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Home My WebLink About2007-81 - North Newport Center Planned Community AHIPRESOLUTION NO. 2007. 81 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH APPROVING THE NORTH NEWPORT CENTER PLANNED COMMUNITY AFFORDABLE HOUSING IMPLEMENTATION PLAN WHEREAS, The Irvine Company has applied to the City of Newport Beach for the Zoning Amendment specified in the North Newport Center Planned Community Development Plan to allow future development in North Newport Center, which consists of parts of Newport Center Block 500, Newport Center Block 600, parts of San Joaquin Plaza, and Fashion Island ( "Property "). WHEREAS, as part of its application, The Irvine Company requests approval of the Development Agreement entitled Zoning Implementation and Public Benefit Agreement Between the City of Newport Beach and The Irvine Company LLC Concerning North Newport Center (Fashion Island, Block 500, Block 600, and San Joaquin Plaza). WHEREAS, as part of its application, The Irvine Company also requests approval of the North Newport Planned Community Affordable Housing Implementation Plan ("AHIP"). WHEREAS, the North Newport Center Planned Community AHIP was prepared in accordance with General Plan Housing Policies H2.1 and H2.2 and General Plan Housing Programs 2.1.2, 2.2.1, and 2.2.4. WHEREAS, the Planning Commission held a public hearing on November 29, 2007, in the City Hall Council Chambers, 3300 Newport Boulevard, Newport Beach, California, at which time the Planning Commission considered the North Newport Center Planned Community AHIP. A notice of time, place, and purpose of the meeting was duly given in accordance with the Municipal Code. Evidence, both written and oral, was presented to and considered by the Planning Commission at this meeting, meeting, including the evidence and arguments submitted by the City staff, The Irvine Company, and all interested parties. WHEREAS, the Planning Commission voted to recommend approval of the North Newport Center Planned Community AHIP to the City Council. WHEREAS, the City Council held a noticed public hearing on December 11, 2007, to consider the recommendation of the Planning Commission. WHEREAS, the City Council has reviewed and considered the information in the North Newport Center Planned Community AHIP and in the full administrative record, before taking any action recommending approval of the North Newport Center Planned Community AHIP. WHEREAS, the City Council finds that the North Newport Center Planned Community AHIP satisfies any obligation of The Irvine Company to the City under General Plan Housing Policies H2.1 and H2.2 and General Plan Housing Programs 2.1.2, 2.2.1, and 2.2.4 with respect to the development of the Property pursuant to and during the term of the Development Agreement. NOW, THEREFORE, BE IT RESOLVED that the City Council approves the North Newport Center Planned Community AHIP. BE IT FURTHER RESOLVED that the North Newport Center Planned Community AHIP shall not go into effect until the City Council approves or adopts all of the following: (1) the North Newport Center Planned Community Development Plan; (2) the Block 500 Planned Community District Regulations; (3) the San Joaquin Plaza Planned Community District Regulations; (4) the Development Agreement entitled Zoning Implementation and Public Benefit Agreement Between the City of Newport Beach and The Irvine Company LLC Concerning North Newport Center (Fashion Island, Block 500, Block 600, and San Joaquin Plaza); (5) the North Newport Center transfer of development rights; and (6) Traffic Study No. TS2007 -001. PASSED AND ADOPTED on the 11th day of December, 2007, by the following vote, to wit: AYES, CITY COUNCIL MEMBERS Henn, Curry, Rosansky, Webb, Daigle, Gardner, Mayor Selich NOES, CITY COUNCIL MEMBERS ABSENT, CyTSS' COUNCIL MEr48fRS- None ATTEST: NOTE! • :. North Newport Center Planned Community Affordable Housinq Implementation Plan 3 NORTH NEWPORT CENTER PLANNED COMMUNITY AFFORDABLE HOUSING IMPLEMENTATION PLAN Prepared For: The City of Newport Beach December 2007 Contents � I. Introduction .................................................................................................................................. l "`^=^`n^"""".~~~~~^^~^^^^—~~^"~—~—~~~^~~~^~^^~^^~~~~^^~~~~~^~~^~^ H. Affordable Housing Pluo..................................—........] ProposedPlan ............................................................................... ............................................... 3 Number wfAffordable Units/Income Levels ................................................................................ 6 Implementation ~.~~~~~~~,^.......~.~.—~~~.'~~~~—~......~—~~~~~., Conclusion.................................................................................................................................... 6 0U. Consistency with Housing Element .............................................................................................. IV. Amendments tothe AHIP ............................................................................................................. 8 V. ....—..............~.....,......—...................8 Figures Exhibit l^North Newport Center Planned ~......~...................`2 Exhibit 2 - Child Time Center and The Bays Apartment Complex Locations ...................................... 5 North Newport Center Planned Community Affordable Housing Implementation Plan E L Introduction The North Newport Center Planned Community (Planned Community) approval by the City of Newport Beach includes a Planned Community Development Plan that implements the goals and policies of the City's General Plan. The Planned Community, as shown on Exhibit 1, consists of four sub -areas within North Newport Center, a regional center comprised of major retail, professional office, entertainment, recreation, hotel and residential development. Block 500, Block 600 and San Joaquin Plaza are designated in the General Plan as MU -H3, a designation which allows for a mixed -use area combining commercial, office, entertainment and residential uses. The Planned Community Development Plan for North Newport Center allows construction of 430 residential units in these blocks, and affordable housing units must be provided in accordance with City Housing Element. This Affordable Housing Implementation Plan (AHIP) outlines how the required affordable housing will be provided. Background The City's Housing Element includes a goal that 15% of all new housing units in the City be affordable to very low, low and moderate income households. The Housing Element identifies moderate income households as those with annual incomes between 80% and 120% of the county median household income. Low income households are those with annual incomes between 51% and 80% of the county median household income. Very low income households are those with annual incomes of 50% or less of the County median household income. Projects with more than 50 units are required to prepare an AHIP that specifies how the development will meet the City's affordable housing goal, The Southern California Association of Governments (SLAG) prepares the state - mandated Regional Housing Needs Assessment (RHNA). The RHNA quantifies the need for housing within each jurisdiction during specified planning periods. The City's General Plan Housing Element must include its "fair share" regional housing needs allocation for all income groups which must be updated periodically. The most recently published SCAG RHNA identifies the City allocation as follows: • Total allocation between 1/1/06 and 6/30/14 — 1,784 • Very low income allocation - 22% (392 units) • Low income allocation — 18% (321 units) • Moderate income allocation — 20.3% (362 units) North Newport Center Planned Community Affordable Housing Implementation Plan I 0 San Joaquin �a Plaza /SAN /"CRUZ DR e ors $ �0 �emeN 2 �P Q O < Block 9 °ti 600 �s va 7I / SANTA ROSA OR Fashion Island Block Regional Center 500 U O �S ap Oq Q Wp 4 j s ryes o c6e � �o � P n D 9cA u v �J CO ls = rJ T yTC > P v lygY 4oP FP \ P 4P ❑ Planned Community Exhibit 1 - North Newport Center Planned Community North Newport Center Planned Community z Affordable Housing Implementation Plan II. Affordable Housing Plan Proposed Plan The City's General Plan Housing Element allows for sale or for rent options in order to meet the obligation for affordable housing units. In addition, affordable housing may be provided off site, with City approval. Consistent with these Housing Element provisions, this Affordable Housing Implementation Plan includes the following options. Locations of the sites are included on Exhibit 2. A. New Construction The Irvine Company is the owner of a 0.75 -acre parcel of land located at the former Child Time Center near the intersection of San Joaquin Hills Road and San Miguel Avenue. The site is designated in the Newport Beach General Plan for Multiple Residential with a density of 10 units. With a density bonus for affordable housing, the site could accommodate 14 multi- family units. The Irvine Company may construct 14 housing units on this site to be offered for sale or for rent. If this option is selected, The Irvine Company will record a legal deed restriction on the property which insures the units will meet the affordability requirements for a period of at least 30 years. The units must be rented to households qualifying as very low, low or moderate income households. The annualized rents chargeable for occupancy of the Affordable Units shall not exceed thirty percent (30 %) of the amount of Very Low, Low or Moderate Income. The sales price of affordable for sale units shall not exceed three times the income limits. The restriction on these units, tenant selection procedures, monitoring, etc. will be included in an affordable housing agreement, which shall be submitted for review and approval by the City Attorney and recorded against the property. B. Covenants on Existing Units The Irvine Company owns The Bays, an apartment complex consisting of three buildings ]mown as Baywood, Bayview and Bayport, which is shown on Exhibit 2. The total number of units in The Bays is 556. Forty -six units in Baywood are restricted as low- income units through 2011_ The Irvine Company will restrict tenant incomes and rental costs for housing units located in The Bays complex for a period of 30 years with a recorded document. The number of restricted units will be sufficient to provide the number of affordable units described later in this AHIP, depending on the income level to be served. The Irvine Company will identify which apartments are proposed to meet the affordable housing obligation, and will not use units that are under any other affordable housing covenant at the time they are proposed to meet the obligation for North Newport Center. The City will inspect the apartments designated to meet the affordable housing requirement to ensure compliance with relevant codes, proper maintenance and adequate common areas. The Irvine Company will agree to make improvements, if necessary, to ensure viable housing for the 30 year period. The units must be rented to households qualifying as very low, low or moderate income households. The annualized rents chargeable for occupancy of the Affordable Units shall not exceed thirty percent (30 %) of the Very Low, Low or Moderate Income limits. North Newport Center Planned Community 3 Affordable Housing Implementation Plan The restriction on these units, tenant selection procedures, monitoring, etc. will be included in an affordable housing agreement, which shall be submitted for review and approval by the City' Attorney and recorded against the property(ies). C. Concentration of Units If the New Construction option is used, no more than 50% of the units developed on the Child Time site shall be affordable. Affordable units shall not be concentrated in any one building in The Bays. I North Newport Center Planned Community Affordable Housing Implementation Plan Exhibit 2 - Child Time Center and The Bays Apartment Complex Locations North Newport Center Planned Community Affordable Housing Implementation Plan F'nrdR V 13uniRr (iyeop /)r Harbor m n S J NJ. Fashion Island Imo♦ I � 'rnoncoo` �F .0 � s SSUu r` F ]jNM1�G W. li 8 $ i��rri llva.M1 GIY y4 ®II VlR1MAL The Bays Apartment Complex �k Child Time Center Exhibit 2 - Child Time Center and The Bays Apartment Complex Locations North Newport Center Planned Community Affordable Housing Implementation Plan Number of Affordable Units /income Levels The requirement for affordable housing shall be based on income categories. The Irvine Company will provide either very low, low or moderate income housing, or a combination of income categories, using the percentages shown in the table below. INCOME CATEGORY PERCENTAGE REQURED TOTAL AMOUNT Very Low 10% 43 units Low 15% 65 units Moderate 20% 86 units Implementation The affordable housing units required under this AHIP will be provided incrementally. The affordable units shall be phased as follows: •, Certificate of use and occupancy for 100'' market rate unit / one -third of required units • Certificate of use and occupancy for 200th market rate unit / one - third of required units • Certificate of use and occupancy for 300`" market rate unit / one -third of required units Affordable housing agreements shall be executed and recorded at each phase identified above for any units constructed on the Child Time site and for designated affordable units in The Bays apartment complex prior to the point where a certificate of use and occupancy is issued for the related market rate units. Conclusion Implementation of this AHIP will result in the availability of affordable housing units as identified above within the City of Newport Beach in accordance with the City's Housing Element. North Newport Center Planned Community Affordable Housing Implementation Plan 6 . Consistency with Mousing Element The City of Newport Beach adopted a General Plan in 2006. A Housing Element was included in the General Plan in accordance with State law. The Housing Element identifies goals and programs for the provision of affordable housing in the City. The AHIP is intended to meet the specific goals of the Housing Element as follows: Policy H2.1 Encourage preservation of existing and provision of new housing affordable to very low, low and moderate income households. Program 2.1.2 Take all feasible actions, through use of development agreements, expedited development review and expedited processing of grading, building and other development permits, to ensure expedient construction and occupancy for projects approved with low and moderate income housing requirements. The AHIP supports the City's requirement for the provision of affordable housing for all new development with more than 50 residential units. The Irvine Company has prepared a Development Agreement in accordance with this Policy/Program. Policy H2.2 Encourage the housing development industry to respond to housing needs of the community and to the demand for housing as perceived by the industry, with the intent of achieving the Regional Housing Needs Assessment construction goals within five years. Program 2.2.1 Require a proportion of affordable housing in new residential developments or levy an in -lieu fee. The City's goal over the five year planning period is for an average of 15 percent of all new housing units to be affordable to very low, low and moderate - income households. The City shall either (a) require the payment of an in -lieu fee, or (b) require the preparation of an Affordable Housing Implementation Plan (AHIP) that specifies how the development will meet the City's affordable housing goal, depending on the following criteria for project size: 1. Projects of 50 or fewer units shall have the option of preparing an AHIP or paying the in -lieu fee. 2. Projects where more than 50 units are proposed shall be required to prepare an AHIP. Implementation of this program will occur in conjunction with City approval of any residential discretionary permits or Tentative Tract Maps. To insure compliance with the 15 percent affordability requirements, the City will include conditions in the approval of discretionary permits and Tentative Tract Maps to require on- going' monitoring of those projects. Program 2.2.4 All required affordable units shall have restrictions to maintain their affordability for a minimum of 30 years. As described in Section II, the affordable housing provided per the AHIP will meet the Housing Element requirement for the total affordable units required. The units will be deed restricted to North Newport Center Planned Community 7 Affordable Housing Implementation Plan remain affordable for a period of 30 years. In addition, the developer will provide periodic reports in the form required by the City. The provision of the affordable housing units will assist the City in meeting the RHNA construction goals. In conclusion, the AHIP is consistent with the relevant goals and programs in the City's 2006 General Plan Housing Element. IV. Amendments to the AHIP This AHIP may be amended with the approval of the City Council. No modification of the General Plan requirement for affordable units is allowed, unless the requirement is reduced through an amendment to the General Plan prior to implementation of development. V. Authority The AHIP has been adopted by the City of Newport Beach per Resolution No.- 2007 -81 on the 11th day of December2007. North Newport Center Planned Community Affordable Housing Implementation Plan 8 STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF NEWPORT BEACH } } ss. } I, LaVonne M. Harkless, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; that the foregoing resolution, being Resolution No. 2007 -81 was duly and regularly introduced before and adopted by the City Council of said City at a regular meeting of said Council, duly and regularly held on the 11th day of December 2007, and that the same was so passed and adopted by the following vote, to wit: Ayes: Henn, Curry, Rosansky, Webb, Daigle, Gardner, Mayor Selich Noes: ` None Absent: None Abstain: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the i official seal of said City this 12th day of December 2007. City Clerk Newport Beach, California e (Seal)