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Home My WebLink AboutCC MINUTES 2004 09 01 MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL TUSTIN, CALIFORNIA SEPTEMBER 1, 2004 CALL TO ORDER- 8:36 AM. - Clifton C. Miller Community Room ATTENDANCE Present: Absent: City Clerk: Others Present: Tony Kawashima, Mayor, Lou Bone, Mayor Pro Tem, Councilmembers Doug Davert, Tracy Worley Hagen, and Jeffery M. Thomas None Maria Huizar, Chief Deputy City Clerk William A Huston, City Manager; Christine A Shingleton, Assistant City Manager; Lois Jeffrey, City Attorney; and Elizabeth Binsack, Director of Community Development WORKSHOP 1. INCENTIVES FOR THE DEVELOPMENT HOUSING/DENSITY BONUSES (Ordinance No. 1279) OF AFFORDABLE City Manager Huston made a brief introduction on the matter and turned it over to City Attorney Jeffrey. City Attorney Jeffrey outlined the following legal issues: Government Code Section 65915 (State Density Bonus Law) created in 1989 to promote the development of housing for very low, low, and moderate-income families ("affordable housing"). Under this Section, the City is required to adopt an Ordinance that specifies how compliance with Section 65915 of the California Government Code will be implemented. On November 1, 1999, the City of Tustin adopted Ordinance No. 1222 establishing developer incentives for development of affordable housing. On September 15, 2003, the City adopted Ordinance No. 1279 amending Ordinance No. 1222 to comply with the recent changes in State Law. Purpose and intent of the Density Bonus Law: .¡' The purpose of the Density Bonus Law is to provide regulatory incentives for the production of housing for very low, low, and moderate income families, or senior citizens. .¡' The intent of the City's ordinance is to comply with State Law to facilitate the development of affordable housing and to implement the goals, objectives, and policies of the City's Housing Element. City Council Meeting Minutes September 1, 2004 Page 1 of5 .¡' For an Orange County family of four in 2004, very low, lower, and moderate income means the following: Very low income = $37,800 or less Lower income = $37,800 - $60,480 Moderate income = $60,480 - $90,720 Community Development Director Binsack presented the following: If a developer proposes to build a specified percentage of affordable units, the developer is entitled by law to receive: .¡' A Density Bonus and at least one regulatory concession or incentive (provided it is financially justified), OR .¡' Other regulatory incentives or concessions of Equivalent Financial Value. A density bonus is a density increase of 25% over the otherwise Maximum Allowable Residential Density. A 10% density bonus allowed if 20% of the units in a condominium development will be for moderate-income families. Four examples of density bonus projects were provided as follows: .¡' Density Bonus Example # 1: Senior Citizen Housing Housinq with 50% of the units for seniors Maximum w/o Density Bonus = 100 units 25% Density Bonus = 25 units Maximum w/ Density Bonus = 125 units Senior Affordable Units (50%) = 50 units .¡' Density Bonus Example # 2: Very Low Income Households Housinq with 10% of the units affordable to verv low-income households Maximum w/o Density Bonus = 100 units 25% Density Bonus = 25 units Maximum w/ Density Bonus = 125 units Very Low Income Units (10%) = 10 units .¡' Density Bonus Example # 3: Lower Income Households Housinq with 20% of the units affordable to lower income households Maximum w/o Density Bonus = 100 units 25% Density Bonus = 25 units Maximum w/ Density Bonus = 125 units Lower Income Units (20%) = 20 units .¡' Density Bonus Example # 4: Moderate Income Households Condominiums with 20% of the units affordable to moderate income households Maximum w/o Density Bonus = 100 units 10% Density Bonus = 10 units Maximum w/ Density Bonus = 110 units Moderate Income Units (20%) = 20 units "Concession or Incentive" means: .¡' A reduction in site development standards or architectural design requirements including, but not limited to, a reduction in setback and square footage requirements and in the ratio of vehicular parking spaces that would otherwise be required; or City Council Meeting Minutes September 1 , 2004 Page 2 of 5 .¡' Approval of mixed use zoning in conjunction with the housing project if the commercial, office, industrial, or other land uses will reduce the cost of the housing development and if the commercial, office, industrial, or other land uses are compatible with the housing project and the existing or planned development in the area, including the City's General Plan, where the proposed housing project will be located; or .¡' Other regulatory incentives or concessions proposed by the Applicant or the City, which result in identifiable and actual cost reductions. "Incentives or Concessions of Equivalent Financial Value" means: .¡' A regulatory incentive approved by the City Council based on the land cost per dwelling unit of development. Regulatory Concessions or Incentives examples: .¡' Increased lot coverage .¡' Increased height limits .¡' Reduced setbacks .¡' Reduced off-street parking .¡' Modified street widths and/or other street standards .¡' New development standards for new product types .¡' Reduced minimum site size or lot size .¡' Reduced private and/or public open space .¡' Transfer of affordable units to other Planning Area Financial Incentives examples: .¡' Waived, reduced, or deferred planning fees, building fees, parkland fees, and/or development impact fees .¡' Direct financial aid to the developer Current Process: An application for a Density Bonus and/or Concession or Incentive pursuant to this Chapter shall be processed concurrently with any other permit application(s) required for the Housing Development. Final approval or disapproval of an application shall be made by the City Council and .¡' In the case of Housing Developments within Redevelopment Project Areas, also by the Tustin Community Redevelopment Agency ("Agency"); .¡' Upon recommendation of the Planning Commission for those Housing Developments which require Planning Commission entitlements No approval shall be effective until the City or Agency (as applicable) and Applicant have executed a Housing Incentive Agreement. Within sixty (60) days of receipt of the preliminary application, the City shall provide the Applicant with a letter, which identifies project issues of concern and the proposed Concession, or Incentive that the Director would recommend to the Planning Commission and City Council and the procedures for compliance with this Chapter. City Council Meeting Minutes September 1, 2004 Page30f5 Standard Development Requirements: Target Units would need to be constructed concurrently with Non- Restricted Units unless agreed upon by both the City and the Applicant. Target Units will remain affordable to the designated group for a period of thirty (30) years, or a longer period if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program. If the units are located within a redevelopment area or proposed redevelopment area or if the City or Tustin Community Redevelopment Agency has decided that the applicant will receive direct financial aid, the units shall remain affordable for a period of forty-five (45) years for for-sale units and fifty-five (55) years for rental units. The design and appearance of the Target Units would need to be consistent with the design of the total Housing Development. A Housing Incentive Agreement would need to be entered into between the Applicant and City and/or the Redevelopment Agency to memorialize the Applicant's commitment to provide Target Units. COUNCIL DISCUSSION Councilmember Hagen indicated that she would be willing to consider reduced off-street parking, setbacks and street widths, and public open space. Council member Thomas asked what, if any concessions developers have asked for. City Attorney Jeffrey responded that recently no one has requested a regulatory concession, only financial incentives. Mayor Pro Tem Bone indicated opposition to reduced parking and setbacks. Councilmember Davert expressed concern over building apartments at Tustin Legacy and believes the City should be conservative with concessions granted. Councilmember Hagen agreed with Davert and opined that credits may be given for open space areas no smaller than one (1) acre. Council member Thomas asked that parameters be as broad as possible and financial incentives considered. Mayor Kawashima is opposed to reductions in off-street parking and open space, but is otherwise open to discussion on other concessions. Councilmember Davert indicated that credits should be used for parks that serve the general public. City Council Meeting Minutes September 1, 2004 Page 4 of 5 PUBLIC INPUT Marsha Santry, Lennar Villages at Columbus, discussed request for credit for park and asked that Council look at the number of residents served in considering credit. Bill Hammerle asked Council not to close out too many options and to review economically sound incentives that are beneficial to all; indicated that the Specific Plan was developed in the mid 1990's, but times have changed; and suggested that affordable units be moved from one planning area to another to meet the affordability gap. Karen Gulley, Lennar Homes, indicated that Housing Element should be foundation for the Density Bonus request. Tom Sukai, affordable housing expert, discussed the "affordability gap" and associated issues. William R. Devine, attorney for Lennar Homes, stated that purpose of the Density Bonus Law is to ensure that gap is covered. Denise Ashton suggested that density bonus units be clustered and/or target units in various phases to meet requirement. Mark Thomas, Lennar Homes, held that they will deliver 20% affordable housing in a seamless way. COUNCIL DISCUSSION Council discussion ensued and consensus reached that applications would be reviewed on an individual basis due to the circumstances surrounding each development project. Council noted a willingness to consider the various regulatory concessions including: increased height limits, reduced off-street parking if driveway/garage space is considered, and transfer of affordable units to other Planning Area, but no compromise on reduced setbacks, modified street widths and/or other street standards, reduced private/public open space, or clustering of affordable units; and a desire to consider the request as part of the overall development proposal. ADJOURNMENT - 10:26 a.m. - The next regular meeting of the City Council was scheduled for Tuesday, September 7,2004, at 7:00 p.m. in the Council Chamber at 300 Centennial Way. T'L~~~ ~~ Mayor City Clerk City Council Meeting Minutes September 1, 2004 Page 5 of 5