2022-03-22; City Council; ; Amendments to City Council Inclusionary Housing Policies and the City's Inclusionary Housing In-Lieu Fee (MCA2022-0002/PUB2022-0004) — Carlsbad City Council, March 22, 2022 (part 2 of 2)

a)
ri
WORKSHEET 10

SURVEY OF COMPARABLE LAND SALES - VILLAGE, BARRIO, AND ADJACENT AREAS

INCLUSIONARY HOUSING IN-LIEU FEE UPDATE

CITY OF CARLSBAD

RESIDENTIAL LAND SALES

VILLAGE, BARRIO, AND ADJACENT AREAS

Units/

Land Area Residential Units

Acres S/SF Units l$L1I_Iit N.) Sale Date Property Address Acre Sale Price Proposed Use Buyer N)

02/25/19 2501 State St 42.5 $5,250,000 0.40 $301 17 $308,824 Residential condominiums Ronald Ramos

09/05/17 725 Grand Ave

$3,400,000 0.33 $239 N/A N/A Mixed-use with apartments and ground-floor retail Rincon Real Estate Group

09/04/15 300 Christiansen Way

$3,000,000 0.29 $237 N/A N/A Unknown mixed-use development Christopher Kevin Boyle

08/15/18 2646 State St

$2,500,000 0.25 $230 N/A N/A Multi-family residential units Tao Yu

05/17/18 3068-3080 State St 65.2 $3,300,000 0.41 $183 27 $122,222 Multi-family residential units Del Mar Alliance

01/22/20 570-580 Laguna Dr 17.4 $5,000,000 0.75 $154 13 $384,615 Townhomes Brett Farrow

04/30/18 800 Grand

$9,250,000 0.41 $152 38 $243,421 Condominium, Townhomes, Single-family detached

12/07/16 Madison St & Oak Ave 31.1 $950,000 0.19 $113 6 $158,333 Mixed-use development with multi-family units

04/19/18 2690 Roosevelt St 23.6 $1,975,000 0.42 $107 10 $197,500 Residential condominiums Kitchell Corporation

04/02/18 Roosevelt St 34.0 $3,000,000 0.47 $97 16 $187,500 Townhomes Scott Lissoy

09/12/18 1044 Carlsbad Village Dr

$3,730,000 1.38 $62 N/A N/A Mixed-use with apartments and ground-floor retail Wermers Companies

09/12/18 1048 Carlsbad Village Dr

$1,575,000 0.59 $61 N/A N/A Mixed-use with apartments and ground-floor retail R&V Management

Minimum 17.4 $950,000 0.19 $61 6 $122,222

Maximum 65.2 $9,250,000 1.38 $301 38 $384,615

Median 32.6 $3,150,000 0.41 $153 16 $197,500

Average 35.7 $3,577,500 0.49 $161 18 $228,917

ro
3 -0
CD
0 —h
00 (1) Survey reflects land sales in the Village, Barrio, and adjacent areas since January 1, 2015.

Source: costar Group, Inc.

Prepared by: Keyser Marston Associates, Inc.

Filename: Carlsbad_Market Data v2_12-04-2020.02-1-2021\4/12/2021; ems

Page 110 ends

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NJ
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NJ
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(7, 3
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18T Jo 09T aed

SINGLE-FAMILY HOME SALES
WORKSHEET 11 CITYWIDE
SINGLE-FAMILY RESIDENTIAL HOME SALES - CITYWIDE Is)

INCLUSIONARY HOUSING IN-LIEU FEE UPDATE
a) CITY OF CARLSBAD
Date Address

gip Sales Price Lot Size
Unit Description
$/SF HOA
Year
Built
Product
Type Community Bed Bath SF
10/13/20 6460 Goldenbush Carlsbad 92011 $985,000

3 2 1,771 SF $556 $104 2001 Single-Family

10/09/20 3820 Skyline Roade Carlsbad 92008 $1,775,000 19,583 SF 5 3 3,376 SF $526 $0 2000 Single-Family

08/07/20 7427 Calle Nerja Carlsbad 92009 $1,165,000 3,986 SF 4 3 2,253 SF $517 $241 2015 Single-Family Montecina 06/28/19 7024 Corintia Street Carlsbad 92009 $1,450,000 10,647 SF 3 4 2,844 SF $510 $0 2007 Single-Family

10/08/20 8058 Sitio Toledo Carlsbad 92009 $1,812,500

4 4 3,577 SF $507 $142 2003 Single-Family Tiburon
09/29/20 2558 Town Garden Road Carlsbad 92009 $1,285,000 6,992 SF 4 3 2,544 SF $505 $275 2005 Single-Family Bressi Ranch 10/08/20 6603 Daylily Drive Carlsbad 92011 $790,000 2,085 SF 4 3 1,645 SF $480 $280 2001 Single-Family Cherry Tree Walk 10/16/20 7872 Via Teca Carlsbad 92009 $1,380,000

4 4 2,915 SF $473 $125 2001 Single-Family La Costa Valley 06/28/20 2336 Summerwind Place Carlsbad 92008 $1,170,000 13,487 SF 4 3 2,520 SF $464 $147 2000 Single-Family Hidden Ridge 10/29/18 7943 Sitio Baniano Carlsbad 92009 $1,200,000 8,279 SF 4 3 2,602 SF $461 $120 2001 Single-Family La Costa Valley 10/07/20 7548 Sitio Conejo Carlsbad 92009 $1,785,000

4 5 3,905 SF $457 $233 2015 Single-Family La Costa
09/25/20 2976 Avenida Ciruela Carlsbad 92009 $1,180,000

4 3 2,602 SF $453 $125 2001 Single-Family La Costa Valley 10/14/20 6419 Calmeria Place Carlsbad 92011 $1,290,000 6,634 SF 4 4 2,891 SF $446 $105 2002 Single-Family Shorepointe 07/30/20 1383 Sapphire Drive Carlsbad 92011 $1,710,000 10,654 SF 5 5 3,833 SF $446 $282 2010 Single-Family

10/07/20 6694 Encelia Place Carlsbad 92011 $910,000

3 3 2,048 SF $444 $439 2020 Single-Family Treviso
03/24/20 7037 Crystalline Drive Carlsbad 92011 $1,260,000 6,304 SF 4 4 2,840 SF $444 $189 2005 Single-Family The Bay Collection 07/12/19 7050 Rose Drive Carlsbad 92011 $1,300,000 11,285 SF 4 4 3,010 SF $432 $189 2006 Single-Family The Bay Collection 10/05/20 6389 Paseo Descanso Carlsbad 92009 $1,330,000 14,576 SF 5 4 3,102 SF $429 $107 2002 Single-Family Rancho Carrillo 09/24/20 641 Sand Shell Avenue Carlsbad 92011 $1,275,000

4 3 3,000 SF $425 $210 2003 Single-Family Waters End
10/20/20 1611 Oak Avenue Carlsbad 92008 $1,849,000

6 4 4,356 SF $424 $0 2016 Single-Family

09/25/20 7120 Sitio Caliente Carlsbad 92009 $1,325,000 7,207 SF 5 4 3,139 SF $422 $241 2013 Single-Family La Costa Oaks 09/18/20 8049 Corte Sasafras Carlsbad 92009 $1,410,000 9,033 SF 4 4 3,344 SF $422 $120 2000 Single-Family La Costa Valley 10/13/20 7057 Marsh Wren Street Carlsbad 92011 $1,390,000

5 5 3,300 SF $421 $189 2005 Single-Family The Bay Collection 07/13/20 6921 Sitio Cordero Carlsbad 92009 $2,000,000 18,527 SF 6 5 4,757 SF $420 $237 2007 Single-Family La Costa Ridge 07/07/20 3526 Rock Ridge Road Carlsbad 92010 $850,000 5,377 SF 4 3 2,031 SF $419 $155 2005 Single-Family

07/18/19 6788 Estrella De Mar Road Carlsbad 92009 $1,145,000 7,204 SF 4 4 2,742 SF $418 $219 2008 Single-Family La Costa Greens 05/12/20 6949 Waters End Drive Carlsbad 92011 $1,261,000 4,127 SF 4 3 3,036 SF $415 $210 2005 Single-Family Waters End 09/15/20 7883 Sitio Abeto Carlsbad 92009 $1,385,000 11,326 SF 5 4 3,359 SF $412 $120 2002 Single-Family La Costa Valley 12/18/18 3577 Bluff Courty Carlsbad 92010 $805,000 5,427 SF 3 3 1,957 SF $411 $89 2002 Single-Family Calavera Hills 09/25/20 3746 Glen Avenue Carlsbad 92010 $1,120,000 5,372 SF 5 3 2,730 SF $410 $188 2012 Single-Family Foothills 08/27/20 7879 Sitio Olmo Carlsbad 92009 $1,440,000 10,395 SF 6 5 3,590 SF $401 $125 2002 Single-Family La Costa Valley 07/06/20 3515 Camino Cereza Carlsbad 92009 $1,248,000 6,231 SF 3 3 3,132 SF $398 $241 2005 Single-Family La Costa Oaks 09/24/20 7169 Sitio Corazon Carlsbad 92009 $1,410,000 8,879 SF 5 5 3,563 SF $396 $241 2011 Single-Family La Costa Oaks 10/09/20 7030 Heron Circle Carlsbad 92011 $1,580,000 12,683 SF 5 5 4,039 SF $391 $189 2006 Single-Family The Bay Collection 06/15/20 3449 Trailblazer Way Carlsbad 92010 $1,180,000 5,000 SF 4 5 3,051 SF $387 $267 2016 Single-Family Robertson Ranch 05/26/20 3533 Cay Drive Carlsbad 92010 $745,875 4,834 SF 4 3 1,957 SF $381 $89 2001 Single-Family Calavera Hills 10/16/20 1562 Maritime Drive Carlsbad 92011 $1,275,000 9,728 SF 4 3 3,347 SF $381 $100 2000 Single-Family Cantamar 06/18/20 7043 Heron Circle Carlsbad 92011 $1,600,000 15,486 SF 5 5 4,203 SF $381 $189 2005 Single-Family The Bay Collection 09/18/20 6197 Paseo Privade Carlsbad 92009 $1,000,000 9,127 SF 3 3 2,641 SF $379 $107 2002 Single-Family

03/23/20 3534 Harwich Drive Carlsbad 92010 $815,000 4,609 SF 4 3 2,160 SF $377 $95 2001 Single-Family Calavera Hills 04/23/20 3040 Marron Road Carlsbad 92010 $940,000 4,247 SF 3 4 2,511 SF $374 $235 2018 Single-Family The Preserves Prepared by: Keyser Marston Associates, Inc.

Filename i:\Carlsbad_Market Data v2_12-04-2020.02-1-2021;4/12/2021;lag

Page 111 ends

SINGLE-FAMILY HOME SALES
WORKSHEET 11 CITYWIDE

SINGLE-FAMILY RESIDENTIAL HOME SALES - CITYWIDE

EINCLUSIONARY HOUSING IN-LIEU FEE UPDATE
ai CITY OF CARLSBAD
NJ
.1•.)

Unit Description

Year Product

NJ Date Address City gp Sales Price Lot Size Bed Bath SF SiSF HOA Built Type Community 0 N.) 09/25/20 6774 Obsidian Place Carlsbad 92009 $1,550,000

5 5 4,193 SF $370 $219 2005 Single-Family La Costa Greens

06/28/19 1379 Cynthia Lane Carlsbad 92008 $1,085,000 7,988 SF 5 3 2,956 SF $367 $0 2004 Single-Family

01/21/20 1850 Tule Court Carlsbad 92011 $1,295,000 9,000 SF 4 3 3,559 SF $364 $0 2008 Single-Family

05/23/19 6257 Arbor Rose Drive Carlsbad 92009 $1,235,000 6,240 SF 4 4 3,397 SF $364 $265 2006 Single-Family Bressi Ranch

09/24/20 7409 Circulo Sequoia Carlsbad 92009 $1,475,000

5 5 4,094 SF $360 $241 2004 Single-Family La Costa Oaks

10/02/20 7151 Latitude Lane Carlsbad 92011 $3,500,000 50,094 SF 8 10 9,728 SF $360 $128 2007 Single-Family

09/25/20 3825 Shale Court Carlsbad 92010 $975,000 7,187 SF 4 3 2,726 SF $358 $95 2001 Single-Family

10/02/20 5456 58 Reef Circle Carlsbad 92008 $1,490,000 9,390 SF 5 5 4,181 SF $356 $165 2015 Single-Family

04/30/19 3423 Corte Panorama Carlsbad 92009 $1,025,000 5,473 SF 5 4 2,889 SF $355 $233 2011 Single-Family La Costa Oaks

10/19/20 4658 Meadow Drive Carlsbad 92010 $990,000 5,830 SF 4 4 2,804 SF $353 $140 2005 Single-Family Calavera Hills

10/08/20 3471 Pleasant Vale Drive Carlsbad 92010 $951,500 6,913 SF 5 3 2,705 SF $352 $142 2006 Single-Family Calavera Hills

07/13/20 6862 Citrine Drive Carlsbad 92009 $1,725,000 15,155 SF 5 5 4,913 SF $351 $273 2005 Single-Family La Costa Greens

11/08/19 5138 Delaney Court Carlsbad 92008 $995,000 6,658 SF 4 3 2,856 SF $348 $130 2003 Single-Family Heron Bay

09/17/20 7195 Sitio Cabellero Carlsbad 92009 $1,425,000 8,806 SF 4 4 4,100 SF $348 $237 2008 Single-Family La Costa Ridge

09/30/20 2859 Rancho Dia monte Carlsbad 92009 $1,350,000 9,318 SF 5 5 3,891 SF $347 $177 2002 Single-Family Rancho Carrillo

09/18/20 3764 Cavern Place Carlsbad 92010 $1,105,000 8,006 SF 6 4 3,190 SF $346 $92 2001 Single-Family

09/21/20 2907 Platinum Place Carlsbad 92009 $820,000

5 3 2,371 SF $346 $195 2002 Single-Family The Regency La Costa

10/20/20 4982 Crestview Drive Carlsbad 92008 $969,000 5,705 SF 5 3 2,865 SF $338 $175 2000 Single-Family Hidden Ridge

06/25/20 4703 Crespi Court Carlsbad 92010 $1,500,000 6,102 SF 5 6 4,440 SF $338 $343 2017 Single-Family Robertson Ranch

06/10/19 6060 Paseo Carreta Carlsbad 92009 $707,000 3,651 SF 3 2 2,113 SF $335 $98 2001 Single-Family Rancho Carrillo

10/14/20 2377 Larimar Avenue Carlsbad 92009 $1,260,000 6,952 SF 5 5 3,779 SF $333 $219 2005 Single-Family La Costa Greens

09/24/20 2821 Rancho Rio Chico Carlsbad 92009 $990,000 9,975 SF 5 4 3,003 SF $330 $106 2001 Single-Family Rancho Carrillo

06/27/18 7344 Circulo Papayo Carlsbad 92009 $1,377,900 9,041 SF 5 5 4,225 SF $326 $225 2005 Single-Family La Costa Oaks

10/29/18 4390 Yuki Lane Carlsbad 92008 $1,140,000 15,663 SF 4 4 3,504 SF $325 $0 2018 Single-Family

08/20/19 5158 Steinbeck Court Carlsbad 92008 $1,126,000 7,006 SF 5 5 3,495 SF $322 $130 2004 Single-Family Heron Bay

10/20/20 6570 Petunia Place Carlsbad 92011 $1,240,000 11,484 SF 5 5 3,889 SF $319 $110 2000 Single-Family Seaside Estates

01/21/20 6257 Alverton Drive Carlsbad 92009 $1,430,000 8,843 SF 5 5 4,608 SF $310 $265 2005 Single-Family Bressi Ranch 4:t 10/02/20 3633 Strata Drive Carlsbad 92010 $899,000 5,651 SF 5 3 3,102 SF $290 $95 2001 Single-Family Calavera Hills

02/12/19 4394 Yuki Lane Carlsbad 92008 $1,000,000 15,663 SF 4 4 3,552 SF $282 $0 2018 Single-Family

-0

Minimum

$707,000 2,085 SF 3 2 1,645 SF $282 $0 2000

00 Maximum

$3,500,000 50,094 SF 8 10 9,728 SF $556 $439 2020

00 1-1

Median

$1,260,000 7,997 SF 4 4 3,102 SF $384 $160 2005

01 Average

$1,277,954 9,330 SF 4 4 3,276 SF $396 $164 2006

I-a

0 (1) Survey reflects Citywide single-family detached home sales since January 1, 2019, excludes Village, Barrio, and adjacent areas; see Worksheet 12. 1--1
Source: Mulitple Listing Service (MLS), as of October 21, 2020.

Prepared by: Keyser Marston Associates, Inc.

Filename ACarlsbad_Market Data v2_12-04-2020.02-1-2021;4/12/2021;lag

Page 112 ends

SINGLE-FAMILY HOME SALES

VILLAGE, BARRIO, AND ADJACENT AREAS
WORKSHEET 12
SINGLE-FAMILY RESIDENTIAL HOME SALES - VILLAGE, BARRIO, AND ADJACENT AREAS (1) 9-INCLUSIONARY HOUSING IN-LIEU FEE UPDATE
N.) N.) CITY OF CARLSBAD
CD
NJ
NJ
Date Address City

Sales Price
Unit Description
5/SF HOA
Year
Built Product Type Bed Bath SF
08/05/20 434 Tamarack Ave Carlsbad 92008 $1,600,000 4 3 2,432 $658 $380 2020 Single Family Residential 11/19/20 438 Tamarack Ave Carlsbad 92008 $1,515,000 4 3 2,385 $635 $380 2020 Single Family Residential 07/21/20 446 Tamarack Ave Carlsbad 92008 $1,515,000 4 3 2,404 $630 $380 2020 Single Family Residential 08/28/20 442 Tamarack Ave Carlsbad 92008 $1,500,000 4 3 2,385 $629 $380 2020 Single Family Residential 08/11/20 430 Tamarack Ave Carlsbad 92008 $1,510,000 4 3 2,534 $596 $380 2020 Single Family Residential

Minimum $1,500,000 4 3 2,385 $596 $380 2020

Maximum $1,600,000 4 3 2,534 $658 $380 2020

Median $1,515,000 4 3 2,404 $630 $380 2020

Average $1,528,000 4 3 2,428 $630 $380 2020

7 3
011
CD
01 NJ
0 iat(1) Survey reflects detached home sales in the Village, Barrio, or adjacent areas since January 1, 2019.

Source: Mulitple Listing Service (MLS) and Redfin, as of December 2, 2020.

Prepared by: Keyser Marston Associates, Inc.

Filename i:\Carisbad_Market Data v2_12-04-2020.02-1-2021;4/12/2021;lag Page 113

ATTACHED HOME SALES

CITYWIDE
WORKSHEET 13
cu ATTACHED RESIDENTIAL HOME SALES - CITYWIDE (1) •-%
(]-INCLUSIONARY HOUSING IN-LIEU FEE UPDATE

N) CITY OF CARLSBAD

Unit Description

Year Product

Date Address City g_i_p Sales Price Bed Bath SF S/SF HOA Built Type Complex Name

06/19/20 6042 Colt Place #303 Carlsbad 92009 $565,854 2 2 988 SF $573 $593 2019 Condominium Kennsington at the Square

03/02/20 1762 Fairlead Avenue Carlsbad 92011 $651,500 3 2 1,540 SF $423 $361 2013 Townhome Voscana

02/18/20 1758 Fairlead Avenue Carlsbad 92011 $595,000 3 2 1,410 SF $422 $361 2013 Townhome Voscana

07/31/20 1700 Fairlead Avenue Carlsbad 92011 $647,500 3 2 1,540 SF $420 $361 2014 Townhome Voscana

05/04/20 3106 Simba Way Carlsbad 92010 $665,000 3 2 1,610 SF $413 $404 2018 Townhome Blue Sage at the Reserve

03/06/20 3304 Campo Azul Court Carlsbad 92010 $585,000 3 2 1,420 SF $412 $362 2018 Townhome The Preserve

12/20/19 1845 Cliff Swallow Lane Carlsbad 92011 $655,000 3 2 1,669 SF $392 $354 2012 Condominium La Costa Collection

12/23/19 3127 Dilla Place Carlsbad 92010 $558,000 3 2 1,438 SF $388 $363 2017 Townhome Agave at the Preserve

03/16/20 3382 Campo Azul Court Carlsbad 92010 $648,000 3 2 1,681 SF $385 $379 2019 Townhome The Preserve

01/14/20 3278 Vestra Way Carlsbad 92010 $612,990 3 2 1,610 SF $381 $438 2019 Townhome Blue Sage at the Reserve

02/22/20 3378 Campo Azul Court Carlsbad 92010 $635,990 3 2 1,681 SF $378 $379 2019 Townhome The Preserve

10/23/19 3280 Vestra Way Carlsbad 92010 $577,886 3 2 1,533 SF $377 $416 2019 Townhome Blue Sage at the Reserve

06/15/20 3135 Dilla Place Carlsbad 92010 $633,000 3 2 1,681 SF $377 $387 2017 Townhome Agave at the Preserve

04/22/20 3266 Vestra Way Carlsbad 92010 $605,146 3 2 1,610 SF $376 $438 2020 Townhome Blue Sage at the Reserve

08/07/20 3138 Asto Place Carlsbad 92010 $540,000 3 2 1,452 SF $372 $387 2017 Townhome The Preserve

05/12/20 3265 Vestra Way Carlsbad 92010 $595,990 3 2 1,610 SF $370 $438 2020 Townhome Blue Sage at the Reserve

04/29/20 3263 Vestra Way Carlsbad 92010 $564,734 3 2 1,533 SF $368 $438 2020 Townhome Blue Sage

05/01/20 3273 Vestra Way Carlsbad 92010 $587,990 3 2 1,610 SF $365 $438 2019 Townhome Blue Sage at the Reserve rr7 10/04/19 3114 Dilla Place Carlsbad 92010 $601,500 3 2 1,681 SF $358 $363 2017 Townhome Agave at the Preserve B

Minimum

$540,000 2 2 988 SF $358 $354 2012

Maximum

$665,000 3 2 1,681 SF $573 $593 2020

-c, sv ma CD

Median
Average

$601,500
$606,636
3 3
2 2
1,610 SF
1,542 SF
$381
$397
$387
$403
2018
2017

I- , m cu

(1) Survey reflects Citywide attached home sales since January 1, 2019, excludes Village. Barrio, and adjacent areas; see Worksheet 14.

Co
1-"Source: Mulitple Listing Service (MIS), as of September 28, 2020.

Prepared by: Keyser Marston Associates, Inc.

Filename i:\Carlsbad_Market Data v2_12-04-2020.02-1-2021;4/12/2021;lag Page 114

rTf
Tg-r Jo 1791 aed

ATTACHED HOME SALES

VILLAGE, BARRIO, AND ADJACENT AREAS
WORKSHEET 14
o.) ATTACHED RESIDENTIAL HOME SALES - VILLAGE, BARRIO, AND ADJACENT AREAS Ill (") INCLUSIONARY HOUSING IN-LIEU FEE UPDATE
r..)CITY OF CARLSBAD
NJ
Date Address

Zip Sales Price
Unit Description

S/SF HOA
Year
Built
Product
Type Complex Name Bed Bath SF
10/30/20 2317 Ocean St Carlsbad 92008 $2,900,000 3 3 2,533 SF $1,145 $891 2015 Townhouse Summer House 10/30/20 2677 State Street #302 Carlsbad 92008 $3,000,000 3 3 2,717 SF $1,104 $595 2020 Condominium

11/03/19 2335 Ocean Street Carlsbad 92008 $2,850,000 3 3 2,725 SF $1,046 $858 2016 Townhome

03/18/19 2323 Ocean Steet Carlsbad 92008 $2,585,000 3 3 2,533 SF $1,021 $857 2015 Condominium

04/06/20 2347 Ocean Street Carlsbad 92008 $2,125,000 3 2 2,100 SF $1,012

2016 Condominium

09/10/20 2387 Ocean Street Carlsbad 92008 $1,980,000 3 3 1,970 SF $1,005

2016 Condominium

03/05/20 2359 Ocean Street Carlsbad 92008 $1,966,000 3 3 1,966 SF $1,000

2016 Condominium

04/09/20 165 Pine Ave. Carlsbad 92008 $2,620,000 3 3 2,630 SF $996 $599 2017 Condominium

09/22/20 2393 Ocean St Carlsbad 92008 $2,150,000 4 2 2,296 SF $936

2016 Condominium

09/11/20 800 Grand Avenue Carlsbad 92008 $1,978,875 3 2 2,285 SF $866 $488 2020 Condominium Carlyle 06/17/20 2357 Ocean St Carlsbad 92008 $1,700,000 3 3 1,970 SF $863

2016 Condominium

09/24/19 2349 Ocean St Carlsbad 92008 $1,895,000 3 2 2,198 SF $862

2016 Condominium

09/03/20 727 Grand -Ave Carlsbad 92008 $1,177,500 2 2 1,547 SF $761 $505 2019 Condominium

07/25/19 737 Grand Avenue Carlsbad 92008 $1,159,000 2 2 1,547 SF $749 $506 2019 Condominium

11/26/19 733 Grand Avenue Carlsbad 92008 $1,019,000 2 2 1,369 SF $744 $499 2019 Condominium Grand Madison 10/31/20 800 Grand Avenue Carlsbad 92008 $1,250,000 2 2 1,699 SF $736 $458 2020 Condominium Carlyle 11/25/19 727 Grand Avenue Carlsbad 92008 $1,133,360 2 2 1,547 SF $733 $506 2019 Condominium Grand Madison 10/16/20 346 Walnut Ave Carlsbad 92008 $1,359,000 3 3.5 1,901 SF $715 $350 2020 Townhouse Eleven West 10/31/20 800 Grand Avenue Carlsbad 92008 $1,224,000 2 2 1,750 SF $699 $458 2020 Condominium Carlyle 05/10/19 2685 State Street Carlsbad 92008 $1,400,000 2 2 2,022 SF $692 $410 2015 Condominium

10/20/20 356 Walnut Ave Carlsbad 92008 $1,303,250 3 3.5 1,901 SF $686 $334 2020 Townhouse Eleven West 10/16/20 350 Walnut Ave Carlsbad 92008 $1,284,000 3 3.5 1,901 SF $675 $334 2020 Townhouse Eleven West 07/10/20 3337 Lincoln St Carlsbad 92008 $1,150,000 2 2.5 1,705 SF $674 $373 2016 Townhouse

11/25/20 364 Walnut Ave Carlsbad 92008 $1,395,000 4 3.5 2,072 SF $673 $334 2020 Townhouse Eleven West 11/02/20 352 Walnut Ave Carlsbad 92008 $1,274,000 3 3.5 1,901 SF $670 $334 2020 Townhouse Eleven West 11/16/20 362 Walnut Ave Carlsbad 92008 $1,375,000 4 3.5 2,072 SF $664 $350 2020 Townhouse Eleven West 10/23/20 360 Walnut Ave Carlsbad 92008 $1,370,000 4 3.5 2,072 SF $661 $334 2020 Townhouse Eleven West 11/13/19 3114 Lincoln ST Carlsbad 92008 $2,150,000 4 2 3,281 SF $655 $515 2013 Condominium Villagio 10/18/19 735 Magnolia Avenue Carlsbad 92008 $665,000 2 2 1,120 SF $594 $230 2019 Townhome Magnolia Walk 11/27/19 767 Magnolia Avenue Carlsbad 92008 $629,000 2 2 1,092 SF $576 $230 2019 Townhome Magnolia Walk 01/31/20 751 Magnolia Avenue Carlsbad 92008 $629,000 2 2 1,092 SF $576 $230 2019 Townhome Magnolia Walk 10/14/19 2660 Madison St Carlsbad 92008 $925,000 3 3 1,607 SF $576 $427 2017 Condominium

Prepared by: Keyser Marston Associates, Inc.

Filename k\Carlsbad_Market Data v2_12-04-2020.02-1-2021;4/12/2021;lag Page 115

ATTACHED HOME SALES

VILLAGE, BARRIO, AND ADJACENT AREAS
WORKSHEET 14
es) ATTACHED RESIDENTIAL HOME SALES - VILLAGE, BARRIO, AND ADJACENT AREAS 11) —s

INCLUSIONARY HOUSING IN-LIEU FEE UPDATE

NCITY OF CARLSBAD
NJ
0 NJ
NJ

Unit Description

Year Product

Date Address c_i_. Zip Sales Price Bed Bath SF VSF HOA Built :Type Complex Name 02/27/20 763 Magnolia Avenue Carlsbad 92008 $599,000 2 2 1,092 SF $549 $230 2019 Townhome Magnolia Walk 10/29/19 755 Magnolia Avenue Carlsbad 92008 $599,000 2 2 1,092 SF $549 $230 2019 Townhome Magnolia Walk 06/21/19 2533 State St Carlsbad 92008 $1,135,000 3 2 2,099 SF $541 $282 2016 Condominium

01/13/20 759 Magnolia Avenue Carlsbad 92008 $589,000 2 2 1,092 SF $539 $230 2019 Townhome Magnolia Walk 12/14/19 2541 State St Carlsbad 92008 $1,072,000 3 2 2,099 SF $511 $282 2016 Condominium

09/26/19 731 Magnolia AVe Carlsbad 92008 $799,000 4 4 1,565 SF $511 $230 2019 Townhome Magnolia Walk 04/18/19 2585 State Street Carlsbad 92008 $1,100,000 2 2 2,167 SF $508 $274 2017 Condominium

11/21/19 2505 State St Carlsbad 92008 $1,075,000 3 2 2,147 SF $501 $287 2016 Condominium

01/03/20 707 Magnolia Ave Carlsbad 92008 $780,000 4 4 1,565 SF $498 $230 2019 Townhome Magnolia Walk 03/01/19 2523 State St Carlsbad 92008 $1,147,000 3 2 2,351 SF $488 $250 2016 Condominium

03/16/20 723 Magnolia Ave Carlsbad 92008 $759,000 4 4 1,565 SF $485 $230 2019 Townhome Magnolia Walk 06/09/20 715 Magnolia Ave Carlsbad 92008 $749,000 4 4 1,565 SF $479 $230 2019 Townhome Magnolia Walk 02/27/20 711 Magnolia Ave Carlsbad 92008 $749,000 4 4 1,565 SF $479 $230 2019 Townhome Magnolia Walk 07/22/20 727 Magnolia Ave Carlsbad 92008 $739,000 4 4 1,565 SF $472 $230 2019 Townhome Magnolia Walk

Minimum

$589,000 2 2 1,092 SF $472 $230 2013

Maximum

$3,000,000 4 4 3,281 SF $1,145 $891 2020

Median

$1,200,750 3 2 1,901 SF $674 $334 2019

Average

$1,380,695 3 3 1,884 SF $706 $386 2018

co
3 73
Ora CD
Ln
9+,(1) Survey reflects attached home sales in the village, Barrio, or adjacent areas since January 1, 2019. 00Source: Mulitple Listing Service (MLS) and Redfin, as of December 2, 2020.

Prepared by: Keyser Marston Associates, Inc.

Filename i:\Carlsbad_Market Data v2_12-04-2020.02-1-2021;4/12/2021;lag Page 116

APARTMENT RENTS
KWORKSHEET 15
cu
=SURVEY OF COMPARABLE APARTMENT COMPLEXES
\J INCLUSIONARY HOUSING IN-LIEU FEE UPDATE
I s CITY OF CARLSBAD
Property Name Property Address

Stories

Studios

One Bedrooms Two Bedrooms Three Bedrooms

All Units - Total/Averages

SF
Monthly
Rent (1) Rent/SF SF
Monthly
Rent 12) Rent/SF

Monthly
Rent 11) Rent/SF SF
Monthly
Rent m Rent/SF Tota I SF
Monthly
Rent 11) Rent/58
Vacancy
Rate
Year
Built
Pie rside South 115 N. Cleveland St Oceanside 7 570 $2,192 $3.85 840 $3,077 $3.66 1,201 $3,604 $3.00

110 903 $2,990 $3.31 9.1% 2018
Casa Aides at Carlsbad 2615 Cannon Road Carlsbad 3

778 $2,621 $3.39 1,034 $3,103 $3.00

98 927 $2,906 $3.13

2020
Montecito Apartments 2510 W. Ranch Street Carlsbad 3

677 $2,177 $3.22 1,097 $2,872 $2.62 1,379 $3,155 $2.29 264 988 $2,654 $2.69 6.1% 2018 Breeze Hill 710 Breeze Hill Road Vista 3 563 $1,629 $2.89 701 $1,846 $2.63 886 $2,271 $2.56

88 804 $2,092 $2.60 2.3% 2019
Marisol Carlsbad 12) 3251 Marisol Place Carlsbad 3

775 $2,190 $2.83 1,137 $2,769 $2.44 1,483 $3,389 $2.29 278 1,017 $2,588 $2.54 11.9% 2018 The Tradition 1901 Cassia Road Carlsbad a

1,123 $2,720 $2.42 1,364 $3,303 $2.42 157 1,277 $3,091 $2.42 3.2% 2005 Skye Apartments 501 W. Bobier Drive Vista 3

815 $2,058 $2.53 1,108 $2,348 $2.12 1,244 $2,824 $2.27 290 944 $2,200 $2.33 4.1% 2016 Elan Pacifico Encinitas 1100 Garden View Road Encinitas 3

1,086 $2,306 $2.12 1,211 $2,333 $1.93 1,531 $3,169 $2.07 121 1,275 $2,523 S1.98 5.0% 2002 81uWater Crossing' 1> 6800 Embarcadero Lane Carlsbad 3

1,942 $3,777 $1.94 2,790 $4,581 $1.64

66 2,340 $4,207 $130 15.2% 2009
Pirineos Pointe 2610-2622 Pirineos Way Carlsbad 2

1,640 $2,876 $1.75 14 1,640 $2,876 $1.75 0.0% 2003

Minimum 2 563 $1,629 $2.89 677 $1,846 $1.94 886 $2,271 $1.64 1,244 $2,824 $1.75 14 804 $2,092 $1.75 0.0% 2002

Maximum 7 570 $2,192 $3.85 1,942 $3,777 $3.66 2,790 $4,581 $3.00 1,640 $3,389 $2.42 290 2,340 $4,207 $3.31 15.2% 2020 rp
to

Median 3 567 $1,911 $3.37 795 $2,248 $2.73 1,123 $2,769 $2.44 1,431 $3,162 $2.28 116 1,003 $2,765 $2.48 5.0% 2017 3 Average 3 567 $1,911 $3.37 951 $2,507 $2.79 1,287 $2,956 $2.41 1,440 $3,119 $2.18 149 1,212 $2,813 $2.46 6.3% 2013 CO ,..A11.) Reflects effective rent.
121 Subject property used in CoStar search for comparable properties built after 2000. Excludes senior apartments.

Source: Costar Group, Inc., as of September 71, 2020.

Prepared by: Keyser Marston Associates, Inc.

Filename: Cerishad_Market Data 0_12-04.2020.02-1-2021 \ 4/12/2021; ema Page 117

DRAFT
Inclusionary Housing Program
Exhibit 9
(City of
Carlsbad Informational Bulletin
IB-157
When housing prices spiked in the 1990s, many cities
looked for ways to help make housing more affordable.

One such tool that many jurisdictions implemented was
INCLUSIONARY HOUSING REGULATIONS. Under these laws,
developers are required to set aside a certain number of units within their residential development project and
make them affordable to lower income households.

As part of their inclusionary housing program, many
cities also included provisions that allow developers to deviate from the strict adherence of the policy, so long as it is found that the alternative means of compliance meets the intent of the jurisdiction's inclusionary
housing policies, and is consistent with the housing
affordability and fair housing choice goals specified in its long-range housing plan.

This Info-Bulletin provides an overview of Carlsbad's
Inclusionary Housing Program and describes how it helps address affordable housing needs while advancing
equitable development goals consistent with the city's
adopted Housing Element.

NEED FOR INCLUSIONARY HOUSING
The state faces a serious housing problem that not only threatens its economic security, the lack of access to
affordable housing can have a direct impact upon the
health, safety, diversity, and welfare of Carlsbad
residents. To retain a healthy livable environment and
meet state mandated housing goals, more needs to be
done to accommodate locally available and affordable
housing stock. Unfortunately, no single housing program will be enough to meet the housing demand.

However, one of the many ways the city is combating the detrimental effects of the housing crisis is through its Inclusionary Housing Program; a powerful tool that
meets economic development and workforce housing
needs, without requiring a public subsidy.

From 1995 to 2020, the city produced 19,026 housing
units, of which roughly 13% were made affordable
through the inclusionary housing program. Should the
inclusionary program continue, it is anticipated that the city could generate over 500 affordable units over the
next eight-year period.

HOUSEHOLD INCOME & AFFORDABILITY
We hear this a lot --- How do we make housing more
affordable? The term "affordable housing" can be used
to describe housing that receives some form of
subsidy/restriction that forcibly keeps rents and
mortgages low. It can also mean housing that's naturally affordable simply because of market supply and demand.

In order to make a meaningful difference in providing
affordable housing, the solution should not be looked at as an "either-or" approach between privately produced
housing and subsidized housing...it requires both.

To help understand what qualifies as affordable, the U.S.

Department of Housing and Urban Development (HUD)
establishes income ranges for different household types, which they have grouped into five "income categories:"
extremely low, very low, low, moderate and above-
moderate household income. The household income for
each of these categories is based on a percentage of the region's Area Median Income or AMI.

Carlsbad falls within the San Diego County region, which has an AMI of $95,100 per year for a four-person
household. In comparison, the city's actual median
income is closer to $108,000, but under state law the city must use the county AMI. To help illustrate, the
March 22 2022. Itena.#4 Paae 167 of 181 Lomrrfunny oevelopment Department l 1635 Faraday Ave. I Carlsbad, CA ZUlibi www.carisioaaca.goy

DRAFT
following table shows the income levels for a family of four.

Income Category % of AMI Household Income 1,2
Extremely Low <30% <$28,500
Very Low 30 - 50% $28,500 - $47,600
Low 51 - 80% $47,600 - $76,000
Moderate 81 - 120% $77,000 - $114,100
Above Moderate >120% >114,100
AMI as of April 2021 was $95,100 for family of four; 2 Figures rounded.

For housing costs to be considered affordable, a family's monthly rent/mortgage payment should not exceed 30%
of the gross annual household income of any given
income category. So, a low-income family of four with a gross annual income of $55,000 should pay no more
than $1,375 per month for housing.

For a rental unit, total housing costs include the monthly rent payment as well as consideration for a utility
allowance. With for-sale units, total housing costs
include the mortgage payment, homeowner association
dues, property taxes, mortgage insurance and any other
related assessments.

INCLUSIONARY HOUSING REQUIREMENTS
The city's Inclusionary Housing Ordinance (CMC §21.85)
was passed by the City Council in 1993, and established the legal basis for requiring inclusionary housing in new residential development in the city. The following
provides a summary of key standards required under the
ordinance for new residential development in the city.

Number of units required
When calculating, fractional units ≥0.5 must be
rounded up to the next whole number.

Inclusionary unit requirements
apply to all residential development projects (rental
or for-sale product), including mixed-use projects.

Residential development projects proposing seven
or more housing units are required to provide at
least 15% of the total units to be restricted for low-
income households. Refer to Alternative #1 for
projects proposing six or fewer units.

Example: An applicant proposes to satisfy its inclusionary requirements for a 112-unit residential development by
reserving 15% of the units for low-income households, or 17 units (112 X 0.15 = 16.8, rounded up to 17). The
remaining 95 units (112 units minus 17) may be sold at
market rate.

Duration units protected
Inclusionary rental units shall remain restricted and
affordable to the designated income group for not
less than 55 years.

Inclusionary for-sale units shall remain restricted and affordable to the designated income group for not
less than 30 years.

Development standards
Inclusionary units should be located throughout the
development rather than clustered in one area.

The inclusionary units must be indistinguishable
from the market-rate units in the development, at
least outwardly.

The inclusionary units must be constructed prior to
or concurrent with development of the market-rate
units, and prior to final building permit approval of
the market-rate unit.

Residents of the inclusionary units must have access
to the same amenities — such as pool, fitness center
and parking — as residents of the market-rate units.

The inclusionary units must include a similar mix and
number of bedrooms as the market-rate units.

When ten or more inclusionary units are required, at
least ten percent of those required units must
provide at least three bedrooms.

To the extent possible, projects using for-sale units to satisfy inclusionary requirements shall be designed to
be compatible with conventional mortgage financing
progra ms.

Page 2 ends

ALTERNATIVE MEANS OF COMPLIANCE
The city understands that various constraints may
frustrate a developer's ability to meet the strict letter of the city's inclusionary housing regulations. As such, the ordinance allows for the City Council to authorize
"alternative means of compliance" when it is found that the alternative meets the intent of the city's inclusionary housing ordinance and the goals and policies of the city's Housing Element. Council Policy Statement #57 provides
those alternatives that have been found to meet the
intent of the city inclusionary code and help address its affordable housing needs. These alternative means of
compliance are summarized in the sections below, but
please refer to policy #57 for the specific requirements.

Alternative #1: Payment of in-lieu fee
Rather than constructing the inclusionary unit as part of the development project, applicants proposing ≤six units may instead pay a fee.
$8,529 for a new single-family detached home
$15 per square foot of net building area for each
proposed market-rate unit.
"Net building area" means the aggregate gross floor area of all the unrestricted dwelling units within a
development, excluding areas outside the dwelling unit's habitable space such as garages, carports, parking areas, porches, patios, open space, and excluding common
areas such as lobbies, common hallways, stairways,
elevators and equipment spaces.

DRAFT
Collected in-lieu fees are deposited into
the city's Housing Trust Fund, and applied towards the
furthering of the city's affordable housing needs
pursuant to Council Policy No. 90.

Alternative #2: Varying housing affordability
levels
In addition to providing more housing available for low income families, the city also recognizes a need to
increase housing stock for other targeted and needed
housing affordability levels such as moderate, very low- and extremely low-income households. As such, so long
as the total average gross income restriction for the
required inclusionary units does not exceed 80% of the
AMI, the makeup of the inclusionary units can be
comprised on any combination of income categories.

Alternative #3: Increases in residential density
Sometimes there is a request to increase a property's
residential density above what is authorized under the
city's current land use plans. Whenever this occurs, the following additional inclusionary housing requirements
shall apply.

At least 20% of the total residential units are
restricted for low-income households; or,
A least 15% of the total residential units are
restricted for low-income households and an
additional 10% are restricted for moderate-income
households; or,
At least 15% of the total residential units are
restricted for very low-income households.

These requirements have been applied to properties that received an increase in residential density as part of the 2015 General Plan update and the 2021-29 Housing
Element.

Alternative #4: Reduction credit
A residential development can reduce its inclusionary
housing obligations from 15% to 12.5%, under the
following conditions.

Example: "A 78-unit residential development is
proposed, which requires that 15% of the units be
reserved for low-income (12 units). If the developer
voluntarily agrees to make inclusionary units available to very low-income households, then the developer may
receive an incentive reduction credit. Under this
scenario, 10 units in a 78-unit development projects
equates to 12.8%, which meets the minimum
inclusionary housing requirement.

Inclusioniirrycitiouirfa?gram IB-157 (Revised: DRAFT)

nen] 144

Page 169 ends

DRAFT
All affordable units must be made available to very
low- or extremely low-income households.

The units are located on the same site as the market-
rate units.

No financial assistance from the city is required.

Alternative #5: Use of accessory dwelling units
Pursuant to CMC §21.85.070.B, construction of up to 15
accessory dwelling units (ADU) can be used to satisfy
inclusionary housing requirements. Refer to the
Department's informational bulletin CD-11 for overview
of ADUs. The standards below provide additional
specifications for when this allowance can be used.

The project proposes ≥200 residential detached
dwelling units.

The ADU may be an attached or detached product
type (Junior ADU prohibited) .

The ADUs shall have an affordability term (low-
income households) of at least 30 years.

Notwithstanding the above, for projects proposing .1.six units the in-lieu fee may be waived if a detached or
attached ADU or Junior ADU is constructed concurrent
with construction of the market-rate unit, deed
restricted for low-income households for 30-years, and
occupied by income-qualified families.

Alternative #6: Off-site construction
Circumstances may arise in which the public interest
would be better served by allowing some or all of the
required inclusionary units to be developed at an
alternative site. This is referred to as a "Combined
Inclusionary Housing Project" or "Combined Project." To qualify, the following requirements must be met.

The inclusionary calculation requirements shall be
based on the total number of market-rate units to be
provided, as opposed to the total number of
residential units in the project. See example.

Example: An applicant proposes to satisfy its inclusionary requirements for a 112-unit project by building 15% of the units for low-income households off-site. This leaves 85% of the units for market rate, for a total residential unit count of 132 units (112 0.85 = 131.8, rounded to 132).

Using the total residential unit count, the number of
inclusionary units required is 20 (132 X 0.15 = 19.8,
rounded to 20).

The decision-making authority of the permit
application may approve a Combined Project subject
to the following findings.
o Site does not propose a density bonus/increase.
o Site conditions make it physically infeasible to
accommodate inclusionary units on site.
o Significant price and product type disparities
make it financially infeasible to accommodate
the inclusionary units on site.
o There is a documented lack of capacity to deliver
affordable housing on-site.
o Off-site option provides greater feasibility and
cost effectiveness than on-site alternatives.
o Off-site option provides better access to jobs,
schools, and services than on-site alternative.
o Off-site option supports the Housing Element
affordable housing goals and policies.

Notwithstanding, the City Council shall retain final permit approval authority, including approval of the Affordable Housing Agreement, on any Combined Project that
requires financial assistance from the city.

Alternative #7: Housing credit purchase program
The city has and is willing to financially partner with developers who propose to construct inclusionary
housing units in excess of the minimum inclusionary
requirement. These excess units or "credits" could then be sold to other developers to satisfy their respective inclusionary housing requirements. The proceeds from
the credit sales are deposited into the city's Housing
Trust Fund and redistributed pursuant to Policy #90.

Credit Purchase Eligibility. Projects proposing more
than seven, but no more than 50 residential units

Page 4 ends

are eligible to purchase affordable housing credits
under this program.

Credit Price. The price for each excess unit shall be
determined by dividing the city's financial
contribution by the total number excess
inclusionary units, subject to annual CPI
adjustments. Applicants must pay the credit price of
available credits from the oldest affordable housing
project that is located within the same city quadrant
in which the market-rate units are located, or if none
available, sites which are contiguous to the quadrant
in which the units are proposed.

Credit Purchase Ratio — For sale units. The amount
of credits to be purchased for projects that are
comprised of for-sale units shall be based on the
following scale.
o 7-20 units: 1.0 credit/inclusionary unit
o 21-35 units: 1.5 credits/inclusionary unit
o 36-50 units: 2.0 credits/inclusionary unit
Credit Purchase Ratio — For rent units. The amount
of credits to be purchased for projects that are
comprised of rental units shall be based on the
following scale.
o 7-20 units: 1.0 credit/inclusionary unit
o 21-35 units: 1.25 credits/inclusionary unit
o 36-50 units: 1.50 credits/inclusionary unit
Credits Available. As of January 2022, the following
credits are available. Please contact the Housing &
Homeless Services Department for most current
information:

Name Quadrant Credit.: Cost
### ### . 44.,'4•4 - $$$
### ### ### $$$
###

$$$

• ### ### $$$
### ### ### $$$
Credit Purchase Findings. Authority to approve a
credit purchase shall be given to the decision-making
authority of the proposed development permit so
long as the following findings are met.
o The project site is located within the same
Growth Management Plan Quadrant that the
housing credit is located, or if none available,
sites which are contiguous to the quadrant in
which the units are proposed.
„; There are sufficient housing credits available to
purchase.

DRAFT
Other incentives not listed, but may be
considered
The City Council may approve other alternatives to
meeting its inclusionary standards when a development
project shows that is helps achieve specific Housing
Element policies and goals, and assists the city in
meeting its state housing requirements.

Such allowance shall be based on findings that new
construction would be infeasible or present
unreasonable hardship in light of such factors as project size, site constraints, market competition, price and
product type disparity, and financial subsidies available.

Alternatives that may be considered include, but not
limited to, the following.

Up to 50% of the required inclusionary units may be
satisfied via acquisition and rehabilitation of existing, affordable units at the same required affordability
level.

Construction of special needs housing projects or
programs (shelters, transitional housing, etc.) that
can accommodate the same number of tenants as
the required inclusionary units.

AFFORDABLE HOUSING AGREEMENTS
An Affordable Housing Agreement (ANA) is a legally
binding agreement between the developer and the city
to ensure that the inclusionary requirements of a
residential development are satisfied. CMC §21.85.140
provides the specific requirements of the AHA, but the
more significant components are listed below.
• A project condition shall be added to projects
subject to the Inclusionary Ordinance and Policy No.
57 requiring that an AHA be reviewed, approved,
InclusionigrWAYniWgram IB-157 (Revised: DRAFT)

Item 44

Page 171 ends

DRAFT
and recorded prior to Final Map or issuance of
building permits, whichever is first.
• Among other items, the AHA must include the
number of required inclusionary units, the unit sizes,
location, affordability tenure, required findings,
terms and conditions of affordability and unit
production schedule.
• The AHA and all relevant terms and conditions shall
be recorded against the entire development.
• The AHA shall bind all future owners and successors
in interest for the term of years specified therein.

APPROVAL AUTHORITY
The approval authority for the development project
subject to these standards is as follows:
• The decision-making authority for the underlying
permit application(s) shall have the authority to
consider and approve projects found consistent with
Policy No. 57.
• Development projects that propose an alternative
means of compliance that is not specifically provided
for in the CMC or Policy 57 shall be considered by
the Housing Commission for a recommendation to
the City Council.
• Approval authority of the Affordable Housing
Agreement is as follows:
0 Affordable Housing Agreements that are
consistent with §21.85 and Policy No. 57 and do
not request financial assistance from the city
shall first be considered by the Affordable
Housing Policy Team for a recommendation to
the H&HS Director.
o Affordable Housing Agreements
that propose a deviation(s) to Policy No. 57 or
request financial assistance shall first be considered
by the Affordable Housing Policy Team and Housing
Commission for a recommendation to the City
Council, which has the authority to issue final
approval of the alternative.

YOUR OPTIONS FOR SERVICE
To schedule an appointment or to learn more about this
program, please contact the Planning Division at 760-602- 4610 or via email at [email protected] or the
Housing &Homeless Services Department at 760-434-
2810 or via email at [email protected] .

Page 6 ends

Exhibit 10
RESOLUTION NO. 2022-003

A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CARLSBAD,

CALIFORNIA, RECOMMENDING THAT THE CITY COUNCIL APPROVE THE CONSOLIDATION OF COUNCIL POLICY STATEMENTS 57, 58 AND 68 INTO A

SINGLE REVISED COUNCIL POLICY STATEMENT AND RECOMMEND

ADJUSTMENTS TO THE INCLUSIONARY HOUSING PROGRAM IN-LIEU FEE AMOUNT.

WHEREAS, it is in the best interest of the public to establish reasonable standards relating to provision of affordable housing for all income levels; and WHEREAS, the city's Inclusionary Housing Ordinance was established in April 1993 and requires that all residential developments greater than six units restrict 15 percent of the total number of homes in a project as affordable to low-income households; and WHEREAS, while this obligation is fulfilled through construction of a variety of rental or ownership units, residential developments less than seven may satisfy their inclusionary housing obligation through payment of inclusionary housing in-lieu fees; and WHEREAS, in 2015, in California Building Industry Association v. City of San Jose, the California Supreme Court indicated that cities have "broad discretion to regulate the use of real property to serve the legitimate interests of the general public and the community at large" and upheld an ordinance requiring all new residential developments set-aside at least 15 percent of the for-sale units at a price affordable to low or moderate income households; and
WHEREAS, in September 2017, Governor Gavin Newsom signed AB 1505 (Bloom), which reinstated a municipality's right to apply inclusionary requirements to rental housing; and WHEREAS, Goal 10-G.2 of the city's 2021-2029 Housing Element directs the city to provide sufficient new, affordable housing opportunities in all quadrants of the city to meet the needs of current lower- and moderate-income households and those with special needs, and a fair share proportion of future lower- and moderate-income households; and WHEREAS, as described in Program 2.1 of the city's 2021-2029 Housing Element, the city will continue to implement its Inclusionary Housing Ordinance, which requires a minimum of 15 percent of all residential projects of seven or more units be restricted and affordable to lower-income households; and
March 22, 2022 Item #4 Page 173 of 181

WHEREAS, as described in Objective 2.1.a of the city's 2021-2029 Housing Element, the city shall complete a Gap Analysis of the city's inclusionary housing in-lieu fee to determine a fee amount necessary and appropriate to reflect market conditions and ensure fees collected are adequate to facilitate the development of affordable units; and
WHEREAS, described in Objective 2.1.c of the city's 2021-2029 Housing Element, the city shall amend its Inclusionary Housing Ordinance to reflect the updated in-lieu fee and revise the ordinance as necessary to maximize production of affordable units without adversely affecting market-rate development; and
WHEREAS, the City desires to update its inclusionary housing program policies and fees in a manner consistent with state law and consistent with case law which became effective since the inclusionary rules were last updated; and
WHEREAS, at their publicly noticed Feb. 10, 2022 meeting, the Housing Commission considered the proposed inclusionary housing policy as shown in Attachment A to this resolution, the adjusted in- lieu fees as reflected in the staff report, and public testimony when deliberating on this subject; and NOW, THEREFORE, BE IT RESOLVED by the Housing Commission of the City of Carlsbad, California, as follows:

1. That the above recitations are true and correct.

2. That the Housing Commission hereby recommends that the City Council approve revised Council Policy Statement #57, attached hereto as Attachment A.

3. That the Housing Commission hereby recommends that the City Council adjust the inclusionary in-lieu fee amount as follows:
a. For a new single-family dwelling on a single-family lot, increase the in-lieu fee from $4,515 to $8,529, adjusted annually based on a price index that most closely responds to housing cost inflation.
b. For all other qualifying residential development projects, change the in-lieu fee methodology from $4,515 per market-rate unit to $20 per square foot of net building area for each market-rate unit, phased in over the next five years and then adjusted annually after the five years based on a price index that most closely responds to housing cost inflation.

March 22, 2022 Item #4 Page 174 of 181

4. Recommend that the City Council evaluate the feasibility of increasing the number of units eligible to participate in payment of the in-lieu fee from six units to 20 units and consider changing the housing credit purchase price to a flat rate based on the Affordability Gap per Affordable Unit rate as determined in the April 2021 Inclusionary Housing In-Lieu Fee Update Report prepared by Keyser Marston & Associates.

PASSED, APPROVED AND ADOPTED at a meeting of the Housing Commission of the City of Carlsbad on the 10th day of February 2022, by the following vote, to wit:

AYES: Nguyen-Cleary, Cole, Manzano
NAYS: None
ABSENT: Cortes-Torres
JOHN NGYUEN-CLEARY, Chairperson

CARLSBAD HOUSING COMMISSION
ATTEST:
,s2—

MANDY MILLS
Housing & Homeless Services Director
March 22, 2022 Item #4 Page 175 of 181

TABLE 1

POTENTIAL INDICES FOR FEE LEVEL ADJUSTMENT

INCLUSIONARY HOUSING IN-LIEU FEE UPDATE

CITY OF CARLSBAD
Index Concept / Description Advantages Disadvantages
A. Building Cost
Index (BC!)
• Published by Engineering News Record (ENR)
• Available at national average and for 20 cities (not
Carlsbad or San Diego; Los Angeles is nearest city
available).
• Based on the cost of specific construction trade
labor and materials.
• Fees go up or down based on construction costs.
• Very well established.
• Consistent fee burden over time
relative to construction costs.
• May not trend with changes in non-
construction development costs (land, other
soft costs).
• May not trend with cost to produce affordable
units.
• Only addresses cost side of the equation.

B. Construction
Costs Index (CCI)
• Published by Engineering News Record (ENR)
• Similar to the Building Cost Index but with different weighting of labor and material costs.
• Fees go up or down based on construction costs.
• Very well established.
• Consistent fee burden over time
relative to construction costs.
• May not trend with changes in non-
construction development costs (land, other
soft costs).
• May not trend with cost to produce affordable
units.
• Only addresses cost side of the equation.

C. Consumer Price
Index (CPI) — All
Items
• Published by the U.S. Bureau of Labor Statistics
• Available for major metro areas including San
Diego.
• All Items — Measures the change in the prices of
goods and services including food and beverages,
housing, apparel, transportation, medical care,
recreation, education, communication, personal
services, etc.
• Fees go up or down based on the cost of a mix of
goods and services.
• Very well established
• Generally tracks with inflation
• Produced by neutral governmental
agency.
• May not trend with:
- Construction costs (consistent fee burden)
or
- Cost to produce affordable units (consistent
with ability to mitigate impacts)
Prepared by: Keyser Marston Associates, Inc.

Filename L\Carlsbad_Indices;3/7/2022;lag
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Page 1 ends

TABLE 1

POTENTIAL INDICES FOR FEE LEVEL ADJUSTMENT

INCLUSIONARY HOUSING IN-LIEU FEE UPDATE

CITY OF CARLSBAD
Index Concept / Description Advantages Disadvantages
D. Consumer Price • Published by the U.S. Bureau of Labor Statistics. • Very well established • May not trend with:

Index (CPI) —

Shelter • Available for major metro areas including San Diego.
• Generally tracks with inflation - Construction costs (consistent fee burden) or

• Produced by neutral governmental - Cost to produce affordable units (consistent

• Shelter — Measures the change in the shelter cost
from consumers primary residence.
agency. with ability to mitigate impacts)

• Fees go up or down based on the cost to rent for
renter-occupied housing or the implicit rent owner
occupants would have to pay if renting their
homes.

E. S&P/Case-Shiller • Published by Standard & Poor's • Very well established • Only tracks single-family home sales.

Home Price Index

• Available at national average, a 20-city composite,
a 10-city composite, and for twenty individual
metro areas including San Diego.
• Tracks appreciation and depreciation
of single-family home values.
• Excludes new construction since homes have
not been sold previously.

•

• Excludes condominiums, apartments, and
multi-family dwelling units.

Measures the change in purchase prices and resale
value of existing single-family homes by comparing
the sales price of the same properties over time.

• Does not track improvements, deterioration,
or structural changes to property between
sales.

• Fees go up or down based on single-family home
prices.

• Volatile index (i.e., significant swings in
appreciation/depreciation.

Prepared by: Keyser Marston Associates, Inc.

Filename i:\Carlsbad_indices ;3/7/2022;lag
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(E)
3 18140 LLI @Bed

Page 2 ends

TABLE 1

POTENTIAL INDICES FOR FEE LEVEL ADJUSTMENT

INCLUSIONARY HOUSING IN-LIEU FEE UPDATE

CITY OF CARLSBAD
Index Concept / Description Advantages
• Very well established
• Tracks appreciation and depreciation
of single-family home values,
Disadvantages
F. Federal Housing
Financing Agency
Home Price Index
• Published by Federal Housing Finance Agency
• Available at the national, census division, state,
metro, and county levels,
• Modified version of Case-Shiller repeat sales
method.
• Fees go up or down based on single-family home
prices,
• Only tracks single-family home sales.
• Excludes new construction since homes have
not been sold previously.
• Excludes condominiums, apartments, and
multi-family dwelling units.
• Does not track improvements, deterioration,
or structural changes to property between
sales.
• Volatile index (i.e., significant swings in
appreciation/depreciation.

G. California
Association of
Realtors
• Published by California Association of Realtors
• Available at the state and county levels.
• Fees go up or down based on single-family home
prices.
• Tracks appreciation and depreciation
of single-family home values.
• Only tracks single-family home sales.
• Data reflects existing home sales only, no new
construction.
• Excludes condominiums, apartments, and
multi-family dwelling units.
• Volatile index (i.e., significant swings in
appreciation/depreciation.

H. CoStar • Published by CoStar Group Inc.
• Available at the county level.
• Fees go up or down based on apartment rents.
• Tracks appreciation and depreciation
of apartment rents.

Only tracks apartment rents.

Excludes for-sale dwelling units.

Prepared by: Keyser Marston Associates, Inc.

Filename i: \Ca rlsbad_Indiccs;3/7/2022;lag
ZZOZ 'Zz I-13-1201 T8T 40 8LT aSed

Page 3 ends

POTENTIAL INDICES FOR FEE LEVEL ADJUSTMENT

E INCLUSIONARY HOUSING IN-LIEU FEE UPDATE
co CITY OF CARLSBAD
NJ
NJ
J

Building Cost Index (l3C1),.at Construction Cast Index (CCI) Consumer Price Index (CPI) -
All items 131
Consumer Price Indeg (CPI) -
Shelter /A
S&P/Case-Shiner
Home Price Index 151
San Diego
Federal Housing Finance Agency
House Price Index lxi
San Diego San Diego
CoStar Group - Rents .F,1
San Diego
Year
Average
Annual
% Growth
from Prior Year
Average
Annual
% Growth
from Prior Year
Average
Arn__A.p_i I
% Growth
from Prior Year
Average
Annual
% Growth
from Prior Year
Average
Annual
_
% Growth
from Prior Year
Average
Annual
9: Growth
from Prior Year
Average
Annual
% Growth
from Prior Year
Average
A I I I_ _ _ A _I at
% Growth
from Prior Year
1996 $3,427 --- $6,558 -- $161 --- $173 --- $72 - $101 -- $174,657 --- --- --

1997 $3,561 3.9% $6,664 1.6% S164 1.7% $178 2.9% $75 3.8% $103 2.6% $184,723 5.8% --- ---

1998 $3,617 1.6% $6,852 2.8% $167 2.0% $187 4.8% $84 13.1% $113 9.6% $206,509 11.8% --- --

1999 $3,591 -0.7% $6,826 -0.4% $173 3.5% $196 5.2% $95 12.4% $125 10.1% $230,498 21.6% -- ---

2000 $3,680 2.5% $7,068 3.5% $183 5.8% $209 6.5% $109 15.1% $143 24.9% $268,239 16.4% $1,647 --

2001 $3,694 0.4% $7,227 2.2% $191 4.6% $223 6.8% $125 14.5% $161 12.7% $299,161 115% $1,707 3.6% 2002 $3,788 2.5% $7,403 2.4% $1913 3.5% $238 6.6% $142 13.7% $185 14.9% $360,811 20.6% $1,730 1.3% 2003 $3,847 1.6% $7,532 1.7% $205 3.7% $253 6.2% $168 18.2% $213 15.1% $422,234 17.0% $1,736 0.3% 2004 $4,155 8.0% $8,192 8.8% $213 3.7% $266 5.3% $215 28.2% $267 25.1% $546,522 29.4% $1,773 2.1% 2005 $4,267 2. TX $8,347 1.9% $221 3.7% $276 3.9% $244 13.2% $313 17.1% $602,768 10.3% $1,873 5.6% 2006 $4,490 5.2% $8,640 3.5% $228 3.4% $287 3.7% $247 1.1% $322 3.0% $600,327 -0.4% $1,997 6.6% 2007 $4,744 5.7% $8,979 3.9% $233 2.3% $295 3.1% $226 -8.4% $301. -6.5% $579,326 -3.59: $2,039 2.1% 2008 $4,950 4.3% $9,411 4.8% $242 3.9% $306 3.7% $173 -233% $250 -17.2% $409,968 -29.2% $2,028 -0.5% 2019 $5,076 2.5% $9,779 39% $242 0.0% $309 0.9% $150 -13.3% $224 -10.2% $358,755 42.5% $1,962 -3.3% 2010 $5,183 2.2% $9,906 1.3% $245 1.3% $307 -0.7% $161 7.3% $223 -0.7% $384,926 7.3% $1,949 -0.7% 2011 $5,380 3.8% $10,057 1.5% $253 3.0% $309 0.8% $254 -4.4% $213 -4.1% $370,183 .3.8% $1,975 1.3% 2012 $5,482 1.9% $10,245 /9% $257 1.6% $315 1.9% $156 1.2% $215 0.7% $384,935 4.0% $2,038 3.2% 2013 $5,554 2.3% $10,455 2.0% $260 1.3% $321 2.0% $182 27.0% $241 12.1% S460,726 19.7% $2,114 3.7% 2014 $5,671 2.1% . 510,740 2.7% $265 1.9% $328 2.2% $202 10.5% $265 9.5% $500,035 9.5% $2,186 3.4% 2015 $5,762 1.6% 511,076 3.1% $269 1.6% $340 3.7% $212 5.4% $280 5.6% $530,076 6.0% $2,298 5.1% 2016 $5,907 2.5% $11,248 2.6% $275 2.0% S355 4.3% $225 6.0% $298 6.6% $556,593 5.0% $2,355 2.5% 2017 56,184 4.7% $11,746 4.4% $283 3.0% $370 4.4% $241 7.0% $319 7.1% 5594,967 6.9% $2,426 3.0% 2018 $6,304 1.9% $11,970 1.9% $293 3.4% $389 5.0% $255 5.6% $338 59% $631,283 6.2% $2,476 2.1% 2019 $6,384 1.3% $12,050 0.7% $299 2.4% $404 4.0% $260 2.1% $347 2.7% $643,796 2.0% 52,531 2.2% 2020 $6,377 -0.2% 512,064 0.2% $304 1.5% $413 2.2% $280 7.6% $364 4.9% $701,213 8.9% $2,559 1.1% 2021 $7,010 9.9% $12,713 5.4% $320 5.2% $425 2.8% $341 22.1% $420 15.3% $826,298 17.9% $2,9136 16.7% Average

2.9%
Annual

2.9%

2.7%

2.8%

3.7%

6.4%

5.9%

6.4%

Growth Rate

TABLE 2
0 -at
ft) Source: Engineering News-Record. Building Cost Index History - Los Angeles, 1996 - 2021.

IC12 (2) Source: Engineering News-Record. Construction Cost Index History- Los Angeles, 1996 - 2021. (3', Source: U.S. Bureau of Labor Statistics, CFI for All Urban Consumers, All Items - San Diego-Carlsbad, 1996 - 2021. (4) Source: U.S. Bureau of Labor Statistics, Cal fur All Urban Consumers, Shelter - San Diego-Carlsbad, 1999 - 2021. (5) Source: S&P Corelogic Case-Shiner Home Price Index, single-family homes, San Diego, 1996 - November 2021. (6) Source: Federal Housing Finance Agency, single-family homes, Son Diego, 1996 - October 2021. [71 Source: Califomia Association of Realtors, median sales price single-family homes, San Diego, 1095 - 2021. (8) Source: CoStar Group, apartment rents, San Diego, 1996 - 2021.

Preen,. by: Keyser want.. Associates, Inc.

Rename lACarished_indices3/7/2022deg

Page 4 ends

-o a) (1) Source: Engineering News-Record. Building Cost Index History - Los Angeles, 1996 - 2021.

On
(V (2) Source: Engineering News-Record. Construction Cost Index History - Los Angeles, 1996 - 2021. 00 (3) Source: U.S. Bureau of Labor Statistics, CPI for All Urban Consumers, All Items - San Diego-Carlsbad, 1996 - 2021. 0 (4) Source: U.S. Bureau of Labor Statistics, CPI for All Urban Consumers, Shelter - San Dlego-Carlsbad, 1996 - 2021. 0 —NS} Source: 5&P Corelogic Case-Shiller Home Price Index, single-family homes, San Diego, 1996 - November 2021. 03(6) Source: Federal Housing Finance Agency, single-family homes, San Diego, 1996 - October 2021. {7) Source: California Association of Realtors, median sales price single-family homes, San Diego, 1996 - 2021. (8) Source: CoStar Group, apartment rents, San Diego, 1996 - 2021.

TABLE 3
cu ESTIMATED FEEL LEVEL ADJUSTMENT - EXISTING IN-LIEU FEE

INCLUSIONARY HOUSING IN-LIEU FEE UPDATE
ro CITY OF CARLSBAD
A

Building Cost
Index (BCI) '1:
$4,515
Construction Cost
Index (CC() p.;
$4,515
ConStUtufT Rite
IndextcP0 -- At itenis 00 '
$4,515
Consumer Price
Index (CPI) - Shelter ii
$4,515
S&P/Case-Shiller
Home Price Index (5)
$4,515
. Federal Housing Finance
Agency - House Price Index fol
$4,515
CoStar Group s) i
I. Existing in-Lieu Fee
Per Market-Rate Dwelling Unit
$4,515 $4,515
II. Average Annual Growth Rate,
1996 - 2021

2.9% 2.7% 2.8% 3.7% 6.4% 5.9% 6.4% 2.9%
III. Estimated In-Lieu Fee, 2022
Per Market-Rate Dwelling Unit
$9,505 $8,986 $9,223 $11,496 $22,827 $19,928 $22,730 $9,431 3 rlt
Prepared by: Keyser Marston Associates, Inc. Page 5
Filename i:WarlsbadIndlces;3/7/2022;lag

UNIT SIZES
Date Property Address Trans Desc Amount Units Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 2/23/2017 3450 Garfield Street DEV15075 3450 GARF $9,030 2 2,034 2,005

3/2712017 3325 Venado Street DEV2016-0010 SINGLE $4,515

2,710

6/6,2017 187 Cherry Avenue DEV15033 TH $4,515

3 372

6/22/2017 1655 Chestnut DEV16030 NO DESCRI $4,515

1,959

8/0/2017 6798 Paseo del Norte DEV13028 3-LOT SUB $22,575

3,283 2,313 2.431 2,431 2,313
8/22/2017 167 Cherry Avenue DEV16050 REMOVAL 0 $4,515

2,727

11/1/2017 4390 Adams DEV2017-0061 CONSTRU $4,515

3,308

2/15/2018 1284 Pine Avenue DEV13014 TENTATIVE $4.515

4,505

3/29/2018 3622 Garfield Street DEV07055 BUILD 3 U $9,030

1,823 1,827 1111.111r -

616/2018 849 Home Avenue DEV16055 THE CONST $22,575

2,439 2,373 2,373 2,407 2,464
8/2/2018 6717 Antilope Avenue DEV15042 SPLIT DUP $4,515

1,348

8f7/2018 2677 State Street DEV2016-0031 $13,545

884 2,160 2,717

9/10/2018 438 Tamarack DEV2017-0100 $13,545 3 2,404 2,385 2,385

9/20+2018 1095 Hoover DEV2017-0112 NEW SFD $4,515 1 4,901

3/8/2019 7331 Las Battens Court DEV08007 NO DESCRI $4,515 1 2,290

4/15+2019 4469 Adams Street DEV15005 NO DESCRI S4.515 1 4,085

5/31/2019 2812 Cazadero Drive DEV2017-0134 $9,030 2 2,785

12/23/2019 2736 Arland DEV2019-0137 CONSTRU $4,515 1 1,508

12/27/2019 3005 Madison Street DEV2017-0069 $27,090 6 2,216 2,217 2,111 2,117 1,879 2,101 325/2020 2630 Vistosa Place DEV2018-0166 NEW SIN $4,515 1 4,006

3+26/2020 7287 Almadeu Lane DEV2017-0085 SINGLE $4.515 1 6,294

5/14/2020 1391 Oak Avenue DEV2018-0048 54.515 1 2,468

10/21/2020 972 Grand Avenue DEV2017-0063 SUBDIVISION 0F6 $18,060 4 1,908 1,860 2,271 2,290 11/9/2020 5462 Carlsbad Blvd DEV2019-0162 $4,515 1 5,076

11/30/2020 725 Oak DEV2018-0180 $22,575

1,524 1,525 1,543 1,742 1,761
12/22/2020 3050 Madison Street DEV15068 69,030

2,663 2,018

2/8/2021 786 Grand Avenu DEV2018-0055 $22,575 5 2,147 2,122 2,395 2,141 2,112 8/18/2021 4269 Hillside Drive DEV2020-0254 $4,515 1 3,266

11/17/2021 320 Hemlock DEV2020-0023 S13,545 3

2,136 2,3441:§ell.11.11111111MI

Single-Family Dwellings

Total number of units 16

Average number of units/year 3.2

Average size of units 3,364

Average Annual In-lieu fee paid ($4,515) $14,448

Average Annual In-lieu fee paid ($8,529) $27,293

Average Annual Difference $12,845 /year

Multi-Family Dwellings

Total number of units 47

Average number of units/year 9.4

Average size of units 2,173

Average Annual in-lieu fee paid ($4,515) $42,441

Average Annual In-lieu fee paid (@$15) $306,375

Average Annual Difference $263,934 /year

Average Annual In-lieu fee paid ($4,515) $42,441

Average Annual In-lieu fee paid (g$20) $408,500

Average Annual Difference $366,059 /year

ZZOZ ZZ Liw elAl 181p WI aged

Tammy Cloud-McMinn
Subject:

Attachments:

Mayor and Councilmembers,
FW: Letter from BIA
Carlsbad lnclusionary.pdf All Receive - Agenda Item# j_ For the Information of the:

CITY COUNCIL
Data:Y:J:J.}22CA ✓ cc-::::_
CM ✓ ACM ..Jt:_DCM(3) v":

Attached please find a letter from the Building Industry Association of San Diego regarding proposed changes to the City of Carlsbad's lnclusionary Housing Policy. Please do not hesitate to reach out if you have any questions.

Sincerely,
Kelly Batten
Kelly Batten
Senior Public Policy Advisor
Building Industry Association of San Diego
9201 Spectrum Center Blvd. #110
San Diego, CA 92123
858-514-7004 direct
858-472-1504 cell
kelly@b iasandiego .org
www.biasa ndieqo .org
1 BUILDING INllU $TRY

ASSOCIATION OF

SAN DIEGO COUNTY

CHAIRMAN
John la Raia
H.G. Fenton Company
VICE CH.AIRMAN
Chris.Hall
Hallmark Communities
TR£A.SURER / SECRETARY
Rita Maho ney
ColRlch

PAST CHAIRMAN
Alex Phhner
Lennar
PRESIDENT 6I C.E.O.

Lori Holt Pfeiler

AFFILIATE S
California Building
Industry Association
National Association
of Home Builders
March 21, 2022
Mayor Matt Hall
City of Oceanside
300 North Coast Hwy
Oceanside, CA 92054
re: lnclusionary Zoning policy
Dear Honorable Mayor and City Council Members,
As advocates for home ownership, especially for middle-income fam ilies, the Building Industry Association of San Diego (BIA) would like to express our concerns with the City of Carlsbad's lnclusionary Zoning policy changes. San Diego County is in the midst of a housing crisis and adding additional regulations increases costs and makes home ownership more difficult, especially for midd le-income families.

The BIA has several concerns with the changes to Carlsbad's lnc!usionary Housing Policy.

Primarily, BIA woul d like to see an increase of the numbe r of units to allow the developmen ts of twenty or fewer units, an increase from six, t o allow the option of payment of the in-lieu fee. This allows home builders greater flexibility when building smaller projec ts.

Secondly, t he proposed increase in the in-lieu fee from $4,515 per unit to $15 per square foot is a significant change and should be phased-in over three years. Consider that for an average unit of 1600 square feet, the fee increases from $4,515 per unit to $24,000 per unit. Time should be allowed to adjust for this significant change. The first year at $5 per square foot would increase the fee on a 1600 sq. ft unit to $8,000 per unit, nearly twice as much as the current fee.

Finally, BIA has concerns regarding the housing calculation when using off·site compliance. As drafted, the language disincentivizes off-site compliance by requiring a higher percentage of overa ll affordable units when providing units off-site. There are a variety of reasons that a developer may choose to utilize the off-site option including t he ability to partner with an affordabl e developer, and requiring a higher amount of affordab le housing can create enough of a financial disincentive that it is not worth pursuing that second project. The City should be encouraging the development of affordable housing through this language, not creating additional barriers.

Res'p~ctfu lly,
' ~
Lori Holt Pfeiler
CEO/Pres Building Industry Association of San Diego County Building Industry Association of San Diego County
9201 Spectrum Center Blvd., Suite 110, San Diego, CA 92123-1407 p 858-450-1221 F 858-552· 1445 www.biasandiego.org

AFFIDAVIT OF MAILING

NOTICE OF PUBLIC HEARING
TO: CITY CLERK
DATE OF PUBLIC HEARING: 0 /:1::JJ,~j
I
SUBJECT: ,Sbc .Pn<:,~ ~ J--b.1s.-1J Jin -c:4;n ,ftz
LOCATION: ~ 1200 Carlsbad Village Drive, Carlsbad, CA 92008 D Other: _________ _ _____ _ _
DATE POSTED TO CITY WEBSITE .,3 / / / / ~~ '
DATE NOTICES MAILED TO PROPERTY OWNERS: ~)/ 11:Jc,;)Q
NUMBER MAILED:

I declare under penalty of perjury under the laws of the State of California that I am employed by the City of Carlsbad and the foregoing is true and correct.

DEPARTMENT: ~CLERK'S OFFICE □ OTHER _______ _
~
Signature Date
SENT TO FOR PUBLICATION VIA E-M AIL TO: □ Union Tribune on _ __ _ ~Coast News on· 3/8( J:;:)
'
PUBLICATION DATE: Union Tribune ----- - - ----- - -
Coast News _ ___ 3-=----/ ...... 1 ____ 1 .....,/ ~"'---'-'D""----,,~ ..... 9--,----- -- 1 declare under penalty of perjury under the laws of the State of California that I am employed by the City of Carlsbad and the foregoing is true and correct.

DEPARTMENT: Bc1TY CLERK'S OFFICE □ OTHER _______ _
Signature Date
Attachments: 1) Mailing Labels
2) Notice w/ attachments

NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN to you, because your interest may be affecte d, that the City Council of the City of Carlsbad will hold a public hearing at the Council Chamber, 1200 Carlsbad Village Drive, Carlsbad, California, at 5 p.m. on Tuesday, March 22, 2021, to consider approvi ng two resolutions , the first amendin g the city's inclusionary hosing in-lieu fee, and the second amending Council Policy Nos. 57, 58 and 68 into a single policy document, No. 57. Each resolution is more particularly described as:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,

CALIFORNIA, AMENDING THE CITY'S INCLUSIONARY HOUSING IN-LIEU FEE (MCA2022-0002/PUB2022-0004), and

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,

CALIFORNIA, CONSOLIDATING AND AMENDING COUNCIL POLICY
STATEMENTS NOS. 57, 58 AND 68 INTO A SINGLE POLICY DOCUMENT,· NO. 57, TO HELP STREAMLINE PERMIT APPLICATION, CLARIFY

CONFUSING LANGUAGE, AND MEMORIALIZE LONGSTANDING

PROCESSING PRACTICES RELATING TO INCLUSIONARY HOUSING
COMPLIANCE ( M CA2022-0002/PU B2022-000 4)
WHEREAS, at their publicly noticed Feb. 10, 2022 meeting, the Housing Commission considered the KMA report, public comment, and testimony of staff and a representative from KMA and recommended inclusionary housing in-lieu _ fee adjustm ents and the consolidated City Council Policy Changes.

Those persons wishing to speak on this proposal are cordially invited to attend the public hearing .

Copies of the staff report will be available on and after March 18, 2022. If you have any quest ions, please contact Jeff Murphy, Community Development Director {442) 602-2783 or [email protected].

If you challenge the lnclusiona ry Housing In-Lieu Fee in court , you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice or in written corresponde nce deliver ed to the City of Carlsbad, Attn: City Clerk's Office, 1200 Carlsbad Village Drive, Carlsbad, CA 92008, at or prior to the public hearing.

CASE FILE: MCA2022-0002/PUB2022-0004
CASE NAME: lnclusionary Housing In-Lieu Fee
PUBLISH: Friday, March 11, 2022

CITY OF CARLSBAD CITY COUNCIL
5660®

US ARMY CORPS OF ENGINEERS
STE 100
5900 LA Pl.:ACE CT
CARLSBAD CA 92008

NORTH COUNTY TRANSIT DISTRICT
801 MISSION AV
OCEANSIDE CA 92054

OLIVENHAIN MUN ICIPAL WATER

DISTRICT
1966 OLIVEN HAIN RD
ENCINITAS CA 92024

LEUCADIA WATER DISTRICT
1960 LA COSTA AV
CARLSBAD CA 92009

CARLSBAD WATER DISTRICT
5950 EL CAMINO REAL
CARLSBAD CA 92008
CARLSBAD UNIFIED SCHOOL .DISTRICT
6225 EL CAMINO REAL
CARLSBAD CA 92011
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STE 250
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CARLSBAD CA 92008

REGIONAL WATER QUALITY CONTROL
BOARD - SAN DIEGO REGION (9)
STE 100
9174 SKY PARK CT
SAN DIEGO CA 92123-43 40

PLANNING DIRECTOR

CITY OF SAN MARCOS
1 CIVIC CENTER DR
SAN MARCOS CA 92069

PLANNING DIRECTOR

CITY OF VISTA
600 EUCALYPTUS
VISTA CA 92084

SAN DIEGO COUNTY WATER

AUTHORITY
4677 OVERLAND
SAN DIEGO CA 92123

SAN MARCOS SCHOOL DISTRICT
STE 250
255 PICO AV
SAN MARCOS CA 92069
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DISTRICT
710 ENCINITAS BLVD
ENCINITAS CA 92024

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DISTRICT
10124 OLD GROVE RD
SAN DIEGO CA 92131

CITY PLANNER

CITY OF-OCEANSIDE
, 300 NORTH COAST HWY
OCEANSIDE CA 92054

ENCINITAS UNIFIED SCHOOL DISTRICT
101 RANCHO SANTA FE RD
ENCINITAS CA 92024

VALLECITOS WATER DISTRICT
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SAN MARCOS CA 92069
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Inclusionary Housing Program
Jeff Murphy, Director
Community Development Department
March 22, 2022
Cassia Heights Apts.

TODAY’S PRESENTATION
• Program Overview
• In-Lieu Fee
– Background
– Proposed adjustments
• Alternative Means of Compliance Policies
– Background
– Proposed amendments
ITEM 4: Inclusionary Program

CITY COUNCIL HEARING
Public
Comments
Staff
Presentation
Decision Point #2
Council Policy
Decision Point #1
In-Lieu Fee
Decision Point #3
Ordinance

PROGRAM

BACKGROUND
ITEM 4: Inclusionary Program
Villa Loma Apartments

OVERVIEW
1993 Inclusionary Housing Ordinance
Housing Trust Fund
25 years in service
$39.5M in total deposits
2,300 affordable homes built
13% of houses are affordable
ITEM 4: Inclusionary Program

ITEM 4: Inclusionary Program
Interest from Loans:
30%
Housing Credits:
22%
Interest: 15%
In-Lieu Fees: 4%
Impact Fees: 8%Transfers: 9%
Fed & State
Grants: 8%
Admin Fees: 3%
Other: 1%

HOUSING TRUST FUND REVENUES
ITEM 4: Inclusionary Program
Interest from Loans:
30%
Housing Credits:
22%
Interest: 15%
In-Lieu Fees: 4%
Impact Fees: 8%Transfers: 9%
Fed & State
Grants: 8%
Admin Fees: 3%
Other: 1%

HOUSING TRUST FUND REVENUES

INCLUSIONARY HOUSING

IN-LIEU FEE
ITEM 4: Inclusionary Program
Tavarua Senior Apartments

BACKGROUND
• Formulated using “gap method”
• Standard methodology used
• Initial fee set in 1993 at $11,485
• Adjusted in 1996 to $4,515
• Remained unchanged
ITEM 4: Inclusionary Program

CITY COUNCIL DIRECTION
• 2019 – City Council, through Minute Motion,
directed a review of the current fee amount
• 2020 – City Council provided funding to conduct
gap analysis
• 2021 – KMA completed analysis
ITEM 4: Inclusionary Program

IN-LIEU RATES
ITEM 4: Inclusionary Program

IN-LIEU RATES
ITEM 4: Inclusionary Program
Assumes 1,200 square foot unit

Housing Commission
• Agreed with staff
 Apply $8,529 rate for single-family homes
• Deviated from staff
 Apply a different annual fee escalator
 Apply $20/sf rate, 5-year phase
ITEM 4: Inclusionary Program

Housing Commission
• Staff agrees that an inflater should be applied
• City typically uses Consumer Price Index (CPI)
• HC recommended a housing cost inflator
• Several options (Exhibit 11)
• Construction Cost Index (CCI)
ITEM 4: Inclusionary Program

Housing Commission
• Staff continues to recommend $15 rate
• While the $15 rate is at the low end of scale,
still substantial increase over current fee
• Concerns additional increase will have on
market
ITEM 4: Inclusionary Program

IN-LIEU RATES
ITEM 4: Inclusionary Program
300
%
Increase

IN-LIEU RATES
ITEM 4: Inclusionary Program
430
%
Increase

ALTERNATIVE MEANS

OF COMPLIANCE
ITEM 4: Inclusionary Program
Roosevelt Gardens Condominiums

OVERVIEW
• Various constraints may frustrate a developer’s ability to meet the strict letter of the inclusionary regulations.

ITEM 4: Inclusionary Program

OVERVIEW
• Various constraints may frustrate a developer’s ability to meet the strict letter of the inclusionary regulations.
• Ordinance allows “alternative means of compliance” if it meets code intent and Housing Element goals/policies.
• City Council has developed policies that allow certain alternatives.
• Alternatives are options, not requirements
ITEM 4: Inclusionary Program
“Alternative” Policy - Current
Off-Site & Combined Inclusionary
Housing Projects (1995)
Sale of Affordable Housing Credits
(1995)
Inclusionary Housing Incentive Credit
Schedule (2004)
ITEM 4: Inclusionary Program

“Alternative” Policy - Proposed
Inclusionary Housing Ordinance
Alternative Means of Compliance
ITEM 4: Inclusionary Program

Housing Credit Purchase Program
ITEM 4: Inclusionary Program

Housing Credit Purchase Program
ITEM 4: Inclusionary Program
• City financially participates in development project
• Excess inclusionary constructed
• Affordable housing credit bank created
• Developers purchase excess units as credits
• Not an in-lieu fee
Housing Credit Purchase Program
ITEM 4: Inclusionary Program
Findings to establish bank
• Units in excess of inclusionary requirements; or
• Units in a 100% affordable project; and
• City financially contributed
• Constructed/final inspection; and
Housing Credit Purchase Program
ITEM 4: Inclusionary Program
• Projects ≥7, but ≤50 are eligible
• Credit purchase ratio
7 to 20 units – 1.0 credit per inclusionary unit
21 to 35 units – 1.5 credits per inclusionary unit
36 to 50 units – 2.0 credits per inclusionary unit
Housing Commission
• Agreed with staff
 New Council Policy Statement No. 57
• Deviated from staff
 Housing credit price be a flat rate ($177,000)
ITEM 4: Inclusionary Program

Housing Credit Purchase Price
ITEM 4: Inclusionary Program
Credit price determined by dividing the city’s
financial contribution with the total number of
excess affordable units.

Housing Credit Purchase Price
ITEM 5: Inclusionary Program
Credit price determined by dividing the city’s
financial contribution with the total number of
excess affordable units.
$1M towards a 150-unit project where 10
affordable units were built in excess of code…
$1M ÷ 10 = $100,000 credit price
Housing Credit Purchase Program
ITEM 4: Inclusionary Program
• Never intended to act as an in-lieu fee
• Not designed to capture the gap in costs
• Credit price is in addition to loan repayment
• May result in reduced revenues

ITEM 4: Inclusionary Program
Housing Credit Purchase Program
Project Size Credit Ratio Proposed Rate1 HC Rate
7 to 20 units 1.0 $98,123 $177,000
21 to 35 units 1.5 $142,185 $177,000
36 to 50 units 2.0 $196,246 $177,000
Credit Price per Unit
1 Based on current credit price for an affordable unit at Tavarua Apartments ITEM 4: Inclusionary Program
Housing Credit Purchase Program
Project Size Credit Ratio Proposed Rate1 HC Rate
7 to 20 units 1.0 $98,123 $177,000
21 to 35 units 1.5 $142,185 $177,000
36 to 50 units 2.0 $196,246 $177,000
Credit Price per Unit
1 Based on current credit price for an affordable unit at Tavarua Apartments

Housing Commission
Consider increasing the number of units eligible to
participate in payment of the in-lieu fee from six
units to 20 units.

ITEM 4: Inclusionary Program

Increase Eligibility of In-Lieu
ITEM 4: Inclusionary Program
• ~13% of housing stock is affordable to lower
income families due in part to the program
• If given option, developers will pay fee instead
of building affordable unit
• Will take time to collect enough in-lieu fees to
develop units
• Over time, affordable housing stock will decline

ITEM 4: Inclusionary Program

CONCLUSION
• Successful program
 $40M in revenue collected in HTF
 Leverage against other funds
 ~13% affordability
ITEM 4: Inclusionary Program
• Successful program
 $40M in revenue collected in HTF
 Leverage against other funds
 ~13% affordability
• Changes strike a balance between meeting
affordable housing needs and continued
program success

CONCLUSION
Revised In-Lieu Fee
 $8,515 in-lieu fee (single homeowner)
 $15 per square foot (projects 2 to 6 units)
 Fees annually adjusted based on index
New Policy 57
 Maintain current credit price methodology
 Maintain current in-lieu eligibility (≤6 units)
ITEM 4: Inclusionary Program

RECOMMENDATIONS
Inclusionary Housing Program
Jeff Murphy, Director
Community Development Department
March 22, 2022
Cassia Heights Apts.

ITEM 4: Inclusionary Program

CITY COUNCIL DISCUSSION
In-lieu fee adjustment
SFD
Projects 2 to 6 units

1. New fee amount

2. Annual adjustment
(CMI, CCI,…)

3. Phasing Period
(none, 3-year, 5-year,…)

ITEM 4: Inclusionary Program

CITY COUNCIL DISCUSSION
Policy Amendments
• Staff & Housing Commission recommend
combined/updated Council Policy No. 57
• Exception – How the credit purchase price is established Option 1: Maintain current calculation (staff)
Option 2: Apply affordability gap rate of $177,000,
adjusted annually (Commission)
ITEM 4: Inclusionary Program

CITY COUNCIL DISCUSSION
Ordinance Amendment
Housing Commission:

Expand the ability for developers to pay the in-lieu fee by increasing the maximum project size from 6 units to 20 units (requires code amendment and Coastal approval).

Staff:

Maintain the current code. Only projects ≤6 units in size are eligible to pay in lieu fee, all other projects must build inclusionary unit(s).

Inclusionary Housing Program
Jeff Murphy, Director
Community Development Department
March 22, 2022
Cassia Heights Apts.

ITEM 4: Inclusionary Program
Housing Credit Purchase Program
Bank Quadrant Unit Price Available Units
Villa Loma NE $49,000 0
Roosevelt Gardens NW $142,000 0
Cassia Heights SE $66,300 32
Tavarua NW $98,123 24
ITEM 4: Inclusionary Program
Inclusionary Housing Program
Quadrant Affordable Units1 % of Total
Northwest 724 28%
Northeast 359 14%
Southeast 804 31%
Southwest 676 26%
1 includes units built and units approved, but not built

AFFORDABLE HOUSING CREDIT BANKS
ITEM 4: Inclusionary Program
Tavarua Senior Apts.Cassia Heights Apts.Roosevelt Gardens.Villa Loma Apts.

Carlsbad City CouncilMarch 22, 2022

Carlsbad City Council
March 22, 2022