HomeMy WebLinkAbout2012-65 - North Newport Center - Amended Affordable Housing Implementation PlanRESOLUTION NO. 2012 -65
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT
BEACH APPROVING THE AMENDMENT TO THE NORTH NEWPORT
CENTER PLANNED COMMUNITY AFFORDABLE HOUSING
IMPLEMENTATION PLAN
WHEREAS, the Irvine Company has applied to the City of Newport Beach an
amendment to the North Newport Center Planned Community (NNCPC) Development
Plan to allow future development in NNCPC, which consists of seven sub -areas that
include Fashion Island, Block 600, Block 800 and portions of Blocks 100, 400, Block
500, and San Joaquin Plaza ('Property ").
WHEREAS, as part of its application, the Irvine Company requests approval of
an amendment to Development Agreement No. DA2007 -002, entitled Amendment to
Zoning Implementation and Public Benefit Agreement Between City of Newport Beach
and the Irvine Company LLC Concerning Addition of Properties and Residential Units to
Zoning Implementation and Public Benefit Agreement (Portions of Newport Center
Blocks 100, 400 and 800 and San Joaquin Plaza).
WHEREAS, as part of its application, the Irvine Company also requests approval
of an amendment to the NNCPC Affordable Housing Implementation Plan ( "AHIP ").
WHEREAS, the amendment to the NNCPC AHIP was prepared in accordance
with General Plan Housing Policies H2.1 and H2.2 and General Plan Housing Programs
2.1.2, 2.2.1,and 2.2.6.
WHEREAS, the Planning Commission held a public hearing on July 5, 2012, in
the City Hall Council Chambers, 3300 Newport Boulevard, Newport Beach, California,
at which time the Planning Commission considered all project - related applications,
including the amendment to the NNCPC AHIP. A notice of time, place, and purpose of
the meeting was duly given in accordance with the Municipal Code. Evidence, both
written and oral, was presented to and considered by the Planning Commission at this
meeting. At the conclusion of the hearing and after considering the evidence and
arguments submitted by the City staff, the Irvine Company, and all interested parties,
the Planning Commission adopted a resolution recommending approval of the
amendment to the NNCPC AHIP by majority vote.
WHEREAS, the City Council held a public hearing on July 24, 2012, in the City
Hall Council Chambers, 3300 Newport Boulevard, Newport Beach, California, at which
time the City Council considered all project - related applications, including the
amendment to the NNCPC AHIP. A notice of time, place, and purpose of the meeting
was duly given in accordance with the Municipal Code. Evidence, both written and oral,
was presented to and considered by the City Council at this meeting, including the
evidence and arguments submitted by the City staff, the Irvine Company, and all
interested parties.
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WHEREAS, the City Council has reviewed and considered the information in the
amendment to the NNCPC AHIP and in the full administrative record, before taking any
action approving the amendment to the NNCPC AHIP.
WHEREAS, the City Council finds that:
The amendment to the NNCPC AHIP satisfies any obligation of the Irvine
Company to the City under General Plan Housing Policies H2.1 and H2.2
and General Plan Housing Programs 2.1.2, 2.2.1, and 2.2.6 with respect
to the development of the Property pursuant to and during the term of the
amendment to Development Agreement No. DA2007 -002.
NOW, THEREFORE, BE IT RESOLVED:
1. The City Council of the City of Newport Beach does hereby approve the
amendment to the North Newport Center Planned Community Affordable
Housing Implementation Plan, attached as Exhibit "A ".
2. This Resolution shall not go into effect until the City Council approves or adopts
all of the following: (1) Planned Community Development Amendment No.
PD2012 -001; (2) the amendment to Development Agreement No. DA2007 -002,
entitled Amendment to Zoning Implementation and Public Benefit Agreement
Between City of Newport Beach and the Irvine Company LLC Concerning
Addition of Properties and Residential Units to Zoning Implementation and Public
Benefit Agreement (Portions of Newport Center Blocks 100, 400 and 800 and
San Joaquin Plaza); and (3) Transfer of Development Intensity No. TD2012 -002.
3. This approval was based on the particulars of the individual case and does not in
and of itself or in combination with other approvals in the vicinity or Citywide
constitute a precedent for future approvals or decisions.
4. This resolution was approved. Passed and adopted at a regular meeting of the
City Council of the City of Newport Be d- on-the'24t' day of July, 2012.
MAYOR
Exhibit "A"
North Newport Center Planned Community
Amended Affordable Housing Implementation Plan
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NORTH NEWPORT CENTER
PLANNED COMMUNITY
AFFORDABLE HOUSING
IMPLEMENTATION PLAN
Prepared For:
The City of Newport Beach
June 2012
Contents
1. Introduction
II. Affordable Housing Plan
1
1
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ProposedPlan ................................................................................................. ..............................3
Number of Affordable Units /Income Levels .................................................. ..............................5
Implementation.............................................................................................. ............................... 5
Conclusion..................................................................................................... ............................... 5
III. Consistency with Housing Element ................................................................ ..............................6
IV. Amendments to the AHIP ............................................................................... ..............................7
V. Authority ......................................................................................................... ..............................7
Figures
Exhibit I - North Newport Center Planned Community .......................................... ..............................2
Exhibit 2 - The Bays Apartment Complex Locations .............................................. ..............................4
North Newport Center Planned Community
Affordable Housing Implementation Plan
I. Introduction
The North Newport Center Planned Community (Planned Community) approval by the City of
Newport Beach includes a Planned Community Development Plan that implements the goals and
policies of the City's General Plan. The Planned Community, as shown on Exhibit 1, consists of
seven sub -areas within North Newport Center, a regional center comprised of major retail,
professional office, entertainment, recreation, hotel, and residential development.
Block 500, Block 600, and San Joaquin Plaza are designated in the General Plan as MU -H3, a
designation that allows for a mixed -use area combining commercial, office, entertainment, and
residential uses. The Planned Community Development Plan for North Newport Center allows
construction of 524 residential units in these blocks, and affordable housing units must be provided
in accordance with the City Housing Element. This Affordable Housing Implementation Plan (AHIP)
outlines how the required affordable housing will be provided.
Background
The City's Housing Element includes a goal that 15% of all new housing units in the City be
affordable to very low, low, and moderate income households. The Housing Element identifies
moderate income households as those with annual incomes between 80% and 120% of the county
median household income. Low income households are those with annual incomes between 51% and
80% of the county median household income. Very low income households are those with annual
incomes of 50% or less of the County median household income. Projects with more than 50 units
are required to prepare an AHIP that specifies how the development will meet the City's affordable
housing goal.
The Southern California Association of Governments (SCAG) prepares the state - mandated Regional
Housing Needs Assessment (RHNA). The RHNA quantifies the need for housing within each
jurisdiction during specified planning periods. The City's General Plan Housing Element must
include its "fair share" regional housing needs allocation for all income groups which must be
updated periodically. The most recently published SCAG RHNA identifies the City allocation as
follows:
• Total allocation between 1/1/06 and 6/30/14 -1,769
• Very low income allocation — 22% (389 units)
• Low income allocation — 18% (319 units)
• Moderate income allocation — 20% (359 units)
North Newport Center Planned Community
Affordable Housing Implementation Plan
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Exhibit 1 - North Newport Center Planned Community
North Newport Center Planned Community
Affordable Housing Implementation Plan
II. Affordable Housing Plan
Proposed Plan
The City's General Plan Housing Element allows for sale or for rent options in order to meet the
obligation for affordable housing units. In addition, affordable housing may be provided off -site,
with City approval. Consistent with these Housing Element provisions, this Affordable Housing
Implementation Plan includes the following plan. The location of the site is included on Exhibit 2.
A. Covenants on Existing Units
The Irvine Company owns The Bays, an apartment complex consisting of three buildings known as
Baywood, Bayview, and Bayport, which is shown on Exhibit 2. The total number of units in The
Bays is 556. Forty -six units in Baywood are restricted as low- income units through 2011.
The Irvine Company will restrict tenant incomes and rental costs for housing units located in The
Bays complex for a period of 30 years with a recorded document. The number of restricted units will
be sufficient to provide the number of affordable units described later in this AHIP, depending on the
income level to be served. The Irvine Company will identify which apartments are proposed to meet
the affordable housing obligation, and will not use units that are under any other affordable housing
covenant at the time they are proposed to meet the obligation for North Newport Center. The City
will inspect the apartments designated to meet the affordable housing requirement to ensure
compliance with relevant codes, proper maintenance, and adequate common areas. The Irvine
Company will agree to make improvements, if necessary, to ensure viable housing for the 30 year
period.
The units must be rented to households qualifying as very low, low, or moderate income households.
The annualized rents chargeable for occupancy of the Affordable Units shall not exceed thirty
percent (30 %) of the Very Low, Low or Moderate Income limits.
North Newport Center Planned Community
Affordable Housing Implementation Plan
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The Bays Apartment Complex
Exhibit 2 - The Bays Apartment Complex Locations
North Newport Center Planned Community 4
Affordable Housing Implementation Plan
The restriction on these units — for example, tenant selection procedures, monitoring — will be
included in an affordable housing agreement, which shall be submitted for review and approval by
the City Attorney and recorded against the property(ies).
B. Concentration of Units
Affordable units shall not be concentrated in any one building in The Bays.
Number of Affordable Units /Income Levels
The requirement for affordable housing shall be based on income categories. The Irvine Company
will provide very low, low, or moderate income housing, or a combination of income categories,
using the percentages shown in the table below.
Income Category
Percentage Required
Total Amount
Very Low
10%
52 units
Low
15%
79 units
Moderate
20%
105 units
Implementation
The affordable housing units required under this AHIP will be provided incrementally. The
affordable units shall be phased as follows:
• Certificate of use and occupancy for 100`h market rate unit / one -third of required units
• Certificate of use and occupancy for 200`s market rate unit / one -third of required units
• Certificate of use and occupancy for 300`h market rate unit / one -third of required units
Affordable housing agreements shall be executed and recorded at each phase identified above for
designated affordable units in The Bays apartment complex prior to the point where a certificate of
use and occupancy is issued for the related market rate units.
Conclusion
Implementation of this AHIP will result in the availability of affordable housing units as identified
above within the City of Newport Beach in accordance with the City's Housing Element.
North Newport Center Planned Community 5
Affordable Housing Implementation Plan
M. Consistency with Housing Element
The City of Newport Beach adopted a General Plan in 2006. A Housing Element was included in the
General Plan in accordance with State law. The Housing Element was updated in 2011. The Housing
Element identifies goals and programs for the provision of affordable housing in the City. The AHIP
is intended to meet the specific goals of the Housing Element as follows:
Policy 112.1 Encourage preservation of existing and provision of new housing affordable to
extremely low, very low, low and moderate income households.
Program
2.1.2 Take all feasible actions, through use of development agreements, expedited
development review and expedited processing of grading, building and other
development permits, to ensure expedient construction and occupancy for projects
approved with low and moderate income housing requirements.
The AHIP supports the City's requirement for the provision of affordable housing for all new
development with more than 50 residential units. The Irvine Company has prepared a Development
Agreement in accordance with this Policy /Program.
Policy H2.2 Encourage the housing development industry to respond to housing needs of the
community and to the demand for housing as perceived by the industry, with the
intent of achieving the Regional Housing Needs Assessment construction goals within
six years.
Program
2.2.1 Require a proportion of affordable housing in new residential developments or levy
an in -lieu fee. The City's goal over the five year planning period is for an average of
15 percent of all new housing units to be affordable to very low, low and moderate -
income households. The City shall either (a) require the payment of an in -lieu fee, or
(b) require the preparation of an Affordable Housing Implementation Plan (AHIP)
that species how the development will meet the City's affordable housing goal,
depending on the following criteria for project size:
1. Projects of 50 or fewer units shall have the option ofpreparing an AHIP or paying
the in -lieu fee.
2. Projects where more than 50 units are proposed shall be required to prepare an
AHIP.
Implementation of this program will occur in conjunction with City approval of any
residential Tentative Tract Maps. To insure compliance with the 15 percent
affordability requirements, the City will include conditions in the approval of
Tentative Tract Maps to require on -going monitoring of those projects.
Program
2.2.6 All required affordable units shall have restrictions to maintain their affordability for
a minimum of 30 years.
As described in Section 11, the affordable housing provided per the AHIP will meet the Housing
Element requirement for the total affordable units required. The units will be deed restricted to
remain affordable for a period of 30 years. In addition, the developer will provide periodic reports in
North Newport Center Planned Community 6
Affordable Housing Implementation Plan
the form required by the City. The provision of the affordable housing units will assist the City in
meeting the RHNA construction goals.
hi conclusion, the AHIP is consistent with the relevant goals and programs in the City's 2011
General Plan Housing Element.
IV. Amendments to the AHIP
This AHIP may be amended with the approval of the City Council. No modification of the General
Plan requirement for affordable units is allowed, unless the requirement is reduced through an
amendment to the General Plan prior to implementation of development.
V. Authority
The AHIP has been adopted by the City of Newport Beach per Resolution No. 2012 -_ on the
day of , 2012.
North Newport Center Planned Community 7
Affordable Housing Implementation Plan
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; that the foregoing resolution, being Resolution
No. 2012 -65 was duly and regularly introduced before and adopted by the City Council of said City at a
regular meeting of said Council, duly and regularly held on the 24th ay of July, 2012, and that the same
was so passed and adopted by the following vote, to wit:
Ayes: Hill, Rosansky, Curry, Selich, Henn; Daigle, Mayor Gardner
Noes: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 25" day of July, 2012.
City Clerk
Newport Beach, California
(Seal)