HomeMy WebLinkAboutRESPONSES TO HIGUCHI'S QUESTIONS 12-12-22 Hurtado, Vera
From: Willkom, Justina
Sent: Monday, December 12, 2022 4:21 PM
Cc: jwillkom@tustina.org; Hurtado, Vera; Huitron, Irma; Barragan, Raymond; dkendig@wss-law.com
Subject: DECEMBER 13TH PC PACKET - Response to Higuchi, Eric Questions
Hello Commissioners,
Please see the following response to Commissioner Higuchi's questions:
1. Question:To clarify,two of the units will be deed restricted as affordable? Isn't the City trying to stay away from
for-sale affordable due to high costs of administering the program?
Response: Yes, two of the units will be deed restricted as affordable. The proposed development is privately
funded and the City is not a partner. The proposed for-sale development project is utilizing Density Bonus Law
which requires the provision of affordable housing. Since it is a for-sale project, the affordable units are for-sale
as well.
The City will be able to add these two units to the Housing Authority inventory. The Housing Authority annually
monitors 468 affordable rental units and 279 affordable ownership units. In addition, the Density Bonus
ownership units are now required by law to include an equity sharing provision between the homeowner and
the City, ensuring some, if not all, of the costs for program monitoring/administration of these two units are
covered by the City's share of the equity.
2. Question: Based on current pricing, what is the price of the affordable units?
Response:The maximum affordable sales prices of the affordable units are dependent upon Income Limits,
current mortgage rate, property taxes, HOA dues, insurance, and a utility allowance which are all subject to
change by the time the developer is prepared to market the affordable units. Assuming a calculation that
utilizes the current amounts for each of these factors other than the HOA dues—which is unknown at this time,
the approximate maximum affordable sales price range for the 3-bedroom unit is$120,000-$145,000 and the
approximate maximum affordable sales price range for a 4-bedroom unit is $128,000 to $156,000. A range was
provided to account for utilizing a range of HOA dues in the calculation.
3. Question: How will they be sold (e.g. lottery?)
Response:The developer will be required to coordinate with the City Housing Authority staff(within the
Economic Development Department, Housing Division)to ensure that the City's Local Workforce Housing
Preference Policy is adhered to. As a reminder,the Local Workforce Housing Preference Policy is a priority
system where applicants who are currently employed in or currently residing in the City of Tustin would have a
priority over an applicant who does not currently reside or is not employed in the City of Tustin. In order to
qualify for the local preference, the applicants must have at least six months of employment or residency in
Tustin.The applicant will be required to complete a Certification of Eligibility- Local Workforce Housing Policy
Form and provide the required supporting documentation.The establishment of this Policy assists the City in
providing balanced housing opportunities to very-low to moderate-income families who live and work in
Tustin. This City policywas adopted in 2007 and was incorporated as a Gty if-�Iiiirn Gty gcaa g i[2 !niirern"nei nt in
2022, which requires projects such as the proposed, to make the units available consistent with the adopted City
Council policy.
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4. Question:On what date was the development applicant submitted?
Response:The applicant filed a development application for the proposed project on January 28, 2022 which
was deemed incomplete on February 25, 2022. There were two subsequent incomplete submittals (2nd
resubmittal on April 28, 2022 and 3rd resubmittal on August 29, 2022)with a fourth resubmittal on October 12,
2022, deemed complete on November 10, 2022. The project was subsequently scheduled for a public hearing
with the Planning Commission on December 13, 2022.
5. Question: Will a developer default on the DA impact the changed GP and ZC? Or in other words, can the
developer intentionally default on the DA and still preserve its underlying entitlements?
Response: The General Plan Amendment and Zone Change will stay with the land, even if the developer
defaults on the DA. However, the DA and other associated entitlements will not be valid if the City Council does
not approve the GPA and ZC.
From: Higuchi, Eric<EHiguchi@tustinca.org>
Sent: Sunday, December 11, 2022 6:55 PM
To:Willkom,Justina <JWillkom@tustinca.org>
Subject: RE: DECEMBER 13TH PC PACKET- Higuchi, Eric Questions
• To clarify,two of the units will be deed restricted as affordable? Isn't the City trying to stay away from for-sale
affordable due to high costs of administering the program?
• Based on current pricing, what is the price of the affordable units?
• How will they be sold (e.g. lottery?)
• On what date was the development applicant submitted?
• Will a developer default on the DA impact the changed GP and ZC?Or in other words, can the developer
intentionally default on the DA and still preserve its underlying entitlements?
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