HomeMy WebLinkAbout1742 - RECOMMEND APPROVAL OF THE NNCPC AHIPRESOLUTION NO. 1742
A RESOLUTION OF THE PLANNING COMMISSION OF
THE CITY OF NEWPORT BEACH RECOMMENDING
APPROVAL OF THE NORTH NEWPORT CENTER
PLANNED COMMUNITY AFFORDABLE HOUSING
IMPLEMENTATION PLAN
WHEREAS, The Irvine Company has applied to the City of Newport Beach for
the Zoning Amendment specified in the North Newport Center Planned Community
Development Plan to allow future development in North Newport Center, which consists
of parts of Newport Center Block 500, Newport Center Block 600, parts of San Joaquin
Plaza, and Fashion Island ( "Property ").
WHEREAS, as part of its application, The Irvine Company requests approval of
the Development Agreement entitled Zoning Implementation and Public Benefit
Agreement Between the City of Newport Beach and The Irvine Company LLC
Concerning North Newport Center (Fashion Island, Block 500, Block 600, and San
Joaquin Plaza).
WHEREAS, as part of its application, The Irvine Company also requests
approval of the North Newport Planned Community Affordable Housing Implementation
Plan ( "AHIP ").
WHEREAS, the North Newport Center Planned Community 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 2.2.4.
WHEREAS, the Planning Commission held a public hearing on November 15
and November 29, 2007, in the City Hall Council Chambers, 3300 Newport Boulevard,
Newport Beach, California, at which time the Planning Commission considered the
North Newport Center Planned Community 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, meeting, including the evidence and arguments submitted by the City staff,
The Irvine Company, and all interested parties.
WHEREAS, the Planning Commission has reviewed and considered the
information in the North Newport Center Planned Community AHIP and in the full
administrative record, before taking any action recommending approval of the North
Newport Center Planned Community AHIP.
WHEREAS, the Planning Commission finds that:
The North Newport Center Planned Community AHIP satisfies any
obligation of The Irvine Company to the City under General Plan Housing
SD \609132.1
Policies H2.1 and H2.2 and General Plan Housing Programs 2.1.2, 2.2.1,
and 2.2.4 with respect to the development of the Property pursuant to and
during the term of the Development Agreement.
NOW THEREFORE BE IT RESOLVED, that:
(1) The Planning Commission recommend approval of the North Newport
Center Planned Community AHIP.
(2) The North Newport Center Planned Community AHIP shall not go into
effect until the City Council approves or adopts all of the following: (1) the
North Newport Center Planned Community Development Plan; (2) the
Block 500 Planned Community District Regulations; (3) the San Joaquin
Plaza Planned Community District Regulations; (4) the Development
Agreement entitled Zoning Implementation and Public Benefit Agreement
Between the City of Newport Beach and The Irvine Company LLC
Conceming North Newport Center (Fashion Island, Block 500, Block 600,
and San Joaquin Plaza); (5) the North Newport Center transfer of
development rights; and (6) Traffic Study No. TS2007 -001.
PASSED, APPROVED AND ADOPTED THIS 29TH DAY OF NOVEMBER 2007.
AYES: Peotter, Hawkins, Cole and Hillpren
NOES: Eaton and McDaniel
ABSENT: Toerge
BY
.l
...
SD \609132.1
North Newport Center Planned Community
Affordable Housing Implementation Plan
(To be attached upon recommendation of approval)
SD \609132.1
NORTH NEWPORT CENTER
PLANNED COMMUNITY
AFFORDABLE HOUSING
IMPLEMENTATION PLAN
Prepared For:
The City of Newport Beach
November 2007
Contents
I.
Introduction .................................................................................................... ..............................1
Background.................................................................................................... ............................... I
II.
Affordable Housing Plan ................................................................................ ..............................3
ProposedPlan ................................................................................................. ..............................3
Number of Affordable Units /Income Levels .................................................. ..............................6
Implementation.............................................................................................. ............................... 6
Conclusion..................................................................................................... ............................... 6
III.
Consistency with Housing Element ................................................................ ..............................7
IV.
Amendments to the AHIP ............................................................................... ..............................8
V.
Authority ......................................................................................................... ..............................8
Figures
Exhibit 1 - North Newport Center Planned Community .......................................... ..............................2
Exhibit 2 - Child Time Center and The Bays Apartment Complex Locat ions ........ ..............................5
North Newport Center Planned Community i
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 four
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 which 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 430 residential units in these blocks, and affordable housing units must be provided
in accordance with 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 (SLAG) 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 SLAG RJINA identifies the City allocation as
follows:
• Total allocation between 1/1/06 and 6/30/14— 1,784
• Very low income allocation — 22% (392 traits)
• Low income allocation — 18% (321 units)
• Moderate income allocation — 20.3% (362 units)
North Newport Center Planned Community
Affordable Housing Implementation Plan
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Plaza SMTACR ZM
Block
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Planned Community
Exhibit 1 - North Newport Center Planned Community
North Newport Center Planned Community 2
Affordable Housing Implementation Plan
II. Affordable Housing Plan
6
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 options. Locations of the sites are included on Exhibit 2.
A. New Construction
The Irvine Company is the owner of a 0.75 -acre parcel of land located at the former Child Time
Center near the intersection of San Joaquin Hills Road and San Miguel Avenue. The site is
designated in the Newport Beach General Plan for Multiple Residential with a density of 10 units.
With a density bonus for affordable housing, the site could accommodate 14 multi - family units. The
Irvine Company may construct 14 housing units on this site to be offered for sale or for rent. If this
option is selected, The Irvine Company will record a legal deed restriction on the property which
insures the units will meet the affordability requirements for a period of at least 30 years.
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 amount of Very Low, Low or Moderate Income. The sales price of affordable
for sale units shall not exceed three times the income limits.
The restriction on these units, tenant selection procedures, monitoring, etc. 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.
B. 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 3
Affordable Housing Implementation Plan
The restriction on these units, tenant selection procedures, monitoring, etc. 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).
North Newport Center Planned Community 4
Affordable Housing Implementation Plan
Harbor Mow
4Yt
x if
Y,
Fashion Island
j'-%j The Bays Apartment Complex
Child Time Center
Exhibit 2 - Child Time Center and The Bays Apartment Complex Locations
North Newport Center Planned Community 5
Affordable Housing Implementation Plan
Number of Affordable Units /Income Levels
The requirement for affordable housing shall be based on income categories. The Irvine Company
will provide either very low, low or moderate income housing, or a combination of income
categories, using the percentages shown in the table below.
INCOME CATEGORY
PERCENTAGE REQURED
TOTAL AMOUNT
Very Low
10%
43 units
Low
15%
65 units
Moderate
20%
86 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 100th market rate unit / one -third of required units
• Certificate of use and occupancy for 200th 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 any
units constructed on the Child Time site and 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 6
Affordable Housing Implementation Plan
III. 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 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 H2.1 Encourage preservation of existing and provision of new housing affordable to 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
five years.
Program
2.2.1 Require a proportion of affordable housing in new residential developments or leery
an in -lieu fee. The City's goal over the jive -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 -lien fee, or
(b) require the preparation of an Affordable Housing Implementation Plan (AHIP)
that specifies 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 of preparing an AHIP or paving
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 confunction with City approval of any
residential discretionary permits or Tentative Tract Maps. To insure compliance with
the 15 percent afordability requirements, the City will include conditions in the
approval of discretionary permits and Tentative Tract .Leaps to require on -going
monitoring of those projects.
Program
2.2.4 All required of
fordable units shall have restrictions to maintain their afordability for
a minimum of 30 years.
As described in Section II, 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
North Newport Center Planned Community
Affordable Housing Implementation Plan
remain affordable for a period of 30 years. In addition, the developer will provide periodic reports in
the form required by the City. The provision of the affordable housing units will assist the City in
meeting the RHNA construction goals.
In conclusion, the AHIP is consistent with the relevant goals and programs in the City's 2006
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. on the
day of , 200.
North Newport Center Planned Community 8
Affordable Housing Implementation Plan