 24-hour care and supervision to its residents. Residential, Multiple Family. Usually three or more dwelling units on a single site, which may be in the same or separate buildings. Residential, Single-Family. A single dwelling unit on a building site. Retrofit To add materials and/or devices to an existing building or system to improve its operation, safety, or efficiency. Buildings have been retrofitted to use solar energy and to strengthen their ability to withstand earthquakes, for example. Rezoning. An amendment to the map to effect a change in the nature, density, or intensity of uses allowed in a zoning district and/or on a designated parcel or land area. Second Unit A Self-contained living unit either attached to or detached form, and in addition to, the primary residential unit on a single lot "Granny Flat' is one type of second unit Section 8 Rental Assistance Program. A federal (HUD) rent-subsidy program that is one of the main sources of federal housing assistance for low-income households. The program operates by providing "housing assistance payments" to owners, developers, and public housing agencies to make up the difference between the "Fair Market Rent' of a unit (set by HUD) and the household's contribution toward the rent which is calculated at 30% of the household's adjusted gross monthly income (GMI). "Section 8" includes programs for new construction, existing housing, and substantial or moderate housing rehabilitation. Shared Living. The occupancy of a dwelling unit by persons of more than one family in order to reduce housing expenses and provide social contact mutual support and assistance. Shared living facilities serving six or fewer persons are permitted in all residential districts by 91566.3 of the California Health and Safety Code. Single-family Dwelling, Attached. A dwelling unit occupied or intended for occupancy by only one household that is structurally connected with at least one other such dwelling unit (See "Town h 0 use.") Page AI-7 ~I~ -- 01Y Of CHULA VISTA ";.".:'.'.".1'.::.'-.:'.""".' ..... Chula ~~-;:.. ... .;~"'~~ :;:::~. {r:..;...~ ';\..... Vl.sta ".-...~ ~ ...'i;.... !\:~, ';/,'~.'r~j Vision ~',,- ; /:;/ ....>....-. - .....'c;> 2020 '.~::;;'.:.. ~:;:;:>. HOUSING ELEMEI\ff APPENDIX I Single-family Dwelling, Detached. A dwelling unit occupied or intended for occupancy by only one household that is structurally independent from any other such dwelling unit or structure intended for residential or other use. (See "Family.") Single Room Occupancy (SRO). A single room, typically 80-250 square feet with a sink and closet but which requires the occupant to share a communal bathroom, shower, and kitchen. Subsidize. To assist by payment of a sum of money or by the granting to terms or favors that reduces the need for monetary expenditures. Housing subsidies may take the forms or mortgage interest deductions or tax credits from federal and/or state income taxes, sale or lease at less than market value of land to be used for the construction of housing, payments to supplement a minimum affordable rent and the like. Substandard Housing. Residential dwellings that because of their physical condition, do not provide safe and sanitary housing. Target Areas. Specifically designated sections of the community where loans and grants are made to bring about a specific outcome, such as the rehabilitation of housing affordable by Very-Low and Low-income households. Tax Increment Additional tax revenues that result form increases in property values within a redevelopment area. State law permits the tax increment to be earmarked for redevelopment purposes but requires at lest 20% to be used to increase and improve the community's supply of very low and low income housing. Tenure. A housing unit is "owned" if the owner or co-owner lives in the unit even if it is "owned only if it is mortgaged or not fully paid for. A cooperative or condominium unit is "owned only if the owner or co-owner lives in it All other occupied' units are classified as "rented: including units rented for cash rent and those occupied without payment of cash rent Townhouse. A townhouse is a dwelling unit located in a group of three (3) or more attached dwelling units with no dwelling unit located above or below another and with each dwelling unit having its own exterior entrance. Transitional Housing. Shelter provide to the homeless for an extend period, often as long as 18 months, and generally integrated with other social services and counseling programs to assist in the transition to self-sufficiency through the acquisition of a stable income and permanent housing. (See "homeless" and "Emergency Shelter.") Page AI-8 City of (hula Vista General Plan - - - - - - - - - - - HOUSING ELEMENT APPENDIX I _;:,,:,,,,,,,:,,,Co"',, Chula ;//( '" ;,;;.'~~" . ii! "'~ i;.;,,,- \'1. VIsta \:,"'::;;. \'.~:.;; 'Z\ ~~,"'/./! Vision ~~",' .,;~/ ,,..>.. ...".,/ 2020 -.-<::.~.> -~::;:;:. Undevelopable. Specific areas where topographic, geologic, and/or superficial soil conditions indicate a significant danger to future occupants and a liability to the City are designated as "undevelopable" by the City. 2.0 BMPs: CAL TRANS: CCC: CEQA: CIP: CMP: DIF: DUlac: EDD: FAR: FEMA: GDP: HCD: HOA: HUD: LAFCO: LCP: MFI: MWD: NPDES: RCP: RTP: SANDAG: 501: SPA: STF: TOO: TOM: TSM: WCP: ACRONYMS USED Best Management Practices California Department of Transportation California Coastal Commission California Environmental Quality Act Capital Improvement Program Congestion Management Plan Development Impact Fee Dwelling units per acre California Employment Development Department Floor Area Ratio Federal Emergency Management Agency General Development Plan Department of Housing and Community Development Homeowners Association Department of Housing and Urban Development Local Agency Formation Commission Local Coastal Program Median Family Income Metropolitan Water District National Pollutant Discharge Elimination System Regional Comprehensive Plan (by SANDAG) Regional Transportation Plan San Diego Association of Governments Sphere of Influence Sectional Planning Area Summary Tape File (U.S. Census) Transit-Oriented Development Transportation Demand Management Transportation Systems Management Water Conservation Plan ~If? --- 01Y Of CHUIA VISTA Page AI-9 "",------------ ]~~ Chula .~,):", :t___, ...,:;~~::, .r..:,..:.,e'. s;..~.g :s~...'.'..;'.'- \.:. Vl.sta """'.~ \: 7!. ;~:."l..'~."=: ,}Vt.st.on ":~~~,,,.,. ~.. " .,))' .-.c".....- ...-:0,,' 2020 -"__,' ._.w' HOUSING ELEMEf\rT APPENDIX I BLANK Page AI-IO City of Chula Vista General Plan - - - - - - - - - - - - -