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HomeMy WebLinkAboutAgenda Statement 1987/11/17 Item 15COUNCIL AGENDA STATEMENT • Item 15 Meeting Date 11 /'. x/87 ITEM TITLE: Density Bonus request for a proposed Thirty-seven-unit apartment complex at 36, 38 and 54 Woodlawn Avenue Resolution ~^,~-~ ~~~ Approving a density bonus of si x units for a total of thirty-seven units at 36, 38 and 54 Woodlawn Avenue and approving a Housing Cooperation Agreement with Glenn S. Thomas, James E. Evans, and Richard W. Ninde, property owners SUBMITTED BY: Community Development Directo REVIEWED BY: City Managergf (4/5ths Vote: Yes No X ) T.E.N. Developers, developers of a proposed apartment project at 36, 38 and 54 Woodlawn Avenue, has requested a density bonus of six units under State Government Code Section 65915. Under this law, a local entity is required to either approve a density bonus or grant the developers other incentives of equivalent economic value. • RECOMMENDATION: That the City Council approve a density bonus of six units far the proposed apartment project at 36, 38 and 54 Woodlawn Avenue, and approve the Housing Cooperation Agreement with the developers outlining the terms and conditions of the density bonus. BOARDS/COMMISSIONS RECOMMENDATION: The Design Review Committee approved the project design with the additional density bonus units at their August 6, 1987 meeting, subject to City Council approval of the density bonus. At their October 14 meeting, the Planning Commission recommended that the City Council approve the proposed density bonus. DISCUSSION: T.E.N. Developers is proposing to develop a thirty-seven-unit apartment project for families at 36, 38 and 54 Woodlawn Avenue. Current zoning allows thirty-one units, and the developer requests an additional six units under the State's Density Bonus Program. The proposed project would consist of four one-bedroom apartments, and 33 two-bedroom apartments. Section 65915 of the California Government Code provides that a developer of multi-family rental housing can request a density bonus over the underlying zone. In exchange for the density bonus, a developer must provide a percentage of the total units as affordable housing for low and moderate income households. • • Page 2, Item F5 Meeting Dated // ~/7~~7 In 1985, the City enacted Ordinance 12135 which provides a procedure for the City to respond to requests by developers for density bonuses under the provisions of California Government Code Section 65915. Under our policy, a developer must provide 20% of the total project units prior to the granting of a density bonus as affordable to low income households (households at or below 80% of the area median income), and 5% of the pre-density project units as affordable to moderate income households (households at or below 120% and above 80% of the area median income). Rents on affordable units are restricted for 25 years. Affordability is defined as rent levels not exceeding 25% of the monthly income of households in those low and moderate income categories. As an alternative to granting the density bonus, the City has the option to grant to the developer other incentives of equivalent economic value. A copy of the City's ordinance is attached for your review. If the City Council grants the requested density bonus, the developer has agreed to rent one, 1-bedroom apartment for no more than $419 a month, and five, 2 bedroom apartments for no more than $523 a month to low-income households. Additionally, one, 1-bedroom apartment would have a rent cap of $628 a month; and one 2-bedroom apartment would have a rent cap of $785 a month and both would be reserved for moderate-income households. Our ordinance sets maximum rents that can be charged for restricted units. In reality, the market rate rents are below the maximum of $628 and $785 set for the moderate-income units. The developer estimates that they will rent • non-low income restricted one-bedroom units for $550 a month and non-low income two-bedroom apartments for $650 a month. The moderate-income restriction would be beneficial if market conditions change in the future and rents escalate. Currently, a family of four would have to have an income of $25,100 a year or less to be eligible to rent the units reserved for low-income households and $37,700 a year or less to qualify for moderate-income restricted units. Rents could increase as the median income figures for the County increase. The units would be restricted for a period of 25 years. The other units can be rented at market rates. Maximum restricted rents are calculated using the affordable rent formula described in our family density bonus policy. According to this formula, monthly rental rates cannot exceed 25% of the gross monthly income of a four person household whose income falls at 80% and at 120% of the County median income. Land Use Considerations The Planning Department has reviewed the project, and the Design Review Committee has approved the thirty-seven-unit apartment project conditioned upon Council approval of the six-unit density bonus. The project would consist of 33, two-bedroom 2-bath and 4, one-bedroom, 1-bath apartments. The 1.05-acre site would contain two three-story buildings over a 46-space basement garage. An additional 26 open parking spaces will be located just west of the apartment structure. Overall height of the project is under 40 feet. • Page 3, Item 15 • Meeting Date~1,7%87 The project complies with the R-3 Apartment Residential zone in effect, as well as the High Density Residential land use designation outlined for this area by the General Plan. Six units over the 31 units permitted under this zoning represents a density bonus increase of 19°~. No further review is required in terms of land use considerations. The Design Review Committee felt that the proposed density, even with a three-story configuration, was acceptable based on the architectural plan submitted by the developer. Parking, landscaping, open space, and traffic flow are considered adequate for the project of 37 units. Conclusion The issue before the City Council is to decide whether or not to grant a density bonus of six units to the developers of 36, 38 and 54 Woodlawn Avenue, or to agree to offer equivalent financial incentives. According to State law, a local jurisdiction does not have the option to deny a density bonus request without offering equivalent financial incentives. All land issues have previously been approved, and do not require City Council action. If the Council votes to approve the density bonus, the City will gain six affordable housing units for low-income households and a potential for two affordable moderate-income household units, if market conditions change, both with a 25 year restriction. • Attached is a Housing Cooperation Agreement between the City and the developer outlining the terms and conditions of the density bonus. It is recommended that the Council approve this agreement if they approve the density bonus. If Council votes to offer equivalent financial incentives, it is recommended that they refer the issue to staff to consider various alternatives which would be brought back to the Council for their approval. Financial equivalency would have to be determined, and such options as cash payment to the developer, waiver of associated fees, or provision by the City of public improvements could then be considered. FISCAL IMPACT: If the Council grants the density bonus request, no funds would be expended. If the Council votes to offer equivalent financial incentives, Redevelopment Agency Low and Moderate Income Housing Funds could be utilized. WPC 3079H ~:~ ~'_. ~r/~~ by the ciiy co~~ncil' of Chula Visa, Caf~fornia Dated 2- '~' .~ ~s' the City Council of C~ruia Vista. California Dated _~ ..