HomeMy WebLinkAboutItem 8.2 Affordable House Agmt
ITY CLERK
File # D[f][2][Q]-[i]~
X (P 00-30
)( Lf~O-30
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: June 17, 2008
SUBJECT:
A TT ACHMENTS:
RECOMMENDATION:
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Amendment to the Affordable Housing Agreement for the First Phase
of Positano to provide 4 additional secondary units affordable to very-
low income households in-place of 4 single-family detached homes
affordable to very-low income households.
Report Prepared by Jeff Baker, Senior Planner
1) Resolution approving an amendment to the Affordable Housing
Agreement for the First Phase (247 units) of Positano to provide
four additional secondary units affordable to very-low income
households in-place of four single-family detached homes
affordable for very-low income households, with the amended
Affordable Housing Agreement attached as Exhibit A.
2) Applicant's Request Letter dated May 22,2008.
1) Adopt Resolution approving amendment No.1 to the Affordable
Housing Agreement for the First Phase (247 units) of Positano to
provide four additional secondary units affordable to very-low
income households in-place of four single-family detached
homes affordable to very-low income households, with the
amended Affordable Housing Agreement attached as Exhibit A;
2) Direct the City Manager to execute an amendment to the
Affordable Housing Agreement; and,
3) Direct the Community Development Director to approve an SDR
Waiver, in accordance with the Dublin Municipal Code, to
ensure consistency between the approved Site Development
Review and the amended Affordable Housing Agreement.
FINANCIAL STATEMENT: The costs of administering the Affordable Housing Agreement are
included in the administration fees that are charged with the sale of
each affordable unit.
DESCRIPTION:
Background
Braddock & Logan's Positano development is a residential development consisting of 1,043 single-family
homes on a 488-acre project site. The project site is located within the northern portion of the larger
Fallon Village project area, east of Fallon Road and the Dublin Ranch project, west and southwest of the
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COPY TO: Jeff Lawrence, Braddock & Logan
File P A 05-038
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ITEM NO. l) ·
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City Limits boundary with Alameda, unty and Doolan Canyon (see Map I.ow). Braddock & Logan
has received approval of Site Development Review (SDR) to construct the first phase of the development
consisting of 247 homes.
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Map I: Positano Vicinity Map
Affordable Housing Obligation
In accordance with the Dublin Inclusionary Zoning Regulations, the entire Positano development has a
requirement to provide 130 affordable units (12.5% of 1,043 units). Braddock & Logan prepared an
affordable housing proposal to address the affordable obligation for the 1,043 unit Positano development
which was reviewed by the City Council on October 18,2005. This affordable housing proposal includes
a combination of on-site integrated units, secondary units, off-site apartments on the Anderson property,
and a $1,000,000 Community Benefit Payment. All of the inclusionary units will be secured by a deed
restriction to ensure they remain affordable in perpetuity.
On June 5, 2007, the City Council approved an Affordable Housing Agreement (AHA) for the first phase
of development in Positano consisting of 247 homes. A subsequent AHA is required for the balance of
the Positano development and will address the remainder of the proposed on-site and off-site affordable
housing to satisfy the Inclusionary Zoning Regulations.
Current Request
Braddock & Logan is currently requesting to amend the AHA for the first phase to eliminate the
requirement to provide four single-family detached homes affordable for very-low income households and
instead provide four secondary units affordable for very-low income households (Attachment 2).
ANALYSIS:
Affordable Housing Agreement Amendment
Braddock & Logan has a requirement to provide 31 affordable units in the first phase of construction.
Total Inclusionary Inclusionary
Units Requirement Units
247 12.5% 31
The AHA for the first phase includes a requirement to provide 13 single-family detached homes and 13
secondary units, payment of in-lieu fees for the remaining 5 units, and payment of a prorated share of the
$1,000,000 Community Benefit Payment prior to issuance of each building permit. Table 2 below
provides a summary of the affordable units to be constructed within the first phase of development. These
affordable units will be distributed within the 72-unit Cantara neighborhood.
Page 2 of3
Ta 2: Affordable ousmg or Phase
U nit Type Ownership Income Level Size of Units Affordability
/Rental Period
13 Single-family 50% moderate (6 units)
For sale 20% low (3 units) All 4 bedroom In perpetuity
Detached Homes 30% very low (4 units)
50% moderate (6 units) All
13 Secondary Units Rental 20% low (3 units) 1 bedroom! In perpetuity
30% very low (4 units) 1 bath
Total: 26 Affordable
Units
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Under the current AHA, Braddock & Logan is required to provide four single-family detached homes
affordable to very-low income households. Braddock & Logan is instead requesting to provide four
additional secondary units affordable to very-low income households in place of four single-family
detached homes. The additional secondary units will be secured by a deed restriction to ensure their
affordability in perpetuity.
The Applicant has indicated that the costs of homeownership including Homeowners Association (HOA)
dues, Geologic Hazard Abatement District (GHAD) fees, Landscape Maintenance District fees, and
overall homeowner expenses make it unfeasible to market these homes to very-low income households.
The Applicant estimates that these fees will total approximately $175 per month.
Along with the restricted sales price for very-low income households will come a number of expenses,
including landscape maintenance, heating and cooling and general long-term maintenance of the home.
The additional costs of homeownership may exceed what a very-low income household may be able to
pay. Therefore, Staff supports the Applicant's proposal to provide secondary units for very-low income
households.
Site Development Review Modification
If the City Council approves the request and amends the Affordable Housing Agreement, an amendment
to the approved Site Development Review is also needed in order to maintain consistency between the
SDR and the AHA. The Dublin Zoning Ordinance allows the Community Development Director to grant
an SDR Waiver as an administrative action for minor changes found to be in substantial conformance with
the approved SDR. The proposed changes are in substantial conformance with the approved SDR and
would therefore subsequently be approved with an SDR Waiver.
CONCLUSION:
Braddock and Logan is requesting to amend the Affordable Housing Agreement for the first phase of
Positano to eliminate the requirement to provide four single-family detached homes affordable for very-
low income households and instead provide four additional secondary units affordable for very-low
income households. The proposal would result in a total of 8 secondary units for very-low income
households (rather than 4 single-family and 4 secondary very low-income units) in the first phase of
development.
RECOMMENDATION:
Staff recommends that the City Council, 1) Adopt Resolution approving amendment No. 1 to the
Affordable Housing Agreement for the First Phase (247 units) of Positano to provide four additional
secondary units affordable to very-low income households in-place of four single-family detached homes
affordable to very-low income households, with the amended Affordable Housing Agreement attached as
Exhibit A; 2) Direct the City Manager to execute an amendment to the Affordable Housing Agreement;
and, 3) Direct the Community Development Director to approve an SDR Waiver, in accordance with the
Dublin Municipal Code, to ensure consistency between the approved Site Development Review and the
amended Affordable Housing Agreement.
Page 3 of3
loo"
RESOLUTION NO. - 08
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
APPROVING AMENDMENT NO. I TO THE AFFORDABLE HOUSING AGREEMENT FOR
FIRST PHASE (247 UNITS) OF POSIT ANO TO PROVIDE FOUR ADDITIONAL SECONDARY
UNITS AFFORDABLE TO VERY-LOW INCOME HOUSEHOLDS IN-PLACE OF FOUR
SINGLE-FAMILY DETACHED HOMES AFFORDABLE TO VERY-LOW INCOME
HOUSEHOLDS
(PA 05-038 AND PA 07-005)
WHEREAS, Braddock and Logan, on behalf of Dublin RE Investors, LLC (the Developer) has
requested an amendment to the Affordable Housing Agreement for First Phase (247 units) ofPositano to
provide secondary units to satisfy the affordable housing requirement for very-low income households;
and
WHEREAS, Dublin RE Investors, LLC (the Developer) is the owner of two parcels of land within
Fallon Village which together are known as Positano and consists of 1,043 residential units; and
WHEREAS, an Affordable Housing Agreement is required by the Inclusionary Zoning
Regulations of City of Dublin Zoning Ordinance (Chapter 8.68); and
WHEREAS, the Developer has proposed a comprehensive affordable housing proposal to address
the requirements of the Inclusionary Zoning Ordinance for the entire Positano development and said
proposal includes alternative methods of compliance with the Inclusionary Zoning Regulations; and
WHEREAS, the City Council held a public meeting on October 18,2005, to review the affordable
housing proposal, and the City Council directed Staff to work with the Developer to refine the affordable
housing proposal; and
WHEREAS, the City and the Developer are parties to an Affordable Housing Agreement for the
Construction ofInclusionary Units in the First Phase (247 units) of the Positano development, dated June
5, 2007 ("the Agreement"), wherein the Developer agreed to construct 13 single-family detached homes
and 13 secondary units affordable to very-low, low, and moderate income households, and pay in-lieu fees
for 5 affordable units pursuant to the requirements of Chapter 8.68 of the Dublin Municipal Code, the
Inclusionary Zoning Regulations ("the Regulations"); and
WHEREAS, the Agreement for the First Phase specified the level of affordability, the location of
the required 13 single-family detached and 13 secondary units, and the phases of the Project within which
the affordable units must be completed; and
WHEREAS, a subsequent Affordable Housing Agreement is required to satisfy the affordable
obligation for future phases of Positano; and
WHEREAS, the Project has been found to be Categorically Exempt from the California
Environmental Quality Act (CEQA); and
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A TT ACHMENT I
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WHEREAS, the Project has been found to be Categorically Exempt from the California
Environmental Quality Act (CEQA); and
WHEREAS, a Staff Report dated June 17, 2008, and incorporated herein by reference, described
and analyzed the proposed amendment to the Affordable Housing Agreement; and
WHEREAS, the City Council did use its independent judgment and considered all said reports,
recommendations and testimony.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does
hereby approve an amendment to the Affordable Housing Agreement for the First Phase (247 units) of
Positano to provide 4 additional secondary units affordable to very-low income households in-place of 4
single-family detached homes affordable to very-low income households as described in Exhibit A.
BE IT FURTHER RESOLVED that the City Manager is authorized and directed to execute the
amendment to the Affordable Housing Agreement included as Exhibit A.
BE IT FURTHER RESOLVED that the Community Development Director is authorized to
approve a Site Development Review Waiver in accordance with the Dublin Municipal Code to ensure
consistency between the approved Site Development Review and the amended Affordable Housing
Agreement.
PASSED, APPROVED AND ADOPTED this 17th day of June 2008, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
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AMENDMENT NO.1 TO AFFORDABLE HOUSING AGREEMENT
FOR THE CONSTRUCTION OF INCLUSIONARY UNITS AND PAYMENT OF FEES
IN LIEU OF CONSTRUCTING INCLUSIONARY HOUSING UNITS
Dublin RE Investors, a California limited liability company.
First Phase (247 Residential Lots) of the Fallon Village Project
THIS FIRST AMENDMENT TO AFFORDABLE HOUSING AGREEMENT is
hereby entered into this 17th day of June, 2008 by and between the City of Dublin ("the City")
and Dublin RE Investors, L.L.c., a Califomia limited liability company ("the Developer").
Recitals
1. City and Developer are parties to an Affordable Housing Agreement for the
Construction of Inclusionary Units and Payment of Fees In Lieu of Constructing Inclusionary
Housing Units, dated June 5, 2007 ("the Agreement"), which agreement sets forth an alternate
method of the Developer's compliance with the Inc1usionary Zoning Regulations contained in
Chapter 8.68 of the Dublin Municipal Code ("the Regulations") for the first 247 of the 1043
residential lots in the Project.
2. The Agreement refers to the initial 247 residential units in the Project as "the First
Phase," and provides that Developer will satisfy its 31-inclusionary unit obligation in the First
Phase (a) by constructing (i) 1.3 integrated inclusionary units (single-family homes) on 3,200
square foot lots, which would be affordable in perpetuity, rather than for 55 years as the
Regulations require ("the Integrated Units"), and (ii) 13 I-bedroom, secondary dwelling units,
which would be rental units and affordable in perpetuity, rather than for 55 years as the
Regulations require ("the Second Units"); (b) paying fees in lieu of construction for the
remaining 5 unit obligation, which Developer has previously satisfied by paying $447,060 to
City on January 30, 2008; (c) making a community benefit payment prior to issuance of each
building pennit equal to $958.77 (which amount is calculated based on the proposed $1,000,000
contribution divided by the 1,043 units proposed in the Project); (d) including rear yard
landscaping and energy efficiency measures to reduce the homeowners' cost of living in the 13
integrated inclusionary units; and (e) incorporating green building principles into the 26
inclusionary units.
3. The Regulations provide that 50% of the inclusionary units shall be allocated to
moderate-income households, 20% to low-income households, and 30% to very low-income
households, and, pursuant thereto, the 1.3 integrated units would be allocated as follows: 6
moderate-income units; 3 low-income units; and 4 very low-income units.
4. Because of concems about the difficulty that very low-income purchasers would have
in qualifying for financing and paying the high costs of owning single-family homes in the
Project (including homeowners' association dues, geologic hazard abatement district
assessments, landscaping and lighting assessments, landscape maintenance on the property,
utilities, and long tenn maintenance), Developer has proposed amending the Agreement to
Amendment No.1 Affordable Housing Agreement
First Phase of Positano Project
.June 17,2008
EXHIBIT A TO
ATTACHMENT I
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replace the 4 very low-income integrated incJusionary units with 4 very low-income secondary
units.
5. For the same reasons, the City is agreeable to the proposed amendment, and the City
Council hereby finds that the altemate method of complying with the Regulations for the 247-
unit First Phase of the Project meets the purposes of the Regulations.
NOW, THEREFORE, Developer and City for themselves and their respective
successors and assigns hereby agree as follows:
Section 1. Amendment of Section 7 of the Agreement. Section 7 of the Agreement is
amended to read as follows:
"7. Unit Bedrooms and Size. The size of the Inclusionary Units shall be
consistent with the Site Development Review approval of the Plmming Commission,
provided however, that minor changes to unit size may be approved by the Community
Development Director through a Site Development Review Waiver. The developer
proposes to provide:
A. 8 very low-income units (4 four bedroom Integrated Units and 4,a
I-bedroom Secondary Units);
B. 6 low-income units (3 four-bedroom Integrated Units, and 3 one-
bedroom Secondary Units); and
C. 12 moderate-income units (6 four-bedroom Integrated Units, and 6
one-bedroom Secondary Units).
The City hereby finds that, while this breakdown does not reflect the range of numbers of
bedrooms provided in the First Phase as a whole, as required by Section 8.68.030.E of the
Regulations, the Developer's altemate method of compliance meets the purposes of the
Regulations."
Section 2. Amendment of Exhibit 3 and Exhibit 4. Exhibit 3 and Exhibit 4 of the
Agreement are hereby replaced with Exhibit A and Exhibit B to this Agreement.
Section 3. All other provisions of the Agreement shall remain in effect.
[EXECUTION PAGE FOLLOWS}
Amendment No.1 Affordable Housing Agreement
First Phase of Positano Project
2 June 17,2008
5-Gb I t
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of
the date and year first above written.
CITY OF DUBLIN
Dated:
By:
Richard C. Ambrose, City Manager
Attest:
City Clerk
Dated: ~/;('JID B
DUBLIN RE INVESTORS, LLC
By: Braddock and Logan Services, Inc_
a California corporation
By: th~
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1103324.2
Amendment No. I Affordable Housing Agreement
First Phase of Posituno Project
3 .June 17, 2008
EXHIBIT A
Revised Exhibit 3 to the Agreement
["Diagram of Location of Inc1usionary Units in the First Phase ofthe Project"]
(PObl\
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LEGEND
[K] Moderate Income - 12 units
Plan 1 - Unit
Lots 8, 18,23,31,38 & 72
Plan 3 - Secondary Unit
Lots 16,20,30,33,35 & 64
(j) Low-Income - 6 units
Plan 1 - Unit
Lots 25, 57 & 62
Plan 3 - Secondary Unit
Lots 51, 60 & 67
ffi Very-Low Income - 8 units
# Plan 3 - Secondary Unit
Lots 26, 41,43,47,52, 54,59 & 69
(Positano
DUBLIN, CALIFORNIA
JII~ BRADDOCK & LOGAN SERVICES, INC.,
. . . 4155BLACKHAWKPLAZACIRCLE,SUITE201.
DANVILLE, CA 94506
TEL: (925) 736-4000 FAX: (925) 648-5701
... Homes with Below
Market Rate Secondary SITE
Units DEVELOPMENT
REVIEW
All lots without above
symbols are market-rate. INCLUSIONARY
# Lot Number HOUSING
* Resident Parking in EXHIBIT
Driveway for Affordable March 2007
Secondary Unit Rev. May 2008
lITI Plan and Elevation
42
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NOT APART
[ill 22
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DRIVE
*
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SHEET NUMBER
03
19319-0
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EXHIBIT B
Revised Exhibit to the Agreement
["Preliminary Construction Schedule"]
t1~ \ \
Positano First Phase Preliminary Construction Schedule
Moderate
Low
Ve Low Sub-Total BMR
o
o
o
o
Market
4
4
8
Total
4
4
8
PHASE ONE
Income Level Moderate Low Very Low Sub-Total BMR Market I Total
Market Rate - Neiabborllood A 1 3 1 3
Market Rate ~,Neidhborhood B 1 1 1 1
4 Bedroom ~ 1 1 0 2 2
1 2 4 7 7
I~ 2 3 4 9 24 33
Percantaae of Phase Units 6% 9% 1 2 % 27% 73% 1 00%
PHASE TWO
Income Level Moderate Low Very Low Sub-Total BMR Market Total
Market Rate - Neia.h~rhood A 1 4 1 4
Market Rate - Neibhborhood B 1 2 1 2
4 Bedroom BMR 3 1 0 4 4
Second~ . 2 0 3 5 5
Total. . . 5 1 3 9 26 35
Percantage of Phase Units 1 4% 3% 9% 26% 74% 1 00%
Moderate Low Ve Low Sub-Total BMR Market Total
16 16
12 12
2 1 0 3 3
3 1 1 5 5
5 2 1 8 28 36
14% 6% 3% 22% 78% 100%
PHASE FOUR
Ve Low Sub-Total BMR
PHASE FIVE
PHASE SIX
Moderate Low
Market
10
Total
10
PHASE SEVEN
Income Level
Market Rate - Nei
Low Ve Low Sub-Total BMR
Exhibit B
\ ot> I (
Ve Low Sub-Total BMR
Total
9
PHASE NINE
Low Ve Low Sub.Total BMR
PHASE TEN
Income Level Ve Low Sub-Total BMR Total
Market Rate - Nei 13
Low Ve Low Sub-Total BMR Market Total
8 8
PHASE TWELVE
Income Level . .
Market Rate - Nei hborhood B
Ve Low Sub-Total BMR
PHASE THIRTEEN
Income Level
Market Rate.. Nei hborhood B
Market
11
Total
11
PHASE FOURTEEN
Income Level Moderate
Market Rate - Nei hborhoodB
Market
12
Total
12
UN LOTS
Moderate
.. . "
I lOb II
--1
BRADDOCK & LOGAN SERVICES, INC.
BUILDERS - DEVELOPERS
ESTABLISHED 1947
P. O. BOX 5300
DANVILLE, CALIFORNIA 94526-1076
TELEPHONE (925) 736-4000
FACSIMILE (925) 648-5700
Jll~
May 22, 2008
RECEIVEr
f1AY 2 3 ZOOB
DUBLIN PLANNING
Federal Exoress
J eri Ram
Community Development Director
City of Dublin
100 Civic Plaza
Dublin, CA 94568
Re: Modification to Affordables for Positano
Dear J eri:
Please accept this letter from Braddock & Logan requesting to modify the
existing Affordable Housing Agreement. The modification to the agreement would
result in eliminating four (4) of the Very Low Single Family Detached Units and
provide four (4) additional Secondary Units. The project would still provide for 26
Affordable Units on site.
This request comes as market conditions have significantly changed. In
addition, costs such as HOA dues, Geologic Hazard Abatement District fees, Landscape
Maintenance District fees, and overall homeowner expenses do not make it feasible for
Very Low Single Family Detached homes to be marketable. For these reasons the
Secondary Units make more since.
Please call me with any questions you may have concerning the above.
Also, please find enclosed the revised exhibits for your review.
Sincerely,
911 l6.-~/ r--
Jeff Lawrence
Vice President
JL/n
Enclosures
ATTACHMENT 2