Carlsbad City Council
October 22, 2024

CA Review CKM

Meeting Date: Oct. 22, 2024

To: Mayor and City Council

From: Scott Chadwick, City Manager

Staff Contact: Mandy Mills, Housing & Homeless Services Director [email protected], 442-339-2907
Subject: Progress Report on Actions to Address Concerns Related to the Windsor Pointe Affordable Housing Project

District: 1

Recommended Action
Receive a progress report on City Council-directed actions related to the Windsor Pointe Affordable Housing Project.

Executive Summary
When the Windsor Pointe affordable apartments opened in Spring 2022, community members expressed concerns about safety and other negative effects on the neighborhood’s quality of life. City staff have worked with the project’s operator, Affirmed Housing, to address concerns and collaborate on solutions.

In March 2024, the City Council requested the project be placed on its meeting agenda so there could be a full public review and evaluation of the areas of concern, actions taken and the city’s options for remaining issues. Since March, the City Council has reviewed progress and given further direction at three additional meetings. As a result, improvements have been made to security, the level of supportive services has increased, and a change was made that will allow more veterans to be eligible to live in the apartments.

While a number of improvements have been made, some operational concerns persist. On Aug. 20, 2024, the City Council directed staff to determine whether grounds exist for the city to cause a change in the project’s property management company, and if so, take necessary steps to do that. The City Council also directed staff to review the management plan between Affirmed Housing and the management agent to see if there are changes that could be made to provide 24-hour on-site security.

The City of Carlsbad has some leverage to request changes because it provided a loan to the project and has a ground lease with the project owner. The City Manager and City Attorney have followed procedures defined in the ground lease and loan documents to notice the project owner of the City of Carlsbad’s expectations. This report provides a status update.

Oct. 22, 2024
Item #6 Page 1 of 26

Explanation & Analysis
Background
Windsor Pointe apartments are owned by Carlsbad Veteran Housing L.P. and operated by Affirmed Housing Group Inc., a company specializing in providing affordable housing, including 22 projects offering housing with supportive services for people experiencing homelessness. 1 The Windsor Pointe project was first proposed in 2016. The City Council approved two actions, one in 2017 and one in 2020, for a $8.3 million financing package with the project owner to acquire the land and build the Windsor Pointe Affordable Housing Project. The project met an important need for permanent supportive housing in Carlsbad for people with very low incomes.

The County of San Diego provided funding to develop and operate the housing through the state-funded No Place Like Home program.2 The county also contracts with the service provider that assists residents in units funded through the No Place Like Home program. Affirmed Housing operates the project and contracts with a property manager and an additional onsite service provider.

City Council direction to address concerns
Community members have expressed concerns about safety and other negative effects on the neighborhood’s quality of life. City staff from the Housing & Homeless Services and Police departments have been working with Affirmed Housing, its property management company, CONAM Management Corporation, and the County of San Diego to address concerns.

The City Council held meetings on March 12, April 9, June 11 and Aug. 20, 2024, to hear from the community and review actions taken to date. During those meetings, the City Council directed city staff to pursue a number of action items related to security, supportive services and priority referrals for the project. City staff, Affirmed Housing, CONAM and the county’s Behavioral Health Services and Housing & Community Development departments have worked collaboratively to make changes to the project’s operations.

On Aug. 20, 2024, the City Council directed staff to review agreements to see if there are grounds to remove the property’s management agent, and if so, take necessary steps to do that, as well as review the management plan between Affirmed Housing and the management agent to see if there are changes that can be made to address 24-hour security.

1 Affirmed Housing is the Manager of AHG Windsor Pointe LLC, which is Carlsbad Veteran Housing’s administrative general partner.
2 Project funding was also provided through tax credits from the California Tax Credit Allocation Committee.

Oct. 22, 2024
Item #6 Page 2 of 26

City staff’s actions
The City Manager and City Attorney have followed procedures defined in the ground lease and loan documents to notify the project owner of the City of Carlsbad’s expectations. This letter and Affirmed Housing’s response letter are provided in Exhibits 2 and 3, respectively. The city’s letter responding to Affirmed Housing’s response letter is in Exhibit 4.

Specifically, the City of Carlsbad gave Affirmed Housing notice that it needed to take the following specific steps:

Secure all access gates and doors and repair any broken or malfunctioning locks or access control systems.

Status: City staff from the Housing & Homeless Services and Police departments recently inspected the property. The main door to enter the building at each location is secure and requires control access. The alarm on the gate at the Oak Avenue building works properly.

Once on the property, key fob access is required to enter the interior of the building.

How
ever, the locked access to enter from some exterior stairwells still requires additional action. On-site staff currently check this daily while a more permanent fix is being explored.

Several neighbors have sent the city emails with photos of the exterior gate on Harding Street propped open. One day it was opened for a planned event with staff present.

Affirmed Housing is reviewing video footage of the other specific dates to determine how and why the gate was propped open and take appropriate action. For example, if it a tenant left the gate open, property management will communicate with the tenant about this violation of the property’s rules.

Remove all hazards and debris from exterior common areas.

Status: City staff from the Housing & Homeless Services and Police departments inspected the property and have confirmed all exterior common areas are clear of hazards and debris.

Update the Management Plan to incorporate the following provisions:

A) Daily exterior inspections of gates, access doors, access control systems and interior and exterior common areas with any needed repairs to be made within 24 hours unless otherwise agreed to by the city.

Status: Affirmed Housing has proposed to update the Management Plan to provide for daily inspections of access doors/gates, control systems and exterior common areas, and to make any needed repairs to any such items as soon as reasonably possible. City staff will continue to work with Affirmed Housing to negotiate mutually acceptable language. Other funding agencies will also have to consent to changes to the Management Plan.

Oct. 22, 2024
Item #6 Page 3 of 26

B) Develop and implement a detailed staffing and security plan that provides sufficient on-duty management and security staff to ensure:
o Entryways are controlled and visitors are screened at both locations 24 hours a day, seven days a week
o Exterior and interior common areas at both locations are regularly patrolled throughout the day, but no less than once every two hours in each 24-hour period.

Status: An update to the Management Plan will be necessary with the change of the management agent as described below. However, Affirmed Housing has not committed to provide on-site and security staffing coverage 24 hours a day, seven days a week to ensure visitors are screened at both locations around the clock. Affirmed Housing has expressed concerns over visitor screening due to reasons related to resident privacy.

Additionally, Affirmed Housing not committed to providing 24-hour on-site security at both locations because of industry standards and the cost. Instead, security is provided for 12 hours each day at each location, from 6 p.m. to 6 a.m. City staff will continue to work with Affirmed Housing to negotiate mutually acceptable language.

Further, the city advised Affirmed Housing of the city’s des ire to replace CONAM Management Corporation as the management agent if the city determines the property is still not being appropriately managed.

Status: Affirmed Housing has provided notice to the city that it is terminating the agreement for property management services with the current management agent, CONAM, and intends to request consent from all funding agencies to enter into an agreement with a new management agency for property management services. City staff will perform a due diligence review of the identified property management company to confirm the agent has the experience and demonstrated ability to operate residential projects like Windsor Pointe in a manner that will provide decent, safe and sanitary housing in a manner acceptable to the city. Once all funding agencies have provided consent, Affirmed Housing can execute a new contract for property management services. City staff will update the City Council of this change when all funding agencies have provided consent.

County of San Diego actions
On April 9, 2024, the County of San Diego approved action items related to services and security at No Place Like Home-funded projects, including Windsor Pointe.

The county Board of Supervisors directed county staff were to report back to the board in 90 days and in six months, depending upon the specific action item. City staff recently received a letter from county staff with their updates (Exhibit 1). It reports that County staff explored funding opportunities to support the expansion of services to seven days a week but that funding has not yet been identified.

Oct. 22, 2024
Item #6 Page 4 of 26

Actions to increase veteran access
Another area of the city’s focus is increasing the project’s ability to serve more veterans.

Veterans are given preference for all units at Windsor Pointe, but it has been challenging to place veterans in the No Place Like Home-funded units with veterans for several reasons.

Several efforts to improve veteran access have been underway, and the following updates detail the progress.

Legislation
Recent federal and state legislation should help more veterans qualify for affordable housing such as that provided by Windsor Pointe. With the benefits they receive, many veterans have incomes that are too high to qualify for the units at Windsor Pointe reserved for extremely low income households. The City of Carlsbad, through the City Council’s Legislative Subcommittee and the city’s lobbyists, has advocated for veterans to be allowed to exceed the maximum income limits for supportive housing, or for veterans’ disability benefits to not be counted toward maximum income limits.

At the federal level, U.S. Rep. Brad Sherman (with several co-sponsors, including Rep. Mike Levin) introduced the Housing Unhoused Disabled Veterans Act (H.R. 8340) in May 2024. The bill proposes to exclude any disability benefits received by a veteran from the definition of adjusted income for the purposes of determining eligibility for the supportive housing program under Section 8 of the United States Housing Act. The U.S. Department of Housing and Urban Development announced a similar change on Aug. 8 for veterans applying for the HUD– Veterans Affairs supportive housing program (known as HUD-VASH).

On Sept. 29, 2024, the Governor signed Assembly Bill No. 535, which includes a provision stating service-connected disability benefits received by the potential tenant shall not be taken into consideration in an income eligibility determination for supportive, affordable or transitional housing. This would apply to programs restricted for homeless veterans. The bill is urgency legislation, so it took effect upon signing. It is intended to comply with the new federal regulation applicable to HUD-VASH recipients mentioned above.

Potential funding
The project partners explored alternatives to increase veteran occupancy. Affirmed Housing plans on submitting an application for project-based housing vouchers through the HUD-VASH program administered by the County of San Diego in October 2024. Notification of awards are anticipated in January 2025.

If the application is granted, the Carlsbad Housing Authority will have to enter into a memorandum of agreement with the County of San Diego. City staff will begin working with the county of San Diego on a draft memorandum for consideration by the City Council should the vouchers be awarded to Windsor Pointe. (Staff will present the request to enter into the memorandum to the Housing Commission first, because it is the advisory body to the Housing Authority Board, and then return to the City Council for its consideration.) Project-based vouchers provide financial assistance to the tenant of a specific unit. When that tenant moves out, the next tenant receives the benefit.

Oct. 22, 2024
Item #6 Page 5 of 26

Although the units at Windsor Pointe are already affordable, the project-based vouchers would apply a different rental income structure for those units. The rental income from the project- based vouchers would replace some of the funding provided from the project’s capital operating subsidy reserve so it would not provide any financial benefit to the project. The reason Affirmed Housing is applying for the vouchers is so that some of the No Place Like Home units can also have a veteran requirement, as opposed to a preference.

The project-based vouchers units would be reserved for HUD-VASH veteran households referred by the San Diego Veterans Affairs office. Referred tenants are still required to have a serious mental illness to meet the No Place Like Home requirement. One distinct difference is that tenants who accept a HUD-VASH voucher must agree to meet with a case manager each month, ensuring some level of engagement with available services.

Affirmed Housing is applying for a small number, only six, HUD-VASH project-based vouchers. It is not applying for all 24 No Place Like Home units because the project-based vouchers have to be used within one year and, since the units are occupied, the vouchers can only be used when a current No Place Like Home tenant vacates a unit.

While it will still take some time to use even this small number of vouchers as tenants move out, receiving and using the HUD-VASH project-based vouchers will lead to higher veteran occupancy at Windsor Pointe in the future.

Fiscal Analysis
There is no fiscal impact from receiving this report, and no funding is being requested.

Next Steps
City staff have addressed the immediate actions directed by the City Council and will continue to work on longer-term and ongoing efforts. This includes monthly meetings with the property owner and manager to address any additional concerns.

City staff will work with the County of San Diego on a draft memorandum of understanding so it could be considered by the City Council if the project is awarded the HUD-VASH project based vouchers.

County staff are expected to update the Board of Supervisors on the actions the board approved. City staff will share the County of San Diego’s updates with the City Council as they become available.

Because a change of management company is planned, city staff recommend presenting the City Council with its next update on Windsor Pointe once the new company has taken over and staff have had at least six months to assess operations.

Environmental Eval uation
This action does not require environmental review because it does not constitute a project within the meaning of the California Environmental Quality Act under California Public Resources Code Section 21065 in that it has no potential to cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.

Oct. 22, 2024
Item #6 Page 6 of 26

Exhibits

1. County of San Diego’s Oct. 8, 2024, letter

2. City’s Sept. 10, 2024, letter re: noncompliance with agreements and change of management agent

3. Affirmed Housing’s September 18, 2024 letter responding to Sept. 10, 2024 letter

4. City’s Oct. 17, 2024 letter re: continued noncompliance with agreements Oct. 22, 2024
Item #6 Page 7 of 26
Exhibit 1
Oct. 22, 2024
Item #6 Page 8 of 26
filountu of ~an ~ttgo

KIMBERLY GIARDINA, DSW, MSW

DEPUTY CHIEF ADMINISTRATIVE OFFICER

HEAL TH AND HUMAN SERVICES AGENCY
1600 PACIFIC HIGHWAY, ROOM 206, MAIL STOP P-501
SAN DIEGO, CA 92101-2417
October 8, 2024
TO:

FROM:
(619) 515-6555• FAX (619) 515-6556
Supervisor Nora Vargas, Chairwoman
Supervisor Terra Lawson-Remer, Vice Chair
Supervisor Joel Anderson
Supervisor Monica Montgomery Steppe
Supervisor Jim Desmond
Kimberly Giardina, Deputy Chief Administrative Officer
Health and Human Services Agency

PATTY KAY DANON

CHIEF OPERATIONS OFFICER

UPDATE ON ENHANCING SAFETY AND SERVICES AT NO PLACE LIKE HOME

AFFORDABLE HOUSING DEVELOPMENTS
The No Place Like Home (NPLH) State program was created to develop permanent supportive housing for people in need of mental health services and who are experiencing homelessness, chronic homelessness, or are at-risk of chronic homelessness. People who are experiencing homelessness and have a serious mental illness (SMI) diagnosis are linked to NPLH units via the regional Coordinated Entry System (CES). CES is an evidence-based strategy that focuses on housing and service coordination designed to link individuals or families experiencing homelessness to the most appropriate housing solution based on their needs.

As an Alternative Process County grantee, the County of San Diego (County) provides funding (via deferred loans) for the construction, acquisition, and/or rehabilitation of permanent supportive housing that serves NPLH eligible tenants. Additionally, through County Behavioral Health Services (BHS), the County must commit to providing access to necessary behavioral health supportive services for no less than 20 years. The County may also provide a Capitalized Operating Subsidy Reserve (COSR) for developments that are not able to secure Project Based Vouchers. The COSR may be used to subsidize eligible operating expenses for NPLH assisted units at a development.

Since 2020, the County has provided NPLH funds to 21 developments across the County. Seven have completed construction and now provide affordable housing and services to County residents. This funding has enabled the County to significantly expand capacity to permanently house people experiencing homelessness with behavioral health conditions, adding 192 new units paired with services across the county. Data is tracked and reported annually to the State and indicate positive outcomes for residents. For the last reporting period, more than 92% of residents in NPLH units countywide had remained in their housing unit for more than a year.

On April 9, 2024 (5), the San Diego County Board of Supervisors (Board) approved the following actions to enhance support for people with serious mental illness who are living in permanent supportive housing units funded by the NPLH program:

Oct. 22, 2024
Item #6 Page 9 of 26
Board of Supervisors
October 8, 2024

• Implement a pilot program to increase services for residents with serious mental illness living in the four affordable housing developments with NPLH units in North County to include enhanced clinical support seven days per week.
• Ensure all personnel on-site receive Mental Health First Aid training and be trained on how to refer people to 24/7 behavioral health crisis response resources. • Develop a two-part plan to I) ensure visitors are checked in and out which allows on-site staff to have awareness of who is on the property, and 2) assess current staffing needs to ensure at least one staff member who has the Mental Health First Aid training is on-site at all times. • Report back to the Board within 90 days with an update on the plans for the four developments in North County that have NPLH units.
• Report back to the Board within six months with an update on progress, outcomes, and a plan to implement these changes countywide.

In response to these Board actions, a 90-day update via memorandum was provided on July 18, 2024.

Today's memorandum includes the six-month update on progress, outcomes, and a plan to implement these changes countywide.

The Board directed initial efforts to be piloted at the following affordable housing developments in North County: Windsor Pointe (Carlsbad), Valley Senior Village (Escondido), Greenbrier Village (Oceanside), and Santa Fe Senior Village (Vista). Windsor Pointe and Valley Senior Village are both fully occupied, Greenbrier Village began leasing up new residents in September 2024, and Santa Fe Senior Village is currently under construction.

Update on Enhanced Clinical Support at NPLH Developments As an initial step in pilot implementation, staff has explored funding opportunities to add enhanced clinical support seven days per week and maximize the level of services and hours of case management services and referrals to residents. Expansion to seven day a week services is estimated to cost nearly $700,000 annually and is not reimbursable to Medi-Cal; therefore, would result in additional County cost. Funding has not yet been identified to support such increased service levels at this time. Any new General Fund resources required may result in budget reductions in other programs. Staff will continue to explore funding opportunities to enhance clinical support at the four North County NPLH developments and countywide, which may be available through opportunities such as behavioral health payment reform.

On a parallel track, an array of existing behavioral health services and other comprehensive supports funded by County BHS, including the Tenant Peer Support Services (TPSS) program, are proactively being made available to residents within the NPLH developments to enhance resident well-being.

Information related to County-funded TPSS services and hours at the four identified sites was previously provided in the July 2024 memorandum. To summarize those available County-funded services:
• At Windsor Pointe, earlier this year, County BHS expanded TPSS to provide 44 hours of service each week. The County has also worked with the developer to make additional funding available for on-site support through the COSR funding agreement. • At Valley Senior Village, TPSS provides eight scheduled "office hours" each month in addition to providing individual engagement. TPSS actively engages tenants on an ongoing basis and helps connect them to referrals for outpatient clinic services, Strengths-Based Case Management (SBCM), Assertive Community Treatment (ACT), and additional community-based services as needed.
• Throughout the lease-up process currently underway at Greenbrier Village, TPSS engages with tenants prior to and through the move-in process to meet individual needs, which includes Oct. 22, 2024
Item #6 Page 10 of 26
Board of Supervisors
October 8, 2024

navigating lease signings and gathering necessary documentation for income verification. This may involve helping tenants collect and organize various financial documents such as bank statements, benefit award letters, and pay stubs.
• While the lease-up process has not started at Sante Fe Senior Village, TPSS is already engaging with property management on best practices and preparing to support incoming tenants. TPSS will be ready to provide the same comprehensive move-in assistance and documentation support offered at Greenbrier Village during the lease-up process.

In addition to County BHS funded services, residents have access to voluntary resident services funded by the respective affordable housing developer. At Windsor Pointe, Interfaith Community Services is contracted to provide case management to all residents including linkage to community support programs, clothing, employment, food, mental health services, and conducts resident engagement activities. At Valley Senior Village and Greenbrier Village, Hope Through Housing provides the same resident services offered at Windsor Pointe. Once construction is completed at Santa Fe Senior Village, Hope Through Housing will provide resident services. These services are for all residents in the development and not exclusive of those residing in NPLH units. This collaborative approach is further enhanced by the County's significant expansion of behavioral health services across the region. Together, these efforts form a wide-ranging and interconnected support system, ensuring that residents have access to a diverse array of services tailored to meet their individual needs.

Immediate support for a behavioral health crisis is available 24/7 through the Psychiatric Emergency Response Team (PERT) and Mobile Crisis Response Team (MCRT) programs. An array of substance use and mental health treatment options are available to residents in need of care by calling the County's Access and Crisis Line at 9-8-8.

Update on Mental Health First Aid Training
County BHS is leveraging a contracted service provider to provide additional Mental Health First Aid (MHFA) training for NPLH site personnel and residents. TPSS staff who support residents in the developments have already completed MHFA training as part of their County contracted obligations.

MHFA learning topics include skills needed to recognize and respond to signs and symptoms of mental health and substance use challenges, as well as how to provide someone with initial support until they are connected through referrals to appropriate services, including 24/7 behavioral health crisis response resources.

The first MHFA training series was completed at Windsor Pointe in June 2024. MHFA training was offered to residents and all personnel on-site, including property management, case management, security, and maintenance staff. To further engage site personnel and residents and encourage participation in the trainings, BHS is working with the MHFA contractor to condense the training and provide incentives for resident participation. It is anticipated the revised training will launch in Fall 2024 at Windsor Pointe, Valley Senior Village, and Greenbrier Village. The training will also be provided at Santa Fe Senior Village once the lease up process is complete. Staff is continuing to explore funding opportunities to expand MHFA countywide across all NPLH developments.

Update on Visitor Check-in Policy
As reported in July, visitor/guest policies are established by property management and thus will vary by development. The County does not have the authority to dictate check in policies; however, it is responsible for ensuring compliance with State's NPLH Program Guidelines, which do not allow for restrictions on guests that are not otherwise required by other project funding sources or would not be common in other unsubsidized rental housing in the community. The County will continue to work with developers to ensure compliance with NPLH guidelines.

Oct. 22, 2024
Item #6 Page 11 of 26
Board of Supervisors
October 8, 2024
Page4 of 4
In addition to the State NPLH Guidelines regarding visitor/guest policies, the guidelines also require that tenants in NPLH-assisted units must sign a residential lease and have the same rights and responsibilities of tenancy as non-NPLH tenants.

For questions, please contact Kelly Salmons at HCDS via phone at (8S8) 694-4806 or email [email protected]; or Nadia Privara at BHS via phone at (619) S63-2700 or email [email protected].

R;r;u'.ly,

KIMBERLY GIARDINA, DSW, MSW

DEPUTY CHIEF ADMINISTRATIVE OFFICER
Health and Human Services Agency
c: Ebony N. Shelton, Chief Administrative Officer
Exhibit 2
Oct. 22, 2024
Item #6 Page 12 of 26
September 1 O, 2024
( City of
Carlsbad

NOTICE OF NONCOMPLIANCE W ITH AGREEMENTS, MAINTEN ANCE DEFICIENCIES AND

INTENT ION TO CAUSE REPLACEMENT OF MANAGEMENT AGENT AT W INDSOR POINTE Mr. James Silverwood
Carlsbad Veteran Housing, L P.
c/o Affirmed Housing Group, Inc.
13520 Evening Creek Drive North, Suite 160
San Diego, CA 92128
Dear Mr. Silverwood:

VIA CERTIFIED MAIL AND
EMAIL TO: jim@affirmedh ousing.com
This letter is t o notify Carlsbad Veteran Housing, L.P. and Affi rmed Housing Group, Inc. (collective ly Affirmed Housing) that you have violated the terms of the Ground Lease, Regulatory Agreement , Loan Agreement , and Deed of Trust with the City of Carlsbad for the Windsor Pointe development (Win dsor Pointe or the Property). This letter is also to notify you that Affirmed Housing's Managemen t Agent, CO NAM Management Corporation (CO NAM) has failed to meet its obligations under Windsor Pointe's Management Plan and, consequently , the city intends to cause Affirmed Housing t o replace CO NAM.

Backgro..und
On September 5, 2023, the City of Carlsbad Police Chief sent a letter informing Affirmed Housing of a number of criminal acts that occurred at the Windsor Pointe property, including many committed by individuals who did not reside there or were trespassing on the property. The Police Chief requested Affirmed Housing implemen t additiona l security measures, includ ing:
• Requiring visitors to check in and out of the property ; • Maintain ing surveillance cameras covering all exterior locations and parking areas; and • P roviding uniformed security onsite at both locations , 24 hours a day, seven days a week.

The same day, the City of Carlsbad 's Housing & Homeless Services Director sent a letter offering to assist Affirmed Housing identify and develop changes to property maintenance and operations to address the security concerns identified by the Police Chief .

The Housing & Homeless Services Director also recomme nded Affirmed Hous ing:
• Provide onsite security at both locations, seven days a week; City Manager
City Hall 1200 Carlsbad Villa ge Drive I Carlsba d, CA 92008 I 442-339-2821 t Oct. 22, 2024
Item #6 Page 13 of 26
Mr. James Silverwood
Septemb er 10, 2024

• Require visitors to check in and out of the property and to be escorted by a tenant wh ile on the property;
• Ensure management staff is onsite 24 hours a day and accessible for after-hours emergencies; and
• Meet with Carlsbad Police Department representatives at least quarte rly to discuss secur ity concerns.

Affirmed Housing did not fully implement these recommendat ions. Instead, Affirmed Hous ing increased onsite security from three on site rounds per night to one onsite security guard 12 hours per night covering both Windsor Pointe build ings. Affirmed Housing also increased remote video surveillance from 12 hours Monday through Friday and 24 hours on weekends to 24 hours, seven days a week.

Additionally, CO NAM began meeti ng weekly with Carlsbad Police Department representatives. The Housing & Homeless Services Department and the Carlsbad Police Department also began conducting monthly progress review meeti ngs with Affi rmed Housing and CONAM.

Despite these efforts, security, maintenance, and operations concerns continued. At a City Counc il meeting on March 12, 2024, the city again requested Affir med Housing take steps to deter crimin al activity at Windsor Pointe by increasing the onsite security to at least 6 p.m. to 6 a.m. at both Windsor Pointe buildings, implemen ting remote video surveillance mon itoring 24 hours a day, seven days a week, and requiri ng visitors to check in and out of the Property. In addition, the City Council directed staff to work with Affirmed Housing to amend Windso r Pointe's Management Plan to include thes e requirements. To help with the cost for the addit ional security, the City Counc il also directed city staff to advocate for the County of San Diego to release operating subsidiary reserve funding, which the County of San Diego did.

At a City Council meeting on April 9, 2024, city staff reported on the status of the updates to the Management Plan. The amendments, which were approved, required Affirme d Housing to have:
• A s ecurity guard on site at ea_ch Windsor Pointe buildi ng from 6 p.m. to 6 a.m., during which time the guards would monito r issues on the Property, including noise complaints , guest entry and suspiciou s activity;
• Remote video surveillance 24 hours a day, seven days a week to identify crim inal activity, suspicious activity, or entry by unauthor ized people ; and • A procedure requiring residents to check thei r visitors in and out.

Continued Security,J'1ajntenance., and Operations Defici encies Notwithst anding these requirements , on the morning of August 20, 2024, Police Chief Christie Calderwood went to Windsor Pointe to view the Property in preparation for a progress review on that evening's City Council meeting agenda. While she was sitting in her unmarked police vehicle, a barefoot woman passed by her and approached the security gate for Windsor Pointe's Oak Avenue building. The woman flung a bag over the gate, using the bag to engage a bar on the interior side of Oct. 22, 2024
Item #6 Page 14 of 26
Mr. James Silverwood
September 1, o, :?.024

the gate. Once the bar was engaged, the gate opened, allowing the woman access rn the property.

Although the gate had signage indicating it was alarmed, no alarm sounded.

The woman, who Chief Calderwood subsequently learned had been banned from the property, left the gate ajar and Chief Calderwood entered onto the property to locate her. Chief Calderwood went to the exterior of the buil.dingto search for the woman. Chief Calderwood climbed the building's exterior staircase ana tried the entrance door for each fl.oar. Although the doors require a keycard to enter and vvere lighted in a way suggesting tl1ey were locked and secure, Chief Calderwood was able to rnadily pull open the doors on three of the building's four floors. Chie1' Calderwood also noticed a mattress topper and other items in or around the staircase suggesting someone may have been camping in or around the staircase.

Chief Calderwood attempted to contact t~1e onsite manager, but the manager was not on duty even though the manager's work hours had begun. in addition, none of the service providers who have office hours in the build[ng were on duty.

Since on site security went off duty at 6 a.m., Chief Calderwood called the company that is supposed to provide monitored security for the building 24 hours a day, seven days a week. The representative who fielded Chief Calderwood's call was unaware of either the woman intruder's presence in the building or of Chief Calderwood's presence in the building. Once Chief Calderwood alerted the representative to the intruder, the representative had to search through the security records to learn what occurred.

Chief Calderwood left the Oak Avenue building and went to Wrndsor Pointe's Harding Street building. There she spoke with Windsor Pointe's onsite maintenance technician. The maintenance technician advised that the onsite Property Manager at the Oak location would be there at approximately 11 a.m. Chief Calderwood reported the unalarmed gate and the brol<en security doors, to which the maintenance technician already had knowledge.

When this information was relayed to the City Council at the meeting that evening, the Affirmed Housing representative and the CONAM representative who attended the meeting were asked to address the matter. Neither provided a satisfactory explanation for why an intruder was so easily able to access the property, why the security company hired to provide monitored surveillance for the building did not notice either the intruder or the Police Chief, why the access gate and security doors had not been promptly repaired, why the mattress topper and debris were allowed to be in or around the exterior stairway, and why no property manager or substitute was on duty during work hours.

These security, maintenance and operations deficiencies violate the following provisions of Affirmed Housing's agreements with the city:
.Ground Lease
Section 5.1 (a) - Quality of Operations
Section 5.2- Limitations on Use
Oct. 22, 2024
Item #6 Page 15 of 26
Mr. James Silven-vood
September 10, 202.4

Section 5.4 - Maintenance of Improvements
Regulatory Agreement
Section 5.1 - Management Responsibilities
Section 5.5 - Property Maintenance
Section 5.6 -Safety Conditions
Loan Agreement
Section .d.3(a}- Operation of Development as .A.ffordable Housing Section 4.4/a)--· Maintenance
Deed of Tru;;.t
Section 2.1 - Maintenance and Modification of the Property by Trustor Section 5.1 - Other Agreements Affecting Property
Section 5.6 - Operation of the Security
These security, maintenance and operations deficiencies also violate CONAM's obligations under the following provisions ottlle Management Plan:

Section 2.A. -Agent Roles and Responsibilities
Section 2.B. - Community Manager Roles and Responsibilities Section 18.G - Guest Policy and Procedures
Section 24- Maintenance and Security
To cure these violations, Affirmed Housing must tal<e the following steps within 30 days from the date of this letter:

1. Secure all access gates and doors and repair any broken or malfunctioning locks or access control systems

2. Remove all hazards and debris from exterior common areas

3. Update the Management Plan to incorporate the following provisions:
a. Daily exterior inspections of gates, access doors, access control systems and interior and exterior common areas with any needed repairs to be made within 24 hours unless otherwise agreed to by the city.
b. A detailed staffing and security plan that ensures there is sufficient on-duty management and security staff to ensure: (i) entryways are controlled and visitors are screened at both locations 24 hours a day, seven days a week; and (ii} exterior and interior common areas at both locations are regularly patrolled throughout the day, but no less than once every two hours in each 24-hour period.

Additionally, as permitted by Section 5.3 of the Regulatory Agreement, the city intends to cause Affirmed Housing to replace CONAM as its management agent for failure to operate Windsor Pointe in a manner that provides decent, safe, and sanitary housing.

Within 15 days from the date of this letter, Affirmed Housing must meet with city staff, including the Housing & Homeless Services Director and the Police Chief, to consider methods for improving Oct. 22, 2024
Item #6 Page 16 of 26
Mr. James Silverwood
September 10, 2024

Windsor Pointe's financ ial and operat ing status. If, with in 30 days of that meeti ng, the city determines the prop erty is still not being appropriately managed, the city will require Affi rme d Housing to replace CONAM with an experienced agent t hat has demonstr at ed an ability to operate residential projects like Windsor Pointe in a man ner that will provide decent, safe, and sanitary housing.

We look forward to your prompt attent ion to these concerns. To schedule the meeting to discuss CONAM's replacement, please contact Mandy Mills, Housing & Home less Services Director by pho t (442) 339-2907 or by email at [email protected] .

SCOTT CHADWICK
City Manager
c: Mayor Keith Blackburn (via email )
CINDIE K. McMAHON
City Attorney
Mayor Pro Tern Priya Bhat-Pate l (via emai l)
Cou ncil Member Teresa Acosta (via email)
Counc il Member Melanie Burkholder (via email)
Counc il Member Carolyn Luna (via email)
Geoff Patnoe, Assista nt City Manager (via email)
Mandy Mills, Housing & Homeless Services Director (via email) David Cohen, Katten Muc h in Rosen man LLP (via email and regular mai l) Steven J. Kropf, Raymond James Tax Credit Funds, inc. (via facsimile and regular mai l) Kyle Arndt , Bocarsl y Emden Cowa n Esmail &Arndt LLP (via email and regula r mail) Joseph M. Michaels, Las Palmas Foundation (via emai l and regular mail) Jason A. Hobson, Hobson Bernardino (via email and regular mail) Commun ity Developm ent, County of San Diego, Housing & Community Development Services (via email and regular mail)
Executive Directo r, California Tax Credit Allocation Comm ittee (via certified mail)

KATTEN MUCHIN ROSENMAN LLP

CENTURY CITY CHARLOTTE CHICAGO DALLAS LOS ANGELES

NEW YORK ORANGE COUNTY SHANGHAI WASHINGTON, DC A limited liability partnership including professional corporations LONDON: KATTEN MUCHIN ROSENMAN UK LLP
301616468v1_392211-00036 9/17/2024 2:15 PM
2121 Avenue of the Stars
Suite 1100
Los Angeles, CA 90067-5010
+1.310.788.4400 tel
katten.com..

DAVID P. COHEN
[email protected]
+1.310.788.4591 direct
+1.310.788.4471 fax
September 18, 2024
Scott Chadwick
City Manager
City Hall
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Cindie K. McMahon
City Attorney
Office of the City Attorney
City of Carlsbad
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Re: Windsor Pointe (“Project”)
Dear Mr. Chadwick and Ms. McMahon:

As you know, I am counsel to Carlsbad Veteran Housing, L.P. (“Tenant”), which is the tenant under that certain Ground Lease with the City of Carlsbad (“City”) dated September 17, 2020 (“Ground Lease”). I am writing in response to your letter dated September 10, 2024 (“Your Letter”) in which you allege that Tenant is not in compliance with the Ground Lease.

Your Letter recites a list of actions which the City recommended with respect to the Project.

While Tenant has considered, in good faith, all of the City’s recommendations, and has in fact implemented several of them, the Ground Lease does not require the Tenant to implement all City recommendations nor does Tenant believe it would be prudent to do so.

Your Letter next purports to establish that Tenant has failed to comply with the Ground Lease based on the existence of a gate with a broken alarm, broken entry doors and debris in the stairwell. Tenant rejects your contention that such items constitute noncompliance. Rather, the identified issues are routine maintenance and property management items which Tenant has remedied in the normal course. Had Tenant not addressed these items, then that would be an event of noncompliance under the Ground Lease. However, the mere existence of routine maintenance items and debris at the Project, which Tenant timely remedied, does not rise to the level of noncompliance.

Notwithstanding Tenant’s position as set forth above, Tenant has been and will continue to be cooperative with the City. In that regard, you requested that Tenant meet with City staff. That meeting took place on September 11, 2024. You also asked that Tenant:

1. Repair any broken doors, locks, and access gates and control systems. This has been done.

2. Remove all hazards and debris from exterior common areas. This has been done.

Exhibit 3
Oct. 22, 2024
Item #6 Page 17 of 26
Katten
Mr. Chadwick and Ms. McMahon
September 18, 2024

301616468v1_392211-00036 9/17/2024 2:15 PM

3. Make certain updates to the Management Plan. Tenant is willing to update the Management Plan to provide for (i) daily inspections of access doors/gates, control systems and exterior common areas, and (ii) make any needed repairs to any such items as soon as reasonably possible. However, Tenant cannot agree to 24-hour visitor screening by onsite management and security staff due to reasons related to resident privacy, industry standards, and cost.

Your Letter conveniently fails to recognize any of the proactive steps that Tenant has taken in response to concerns previously raised by the City. Tenant has increased monitored video surveillance hours and added a second standing guard. At Tenant’s request, the County increased intensive case management services hours by more than double. Furthermore, Tenant has organized several meetings to coordinate efforts related to security, resident service needs, and neighborhood outreach with all interested parties including the City’s housing and police departments, County behavioral health department, private security, and property management.

Finally, we remind you that the City Council approved the Project and agreed to enter into the Ground Lease with full knowledge about the Project’s resident population. Tenant therefore expects the City to respect the terms of the Ground Lease and the rights of its residents to live at the Project free from harassment.

Sincerely,
David P. Cohen
DPC:rlk
Oct. 22, 2024
Item #6 Page 18 of 26
Katten
Mr. Chadwick and Ms. McMahon
September 18, 2024

301616468v1_392211-00036 9/17/2024 2:15 PM
cc: James Silverwood (via email)
Jonathan Taylor (via email)
Geoff Patnoe, Assistant City Manager (via email)
Mandy Mills, Housing & Homeless Services Director (via email) Kevin Kilbane, Raymond James Tax Credit Funds, Inc. (via email) Kyle Arndt, Bocarsly Emden Cowan Esmail & Arndt LLP (via email) Joseph M. Michaels, Las Palmas Foundation (via email)
Jason A. Hobson, Hobson Bernardino (via email)
Community Development, County of San Diego, Housing & Community Development Services (via email)
Executive Director, California Tax Credit Allocation Committee (via email) Oct. 22, 2024
Item #6 Page 19 of 26
Katten
City At
torney
City Hall 1200 Carlsbad Village Drive  Carlsbad, CA 92008  442-339-2891 t October
17, 2024

NOTICE OF CONTINUED NONCOMPLIANCE WITH AGREEMENTS
Mr. David P . Cohen VIA REGULAR MAIL AND
2121 Avenue of the Stars, Suite 1100 EMAIL TO: [email protected] Los Angeles, CA 90067-5010
Mr. James Silverwood VIA CERTIFIED MAIL AND
Carlsbad Veteran Housing, L.P . EMAIL TO: jim@affirmedhousing.com c/o Affirmed Housing Group, Inc.
13520 Evening Creek Drive North, Suite 160
San Diego, CA 92128
Dear Mr. Cohen:

On September 10, 2024, the City of Carlsbad sent a letter (September 10 Letter) notifying your client, Carlsbad Veteran Housing, L.P ., through Affirmed Housing Group, Inc. (collectively Affirmed Housing), that it was in violation of specified terms of its Ground Lease, Regulatory Agreement, Loan Agreement, and Deed of Trust with the City of Carlsbad for the Windsor Pointe development (Windsor Pointe or the Property). The city’s letter also notified Affirmed Housing that its management agent, CONAM Management Corporation (CONAM), is failing to meet its obligations under Windsor Pointe’s Management Plan and, consequently, the city intended to cause Affirmed Housing to replace CONAM.

City’s Requirements
The September 10 Letter included supporting factual information and required Affirmed Housing to cure the identified violations by taking the following steps within 30 days, or by October 10:

1. Secure all access gates and doors and repair any broken or malfunctioning locks or access control systems.

2. Remove all hazards and debris from exterior common areas.

3. Update the Management Plan to incorporate the following provisions:

Exhibit 4
Oct. 22, 2024
Item #6 Page 20 of 26
{city of
Carlsbad
Mr. David P. Cohen/Mr. James Silverwood
October 17, 2024

a. Daily e
xterior inspections of gates, access doors, access control systems and interior and exterior common areas with any needed repairs to be made within 24 hours unless otherwise agreed to by the city.
b. A detailed staffing and security plan that ensures there is sufficient on-duty management and security staff to ensure: (i) entryways are controlled and visitors are screened at both locations 24 hours a day, seven days a week; and (ii) exterior and interior common areas at both locations are regularly patrolled throughout the day, but no less than once every two hours in each 24-hour period.

Affirmed Housing’s Response to Noti
ce and Unwillingness to Fully Cure Deficiencies
Failures as Violations
On September 18, 2024, following a meeting with Affirmed Housing and city staff on September 11, 2024, your office sent a letter to the City Manager and City Attorney asserting the security, maintenance and operation deficiencies identified in the city’s letter were routine in nature and, therefore, not violations of the Ground Lease. The parties’ agreements contradict this assertion.1
The manner in which the Property is used and operated is of critical importance to the city because of the city’s significant financial investment in the Property. Consequently, Affirmed Housing agreed to and is obligated to maintain a quality of character and operation of the Property consistent with and in full compliance with the Ground Lease and the parties’ other agreements (Ground Lease, § 5.1(a); Loan Agreement, § 4.3(a); Deed of Trust, §§ 5.1 & 5.6).

This obligation include s operating and maintaining the Property in a manner to provide safe and sanitary housing to the tenants of the Property (Ground Lease, § 5.4). This obligation also includes maintaining all interior and exterior improvements in good condition and repair and providing security measures to prevent unlawful entry into the Property in a manner acceptable to the city (Regulatory Agreement, §§ 5.1, 5.5 & 5.6(c); Loan Agreement, § 4.4(a); Deed of Trust, § 2.1).

The s
ecurity, operations and maintenance deficiencies identified in the September 10 Letter show the Property is not being maintained in a safe manner, in good condition and repair, and in a manner that prevents unlawful entry into the Property. Accordingly, the Property is not being secured, operated and maintained in a manner acceptable to the city. 1 As your letter does not dispute that the identified security, maintenance and operation deficiencies violate t he Regulatory Agreement, Loan Agreement, Deed of Trust and the management agent’s obligations under the Management Plan, Affirmed Housing has impliedly conceded these points.

Oct. 22, 2024
Item #6 Page 21 of 26
Mr. David P. Cohen/Mr. James Silverwood
October 17, 2024

Although the parties’ agreements make some allowances for reasonable wear and tear (see Deed of Trust, § 2.1), the deficiencies identified in the September 10 Letter do not fall within this category. Rather, the deficiencies evidence systemic problems requiring systemic solutions to resolve.

Cured Items
Your letter indicated Affirmed Housing has repaired the broken doors, locks, access gates and control systems. Your letter also indicated Affirmed Housing had removed all hazards and debris from exterior common areas. On October 15, 2024, Mandy Mills, the city’s Housing & Homeless Services Director, inspected the property and confirmed the main doors to enter the building or elevator at each site are secure and require key fob access. Ms. Mills also confirmed that the alarm system was operational and hazards and debris had been removed from exterior common areas.

Uncured Items
However, Ms. Mills determined that the locked access points for some exterior stairwells still require additional action to cure. She also determined the gate door access at the Oak Avenue building required additional action to cure.

Regarding the required Management Plan update, your letter indicated Affirmed Housing was willing to update the plan to provide for daily inspections of access doors, gates, control systems, and exterior common areas and to require Affirmed Housing to make needed repairs to these items, but only as soon as reasonably possible and not within the time period required by city. Affirmed Housing further declined to update the plan to provide a detailed staffing and security plan with sufficient on-duty management and security staff to ensure: (i) entryways are controlled and visitors are screened at both locations 24 hours a day, seven days a week; and (ii) exterior and interior common areas at both locations are regularly patrolled throughout the day, but no less than once every two hours in each 24-hour period.

Affirmed Housing’s
unwillingness to amend the Management Plan as the city requested is unavailing and counterproductive. The purpose of the plan is to guide the work of Affirmed Housing’s management agent to ensure that the security, operation and maintenance of the Property complies with the parties’ agreements. Regardless of the contents of the plan, Affirmed Housing remains obligated to secure, operate and maintain the property in compliance with the parties’ agreement in a manner acceptable to the city. Updating the plan to assure compliance ultimately benefits Affirmed Housing.

Moreo
ver, as discussed below, Affirmed Housing has recently agreed to replace its current management agent. The change in management agent will necessitate an update to the Oct. 22, 2024
Item #6 Page 22 of 26
Mr. David P. Cohen/Mr. James Silverwood
October 17, 2024

Management Plan bec ause the current Management Plan is written for the current management agent. The update will be subject to the city’s approval. Because the Management Plan must set forth Affirmed Housing’s commitment and ability to operate the Property in accordance with the parties’ agreements in a manner acceptable to the city, the city will not approve an update that does not adequately address the systemic security, operations and maintenance deficiencies identified by the city. Failure to obtain the city’s approval of the update within 120 days from initial submission is an event of default under the Regulatory Agreement and Loan Agreement. Consequently, working with the city to update the Management Plan to address the city concerns is obligatory.

Additional Sec
urity, Maintenance, and Operations Deficiencies
Separate from the security, maintenance and operations deficiencies identified in the September 10 Letter, the city has recently received reports and photos showing the access gate at the Harding Street building was propped open for multiple days, including September 21-22 and October 5-6, 2024. Although one instance was for a planned event, the other instances were not planned or approved by the management agent. The fact the gate remained or was repeatedly propped open without management or security intervention illustrates the need for adjustments to the Property’s management and security staffing plan.

Additionally, a City Council member went with a resident into the Harding Street building on October 4, 2024. While on the resident’s floor, the City Council member noted a strong odor emanating from the trash chute, mold and water damage on the wall outside one of the units, and blood, feces, or some other substance rendering the only washing machine on the floor unusable. The City Council member also noted an odor of urine in the stairwell.

The resident reported to the City Council member there was a severe fruit fly infestation throughout the building. The resident also reported maintenance staff did not respond on weekends and the on-site manager was not accessible because she floats between buildings, her voicemail box is always full, and she blocks resident calls.

During Ms. Mills’s inspection on October 15, 2024, she determined the mold and water damaged wall had been repaired and the laundry room had been cleaned. She did not note a fruit fly infestation throughout the building, but she did note an infestation in one unit. She did not note an odor of urine in the stairwell and determined the odor in the trash rooms were customary of trash rooms in multifamily properties. However, she noted some residents on some floors had left trash outside of the trash chute, which increases odor and pests.

Regarding access to management and maintenance staff, Ms. Mills was able to confirm onsite management staff are required to carry their phones with them at all times and that residents receive a list of phone numbers to call for service during regular hours and after hours. These Oct. 22, 2024
Item #6 Page 23 of 26
Mr. David P. Cohen/Mr. James Silverwood
October 17, 2024

phone numbers are also posted on each floor. However, Ms. Mills was unable to confirm whether management and maintenance staff were, in fact, reachable by the residents when needed or whether phone storage or other impediments prevented residents from reaching them. This circumstance further illustrates the need for adjustments to Property’s management and security staffing plan.

The uncured and additional security, maintenance and operations deficiencies violate the provisions of Affirmed Housing’s agreements with the city, including:

Ground Lease
Section 5.1(a) – Quality of Operations
Section 5.2 – Limitations on Use
Section 5.4 – Maintenance of Improvements

Regulatory Agreement
Section 5.1 – Management Responsibilities
Section 5.5 – Property Maintenance
Section 5.6 – Safety Conditions

Loan Agreement
Section 4.3(a) – Operation of Development as Affordable Housing Section 4.4(a) – Maintenance

Deed of Trust
Section 2.1 – Maintenance and Modification of Property by Trustor Section 5.1 – Other Agreements Affecting Property
Section 5.6 – Operation of the Security

These uncured and additional security, maintenance and operations deficiencies also violate the management agent’s obligations under the Management Plan, including:

Section 2.A. – Agent Roles and Responsibilities
Section 2.B. – Community Manager Roles and Responsibilities Section 24 – Maintenance and Security

To cure these violations, Affirmed Housing must take the following steps within 30 days from the date of this letter:

1. Cure all uncured items noted in the September 10 Letter.

2. Ensure the trash rooms on each floor are checked daily and trash is properly disposed of.

3. Ensure laundry rooms are checked daily and laundry machines are clean and usable.

Oct. 22, 2024
Item #6 Page 24 of 26
Mr. David P. Cohen/Mr. James Silverwood
October 17, 2024

4. Work with the Harding Street building tenant to remedy the fruit fly infestation in the tenant’s unit.

5. Update the Management Plan to incorporate the following provisions:
a. Daily exterior inspections of gates, access doors, access control systems and interior and exterior common areas with any needed repairs to be made within 24 hours unless otherwise agreed to by the city.
b. A detailed staffing and security plan providing for sufficient on-duty management and security staff to ensure: (i) entryways are controlled and visitors are screened at both locations 24 hours a day, seven days a week; (ii) exterior and interior common areas at both locations are regularly patrolled throughout the day, but no less than once every two hours in each 24-hour period; and (iii) management and maintenance staff are reasonably available to residents.

Replacement of Management Agent
As previously indicated, the September 10 Letter notified Affirmed Housing that the city intended to cause Affirmed Housing to replace CONAM as management agent for failure to operate the Property in a manner that provides decent, safe, and sanitary housing. To that end, the city required Affirmed housing to meet with city staff within 15 days. That meeting took place on September 11, 2024.

Section 5.3 of the Regulatory Agreement permits the city to require Affirmed Housing to replace its management agent if within 30 days of the meeting held on September 11, 2024, or by October 11, 2024, the city determines the property is still not being appropriately managed.

In a letter dated October 9, 2024, Affirmed Housing requested approval to change its management agent from CONAM Management Corporation to Solari Enterprises, Inc. Ms. Mills will reach out to Affirmed Housing to obtain the necessary information for the city to evaluate the requested change.

The city looks forward to your prompt attention to these concerns. To schedule a meeting to discuss curing the ongoing and additional security, operations and maintenance deficiencies and updating the Management Plan, please contact Ms. Mills by phone at (442) 339-2907 or by email at [email protected].

Sincerely,

CINDIE K. McMAHON
City Attorney
Oct. 22, 2024
Item #6 Page 25 of 26
Mr. David P. Cohen/Mr. James Silverwood
October 17, 2024

c: Mayor Keith Blackburn (via email)
Mayor Pro Tem Priya Bhat-Patel (via email)
Council Member Teresa Acosta (via email)
Council Member Melanie Burkholder (via email)
Council Member Carolyn Luna (via email)
Scott Chadwick, City Manager (via email)
Geoff Patnoe, Assistant City Manager (via email)
Mandy Mills, Housing & Homeless Services Director (via email) Steven J. Kropf, Raymond James Tax Credit Funds, Inc. (via facsimile and regular mail) Kyle Arndt, Bocarsly Emden Cowan Esmail & Arndt LLP (via email and regular mail) Joseph M. Michaels, Las Palmas Foundation (via email and regular mail) Jason A. Hobson, Hobson Bernardino (via email and regular mail) Community Development, County of San Diego, Housing & Community Development Services (via email and regular mail)
Executive Director, California Tax Credit Allocation Committee (via certified mail) Oct. 22, 2024
Item #6 Page 26 of 26
Tammy Cloud-McMinn
From:

Sent:

To:

Cc:

Subject:

Mayor, Council, and Staff,
Teri Jacobs <[email protected]>
Monday, October 21, 2024 10:18 AM
City Clerk
All Receive - A&@nda Item # _k
For the Information of the:

CITY COUNCIL
Date~ CA - cc ,_ - -cM .-AcM ....-ocM '3l t<
Gregory Day' <[email protected]>; 'Lara Benusis' <[email protected]>; 'Mark Packard' <[email protected]>; 'Tracy Carmichael' <whatzuptlc@yahoo .com>; Teri Jacobs' <[email protected] >; 'michaelajd' <[email protected]>; 'Matt Hall' <[email protected]>; 'Lauren Ladda' <[email protected]>; 'Raul Villamar' <[email protected]>; 'Dee Dee Rowlett' <[email protected]>; 'Jeffrey Yuen' <[email protected]>; 'Alanna Trimble' <[email protected]>; 'Momophd Momofphd' <momofphd; [email protected]; Rachel' <[email protected]>; 'Justin Cox' <[email protected]>; [email protected]; bakerstacey2016 @gmail.com; [email protected]; [email protected]; [email protected]; [email protected]; 'ann welton' <annie13035 10/22 Agenda Item #6

1. On 8/25/2024 I sent an email to you regarding promises made by a former Affirmed Housing employee at the 1/28/2020 Council meeting. She clearly stated that the beauty of Windsor Pointe was that there would be 2 managers (one at each site). That was a lie. So developers are able to lie to staff, comm issions, and Council with no consequences ! During that same Council meeting a member of our Housing Commission got up and said "this is affordable housing done right." It was also said that the 24 units would address a quarter of our then PIT count . How wrong was that information? We know now that not one of the 24 NPLH units are housed with individuals with ties to Carlsbad. How has the facility addressed our homeless situation?

2. In the agenda packet there was mention of an open gate for an event . Days before that the Harding gate was actually broken and remained that way for days. How did security and management not see it?

3. Solari was originally listed as the management company for the facility. At some point it changed to CONAM. When and Why was this change made? Why has it taken over 2 years for Affirmed to realize there are issues? How many 911 calls, arrests, and deaths had to occur!

4. At one of the recent Council meet ings it was made clear that many of the issues at Windso r Pointe are visitor related.

There was quite a lengthy discussion about solutions and now we find out t here is an issue relating to residents, their visitors, and privacy. So can the assumption be made that yes there is an issue and no we aren't going to seriously address it?

5. The County has a lackluster if not an incredibly slow response to the issues at Windsor pointe . Ninety days, 6 months t ime frames are not acceptable .

6. The work by Jason Haber, Mandy Mills, Council Members Acosta and Burkholder is appreciated regarding legislative matte rs but how did Affirmed, staff, commissions, and Council miss t hat Vetera n income disqualified them in the first place. NOTE ... t he name of the project is Carlsbad Veteran Housing LP (oh but Veterans aren't eligible}. This was a majo r fail on all fronts . What a slap in the face to Veterans and the community who were hoping to help those who heroically served our Country! Perhaps we will be awarded the 6 vouchers, perhaps some units will be vacated, perhaps a SMI Veteran with ties to Carlsbad will be housed who then is only required to meet ONCE a mont h with a case manager ... ls t his the fix?
1 7. The letter from Affirmed's Counsel is somewhat concerning as the tone is that the City approved it, we will fix a few things, but not everything. The assumption seems to be that they know what is best for Carlsbad. Safety is paramount and the cost should not be a factor. In the second to the last paragraph in the letter it states, "tenant has organized several meetings to coordinate efforts related to security, resident service needs, and neighborhood outreach." Residents exhausted all avenues from city, Council, and County to finally demand that someone listen to our concerns.

Council Member Bhat-Patel made reference to community outreach meetings during one of the presentations to Council. There were never meetings prior to our demanding them! Your constituents weren't listened to when this facility was in the planning stages, our concerns were not taken seriously until Chief Calderwood saw what was going on with her own eyes. Her experience wasn't a one-off event.

Some of you were in attendance at the grand opening of Windsor Pointe. Since then, from the dais, you have voiced concerns and directed staff to do A, B, and C. Hopefully at the 10/22/24 Council Meeting you will tell us what you have done and are doing as enough is enough!
Regards,
Teri Jacobs
Carlsbad Resident; Dist 1
Sent from my iPad
CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe. 2 Tammy Cloud-McMinn
From: Council Internet Email
Sent:

To:

Monday, October 21, 2024 10:31 AM
City Clerk
Subject: FW: Windsor Pointe: Staff Report Snow Job
From: Denis Jensen <[email protected]>
Sent: Monday, October 21, 2024 10:25 AM
To: Keith Blackburn <[email protected]>; Melanie Burkholder <[email protected]>; Priya Bhat-Patel <[email protected]> ; Carolyn Luna <[email protected]>; Teresa Acosta <[email protected]>; Council Internet Email <[email protected]>; Scott Chadwick <Scott. Chadwick@ca rlsbadca .gov>
Cc: Gregory Day' <[email protected]>; Lara Benusis <[email protected]>; Mark Packard <[email protected]>; Tracy Carmichael <[email protected]>; Teri Jacobs <[email protected]>; michaelajd <[email protected]>; Matt Hall <[email protected]>; Lauren Ladda <lau'[email protected]>; Raul Villamar <[email protected]>; Dee Dee Rowlett <deedee [email protected]>; Jeffrey Yuen <[email protected]>; Alanna Trimble <alannalt@yahoo .com>; Momophd Momofphd <[email protected]>; Tyler Collins <[email protected]>; Kevin Shin <[email protected]>; Mike Curtin <[email protected]>; Dorian Hargrove <[email protected]>; Steve Puterski <[email protected]>; Bianco, Rachel <[email protected]>; Justin Cox <[email protected]>; Phil Diehl <[email protected]>; [email protected]; [email protected]; Chris@solutionsforchange .org; [email protected]; [email protected]; ann welton <annie1303S@yahoo .com>; Carl Gehring <[email protected]>; Andrea Ryon <[email protected]>; Stacey Boyer <[email protected]>; jacqueline Barnhill <[email protected]>; Kelly Kelly <[email protected]>; Mary Huber <[email protected]>; Krisha Markowicz <[email protected]>; Christine Smoczynski <[email protected]>; [email protected]; George Corrales <[email protected]>; Ryan King <[email protected]>; Mary Estrada <[email protected]>; (Johnston <[email protected]>; Julie Christopher <[email protected]>; Tyler Carter <[email protected]>; Matt Krepelin <[email protected]>; HeatherandJustin Nash <[email protected]>; Ace Hauling & Demolition <[email protected]> ; Allyson P Davis <[email protected]>; Crystal Brynildsen <[email protected]> ; Jennifer George <[email protected]>; LUIGI P <[email protected]>; scott tibbets <[email protected]>; shari mirkin <[email protected]>; Cherise Hurlburt <[email protected]>; Jim Ahearn <[email protected]>; Chris Peters <[email protected]>; Mike Kalscheur <[email protected]>; Kristina Lima <[email protected]>; Jeremiah Patton <[email protected]>; Shannon Everett <[email protected]>; Frank Temple <[email protected]>; Austin Borders <[email protected]>; Brad Sivert <[email protected]>; Judy Oconnor <[email protected]>; Mark <[email protected]>; Bekah P <[email protected]>; LeeAnne Scherer <[email protected]>; Sherrie <[email protected]>; Raco Nasirpour <[email protected]>; Khara Stevens <[email protected]>; Brock Maclean <[email protected]>; heitchew <[email protected]>; Julia Darling <[email protected]>; Lois Swagerty <[email protected]>; seth haller <sethhaller@gmai l.com> Subject: Windsor Pointe: Staff Report Snow Job
City of Carlsbad,
We read through Tuesday's Windsor Pointe City Council agenda and noticed that, like other Staff reports before that neglected to inform Council and the public of incidents as relevant as tenants threatening to light a pregnant woman and her unborn child on fire with gasoline, this report curiously omits that, on 1 July 8, a tenant died of a drug overdose and that his family attributes it to drug dealers living amongst homeless trying to get sober . This is because you continue to happily import homeless with criminal backgrounds from downtown San Diego and freely place them amongst the Windsor Poi rite sober as long as their convictions are just five years old. City Staff curiously and randomly selected a date just prior to this incident as the information cutoff in the last Council report so it's odd that this incident doesn't occur in THIS report, right? Just kidding, I'll say it- they obviously wanted to bury this. So here's the tenant's family's assessment:
"My dad overdosed and died here last month. Windsor Pointe has drug dealers living here that supply drugs to the vulnerable residents that are about 90% current/former addicts with zero supervision. There are also people living with the "residents" that should never be there, drug dealers, child molesters, etc. God only knows who is really living here. -son of Daniel Joslin So clearly, this Windsor Pointe potpourri of homeless importation is a failure for not helping Carlsbad's homeless (who remain sleeping on our park benches) but it also fails tenants.Your continued inaction to stop this madness is literally killing people. YOU, Council, are literally killing people. Community leaders contacted by tenants toured Windsor Pointe last month and were told by a one that she feels in danger there and must move. They also noted that there is no security at all on weekends . How is this place getting away with this??!!
Who Windsor Pointe does NOT fail is the developer, who the Council continues to be soft on. And now this company defies the letter of lease noncompliance? WOW. ConAm was supposed to be the premiere management company so replacing it with a different company brings no comfort to the community .

Within mere weeks of Carlsbad's Chief of Police exposing unsecured doors and fabricated facility oversight, our community reported broken and open facility doors that remained open for days at a time.

Why does this developer not fear the City?
Getting back the immensely bureaucratic nothing burger of the Staff Report , we're not sold on the continued dangled carrot of helping veterans. We know that Windsor Pointe was never going to help veterans. If veteran benefits raise veterans out of low income status and disqualifies them as tenants, then the funding of low income veteran housing was a scam. As you know, there are only 6 (supposed) veterans out of 50 apartments and it seems entirely doubtful that existing veteran assistance wasn't known in advance of building this. In fact, this veteran bait & switch is apparently a well-known homeless profiteer grift:
https://www.instagram.com/reel/DBKSR7zSHyh/?igsh=MTc4MmM1Yml2Ng== Again, the voters you work for want the facility closed or moved. No more band-aids.

Sincerely,
Denis Jensen
Carlsbad
2 Tammy Cloud-McMinn
From:

Sent:

To:

Subject:

Attachments:

Council Internet Email
Monday, October 21, 2024 10:31 AM
City Clerk
FW: Windsor Pointe Developer Defiance
Affirmed Housing 091824.pdf; WindsorPointeNonCompliance 091024.pdf From: JackStephan <[email protected]>
Sent: Monday, October 21, 2024 8:54 AM
To: Matt Hall <[email protected]>; Jimmy Silverwood <[email protected]> Cc: Jeff McDonald <jeff [email protected]>; Keith Blackburn <[email protected]>; Melanle Burkholder <melanie .burkholder@carlsbadca .gov>; Priya Bhat-Patel <[email protected]>; Carolyn Luna <[email protected]> ; Teresa Acosta <teresa [email protected]>; Council Internet Email <[email protected]>; Rachel.bianco@lOnews .com; 'Gregory Day' <[email protected]>; 'Lara Benusis' <[email protected]>; 'Mark Packard' <[email protected]>; 'Tracy Carmichael' <[email protected]>; 'Teri Jacobs' <[email protected]>; 'michaelajd' <michaelajd@yahoo .com>; 'Lauren Ladda' <[email protected]>; 'Raul Villamar' <[email protected]>; 'Jeffrey Yuen' <[email protected]>; 'Alanna Trimble' <[email protected]>; 'Momophd Momofphd' <[email protected]>; 'Tyler Collins' <tyler@collinsforcarlsbad .com>; [email protected]; 'Dorian Hargrove' <[email protected]>; 'Steve Puterski' <[email protected]>; 'Justin Cox' <[email protected]>; philip.diehl@sduniontribune .com; [email protected]; Cindie McMahon <[email protected]>; Scott Chadwick <[email protected]>
Subject: Windsor Pointe Developer Defiance
Mr. Hall,
Regarding the City of Carlsbad's letter of Windsor Pointe noncompliance, the developer , Affirmed Housing, seems to have just told the City of Carlsbad to f*ck off. See the attached. As the former Mayor of Carlsbad, would you say that the City had full knowledge of Windsor Pointe's intended resident population, as this letter purports? Let's chat.

It seems odd to me that Affirmed Housing (sometimes DBA "Carlsbad Veteran Housing LLP") would take such a combative approach with the City when they are in the running for a lucrative 800 unit homeless development downtown at Ash Street (already a publicity magnet). It would be horrible public relations if they were to be known as bad tenants to the City AND bad neighbors to the community.

I'll start asking around to see what Windsor Pointe neighbors think of them and if they feel that this developer promises one thing but delivers another , as the attached project application signage would suggest.

Also, by the "community outreach" noted in the letter, do they mean that not one of my neighbors says they've been contacted by the developer but Windsor Pointe tenants have reached out to US to help THEM, saying they feel in danger? That's also not a good look. I would think Affirmed Housing would be the type of company that would take lessons learned in a failed pilot program and improve it at a different location elsewhere .

Thanks,
Jack Stephan
Carlsbad
1 NO T,I CE

OF PROJECT APPLICATION
PROJECT NAME:

PROJECT NUMBER:

CARLSBAD VETERAN HOUSfNG
20419205 06
PROJECT DESCRIPTION: 26 UNIT AFFORDABLE HOUSING

PROJECT FOR VETERAN FAMILIES AND HOMELESS VETERANS

ARLSBAD

G DI ION
ILV \TY PLANNER
lLV AR.L BAD A.GOV
(760} 602-4631

PROJECT APPLICANT/REPRESENTATIVE

SYDNEY CORDOVA
AFFIRMED HOUSING CROUP, INC.
11520 EVE ING R EEi( DRJV N .

Tl:. 160

SAN DIEGO, CA
(858) 679-2464
Exhibit 2
( City of
Carlsbad
September 1 o, 2024

NOTICE OF NONCOMPLIANCE WITH AGREEMENTS, MAINTENANCE DEFICIENCIES AND

INTENTION TO CAUSE REPLACEMENT OF MANAGEMENT AGENT AT WINDSOR POINTE Mr. James Silverwood
Carlsbad Veteran Housing, L.P.
c/o Affirme d Housing Group, Inc.

VIA CERTIFIED MAIL AND
EMAIL TO: jim@affirmedhou sing.com
13520 Evening Creek Drive North, Suite 160
San Diego, CA 92128
Dear Mr. Silverwoo d:

This letter is to notify Carlsbad Veteran Housing, L.P. and Affirmed Housing Group, Inc. (collectively Affirme d Hous ing) that you have violated the terms of the Ground Lease, Regulatory Agreement , Loan Agreement , and Deed of Trust wit h the City of Carlsbad for the Windsor Pointe development (Windsor Pointe or the Property). This lette r is also to notify you that Affirmed Housing's Management Agent, CONAM Management Corporation (CO NAM) has failed to meet its obligations under Windsor Pointe's Management Plan and, conseq uently, the city intends to cause Affirmed Housing to replace CONAM.

Background
On Septembe r 5, 2023, the City of Carlsbad Police Chief sent a letter informing Affirmed Housing of a number of criminal acts that occurred at the Windsor Pointe property , including many committed by individuals who did not reside there or were trespassing on th e property. The Police Chief requested Affirmed Housing imple ment additiona l security measures, includ ing:
• Requi ring visito rs to check in and out of the prope rty; • M aintaining surveill ance cameras covering all exterio r locatio ns and parking areas; and • Providing uniformed security onsite at both locations , 24 hours a day, seven days a week .

The same day, the City of Carlsbad's Housing & Homeless Services Director sent a lette r offering to assist Affi rmed Housing identify and develop changes to property maintenance and operations to address the security conce rns identified by the Police Chief.

The Housing & Homeless Services Director also recomme nded Affirmed Housing:
• Provide onsite security at both locat ions, seven days a week ; City Manager
City Hall 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 442-339-2821 t Oct. 22, 2024 • Item #6 Page 12 of 26
Mr. James Silverwood
Septemb er 10, 2024

• Require visitors to check in and out of th e property and to be escorted by a tenant whil e on the property;
• Ensure management staff is onsite 24 hours a day and accessible for after-hours emergencies; and
• Meet with Carlsbad Police Departm ent representatives at least quarter ly to discuss securi ty concerns.

Affirmed Housing did not fully implement these recommenda tions. Instead, Affi rmed Housing increased onsite security from three onsit e rounds per night to one onsite security guard 12 hou rs per night covering both Windsor Pointe buildings. Affirmed Housing also inc reased remote video surveilla nce from 12 hours Monday through Friday and 24 hours on weekends to 24 hours, seven days a week.

Additionally , CONAM began meeti ng weekly with Carlsbad Polic e Depart ment representatives. The Housing & Homeless Services Department and the Carlsbad Police Department also began conduc ti ng month ly progress review meeti ngs with Affirmed Housin g and CONAM.

Despite these efforts, security, maintenance, and operations conc erns cont inued. At a City Coun cil meeting on March 12, 2024, the city again requested Affi rmed Housing take steps to deter criminal acti vity at Windsor Pointe by increasing th e onsite security to at least 6 p.m. to 6 a.m. at both Windsor Pointe build ings, implementing remote video surveillance monitoring 24 hours a day, seven days a week, and requiri ng visitors to check in and out of the Property. In addition, the City Counci l directed staff to work with Affirmed Housing to amend Winds or Pointe's Management Plan to include th ese requirements. To help wit h the cost for the addit ional security, the City Council also direc ted city staff to advocate for the County of San Diego to release operating subsidiary reserve fu nding, which the County of San Diego did.

At a City Council meeting on April 9, 2024, city staff reported on the status of the updates to the Management Plan. The amendments, wh ich were approved, required Affirmed Housi ng to have:
• A security guard onsite at each Wi ndsor Pointe building from 6 p.m. to 6 a.m., during which time the guards would m onito r issues on the Property, includ ing noise compla ints, guest entr y and suspicious activity;
• Remote video surveillance 24 hours a day, seven days a weel< to identify criminal act ivity, suspicio us activity, or entry by unauthor ized people ; and • A procedure requiring residents to check their visitors in and out.

Continued Security,.Maintenaoce,__aod..Operations Deficiencies Notwith standing these requirements , on the morning of August 20, 2024, Police Chief Christie Calderwood went to Windsor Pointe to view th e Property in preparation for a progress review on th at evening' s City Council meeting agenda. While she was sitting in her unmarked poli ce vehicle, a barefoot woma n passed by her and approached the security gate for Windsor Pointe's Oak Avenue building. The wo man flung a bag over the gate, using the bag to engage a bar on the interior side of Oct. 22, 2024 Item #6 Page 13 of 26
Mr. James Silverwood
September 1,0, ?.024

the gate. Once the bar was engaged, the gate opened, allowing the woman access to the property.

Although the gate had signage indicating it was alarmed, no alarm sounded.

The woman, who Chief Calderwood subsequently learned had been banned from the property, left the gate ajar and Chief Calderwood entered onto the property to locate her. Chief Calderwood went to the exterior of the building to search for the woman. Chief Calderwood climbed the building's exterior staircc1se and tried the entrance door for each fl.oar. Although the doors require a keycard to enter and were lighted in a way suggesting they were locked and secure, Chief Calderwood was able to readily pull open the doors on three of the building's four floors. Chie1' Calderwood also noticed a mattress topper and other items in or around the staircase suggesting someone may have been camping in or around the staircase .

Chief Calderwood attempted to contact the onsite manager, but the manager was not on duty even though the manager's work hours had begun. ln addition, none of the service providers who have office hours in the building were on duty.

Since on site security went off duty at 6 a.m., Chief Catderwood called the company that is supposed to provide monitored security for the building 24 hours a day, seven days a week. The representative who fielded Chief Calderwood's call was unaware of either the woman intruder's presence in the building or of Chief Calderwood's presence in the building. Once Chief Calderwood alerted the representative to the intruder, the representative had to search through the security records to learn what occurred.

Chief Calderwood left the Oak Avenue building and went to Wrndsor Pointe's Harding Street building. There she spoke with Windsor Pointe's onsite maintenance tecl1nician. The maintenance technician advised that the onsite Property Manager at the Oak location would be there at approximately 11 a.m. Chief Calderwood reported the unalarmed gate and the brol<en security doors, to which the maintenance technician already had knowledge.

When this information was relayed to the City Council at the meeting that evening, the Affirmed Housing representative and the CONAM representative who attended the meeting were asked to address the matter. Neither provided a satisfactory explanation for why an intruder was so easily able to access the property, why the security company hired to provide monitored surveillance for the building did not notice either the intruder or the Police Chief, why the access gate and security doors had not been promptly repaired, why the mattress topper and debris were allowed to be in or around the exterior stairway, and why no property manager or substitute was on duty during work hours.

These security, maintenance and operations deficiencies violate the following provisions of Affirmed Housing's agreements with the city:
.Grnund .. Lease
Section 5.1 (a)- Quality of Operations
Section 5.2- Limitations on Use
Oct. 22, 2024 Item #6 Page 14 of 26
Mr. James Siiverwood
September 10, 2024

Section 5.4 - Maintenance of Improvements
Regulatory Agreement
Section 5 .1 - Management Responsibilities
Section 5.5- Property Maintenance
Section 5.6 - Safety Conditions
Lo.an Agreem~nt
Section 4,3(a}- Operation of Development as .A.ffordable Housing Section 4.4(a} --- Maintenance
Deed of Trui1St
Section 2.1 - Maintenance and Modification of the Property byTrustor Section 5.1 - Other Agreements Affecting Property
Section 5.6- Operation of the Security
These security, maintenance end operations deficiencies also violate CONAM's obligations under the following provisions ottlle Management Plan:

Section 2.A. -Agent Roles and Responsibilities
Section 2.B. - Community Manager Roles and Responsibilities Section 18.G - Guest Policy and Procedures
Section 24 - Maintenance and Security
To cure tt1ese violations. Affirmed Housing must tal<e the following steps within 30 days from the date of this letter:

1. Secure all access gates and doors and repair any broken or malfunctioning locks or access control systems

2. Remove all hazards and debris from exterior common areas

3. Update the Management Plan to incorporate the following provisions:
a. Daily exterior inspections of gates, access doors, access control systems and interior and exterior common areas with any needed repairs to be made within 24 hours unless otherwise agreed to by the city.
b. A detailed staffing and security plan that ensures there is sufficient on-duty management and security staff to ensure: (i) entryways are controlled and visitors are screened at both locations 24 hours a day, seven days a week; and (ii) exterior and interior common areas at both locations are regularly patrolled throughout the day, but no less than once every two hours in each 24-hour period.

Additionally, as permitted by Section 5.3 of the Regulatory Agreement, the city intends to cause Affirmed Housing to replace CONAM as its management agent for failure to operate Windsor Pointe in a manner that provides decent, safe, and sanitary housing.

Within 15 days from the date of this letter, Affirmed Housing must meet with city staff , including the Housing & Homeless Services Director and the Police Chief, to consider methods for improving Oct. 22, 2024 Item #6 Page 15 of 26
Mr. James Silverwood
September 10, 2024

Windsor Pointe's financia l and operat ing status. If, within 30 days of that meeting, the city det ermines the property is still not being appropr iately managed, the city will require Affirmed Housing to replace CO NAM with an experienced agent that has demonstrated an ability to operate residential projects like Windsor Pointe in a manner that will provide decent, safe, and sanitary housing.

We look forward to your prompt attention to these concerns. To schedule the meeting to discuss CONAM's replacement, please contact Mandy Mills, Housing & Home less Services Director by pho t (442} 339-2907 or by email at r:[email protected] .

City Manager
c: Mayor Keith Blackburn (via email)
CINDIE K. McMAHON
City Attorney
Mayor Pro Tern Priya Bhat-Patel (via email)
Council Member Teresa Acosta (via email)
Counc il Member Melanie Burkholder (via email)
Council Member Carolyn Luna (via email)
Geoff Patnoe , Assistant City Manager (via email)
Mandy Mills, Housing & Homeless Services Director (via email) David Cohen, Katten Much in Rosenman LLP (via email and regular mail) Steven J. Kropf, Raymond James Tax Credit Funds, inc. (via facsimile and regular mail) Kyle Arndt, Bocarsly Emden Cowan Es mail & Arndt LLP (via email and regular mail) Joseph M. Michaels, Las Palmas Foundation (via email and regular mail) Jason A. Hobson, Hobson Bernardino (via email and regular mail) Community Development, County of San Diego, Housing & Community Development Services (via email and regular mail)
Executive Directo r, California Tax Credit Allocat ion Comm ittee (via certified mail) Oct. 22, 2024 Item #6 Page 16 of 26
KattenExhibit3
September 18, 2024
Scott Chadwick
City Manager
City Hall
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Re: Windsor Pointe ("Project")
Dear Mr. Chadwick and Ms. McMahon :

Cindie K. McMahon
City Attorney
Office of the City Attorney
City of Carlsbad
1200 Carlsbad Village Drive
Carlsbad, CA 92008
2121 Avenue of the Stars
Suite 1100
Los Angeles, CA 90067-5010
+1.310.788.4400 tel
katten.com
DAVID P. COHEN
[email protected]
+1.310.788.4591 direct
+1.310.788.4471 fax
As you know, I am counsel to Carlsbad Veteran Housing, L.P. ("Tenant"), which is the tenant under that certain Ground Lease with the City of Carlsbad ("City") dated September 17, 2020 ("Ground Lease"). I am writing in response to your letter dated September 10, 2024 ("Your Letter") in which you allege that Tenant is not in compliance with the Ground Lease.

Your Letter recites a list of actions which the City recommended with respect to the Project.

While Tenant has considered, in good faith, all of the City's recommendations, and has in fact implemented several of them, the Ground Lease does not require the Tenant to implement all City recommendations nor does Tenant believe it would be prudent to do so.

Your Letter next purports to establish that Tenant has failed to comply with the Ground Lease based on the existence of a gate with a broken alarm, broken entry doors and debris in the stairwell. Tenant rejects your contention that such items constitute noncompliance. Rather, the identified issues are routine maintenance and property management items which Tenant has remedied in the normal course. Had Tenant not addressed these items, then that would be an event of noncompliance under the Ground Lease. However, the mere existence of routine maintenance items and debris at the Project, which Tenant timely remedied, does not rise to the level of noncompliance.

Notwithstanding Tenant's position as set forth above, Tenant has been and will continue to be cooperative with the City. In that regard, you requested that Tenant meet with City staff. That meeting took place on September 11, 2024. You also asked that Tenant:

1. Repair any broken doors, locks, and access gates and control systems. This has been done.

2. Remove all hazards and debris from exterior common areas. This has been done.

Oct. 22, 2024

KATTEN MUCHIN ROSENMAN LLP

CENTURY CITY CHARLOTTE CHICAGO DALLAS LOS ANGELES

NEW YORK ORANGE COUNTY SHANGHAI WASHINGTON, DC
A limited liability partnership including professional corporations LONDON: KATTEN MUCHIN ROSENMAN UK LLP Item #6
301616468vl 392211-00036 9/17/2024 2: 15 PM

Mr. Chadwick and Ms. McMahon
September 18, 2024
Page2
Katten

3. Make certain updates to the Management Plan. Tenant is willing to update the Management Plan to provide for (i) daily inspections of access doors/gates, control systems and exterior common areas, and (ii) make any needed repairs to any such items as soon as reasonably possible. However, Tenant cannot agree to 24-hour visitor screening by onsite management and security staff due to reasons related to resident privacy, industry standards, and cost.

Your Letter conveniently fails to recognize any of the proactive steps that Tenant has taken in response to concerns previously raised by the City. Tenant has increased monitored video surveillance hours and added a second standing guard. At Tenant's request, the County increased intensive case management services hours by more than double. Furthermore, Tenant has organized several meetings to coordinate efforts related to security, resident service needs, and neighborhood outreach with all interested parties including the City's housing and police departments, County behavioral health department, private security, and property management.

Finally, we remind you that the City Council approved the Project and agreed to enter into the Ground Lease with full knowledge about the Project's resident population. Tenant therefore expects the City to respect the terms of the Ground Lease and the rights of its residents to live at the Project free from harassment.

Sincerely,
David P. Cohen
DPC:rlk
Oct. 22, 2024 Item #6 Page 18 of 26
301616468v l 392211-00036 9/17/2024 2: 15 PM
Mr. Chadwick and Ms. McMahon
September 18, 2024

cc: James Silverwood (via email)
Jonathan Taylor (via email)
Geoff Patnoe, Assistant City Manager (via email)
Mandy Mills, Housing & Homeless Services Director (via email) Kevin Kilbane, Raymond James Tax Credit Funds, Inc. (via email) Kyle Arndt, Bocarsly Emden Cowan Esmail & Arndt LLP (via email) Joseph M. Michaels, Las Palmas Foundation (via email)
Jason A. Hobson, Hobson Bernardino (via email)
Katten
Community Development, County of San Diego, Housing & Community Development Services (via email)
Executive Director, California Tax Credit Allocation Committee (via email) Oct. 22, 2024 Item #6 Page 19 of 26
301616468vl 392211-00036 9/17/2024 2:15 PM
Exhibit 4
{ city of
Carlsbad
October 17, 2024

NOTICE OF CONTINUED NONCOMPLIANCE WITH AGREEMENTS
Mr. David P. Cohen VIA REGULAR MAIL AND
2121 Avenue of the Stars, Suite 1100
Los Angeles, CA 90067-5010
EMAIL TO: [email protected]
Mr. James Silverwood VIA CERTIFIED MAIL AND
Carlsbad Veteran Housing, L.P.
c/o Affirmed Housing Group, Inc.

EMAIL TO: [email protected]
13520 Evening Creek Drive North, Suite 160
San Diego, CA 92128
Dear Mr. Cohen:

On September 10, 2024, the City of Carlsbad sent a letter (September 10 Letter} notifying your client, Carlsbad Veteran Housing, L.P., through Affirmed Housing Group, Inc. (collectively Affirmed Housing}, that it was in violation of specified terms of its Ground Lease, Regulatory Agreement, Loan Agreement, and Deed of Trust with the City of Carlsbad for the Windsor Pointe development (Windsor Pointe or the Property}. The city's letter also notified Affirmed Housing that its management agent, CONAM Management Corporation (CONAM}, is failing to meet its obligations under Windsor Pointe's Management Plan and, consequently, the city intended to cause Affirmed Housing to replace CONAM.

City's Requirements
The September 10 Letter included supporting factual information and required Affirmed Housing to cure the identified violations by taking the following steps within 30 days, or by October 10:

1. Secure all access gates and doors and repair any broken or malfunctioning locks or access control systems.

2. Remove all hazards and debris from exterior common areas.

3. Update the Management Plan to incorporate the following provisions:

City Attorney
City Hall 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 442-339-2891 t Oct. 22, 2024 Item #6 Page 20 of 26
Mr. David P. Cohen/Mr. James Silverwood
October 17, 2024

a. Daily exterior inspections of gates, access doors, access control systems and inte rior and exterior common areas with any needed repairs to be made within 24 hours unless otherwise agreed to by the city.
b. A detailed staffing and security plan that ensures there is sufficient on-duty management and security staff to ensure: (i) entryways are controlled and visitors are screened at both locations 24 hours a day, seven days a week; and (ii) exterior and interior common areas at both locations are regularly patrolled throughout the day, but no less than once every two hours in each 24-hour period .

Affirmed Housing's Response to Notice and Unwillingness to Fully Cure Deficiencies Failures as Violations
On September 18, 2024, following a meeting with Affirmed Housing and city staff on September 11, 2024, your office sent a letter to the City Manager and City Attorney asserting the security, maintenance and operation deficiencies identified in the city's letter were routine in nature and, therefore, not violations of the Ground Lease. The parties' agreements contradict this assertion. 1
The manner in which the Property is used and operated is of critical importance to the city because of the city's significant financial investment in the Property. Consequently, Affirmed Housing agreed to and is obligated to maintain a quality of character and operation of the Property consistent with and in full compliance with the Ground Lease and the parties' other agreements (Ground Lease,§ 5.l(a); Loan Agreement,§ 4.3(a); Deed of Trust,§§ 5.1 & 5.6).

This obligation includes operating and maintaining the Property in a manner to provide safe and sanitary housing to the tenants of the Property (Ground Lease,§ 5.4). This obligation also includes maintaining all interior and exterior improvements in good condition and repair and providing security measures to prevent unlawful entry into the Property in a manner acceptable to the city (Regulatory Agreement,§§ 5.1, 5.5 & 5.6(c); Loan Agreement,§ 4.4(a); Deed of Trust,§ 2.1).

The security, operations and maintenance deficiencies identified in the September 10 Letter show the Property is not being maintained in a safe manner, in good condition and repair, and in a manner that prevents unlawful entry into the Property. Accordingly, the Property is not being secured, operated and maintained in a manner acceptable to the city. 1 As your letter does not dispute that the identified security, maintenance and operation deficiencies violate the Regulatory Agreement, Loan Agreement, Deed of Trust and the management agent's obligations under the Management Plan, Affirmed Housing has impliedly conceded these points.

Oct. 22, 2024 Item #6 Page 21 of 26
Mr. David P. Cohen/Mr. James Silverwood
October 17, 2024

Although the parties' agreements make some allowances for reasonable wear and tear (see Deed of Trust, § 2.1), the deficiencies identified in the September 10 Letter do not fall within this category. Rather, the deficiencies evidence systemic problems requiring systemic solutions to resolve.

Cured Items
Your letter indicated Affirmed Housing has repaired the broken doors, locks, access gates and control systems. Your letter also indicated Affirmed Housing had removed all hazards and debris from exterior common areas. On October 15, 2024, Mandy Mills, the city's Housing & Homeless Services Director, inspected the property and confirmed the main doors to enter the building or elevator at each site are secure and require key fob access. Ms. Mills also confirmed that the alarm system was operational and hazards and debris had been removed from exterior common areas.

Uncured Items
However, Ms. Mills determined that the locked access points for some exterior stairwells still require additional action to cure. She also determined the gate door access at the Oak Avenue building required additional action to cure.

Regarding the required Management Plan update, your letter indicated Affirmed Housing was willing to update the plan to provide for daily inspections of access doors, gates, control systems, and exterior common areas and to require Affirmed Housing to make needed repairs to these items, but only as soon as reasonably possible and not within the time period required by city. Affirmed Housing further declined to update the plan to provide a detailed staffing and security plan with sufficient on-duty management and security staff to ensure: (i) entryways are controlled and visitors are screened at both locations 24 hours a day, seven days a week; and (ii) exterior and interior common areas at both locations are regularly patrolled throughout the day, but no less than once every two hours in each 24-hour period.

Affirmed Housing's unwillingness to amend the Management Plan as the city requested is unavailing and counterproductive. The purpose of the plan is to guide the work of Affirmed Housing's management agent to ensure that the security, operation and maintenance of the Property complies with the parties' agreements. Regardless of the contents of the plan, Affirmed Housing remains obligated to secure, operate and maintain the property in compliance with the parties' agreement in a manner acceptable to the city. Updating the plan to assure compliance ultimately benefits Affirmed Housing.

Moreover, as discussed below, Affirmed Housing has recently agreed to replace its current management agent. The change in management agent will necessitate an update to the Oct. 22, 2024 Item #6 Page 22 of 26
Mr. David P. Cohen/Mr. James Silverwood
October 17, 2024

Management Plan because the current Management Plan is written for the current management agent. The update will be subject to the city's approval. Because the Management Plan must set forth Affirmed Housing's commitment and ability to operate the Property in accordance with the parties' agreements in a manner acceptable to the city, the city will not approve an update that does not adequately address the systemic security, operations and maintenance deficiencies identified by the city. Failure to obtain the city's approval of the update within 120 days from initial submission is an event of default under the Regulatory Agreement and Loan Agreement. Consequently, working with the city to update the Management Plan to address the city concerns is obligatory.

Additional Security, Maintenance, and Operations Deficiencies Separate from the security, maintenance and operations deficiencies identified in the September 10 Letter, the city has recently received reports and photos showing the access gate at the Harding Street building was propped open for multiple days, including September 21-22 and October 5-6, 2024. Although one instance was for a planned event, the other instances were not planned or approved by the management agent. The fact the gate remained or was repeatedly propped open without management or security intervention illustrates the need for adjustments to the Property's management and security staffing plan.

Additionally, a City Council member went with a resident into the Harding Street building on October 4, 2024. While on the resident's floor, the City Council member noted a strong odor emanating from the trash chute, mold and water damage on the wall outside one of the units, and blood, feces, or some other substance rendering the only washing machine on the floor unusable. The City Council member also noted an odor of urine in the stairwell.

The resident reported to the City Council member there was a severe fruit fly infestation throughout the building. The resident also reported maintenance staff did not respond on weekends and the on-site manager was not accessible because she floats between buildings, her voice mail box is always full, and she blocks resident calls.

During Ms. Mills's inspection on October 15, 2024, she determined the mold and water damaged wall had been repaired and the laundry room had been cleaned. She did not note a fruit fly infestation throughout the building, but she did note an infestation in one unit. She did not note an odor of urine in the stairwell and determined the odor in the trash rooms were customary of trash rooms in multifamily properties. However, she noted some residents on some floors had left trash outside of the trash chute, which increases odor and pests.

Regarding access to management and maintenance staff, Ms. Mills was able to confirm onsite management staff are required to carry their phones with them at all times and that residents receive a list of phone numbers to call for service during regular hours and after hours. These Oct. 22, 2024 Item #6 Page 23 of 26
Mr. David P. Cohen/Mr. James Silverwood
October 17, 2024

phone numbers are also posted on each floor. However, Ms. Mills was unable to confirm whether management and maintenance staff were, in fact, reachable by the residents when needed or whether phone storage or other impediments prevented residents from reaching them. This circumstance further illustrates the need for adjustments to Property's management and security staffing plan.

The uncured and additional security, maintenance and operations deficiencies violate the provisions of Affirmed Housing's agreements with the city, including:

Ground Lease
Section 5.l(a}-Quality of Operations
Section 5.2 - Limitations on Use
Section 5.4 - Maintenance of Improvements
Regulatory Agreement
Section 5.1- Management Responsibilities
Section 5.5 - Property Maintenance
Section 5.6 - Safety Conditions
Loan Agreement
Section 4.3(a} - Operation of Development as Affordable Housing Section 4.4(a} - Maintenance
Deed of Trust
Section 2.1- Maintenance and Modification of Property by Trustor Section 5.1- Other Agreements Affecting Property
Section 5.6 - Operation of the Security
These uncured and additional security, maintenance and operations deficiencies also violate the management agent's obligations under the Management Plan, including:

Section 2.A. - Agent Roles and Responsibilities
Section 2.B. - Community Manager Roles and Responsibilities Section 24 - Maintenance and Security
To cure these violations , Affirmed Housing must take the following steps within 30 days from the date of this letter:

1. Cure all uncured items noted in the September 10 Letter.

2. Ensure the trash rooms on each floor are checked daily and trash is properly disposed of.

3. Ensure laundry rooms are checked daily and laundry machines are clean and usable.

Oct. 22, 2024 Item #6 Page 24 of 26
Mr. David P. Cohen/Mr. James Silverwood
October 17, 2024

4. Work with the Harding Street building tenant to remedy the fruit fly infestation in the tenant's unit.

5. Update the Management Plan to incorporate the following provisions:
a. Daily exterior inspections of gates, access doors, access control systems and interior and exterior common areas with any needed repairs to be made within 24 hours unless otherwise agreed to by the city.
b. A detailed staffing and security plan providing for sufficient on-duty management and security staff to ensure: (i) entryways are controlled and visitors are screened at both locations 24 hours a day, seven days a week; (ii) exterior and interior common areas at both locations are regularly patrolled throughout the day, but no less than once every two hours in each 24-hour period; and (iii) management and maintenance staff are reasonably available to residents.

Replacement of Management Agent
As previously indicated, the September 10 Letter notified Affirmed Housing that the city intended to cause Affirmed Housing to replace CONAM as management agent for failure to operate the Property in a manner that provides decent, safe, and sanitary housing. To that end, the city required Affirmed housing to meet with city staff within 15 days. That meeting took place on September 11, 2024.

Section 5.3 of the Regulatory Agreement permits the city to require Affirmed Housing to replace its management agent if within 30 days of the meeting held on September 11, 2024, or by October 11, 2024, the city determines the property is still not being appropriately managed.

In a letter dated October 9, 2024, Affirmed Housing requested approval to change its management agent from CONAM Management Corporation to Solari Enterprises, Inc. Ms. Mills will reach out to Affirmed Housing to obtain the necessary information for the city to evaluate the requested change.

The city looks forward to your prompt attention to these concerns. To schedule a meeting to discuss curing the ongoing and additional security, operations and maintenance deficiencies and updating the Management Plan, please contact Ms. Mills by phone at (442) 339-2907 or by email at [email protected].

Sincerely,
CINDIE K. McMAHON
City Attorney
Oct. 22, 2024 Item #6 Page 25 of 26
Mr. David P. Cohen/Mr. James Silverwood
October 17, 2024

c: Mayor Keith Blackburn (via email)
Mayor Pro Tern Priya Bhat-Patel (via email)
Council Member Teresa Acosta (via email)
Council Member Melanie Burkholder (via email)
Council Member Carolyn Luna (via email)
Scott Chadwick, City Manager (via email)
Geoff Patnoe, Assistant City Manager (via email)
Mandy Mills, Housing & Homeless Services Director (via email) Steven J. Kropf, Raymond James Tax Credit Funds, Inc. (via facsimile and regular mail) Kyle Arndt, Bocarsly Emden Cowan Esma ii & Arndt LLP (via email and regular mail) Joseph M. Michaels, Las Palmas Foundation (via email and regular mail) Jason A. Hobson, Hobson Bernardino (via email and regular mail) Community Development, County of San Diego, Housing & Community Development Services (via email and regular mail)
Executive Director, California Tax Credit Allocation Committee (via certified mail) Oct. 22, 2024 Item #6 Page 26 of 26
Tammy Cloud-McMinn
From:

Sent:

To:

Teri Jacobs <[email protected] >
Monday, October 21, 2024 4:04 PM
City Clerk
All Receive - Agenda Item# J..a_
For the Information of t he:

Subject: 10/22 Agenda Item #6 CITY COUNCIL .

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Sent from my iPad
Begin forwarded message :

From: Teri Jacobs <[email protected]>
Date: October 21 , 2024 at 10:38:57 AM PDT
Mayor, Council, and Staff ,

1. On 8/25/20241 sent an email to you regarding promises made by a former Affirmed Housing employee at the 1/28/2020 Council meeting. She clearly stated that the beauty of Windsor Pointe was that there would be 2 managers (one at each site) . That was a lie. So developers are able to lie to staff, commissions , and Council with no consequences! During that same Council meeting a member of our Housing Commission got up and said "this is affordable housing done right." It was also said that the 24 units would address a quarter of our then PIT count. How wrong was that information? We know now that not one of the 24 NPLH units are housed with individuals with ties to Carlsbad. How has the facility addressed our homeless situation?

2. In the agenda packet there was mention of an open gate for an event . Days before that the Harding gate was actually broken and remained that way for days. How did security and management not see it?

3. Solari was originally listed as the management company for the facility. At some point it changed to CO NAM. When and Why was this change made? Why has it taken over 2 years for Affirmed to realize there are issues? How many 911 calls, arrests, and deaths had to occur!

4. At one of the recent Council meetings it was made clear that many of the issues at Windsor Pointe are visitor related . There was quite a lengthy discussion about solutions and now we find out there is an issue relating to residents, their visitors, and privacy . So can the assumption be made that yes there is an issue and no we aren't going to seriously address it?

5. The County has a lackluster if not an incredibly slow response to the issues at Windsor Pointe. Ninety days, 6 months time frames are not acceptable .

6. The work by Jason Haber, Mandy Mills, Council Members Acosta and Burkholder is 1 appreciated regarding legislative matters but how did Affirmed , staff , commiss ions, and Council miss that Veteran income disqualified them in the first place . NOTE ... the name of the project is Carlsbad Veteran Housing LP (oh but Veterans aren't eligible). This was a major fail on all fronts . What a slap in the face to Veterans and the community who were hoping to help those who heroically served our Country! Perhaps we will be awarded the 6 vouchers , perhaps some units will be vacated, perhaps a SMI Veteran with ties to Carlsbad will be housed who then is only required to meet ONCE a month with a case manager ... ls this the fix?

7. The letter from Affirmed's Counsel is somewhat concerning as the tone is that the City approved it, we will fix a few things , but not everything. The assumption seems to be that they l<now what is best for Carlsbad . Safety is paramount and the cost should not be a factor. In the second to the last paragraph in the letter it states , "tenant has organized several meetings to coordinate efforts related to security , resident service needs, and neighborhood outreach ." Residents exhausted all avenues from city, Council , and County to finally demand that someone listen to our concerns. Council Member Bhat-Patel made reference to community outreach meetings during one of the presentations to Council.

There were never meetings prior to our demanding them!
Your constituents weren 't listened to when this facility was in the planning stages , our concerns were not taken seriously until Chief Calderwood saw what was going on with her own eyes. Her experience wasn 't a one-off event.

Some of you were in attendance at the grand opening of Windsor Pointe. Since then , from the dais, you have voiced concerns and directed staff to do A, B, and C. Hopefully at the 10/22/24 Council Meeting you will tell us what you have done and are doing as enough is enough!
Regards,
Teri Jacobs
Carlsbad Resident; Dist 1
Sent from my iPad
CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content i 2 Tammy Cloud-McMinn
From:

Sent:

To:

Subject :

Dear Mayor & Council,
michael ajdour < [email protected] >
Tuesday, October 22, 2024 1 :07 AM
City Clerk
Item 6 October 22,2024
If multiple people were routinely drug overdosing with some dying on any other city owned propertiy like the golf course , a park, or on the lawn of city hall - would you wait at least 6 months after any management change to evaluate if the change was effective? I think not.

It will continue on as Dealer's choice at both Windsor Pointes . This is harmful to our residents, most especially the mentally ill.

At least the police stay on it. Otherwise it would be worse.

Quit procrastinating.

Julie Ajdour
Sent from Yahoo Mail on Android
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5 Tammy Cloud-McMinn
From:

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Council Internet Email
Wednesday, October 23, 2024 2:15 PM
City Clerk
FW: 10/22 Council Meeting
From: Denis Jensen <[email protected]>
Sent: Wednesday, October 23, 2024 1:43 PM
To: Keith Blackburn <[email protected]>; Melanie Burkholder <[email protected]>; Priya Bhat-Patel <[email protected]>; Carolyn Luna <[email protected]>; Teresa Acosta <[email protected]>; Council Internet Email <[email protected]>; Gregory Day <[email protected]>
Cc: Lara Benusis <[email protected]>; Mark Packard <[email protected]>; Tracy Carmichael <[email protected]>; Teri Jacobs <[email protected]>; michaelajd <[email protected]>; Matt Hall <[email protected]>; Lauren Ladda <[email protected]>; Raul Villamar <[email protected]>; Jeffrey Yuen <[email protected]>; Alanna Trimble <[email protected]>; Momophd Momofphd <[email protected]>; Tyler Collins <[email protected]>; [email protected]; Mike Curtin <[email protected]>; Dorian Hargrove <[email protected]>; Steve Puterski <[email protected]>; Justin Cox <[email protected]>; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; ann welton <[email protected]>; Carl Gehring <[email protected]>; Andrea Ryon <[email protected]>; Stacey Boyer <[email protected]>; jacqueline Barnhill <[email protected]>; Kelly Kelly <[email protected]>; Mary Huber <[email protected]>; Krisha Markowicz <[email protected]>; Christine Smoczynski <[email protected]>; George Corrales <[email protected]>; Ryan King <[email protected]>; Mary Estrada <[email protected]>; (Johnston <[email protected]>; Julie Christopher <[email protected]>; Tyler Carter <[email protected]>; Matt Krepelin <[email protected]>; HeatherandJustin Nash <[email protected]>; Ace Hauling & Demolition <[email protected]>; Allyson P Davis <[email protected]>; Crystal Brynildsen <[email protected]>; Jennifer George <[email protected]>; LUIGI P <[email protected]>; scott tibbets <[email protected]>; shari mirkin <[email protected]>; Cherise Hurlburt <[email protected]>; Jim Ahearn <[email protected]>; Chris Peters <[email protected]>; Mike Kalscheur <[email protected]>; Kristina Lima <[email protected]>; Jeremiah Patton <[email protected]>; Shannon Everett <[email protected]>; Frank Temple <[email protected]>; Austin Borders <[email protected]>; Brad Sivert <[email protected]>; Judy Oconnor <[email protected]>; Mark <[email protected]>; Bekah P <[email protected]>; LeeAnne Scherer <[email protected]>; Sherrie <[email protected]>; Raco Nasirpour <[email protected]>; Khara Stevens <[email protected]>; Brock Maclean <[email protected]>; heitchew <[email protected]>; Julia Darling <[email protected]>; Lois Swagerty <[email protected]>; seth haller <[email protected]> Subject: 10/22 Council Meeting
I'll say it... what a disastrous showing at the Council meeting last night in regards to Windsor Pointe. You, Council, couldn't get a commitment on the management company's replacement timeline? You have nothing substantial to say about the developer refusing to oblige your remediation demands? Nothing said about the tenant that died of a drug overdose, whose family attributes it to drug dealers living amongst people trying to stay sober? You're all fine letting that go on, letting tenants potentially die from drug dealer infiltration?
1 On January 28, 2020, Mayor Matt Hall asked City staff to confirm that the City would maintain control of Windsor Pointe:

Matt Hall:
"But if there are issues, safety issues, what recourse do we have as a city over the management?" City Staff:
"Sure. So as part of the provision of the assistance, we will be executing a loan agreement that will have conditions in there related to the financing of the project. In addition to that, there will be a regulatory agreement... So, if there were concerns that were that were raised, they could be brought to the attention of the staff and then we can take action accordingly."
Is "taking action" saying there's nothing we can do? Who signed a regulatory agreement that does not maintain the control that City Staff confirmed? Also not discussed - a 55 year commitment to the program nor that tenants would have histories of incarceration. Why was that hidden from the public? Matt Hall says that information was not provided by Staff when they voted. This went from Staff confirming that the City was in control of Windsor Pointe in 2020 to the City Attorney saying it has no control at last night's meeting:

City Attorney:
"Possible direct consequences of violating the housing element and the obligation to: affirmatively further fair housing may include decertification of the city's housing element, subjecting the city to the builder's remedy.

Forfeiture of encampment resolution funding a requirement to cite and provide funding for an additional permanent supportive housing project and payment of the state's legal fees. Possible indirect consequences include the loss of federal and state grant funds that were conditioned upon compliance with anti-discrimination laws, such as the grant funding received for police and fire department training and equipment ... " Why was THAT not disclosed when Matt Hall, Keith Blackburn and Priya Bhat-Patel voted for this? This is obviously an actionable Staff termination offense. The way you fix this is to tell the City Attorney and City Manager that they will be terminated if they cannot remedy the terrible deal they got us into. I'm sure all of those "possibles" and would quickly disappear. Agreement-breaking is usually limited to returning the unfulfilled transaction amount ($5 million) and damages (none). What is all of that other stuff? What Anti-discrimination laws have been breached? We don't buy it.

And when the developer became a deer in the headlights when asked about not having the two onsite property managers they promised:

January 28, 2020
Affirmed Housing:
"I think the perk of Windsor point is that we will also have two property managers that will be supporting in addition to our service provider"
October 22, 2024
Priya Bhat-Patel:
"I'm just curious what the plan is to make sure that there's going to be presence at both housing sites." Affirmed Housing:
"I don't have an answer to that at this point. It's something that we're considering continuing to look at." Really, Ms. Bhat-Patel, you're "just curious" after the Chief of Police exposed that this onsite property manager promise has been unfulfilled for TWO years? And this oversight could maybe be forgiven if Teri Jacobs hadn't sent you that Jan 28 Council meeting video promising two property managers just last week.

Ms. Acosta, you have nothing to say about any of the above? Really? Thank goodness for Melanie Burkholder. 2 Good grief. I think we need a committee of constituents from the private sector to work on this, the Council is clearly disinterested in helping the community or even tenants.

Sincerely,
Denis Jensen
CAUTION: Do not open attachments or click on links unless ou reco nize the sender and know the content i 3 WINDSOR POINTE

AFFORDABLE HOUSING
Mandy Mills, Director, Housing & Homeless Services
Oct. 22, 2024
1 {city of
Carlsbad

RECOMMENDED ACTION
Receive progress report on City Council directed
actions related to the Windsor Pointe Affordable
Housing Project.

ITEM 6: WINDSOR POINTE UPDATE
2 {city of
Carlsbad

BACKGROUND
• Apartments with supportive services
• Neighborhood concerns
• Staff worked to address concerns with Affirmed
Hou
sing
• Some concerns can no t be addressed
• Some were outside of the city’s authority
ITEM 6: WINDSOR POINTE UPDATE
3 {city of
Carlsbad

BACKGROUND
• City Council meetings to review status, hear from the com
munity and discuss options
• City Council directed actions
• March 12, 2024
• April 9, 2024
• June 11, 2024
• Aug. 20, 2024
ITEM 6: WINDSOR POINTE UPDATE
4 {city of
Carlsbad
AUG. 20, 2024, COUNCIL DIRECTION
• Review agreements to see if there are grounds to
rem
ove the property’s management agent, and if so,
take necessary steps to do that
• Review the management plan between Affirmed
Hous
ing and the management agent to see if there are
changes that can be made to address 24-hour security
ITEM 6: WINDSOR POINTE UPDATE
5 {city of
Carlsbad

CITY NOTIFICATIONS
6 ITEM 6: WINDSOR POINTE UPDATE
Agreement Provisions
• Ground Lease
• Regulatory Agreement
• Loan Agreement
• Deed of Trust
September 1 O, 2024
( Cityof
Carlsbad
NOTICE OF NONCO"PUANCE WITH AGREEMENTS, MAI NTENANCE OEACIENC IES ANO

INTENTION TO CAUSE REPLACEMENT OF MANAGEMENT AGENT AT W IN OSOR POINTE Mr. Jeme:!I s.n-..erwood
Cartsbad Veteran t-lOb!>.mg. l.P.
cJoAffirmed Housing Group. Inc.
13520 Even in,: Creek Drive North, Suits 160
San Otego. CA 92128
OHt M1. SilvetwOOd:

VIA CEATIFIEO MAILANO
EMAIL TO: [email protected]~.com
TIiis 1ene.r Is ro nouty Carl.SbaO Veteran Housing, L-P. ano Affirmed Housl na Group, Inc. (COll&etl!Jety At11rmei:t Hou:!l!ng) tllat you nave violated the rerms of the Ground Lease, Riegutatcwy Agreement, Loan Agreement. end Deed cf Trust With the City cf Carl.!lbad tor the Windsor Polnte de....elopment t\M.nd90, f"01nta °' the Property). This letter is a Lao to notify you that Affirmed Housing's Management Agent, CONAM Management Corporation (CO NAM) ha'9 felled to meet Its ot>Ugations under Windsor Polntels Matu1gement Plan arld. consequent!)', the crty intends to cause Affirmed Housirc to replace CONAM.

B.ac-""-mmd
On S,eptember 5, 2023, tho Ctty of c.tlsbod Police Chief s.nt a lette, informing Affirmed Housins of e number of crtmin.eil 1;1c.t'I lb('lt occ1,me,ct a1 The ~nd$(M' Polnle propeny, lnc11Jdlna: monv commlrte.(I t,y lndMdus ls who did not re!l:Jde there or 'WE!re tre:!lpssslng on the property.. Ttle ~Uce Chief seques.ted Affirmed HouBJng Implement addibonat secumy measures. includmg:
• fllflQLJllfint viS;itors to th&ck in and out of Uk} propell)'; Ma11nralnlng aurveltlance cameras c01Jerlng au extertor locations aoo park:lng f!reas: find Providing unifor'fflbd .!ICC::wit)' on.1itti at both locatio n,, 24 hour\! a day, ~eY8d"I days a week.

The s:&f'no day, the CitY or Cerlsb&d's HouSll'\i & Hom(llOSS Service~ Director ~nt a letter oHenne to assist Arrlrmed HousJns Identify .and develop cMng:es t.o-property m.a1ntenat1c:e a.nd oi,e'2tions to adcfross tne w.::u 11ty concems ltffll'ltifl&d by the PoUce Ch,ttf.

Tbe Hou!:11~ & Homeless SeNlces Olrectora tso recommel'ICled A~med Housing:
• Provide on:site 5ecurity at both locations, :seven days a week.; City Han ager
City Hall 1200 Car1lbad \';lli."18t Ori,... I CartsNd , CA 92009 I c.-2-33g...2e21 t )!wh ile an
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tho City
•ment Plan
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)id iatv
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"""'=""-~I===--=--------,,===--'

MANAGEMENT CHANGE
Provide notice of deficiency and a timeframe to
address (“cure”)
If not addressed, next step is for Affirmed Housing to
initiate a management company change
Company must be approved by each organization
providing funding to the project
New management plan developed
ITEM 6: WINDSOR POINTE UPDATE
7 COMPLETE

COMPLETE

UNDERWAY

NEXT STEP
ACTIONS COMPLETED ITEM 6: WINDSOR POINTE UPDATE
8 Mar 2024 Oct 2024
Management change
initiated
County doubles onsite service
hours (20 to 44 a week)
Management plan
updated
Visitor access
control with photo
Mental health referral
training completed
Legislative advocacy
plan begins
County refers more
specialized care
Pursue veteran
housing vouchers
Onsite security
hours increased
Legal analysis re
management change
Notice of
deficiencies sent
Advocated for local
preference change
Onsite security
increased to
both locations
0 0
0 0
0 0
0 0

RECENT COUNTY RESPONSE
• County Board of Supervisors requested 7-day a week
services
• County staff seeking funding to support request
ITEM 6: WINDSOR POINTE UPDATE
9 {city of
Carlsbad

INCREASE VETERAN ACCESS
Legislative changes
• Exclusion of disability benefits
Ex
ploring veteran housing vouchers
• Would change veterans preference to requirement
• Case management required for residents
What’s next
• Memorandum of understanding with County of San Diego
sho
uld vouchers be awarded
ITEM 6: WINDSOR POINTE UPDATE
10 • Continue to implement identified actions
• Continue to monitor statistics and trends
• Continue to work closely with Windsor Pointe to
ad
dress issues
• Return with update once new management
com
pany has taken over and staff has had time to
assess operations

NEXT STEPS
11 ITEM 6: WINDSOR POINTE UPDATE
{city of
Carlsbad

WINDSOR POINTE

AFFORDABLE HOUSING
12 Mandy Mills, Director, Housing & Homeless Services
Oct. 22, 2024
{city of
Carlsbad