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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. SD \847835.1 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 SD \847835.1 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 c 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 0 San Jna9uln a Plava HV /d C4V2 DIf /a I� Im �� Q Blocx soo �l aoo - 1•nAHOSnnH raselon island Bm�x j Raglonal Center soo Q \\ O Bind 11 a aoo ¢ eP O ty� S92 N V !look w 5C ,Q 1-C p 0 Co11 T lygy � FP a North Newport Center Planned `� Community \w/ 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 -Si K z .rw Y�iii i Harbor View D X47 Fashion Island I 611711 C °c 5 xT � S" C rn.*si "c is 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)