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Home My WebLink About4.0 - Uptown Newport Planned Community - AHIP - PA2014-011CITY OF NEWPORT BEACH PLANNING COMMISSION STAFF REPORT February 6, 2014 Agenda Item No. 4 SUBJECT: Uptown Newport Planned Community, Affordable Housing Implementation Plan (AHIP) Amendment - (PA2014 -011) 4311 & 4321 Jamboree Road APPLICANT: Uptown Newport LP PLANNER: James Campbell, Principal Planner (949) 644 -3210, jampbell@newportbeachca.gov PROJECT SUMMARY Amendment of the Uptown Newport Affordable Housing Implementation Plan. RECOMMENDATION 1) Conduct a public hearing; and 2) Adopt the attached resolution recommending City Council approval of an amendment of the Uptown Newport Affordable Housing Implementation Plan (Attachment No. PC 1). On February 26, 2013, the City Council approved the Uptown Newport Planned Community consisting of the construction of a mixed -use community with up to 1,244 residential units, 11,500 square feet of neighborhood - serving retail space, and approximately two (2) acres of park space. The project included the approval of an Affordable Housing Implementation Plan (AHIP) (Attachment PC 2) that addresses the construction of affordable housing within the planned community. The applicant requests an amendment of the AHIP to change the timing of the construction of affordable housing (Attachment PC 3). Background Uptown Newport is planned in two phases. Phase 1 encompasses approximately half of the 25 acre planned community and includes the demolition of a single -story office building and parking areas and development of the westerly portion of the property along Jamboree Road. Phase 1 consists of roads, infrastructure, and up to 680 residential units, a 1 -acre public park, and up to 11,500 square feet of retail space. Phase 1 is projected to commence in 2014 and be completed in 2018. 1 Uptown Newport Planned Community, AHIP Amendment February 6, 2014 Page 2 2 17 'Y .. V � f f rp ,, .v \ Ick I5I1 1 I 1 p.Il fi g d R 2 Uptown Newport Planned Community, AHIP Amendment February 6, 2014 Page 3 Phase 2 will include demolition of the existing industrial uses, buildings, and parking areas to make way for the remaining 564 residential units and a 1 acre public park on the easterly portion of the property. Timing for Phase 2 construction would be contingent upon the existing lease of the existing manufacturing facility, which will expire in March 2017, but could be extended to March 2027 by the manufacturer (Tower Jazz). The City granted a 35% density bonus (322 additional units above what the General Plan would otherwise allow) in exchange for the construction of housing units that would be affordable to very low- income, low- income, or moderate - income households. The precise number is dependent upon the income category or categories served. The approved AHIP requires the construction of affordable housing in each phase closely proportionate to the total number of units in each phase. Phase 1 would include between 55% and 60% of the total number of affordable units and Phase 2 would include the remainder. DISCUSSION The AHIP includes a minimum percentage of affordable housing for Phase 1 to ensure that affordable housing wasn't deferred to Phase 2. The maximum percentage was included to allow flexibility. Given the added complexity of financing and managing affordable housing developments, the applicant would like the possibility to construct 100% of the affordable housing within Phase 1. Given the amount of the density bonus (35 %) authorized, the applicant must construct 102 very-low income units, or 185 low- income units, or 367 moderate - income units. There is a formula to calculate the number of units should more than one income group be served and it would not exceed the moderate - income total. The following table details the housing options if the affordable units were constructed entirely in Phase 1. Affordable - Housing Development Options Residential If Ve -Low: If Low - Income: If Moderate - Income: Units # of Units % of Total # of Units % of Total # of Units % of Total # of Affordable 102 15% 185 27% 367 54% Market -rate units 578 85% 495 73% 313 46% Total Phase 1 units 680 100% 680 100% 680 100% 3 Uptown Newport Planned Community, AHIP Amendment February 6, 2014 Page 4 Alternatives The Commission could also consider the following alternative actions: 1. Recommend no change to the existing AHIP, which would require affordable units be constructed in Phase 1 and Phase 2. 2. Amend the AHIP, but modify the income categories permitted in Phase 1 (i.e., not allow moderate units). Environmental Review All significant environmental concerns for the proposed project have been addressed in a previously certified Environmental Impact Report No. ER2012 -001 (SCH No. 2010051094), and that the City of Newport Beach intends to use said document for the above noted project, and further that there are no additional reasonable alternative or mitigation measures that should be considered in conjunction with said project. Copies of the previously prepared environmental document are available for public review and inspection at the Planning Division or at the City of Newport Beach website at www.newportbeachca.gov/cegadocuments. Public Notice Notice of this request was published in the Daily Pilot, mailed to all owners of property within 300 feet of the boundaries of the site (excluding intervening rights -of -way and waterways) including the applicant and posted on the subject property at least 10 days before the scheduled meeting, consistent with the provisions of the Municipal Code. Additionally, the item appeared on the agenda for this meeting, which was posted at City Hall and on the City website. Prepared by: W James Campbell, Principal Plariner ATTACHMENTS PC 1 Draft Resolution PC 2 Adopted Uptown Newport AHIP PC 3 Proposed Amendment Submitted by: r n a Wisnesl i, rlCP, Deputy Director r Attachment PC 1 Draft Resolution 5 Intentionally Blank 0 RESOLUTION NO. # # ## A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH RECOMMENDING APPROVAL OF AN AMENDMENT OF THE AFFORDABLE HOUSING IMPLEMENTATION PLAN NO. AH2012- 001 FOR THE UPTOWN NEWPORT PLANNED COMMUNITY LOCATED AT 4311 -4321 JAMBOREE ROAD (PA2014 -011) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1. An application was filed by Uptown Newport LP ( "Uptown Newport" or "Applicant') with respect to a 25.05 -acre property generally located on the north side of Jamboree Road between Birch Street and the intersection of Von Karman Avenue and MacArthur Boulevard, legally described as Lots 1 and 2 of Tract No. 7953 and incorporated herein by reference, (the "Property') requesting approval for the development of up to 1,244 residential dwelling units, 11,500 square feet of retail commercial uses and 2.05 acres of parklands (the "Project') in two phases. The application included the following: Planned Community Development Plan Amendment No. PD2011 -003, Planned Community Development Plan Adoption No. PC2012 -001, Development Agreement No. DA2012 -003, Tentative Tract Map No. NT2012 -002, Traffic Study No. TS2012 -005, and Affordable Housing Implementation Plan No. AH2012 -001. 2. On February 26, 2013, the City Council certified the Uptown Newport Final Environmental Impact Report (SCH No. 2010051094) in compliance with the California Environmental Quality Act ( "CEQA "), the State CEQA Guidelines, and City Council Policy K -3, and approved the application while making certain findings in accordance with CEQA and the State CEQA Guidelines. 3. The AHIP specifies the amount and timing of construction of affordable housing within the Uptown Newport Planned Community resulting from the City allowing an additional 322 units above the maximum allowed by the General Plan pursuant to Government Code Section 65915 -65918 ( "State Bonus Density Law "), Title 19, Chapter 19.54 (Inclusionary Code), and Title 20, Chapter 20.32 (Density Bonus Code) of the Newport Beach Municipal Code. The approved AHIP requires a minimum of 55 percent and a maximum of 60 percent of the total affordable housing requirement be constructed in Phase 1. 4. Uptown Newport LP filed an application requesting an amendment of the AHIP to provide additionally flexibility to allow up to 100 percent of the affordable housing requirement be constructed in Phase 1. 5. A public hearing was held on February 6, 2014, in the City Hall Council Chambers, 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the meeting was given in accordance with the Newport Beach Municipal Code. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this meeting. 7 Planning Commission Resolution No. #### Page 2 of 3 SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. 1. All significant environmental concerns for the proposed project have been addressed in the previously certified Environmental Impact Report No. ER2012 -001 (SCH No. 2010051094), and the City of Newport Beach intends to use said document for the above noted project. Furthermore, there are no additional reasonable alternative or mitigation measures that should be considered in conjunction with said project. Copies of the previously prepared environmental document are available for public review and inspection at the Planning Division or at the City of Newport Beach website at www.newportbeachca.gov/cegadocuments 2. The City Council finds that judicial challenges to the City's CEQA determinations and approvals of land use projects are costly and time consuming. In addition, project opponents often seek an award of attorneys' fees in such challenges. As project applicants are the primary beneficiaries of such approvals, it is appropriate that such applicants should bear the expense of defending against any such judicial challenge, and bear the responsibility for any costs, attorneys' fees and damages which may be awarded to a successful challenger. SECTION 3. FINDINGS. 1. The proposed amendment to the AHIP does not diminish the total number of affordable units required to be constructed within the Uptown Newport Planned Community. The proposed amendment would authorize up to 100 percent of the project's requirement within Phase 1 thereby accelerating the production of affordable housing. 2. The proposed amendment is consistent with the City's housing goals identified in the Housing Element and it is consistent with Government Code Section 65915 -65918 ( "State Bonus Density Law "), and Title 20, Chapter 20.32 (Density Bonus Code) of the Newport Beach Municipal Code. SECTION 4. DETERMINATION NOW, THEREFORE, BE IT RESOLVED: The Planning Commission of the City of Newport Beach hereby recommends approval of an amendment to Affordable Housing Implementation Plan No. AH2012 -001 as follows with all other provision remaining unchanged: Vll. Phasing of the Affordable Housing Production 1. Affordable housing shall be constructed in each ^f the twe pFepesed phase f d^V„fthe project. Based upon the current phasing plan where 680 units are proposed for Phase 1 (55% of the project) and 544 units are proposed for Phase 2 (45% of the project), the minimum number of affordable units to be constructed in Phase 1 shall be 55% and shall not exeee' 60 of the total affordable housing obligation for the Uptown Newport project. The remaining affordable housing obligation if any, shall be constructed in Phase 2. 0 Planning Commission Resolution No. #### Page 3 of 3 2. Prior to the issuance of a certificate of occupancy for fifty percent (50 %) of the market rate units planned within in a Phase, the Owner shall commence construction or complete the construction of a minimum of fifty percent (50 %) of the affordable units required to be constructed within eashthat Phase. 3. Prior to the issuance of a certificate of occupancy for ninety percent (90 %) of the market -rate units within eac-ha Phase, the Owner shall obtain a certificate of occupancy for all affordable units required to be constructed within eaG4that Phase. PASSED, APPROVED AND ADOPTED THIS 6TH DAY OF FEBRUARY, 2014. AYES: NOES: ABSTAIN: ABSENT: BY: Bradley Hillgren, Chairman L_ "v Kory Kramer, Secretary E Intentionally Blank 10 Attachment PC 2 Adopted Uptown Newport AHIP 11 Intentionally Blank 12 UPTOWN NEWPORT AFFORDABLE HOUSING IMPLEMENTATION PLAN February 26, 2013 Uptown Newport AHIP Page 1 13 CONTENTS I. Introduction ....................................................................................... ..............................3 II. Project Description ............................................................................ ..............................3 III. Affordable Housing Obligation ........................................................... ..............................4 IV. Methods to meet Affordability Requirements ..................................... ..............................5 V. Definitions ......................................................................................... ..............................5 Vl. Assurance of the Development of Affordable Housing ...................... ..............................8 VII. Phasing of the Affordable Housing Production .................................. ..............................8 VIII. Affordable Housing Agreement ......................................................... ..............................8 X. Amendments of the AHIP .................................................................. ..............................9 X. Successors in Interest ....................................................................... ..............................9 Xl. Right to Assign .................................................................................. ..............................9 14 I. Introduction. Uptown Newport consists of 25 acres of developed land located in the City of Newport Beach on the north side of Jamboree Road at the intersection of Fairchild Road. The property was originally developed as part of the Koll Center, and has been used for manufacturing telecommunications equipment and computer chips since the 1970's. The property currently includes two industrial buildings that are leased to multiple tenants including TowerJazz, who manufactures computer chips onsite. The property is currently accessed via two entries on Jamboree Road, a drive access via Birch, and a drive access via Von Karmen Avenue. The City's General Plan allows for infill development and redevelopment of the Airport Business Area including up to 2,200 residential units. In September of 2010, the City approved the Koll - Conexant Integrated Conceptual Development Plan (]CDP), which provides a framework for residential development on both the Koll and Conexant properties within the Airport Business Area. The ICDP allocated a maximum of 1,244 residential units and up to 11,500 square feet of retail to be developed on the Uptown Newport (formerly Conexant) property, and up to 260 residential units to be developed on the Koll property. IL Project Description. The Uptown Newport Planned Community Development Plan (PA2011 -134) project will include redevelopment of the 25 -acre property into a high- density mixed use residential project. Up to 1,244 residential units, 11,500 square feet of retail, and 2 acres of park space are planned as part of the project. The project is anticipated to be developed in two primary phases. Phase 1 will include demolition of the existing single -story office building at 4311 Jamboree, and development of the westerly portion of the property, including the frontage along Jamboree Road. Phase 1 will include development of up to 680 residential units and up to 11,500 square feet of retail space, and is projected to commence in 2013. Phase 2 will include demolition of the existing TowerJazz fabrication building, and development of approximately 564 residential units on the easterly portion of the property. The number of residential units planned to be developed is based upon replacement units allocated to the site based on conversion of existing office and industrial uses to residential uses, additive units allocated pursuant to the General Plan, and density bonus units allowed pursuant to Government Code Section 65915 -65918 ( "State Density Bonus Law ") and City of Newport Beach Municipal Code Chapter 20.32 (the "Density Bonus Code "). On the Uptown Newport site, up to 632 units would replace the existing industrial and office uses which are to be demolished, 290 units are additive for a total of 922 units ( "Base Units "). Up to 322 additional units can be developed as density bonus units pursuant to the State Bonus Density law and the Density Bonus Code. Uptown Newport AHIP Page 3 15 Replacement Units 632 Additive Units 290 Subtotal — Base Units 922 Density Bonus Units @ 35% 322 Total Units 1,244 The State Density Bonus Law and the City's Density Bonus Code provide for an increase in the number of units of up to thirty -five percent (35 %) above the maximum number of units allowed by the General Plan provided the project constructs a minimum number of affordable units depending upon what income category is served. At the maximum density bonus of 35 %, the Project could accommodate up to 322 additional units above the 922 Base Units for a total of 1,244 total units. This AHIP is intended to implement affordable housing requirements for the Uptown Newport project pursuant to the State Bonus Density Law, Title 19 Chapter 19.54 of the Newport Beach Municipal Code ( the " Inclusionary Code "), and the Density Bonus Code. III. Affordable Housing Obligation Subdivision projects that result in a net increase of residential units have a requirement to provide affordable housing pursuant to the City's inclusionary housing requirements that are set forth in chapter 19.54 of the Municipal Code as well as the Density Bonus Code set forth in chapter 20.32 of the Municipal Code (combined, the 'Affordability Requirements" or "Affordable Housing Requirements "). The Owner seeks to achieve the maximum 35% density bonus, and will meet the Affordable Housing Requirements by the construction of affordable housing as follows: • By providing a minimum of eleven percent (11 %) of the Base Units (102 units) for Very -Low Income households for rent, or • By providing a minimum of twenty percent (20 %) of the Base Units (185 units) for Low- Income households for rent, or • By providing a minimum of forty percent (40 %) of the Base Units (369 units) for Moderate - Income households for ownership, or • By providing a combination of the above. In the event a combination of the above housing types is constructed, a Very -Low Income unit shall be deemed to be the equivalent of 3.6 Moderate Income units or 1.8 Low - Income units. A Low- Income unit shall be the equivalent of 2 Moderate - Income units. For example, if 30 Very-Low Income units are constructed, either 131 Low - Income or 261 Moderate Income units would be required to complete the affordability requirements If 89 Low - Income units are constructed, 191 Moderate - Income units are required. For this conversion the required number of units shall be rounded up to the nearest whole number. Uptown Newport AHIP Page 4 16 In the event that the Project utilizes a density bonus of less than 35 %, then the Affordability Requirements would be reduced pro -rata with the reduction of market rate units through an amendment to this AHIP. IV Methods to meet Affordability Requirements The Owner shall meet its Affordable Housing Requirements by developing the affordable units on site. Affordable units may be dispersed throughout the Planned Community or clustered in one or more sections of the Planned Community. V. Definitions The City's Affordability Requirements and Affordable Housing Requirements set out certain definitions and descriptions to assist in the implementation of the requirements, many of which are indicated below. These definitions and descriptions will be utilized in the interpretation of the requirements under this AHIP: A. Affordable Housing Agreement (AHA). Section 20,32.100 of the Density Bonus Code requires that an applicant that seeks a density bonus shall enter into an Affordable Housing Agreement ( "AHA ") with the City. Section 19.54.020(A) of the Inclusionary Code states that the AHA shall provide legal restrictions by which the affordable units shall be restricted to ensure that the units remains affordable to very low -, low -, or moderate - income households, as applicable. With respect to rental units, rent restrictions shall be in the form of a regulatory agreement recorded against the applicable property. With respect to owner - occupied units, resale controls shall be in the form of resale restrictions, deeds of trust, and /or other similar documents recorded against the applicable property. B. Affordable Housing Cost. Pursuant to State of California Health & Safety Code Section 50052.5, affordable housing costs for any owner - occupied for - sale affordable units shall be as follows: a. The affordable housing costs for very low- income households shall not exceed thirty (30) percent of fifty (50) percent of area median income for Orange County adjusted for household size appropriate for the unit. b. For low- income households the affordable housing costs shall not exceed thirty (30) percent of seventy (70) percent of area median income for Orange County adjusted for household size appropriate for the unit. For those low- income households with incomes above seventy (70) percent of area median income the maximum affordable housing cost may be increased to thirty (30) percent of the income of the household. C. For moderate - income households the affordable housing costs shall not be less than twenty -eight (28) percent of the gross income of the household nor exceed thirty -five (35) percent of one hundred ten (110) percent of Orange County area median income adjusted for household size appropriate for the unit. Furthermore, for those moderate - income households with incomes above one hundred ten (110) percent of area Uptown Newport AHIP Page 5 FRI median income the affordable housing costs may be increased to thirty -five (35) percent of the gross income of the household. d. Pursuant to sections 19.54.020 (C) and (D) of the City's Municipal Code "Adjusted for household size appropriate for the unit" shall mean a household size based upon two (2) persons per bedroom except for efficiency units where the household size shall be one (1) person. C. Affordable Rental Price. - Municipal Code section 19.54.020(D) defines an affordable rental price as an annual rent that does not exceed thirty (30) percent of the maximum income level for very low -, low -, and moderate - income households, as adjusted for household size. In determining the maximum household income for a given affordable unit, it shall be based upon each bedroom being occupied by two persons, except for efficiency units (one person), D. Affordable Unit. - Municipal Code section 19,54.020 (E) defines an Affordable Unit as an ownership or rental- housing unit, including senior housing, affordable to households with very low -, low -, and moderate - incomes as defined herein. E. Low - Income.- Municipal Code section 19.54.020 (G) defines low- income as an income between fifty (50) percent and eighty (80) percent of the Orange County median income, adjusted for actual household size, as determined by the California Department of Housing and Community Development ( "I- 1CD "). Within this AHIP 'low- income" and "lower- income" shall have the same meaning. F. Moderate - income. - Municipal Code section 19.54,020 (H) defines moderate - income as an income between eighty (80) percent and one hundred twenty (120) percent of the Orange County median Income, adjusted for actual household size, as determined by the HCD. G. Very low- income. - Municipal Code section 19.54.020 (1) defines very low - income to mean income fifty (50) percent or less of the Orange County median income, adjusted for actual household size, as determined by the 1 -1 CD. H. Annual Adjustments. - Orange County Area Median Incomes utilized for setting the Affordable Housing Price, Affordable Housing Costs, and Affordable Rental Price shall be those published annually by HCD. I. Permissible Residency. - Whenever an occupancy restriction identifies a particular household category for occupancy, households with less income may also occupy that unit. So, for example, if a unit has a Moderate - Income restriction, Low - Income and Very-Low Income households may occupy that unit. Similarly, if a unit has a Low - income restriction, Very Low - Income households may occupy that unit. J. Rental Income Limits Established. - The permissible rental rates for the affordable units shall not exceed the Affordable Rental Price described earlier in this AHIP. Uptown Newport AHIP Page 6 18 K. Affordable Housing Costs Established. - The permissible Affordable Housing Costs for the affordable units shall not exceed the Affordable Housing Costs described earlier in this AHIP. L. Term of Affordability Restrictions. a. The affordable rental units provided through the implementation of this AHIP shall be legally restricted to occupancy by, and affordable to, households meeting the income requirements designated herein for a minimum duration of thirty (30) years from the date of the certificate of occupancy for the affordable units. b. Any affordable owner - occupied units provided through the implementation of this AHIP will be restricted to occupancy by, and affordable to, moderate income households. The term of the restrictions will run until the earlier of (i) the termination of the affordability restrictions in accordance with the equity sharing provisions described in section c(i) below or (ii) thirty (30) years from the date of the initial Certificate of Occupancy. C. The affordability restrictions will be documented by the recording of the following documents against the affected units: i. In the case of owner - occupied for -sale units a Regulatory Agreement, Restrictive Covenant, or equivalent will be recorded against each affordable unit upon the sale to the initial occupant. The new qualified owner will also sign a promissory note with the City as beneficiary in the amount of the City's initial subsidy, which shall be as defined in section 20.32.090 B 2 (a) of the Density Bonus Code. The promissory note will be secured by a trust deed, which will be recorded against the unit and subordinated to conventional financing secured by the buyer, which will be in first position on title. The affordable units shall be subject to the City's equity sharing requirements which are described in section 20.32.090 B of the City's Density Bonus Code. ii. In the case where the restricted units are rental units, a Regulatory Agreement or equivalent will be recorded against the apartment project assuring the continued affordability of the restricted units for a minimum of 30 years. The Regulatory Agreement will be subordinate to any conventional mortgage or bond financing which has a first trust deed position against the apartment project. M. Units Applicable against RHNA Requirements. - The City and Owner agree that any affordable units produced through the implementation of this AHIP may be used by the City to meet its Regional Housing Needs Assessments ( "RHNA ") specified by the Southern California Association of Governments ( "SCAG "). Uptown Newport AHIP Page 7 19 N. Orange County Area Median Income. - Annually HCD publishes area median incomes ( "AMI ") for each county in California. HCD revised and updated its 2012 income limits on February 1, 2012. The 2012 income limits for Orange County are as follows: Orange County Median Income - 2012 Household Size 1 2 3 4 5 In come Category: Extremely Low Income $20,250 $23,150 $26,050 $28,900 $31,250 Very Low Income $33,750 $38,550 $43,350 $48,150 $52,050 Lower Income $53,950 $61,650 $69,350 $77,050 $83,250 Median Income $59,700 $68,250 $76,750 $85,300 $92,100 Moderate Income $71,650 $81,900 $92,100 $102,350 $110,550 Source: Department of Housing 6 Community Development, revised 2/1/12 VI. Assurance of the Development of Affordable Housing 1. If the Owner has not commenced the development of affordable units in accordance with the phasing plan described in section VII below then the City may withhold Certificates of Occupancy for the market rate units under construction until the Owner or successor in interest has commenced or completed the development of the affordable units. 2. For purposes of this section "commence the development' shall mean (i) commence or complete the construction of the affordable units, or (ii) issuance of building permits for or completion of the construction of the affordable units. VII. Phasing of the Affordable Housing Production 1. Affordable housing shall be constructed in the project. Based upon the current phasing plan where 680 units are proposed for Phase 1 (55% of the project) and 544 units are proposed for Phase 2 (45% of the project), the minimum number of affordable units to be constructed in Phase 1 shall be 55% of the total affordable housing obligation for the Uptown Newport project. The remaining affordable housing obligation, if any, shall be constructed in Phase 2. 2. Prior to the issuance of a certificate of occupancy for fifty percent (50 %) of the market rate units planned in a Phase, the Owner shall commence construction or complete the construction of a minimum of fifty percent (50 %) of the affordable units required to be constructed within that Phase. 3. Prior to the issuance of a certificate of occupancy for ninety percent (90 %) of the market -rate units within a Phase, the Owner shall obtain a certificate of occupancy for all affordable units required to be constructed within that Phase. VIII. Affordable Housing Agreement. -An AHA referencing the terms of this AHIP shall be executed and recorded between the City and Owner prior to recordation of the Final Map for the project. Uptown Newport AHIP Page 8 20 IX. Amendments of the AHIP. - This AHIP may be amended by mutual agreement of the parties which will require City Council approval pursuant to section 19.54.060 of the Municipal Code. X. Successors in Interest. - The obligations and benefits applying to the Owner under this AHIP shall also apply to any successors in interest to the Owner. XI. Right to Assign. - Owner shall have the right to assign the AHA or this AHIP. including all benefits, covenants, duties, and obligations contained herein, upon the City's prior approval, which shall not be unreasonably withheld or delayed. Owner shall notify the City in writing of the assignment at least thirty (30) days prior to completion of the assignment. Owner's notice of assignment to the City shall include the name of, and contact information for the assignee. Upon completion of the assignment, the assignee shall assume and perform all duties and obligations set forth in the AHA and this AHIP, excepting only those duties and obligations expressly retained by Owner, if any, as part of the assignment. Uptown Newport AHIP Page 9 PC Intentionally Blank 22 Attachment PC 3 Proposed Amendment 23 Intentionally Blank 24 VI. VII. N. Orange County Area Median Income. - Annually HCD publishes area median incomes ( "AMI ") for each county in California. HCD revised and updated its 2012 income limits on February 1, 2012. The 2012 income limits for Orange County are as follows: Orange County Median Income - 2012 Household Size 1 2 3 4 5 In come Category: Extremely Low Income $20,250 $23,150 $26,050 $28,900 $31,250 Very Low Income $33,750 $38,550 $43,350 $48,150 $52,050 Lower Income $53,950 $61,650 $69,350 $77,050 $83,250 Median Income $59,700 $68,250 $76,750 $85,300 $92,100 Moderate Income $71,650 $81,900 $92,100 $102,350 $110,550 Source: Department of Housing 6 Community Development, revised 2/1/12 Assurance of the Development of Affordable Housing 1. If the Owner has not commenced the development of affordable units in accordance with the phasing plan described in section VII below then the City may withhold Certificates of Occupancy for the market rate units under construction until the Owner or successor in interest has commenced or completed the development of the affordable units. 2. For purposes of this section "commence the development' shall mean (i) commence or complete the construction of the affordable units, or (ii) issuance of building permits for or completion of the construction of the affordable units. Phasing of the Affordable Housing Production 1. Affordable housing shall be constructed in develep project. Based upon the current phasing plan where 680 units are proposed for Phase 1 (55% of the project) and 544 units are proposed for Phase 2 (45% of the project), the minimum number of affordable units to be constructed in Phase 1 shall be 55% ^^d °h^" ^ ^t Pxpee' 60 of the total affordable housing obligation for the Uptown Newport project. The remaining affordable housing obligation if, any, shall be constructed in Phase 2. 2. Prior to the issuance of a certificate of occupancy for fifty percent (50 %) of the market rate units planned ,. � it iR eaGhin a Phase, the Owner shall commence construction or complete the construction of a minimum of fifty percent (50 %) of the affordable units required to be constructed within eaehthat Phase. 3. Prior to the issuance of a certificate of occupancy for ninety percent (90 %) of the market -rate units within eaeha Phase, the Owner shall obtain a certificate of occupancy for all affordable units required to be constructed within easl4that Phase. Uptown Newport AHIP Page 8 25 Correspondence Item No. 4a Uptown Newport Planned Community (AHIP) Amendment PA2014 -011 February 4, 2014 Mr. James Campbell, Principal Planner City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 RE: Amendment of Uptown Newport Affordable Housing Implementation Plan Dear Mr. Campbell, www.kennedycommission.org 17701 Cowan Ave., Suite 200 Irvine, CA 92614 949 250 0909 Fax 949 263 0647 The Kennedy Commission (the Commission) is a broad based coalition of residents and community organizations that advocates for the production of homes affordable for families earning less than $20,000 annually in Orange County. Formed in 2001, the Commission has been successful in partnering and working with Orange County jurisdictions in creating effective housing and land -use policies that has led to the new construction of homes affordable to lower income working families. Compared to other cities in Orange County, housing costs are significantly higher in Newport Beach. The 2013 rent for large apartment complexes in the City averaged $2,316 per month and in comparison, the average mortgage for all homes sold in Orange County was $2,028 a month.' In addition, the City's rent increased by 9.2% from the year before and had the second biggest percentage increase in the County.2 With wages that are not keeping up with rising rents, many renting families continue to struggle financially to live and work in this City. The Commission would like to acknowledge and commend the City for its leadership in encouraging and facilitating the development of homes affordable to lower income families, especially in the Uptown Newport Planned Community Development Plan. The Commission recommends the City to amend the Affordable Housing Implementation Plan (AMP) to modify the income categories permitted in Phase 1 by prioritizing the development of very low- and low - income affordable homes. Please keep us informed of any revisions, updates and meetings regarding the Uptown Newport Planned Community Development Plan and if you have any questions, please free to contact me at (949) 250 -0909 or cesarc @kennedycommission.org. Sincerely, — -- Cesar Covarrubias Executive Director ' Newport Rents Climb $195 a Month, Report Says, Orange County Register. May 2, 2011 2 Newport Rents Climb $195 a Month, Report Says, Orange County Register. May 2, 2013. Correspondence Item No. 4b From: Fred Fourcher [fred@ bitcentral.com] Uptown Newport Planned Community Sent: Thursday, February 06, 2014 2:54 PM (AHIP) Amendment To: Campbell, James PA2014 -011 Subject: Uptown Newport Planned Community, Affordable Housing Implementation Plan CITY OF NEWPORT BEACH PLANNING COMMISSION STAFF REPORT February 6, 2014 Agenda Item No.4 SUBJECT: APPLICANT: PLANNER: Uptown Newport Planned Community, Affordable Housing Implementation Plan (AHIP) Amendment - (PA2014 -011) 4311 & 4321 Jamboree Road Uptown Newport LP James Campbell, Principal Planner (949) 644 -3210, icampbellra�newportbeachca.eov We wanted to voice our opinion that the proposed Uptown Newport Planned Community is not something we support. The space in question is simply too small to accommodate Uptown Newport's plans including up to 1,244 residential units, 11,500 square feet of retail and two acres of public park spaces. Many things to consider include the families that will be moving in and where school age children will go to school. Currently there are no facilities to accommodate the children since Newport Mesa is not within the boundaries and Santa Ana would need to build additional classrooms. Unfortunately they do not have the money at this time to build more schools. Another issue is to have so many homes in a relatively small space. The original plan indicated spreading out the homes over a larger space; however, that has now changed. More time is needed to further discuss a better use of this property. If you have any questions or can provide you with more information feel free to contact me. As always, thank you for all your help. Best wishes, Fred Fred Fourcher, CEO Bitcentral, Inc. 4340 Von Karman Suite 400 Newport Beach, CA 92660 949.417.4111 Direct 949.253.9000 Main fred@bitcentral.com www.bitcentral.com file:///Pl/ ... 014/PA2014-01 1 /Uptown%20Newport%20PIa ed% 2OCo=, nity% 2OAffordable% 2OHousing% 2OIinplementation %20PIan.htm[02 /06/2014 3:56:47 PM] 61411116111116 Uptown Newport Planned Community Approved February 2013 25 acre planned community with 2 phases of development with 1,244 units, 11,500 sf retail, 2 one -acre parks Affordable Housing Implementation Agreement (AHIP) ■ AHIP Amendment (PA2014 -0s1) Affordable housing currently required in each Phase Potentially s00% of affordable units in Phase 1 02/o6/20i4 Community Development Department - Planning Division 2 Prong 4 21 J1 � \� F oz /o6/zo14 PHASE 2 Venture 1 11,500 square feet of retail 232 apartment units 26 studio units with ±575 square feet 112 one - bedroom units with ±754 square feet 94 two - bedroom with ±1,o5o square feet 20 market rate and 6 very -low studios 86 market rate and 26 very -low one bedroom units 8o market rate and 14 very-low two bedroom units Total :186 market rate and 46 affordable units Venture 2 251 apartment units 25 studio units with ±575 square feet EXISTING JAll FACILITY 12 onelbedroom units with ± 5 754 square feet 1o1Two Bedroom units with ±1,050 square feet �� >� v'o Baas � - ��.�,.,e4�� • • • - • - • • ZI M7 V7- s,+ 7.11 - �� I I cp:lp . 'a6 �'�e° ° e: ewe i`•N'�'Op ..� ■+■�. � ■ Conduct a public hearing Recommend Council approval of Proposed Amendment Next Step City Council Hearing 2/25/2014 02/o6/20i4 Community Development Department - Planning Division 4 Questions? J For more information contact: James Campbell, Principal Planner 949-644-3210 www.newportbeachca.gov