HomeMy WebLinkAbout2014-10-28 - AGENDA REPORTS - FEE DEFERRAL-HABITAT FOR HMNTY (2)Agenda Item: 14
CITY OF SANTA CLARITA
AGENDA REPORT �% J
NEW BUSINESS City Manager Approval: /j J2���✓
Item to be presented by: Robert Newman
DATE: October 28, 2014
SUBJECT: CONSIDERATION OF IMPACT FEE DEFERRAL FOR HABITAT
FOR HUMANITY PROJECT
DEPARTMENT: Public Works
RECOMMENDED ACTION
City Council:
1. Approve the deferment of certain development impact fees to issuance of certificates of
occupancy for the Habitat for Heroes project (Master Case 12-132).
2. Authorize the City Manager or designee to execute all documents, subject to City Attorney
approval.
BACKGROUND
At the regular City Council Meeting on October 14, 2014, the City Council heard public
testimony and directed that an item be agendized regarding fee deferment for the Habitat for
Heroes project. The Habitat for Heroes project, approved by the City Council on April 9, 2013, is
approved for up to 87 affordable -housing units for veterans of the United States military and their
families along Centre Pointe Parkway.
The developer, Habitat for Humanity San Fernando/Santa Clarita Valleys (Habitat for
Humanity), is a locally run, independent 5016 organization. The financing for these homes will
be provided by Habitat for Humanity and the California Department of Veterans Affairs
(CalVet). Habitat for Humanity has stated this project is using an atypical developer funding
model, and the funding schedule is tied to certain production outcomes with Ca1Vet.
In a letter dated October 13, 2014, Habitat for Humanity requested a fee deferment for all fees
until certificates of occupancy are issued and residents can occupy the housing units (see attached
APPRGEE730
letter). Habitat for Humanity says the fee deferment is critical to allow progress with construction
and obtain funding from Ca1Vet. The City of Santa Clarita's (City) current fee deferment program
expires on June 30, 2015. The program allows for the deferral of Bridge and Thoroughfare,
Quimby, and Transit Impact fees from map recordation to building permit issuance when
construction of structures begins.
Similar fee deferments for development impact fees were requested of and approved by the
William S. Hart Union High School District, Saugus Union School District, and Castaic Lake
Water Agency for the Habitat for Heroes project.
Habitat for Humanity has amended their fee deferment request to apply to two phases of their
project consisting of 57 units. An Agreement has been drafted to allow deferment of Library
Facilities and Technology Mitigation fees and Major Bridge and Thoroughfare fees to issuance of
certificates of occupancy. The Agreement will be recorded with the County Recorder of the
County of Los Angeles as a lien for payment of the deferred fees and shall release the obligation
when payment in full is made. The Agreement can also apply to future phases of the project if
necessary.
City staff and the City Attorney's office have determined the City's implementation of existing
resolutions and ordinances regarding fees, fee amounts, and collection of fees could allow some
accommodation but only for development impact fees for Library Facilities and Technology
Mitigation fees and Major Bridge and Thoroughfare fees. Quimby and Transit Impact fees are
not eligible for deferment. The development impact fees are imposed to mitigate impacts from
new projects. Deferred collection of the Library Facilities and Technology Mitigation fees and
Major Bridge and Thoroughfare fees from issuance of building permit to issuance of certificates
of occupancy poses limited risks to the City that could be mitigated through the Agreement.
Staff recommends to continue to require the payment and collection of fees at the appropriate
amount due for services that will be provided during construction of the project. These fees
include building inspection services, administrative processing of permits, and other
state -mandated fees to cover City costs incurred during the project construction phase.
Development impact fees eligible for deferment for the two phases of the project are estimated at
$16,187 per single-family unit and $32,374 per duplex. Per the Agreement, Habitat for Humanity
requests these fees be paid at issuance of certificates of occupancy. The remaining fees of nearly
$12,290 per single-family unit and $24,783 per duplex are to be paid by Habitat for Humanity at
building permit issuance (see Exhibit C in Agreement).
While the Agreement will provide City staff the necessary authority to defer collection of certain
development impact fees, there are still concerns of complications with escrow, which may delay
a resident's move into their home.
ALTERNATIVE ACTIONS
Other action as determined by the City Council
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FISCAL IMPACT
All associated fees for permits, inspection service, and development impact fees remain an
obligation of the Habitat for Heroes project. Collection of Library Facilities and Technology
Mitigation fees and Major Bridge and Thoroughfare fees will be at issuance of certificates of
occupancy per unit. Other fees related to services will be paid at building permit issuance for
each unit.
ATTACHMENTS
Letter - Habitat for Humanity Request for Deferral
Agreement for Fee Deferral
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Habitat for Humanity
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Serving North Los Angeles City & County
HAND DELIVERED
October 13, 2014
Mayor Laurene Weste
City of Santa Clarita
23920 Valencia Blvd.
Santa Clarita, CA 91355
Dear Mayor Weste:
21031 Ventura Boulevard, Suite 610
Woodland Hills, CA 91364
818-884-8808 • www.HumanityCA.org
As you know, Habitat for Humanity San Fernando and Santa Clarita Valleys is in the process of building an 81
home community for low-income veterans and their families. Many community leaders and members have
joined us in our efforts and the City of Santa Clarita and its staff have been wonderful partners in our
endeavor. Santa Clarita is home to a disproportionally high percent of veterans (7% versus the national
average of 1%). These young men and women have risked their lives and their futures for our country and we
believe they have earned the opportunity to own a decent, affordable home in our community. Through our
relationship with the California Department of Veterans Affairs (CalVet), we have the opportunity to access
funds raised through voter approved General Obligation Bonds. In this process, which is atypical of the
traditional developer funding model, our funding schedule is tied to certain production outcomes, such as (1)
foundations being set and then (2) drywall in and roofs on and finally (3) Certificates of Occupancy.
We have reached a difficult point in our construction because of a very complicated soils situation on the
property. In fact, we found that the need to cut and compact soil in some areas was over 50 feet deep, five
times the original soils report. This has resulted in a large number of lots being placed on settlement monitors
and long delays in being able to begin the construction of the foundations. As a result it has become critical
due to our funding scheduled from CalVet to defer development fees from public agencies. We received
approval for the deferment from the Castaic Lake Water Agency Board on October 8, 2014. Now critical is
forbearance regarding fees and permits on the part of several entities to allow us to move forward with our
work for our veterans while we wait for the settlement monitors to allow us to continue. The deferral of fees
will partially allow us to continue to move forward with our construction while we wait for the settlement
monitors to fully allow us to move forward and we obtain the necessary funding from CalVet. The Hart and
Saugus School District and the CLWA have given us positive indications and will consider deferring their fees at
their Board meetings on October 14 and October 15.
For this reason, we request that the City of Santa Clarita agree to defer payment of all fees until Certificate of
Occupancy, including the B+T fees, the Quimby fees and the attached fee schedule. This amount is the
following:
Quimby Fees: $ 6,195 per unit
B&T Fees: $15,416 per unit
City Fees to pull permits attached: $ 4,296.16 per unit
$25,907.16
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Please note that in the case of the B&T Fees we are in the process of purchasing credits which will meet our
obligation. This purchase will be completed before the end of the year. Consequently, if we were required to
pay B&T Fees at this time the City would turn around in two months and refund those payments to us when
we provided the City with our B&T Credits.
We understand that this request must be considered by the City Council and as a result further request that it
be put on the Agenda for your October 28, 2014 meeting.
Thank you in advance for your support!
Humbly and in support of our veterans,
Donna E. Deutchman
CEO
Habitat for Humanity, San Fernando and Santa Clarita Valleys
5
Recording requested by, and when
recorded return to:
The City of Santa Clarita
23920 Valencia Boulevard, Suite 300
Santa Clarita, California 91355
Attention: City Manager
Space Above This Line For Recorder's Use
AGREEMENT FOR DEFERRAL OF DEVELOPMENT IMPACT FEES
This Agreement for Deferral of Development Impact Fees ("Agreement") is made
effective as of , 2014 ("Effective Date") by and between the
City of Santa Clarita ("City"), a general law city and municipal corporation, and Habitat
for Humanity San Fernando/Santa Clarita Valleys, Inc., a California non-profit public
benefit corporation ("HFH"). The City and the HFH may be referred to herein individually
as "Party" and collectively as the "Parties."
RECITALS
A. HFH is the owner of certain real property in the City, as more particularly
described in Exhibit "A" ("HFH Veterans Housing Project") attached hereto and
incorporated herein. The HFH Veterans Housing Project is a community for low income
Veterans and their families, originally planned for and with land use entitlements
allowing eighty-seven (87) homes but now expected to be built out at approximately
eighty-one (81) homes. The financing for these homes will be provided by HFH and the
California Department of Veterans Affairs.
B. The first phase of the HFH Veterans Housing Project involves the
construction of twenty-six (26) homes out of the planned eighty-one (81) homes ("First
Phase"). A description of each of the homes included in the First Phase is attached
hereto and incorporated herein as Exhibit "B".
C. The second phase of the HFH Veterans Housing Project is expected to
involve the construction of thirty-one (31) homes out of the planned eighty-one (81)
homes ("Second Phase"). The specific addresses and legal descriptions of the homes
to be built in the Second Phase are not yet known.
D. For any homes constructed within the boundaries of the City, the City is
authorized to collect development impact fees as outlined in Section 17.51.010 of the
City's Municipal Code ("Development Impact Fees") as well as fees related to the
processing of project plans and inspection of construction as outlined more completely
in Title 3 of the City's Municipal Code ("Administrative Fees").
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E. As part of its collection of Development Impact Fees, the City collects fees
that are passed on to non -City agencies for impacts on those agencies' facilities (Non -
City Fees).
F. HFH has requested that the City's collection of City -imposed fees be
deferred until the close of escrow for each home in the First Phase and Second Phase,
and may seek further deferrals.
G. City has agreed to defer the collection of Development Impact Fees for the
First Phase and Second Phase, but has represented to HFH that based upon language
in the City's Municipal Code some Development Impact Fees, as well as all Non -City
Fees, must be collected at the time building permits are issued for the HFH Veterans
Housing Project.
H. The Parties agree that some Administrative Fees will be due at the time
building permits are issued and some Administrative Fees will be due when certificates
of occupancy are issued based on governing City regulations.
I. The Parties agree that the Development Impact Fees, Non -City Fees, and
Administrative Fees applicable to the First Phase and Second Phase are those fees set
forth in Exhibit "C."
J. The Parties desire this Agreement to govern not only the First Phase and
Second Phase of the HFH Veterans Housing Project, but further phases if necessary.
NOW, THEREFORE, in consideration of the promises, mutual covenants
contained herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Parties do hereby covenant, declare and agree
as set forth below:
AGREEMENT
1. Acknowledgement of Development Impact Fees Non -City Fees, and
Administrative Fees. HFH hereby acknowledges that it has a mandatory duty to pay the
City all applicable Development Impact Fees, Non -City Fees, and Administrative Fees
as applicable to the First Phase and Second Phase of the HFH Veterans Housing
Project. The Parties agree that all Development Impact Fees and Non -City Fees, as
well as some Administrative Fees, are due and owing at the time City issues building
permits to HFH.
2. Deferral of Development Impact Fees. Notwithstanding Section 1 of this
Agreement, the Parties hereby agree to defer the payment of specified Development
Impact Fees associated with individual homes constructed within the First Phase and
Second Phase of the HFH Veterans Housing Project until close of escrow on each
individual home:
(i) Library Facilities and Technology Mitigation Fee
LA #4832-6161-0271 V1 2
(ii) Major Bridge and Thoroughfare Fees.
3. Payment of Other Fees Owed. HFH agrees that it will pay all Non -City
Fees and those Development Impact Fees not identified in Section 2 at the time building
permits are issued for each individual home in the First Phase and the Second Phase of
the HFH Veterans Housing Project. HFH also agrees that it will pay all Administrative
Fees for the First Phase and Second Phase at the time they are due and payable in
connection with the processing and approval of plans or the inspection of construction.
4. Lien for Deferred Development Impact Fees. HFH agrees that HFH's
obligation to pay the Development Impact Fees identified in Section 2 shall inure to the
benefit of, and be enforceable by the City and that, as required by Government Code
section 66007, Exhibit "B" contains a description of each unit in the First Phase affected
by this lien but that HFH shall provide any additional legal description needed for
recordation and shall provide legal descriptions for all units included in the Second
Phase within thirty (30) days of HFH's determination of the units to will be included in
the Second Phase. Upon receipt of same, City shall record this Agreement in the office
of the County Recorder of the County of Los Angeles, and the Parties agree that from
the date of recordation this Agreement shall constitute a lien for the payment of the
deferred Development Impact Fees, which lien shall be enforceable against successors
in interest to the HFH. Recordation of the Agreement in the grantor -grantee index shall
name the City as grantee and HFH as grantor. The City shall record a release of the
obligation as to each individual unit, containing a legal description of that unit, in the
event the obligation on that unit is paid in full.
5. Retention of Overall Obligation. HFH agrees that it will notify the City of
the opening of any escrow for the sale of an individual unit in the First Phase and
Second Phase and HFH agrees to provide in the escrow instructions for each individual
unit deferred Development Impact Fees be paid to the City from the sale proceeds in
escrow prior to disbursing proceeds to the HFH. In the event that the deferred
Development Impact Fees are not paid to the City concurrent with the close of escrow,
HFH hereby warrants, represents, and agrees that HFH shall be obligated to pay the
City such Development Impact Fees notwithstanding the close of escrow. If HFH is
required to pay Development Impact Fees under this Section, HFH shall pay the City
any such due and owing fees within ten (10) business days from the applicable date of
the close of escrow. If HFH fails to pay the City any Development Impact Fees under
this Section, City shall have the right to demand payment of all Development Impact
Fees on the remainder of HFH Veterans Housing Project and to refuse to issue any
further permits or inspections until all Development Impact Fees previously due have
been paid to the City.
6. Administration of Agreement and Future Phases. The City Manager and
his designee(s) are authorized to administer this Agreement, including but not limited to
executing amendments to this Agreement to approve, in his discretion, deferral of
Development Impact Fees for future phases of the HFH Veterans Housing Project on
the same terms contained herein, and executing such other documents and
LA #4832-6161-0271 v1 3
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amendments to this Agreement as are necessary to achieve the purposes of this
Agreement.
7. Term of Agreement. The term of this Agreement shall commence upon the
Effective Date of this Agreement and extend until all Development Impact Fees have
been paid for each home within the First Phase and Second Phase of the HFH
Veterans Housing Project.
8. Termination by City. This Agreement may be terminated by the City upon
three (3) days' notice for HFH's failure to timely pay Development Impact Fees as
required herein. Notwithstanding any termination, any Development Impact Fees not
timely paid shall remain an obligation of HFH until paid in full.
9. Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of the successor and assigns of the City and HFH. This Agreement
constitutes the entire Agreement between the City and HFH and supersedes all prior
understandings and agreements between the Parties with respect to the subjects
hereof. This Agreement may be modified only in writing signed by both Parties hereto.
HFH may assign its rights and obligations under this Agreement to an entity or entities
having ownership or control rights over the HFH Veterans Housing Project (or
underlying property) with the express written consent of the City, which shall not be
unreasonably withheld.
10. Amendment/Waiver. No amendment of any of the provisions of this
Agreement shall be effective unless in writing and signed by the Parties hereto. No
waiver of any of the provisions of this Agreement shall be effective unless it is in writing,
signed by the Party against whom it is asserted, and any such written waiver shall only
be applicable to the specific instance to which it relates and shall not be deemed to be a
continuing or permanent waiver unless so specifically stated.
11. Severability. The provisions of this Agreement are severable. If any
provision hereof shall be determined to be invalid or unenforceable, it shall not affect the
validity of any remaining provisions herein and all remaining provisions shall be given
full force and effect separately from the invalid or unenforceable provision.
12. Recitals Exhibits and Captions. Each Recital set forth herein and each
Exhibit referenced herein and attached hereto is hereby incorporated as an effective
and operative provision of this Agreement. The captions in the section headings are for
convenient reference only and in no way define, describe, extend or limit the scope or
intent of this Agreement nor the intent of any provision hereof.
13. Counterparts. This Agreement may be executed in two or more
counterparts. When each Party has signed and delivered at least one such counterpart,
each counterpart shall be deemed an original and, when taken together with other
signed counterparts, shall constitute one agreement which shall be binding upon and
effective as to all Parties.
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14. Due Authority. Each person signing this Agreement on behalf of a Parry
represents and warrants that he or she has been duly authorized by such Party to sign,
and thereby bind such Party to, this Agreement.
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of
the Effective Date.
CITY OF SANTA CLARITA HABITAT FOR HUMANITY SAN
FERNANDO/
SANTA CLARITA VALLEYS
A California non-profit public benefit
corporation
By:_
Name:
Name:
Title:
LA #4832-6161-0271 v1 5
EXHIBIT A
LEGAL DESCRIPTION OF HFH PROPERTY
LOT 1 OF TRACT NO. 72039 IN THE CITY OF SANTA CLARITA, COUNTY OF LOS
ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 1374,
PAGES 85 THROUGH 88, INCLUSIVE, OF MAPS.
LA #4832-6161-0271 vl
EXHIBIT B
PROPERTY DESCRIPTION OF EACH HOME IN THE FIRST PHASE
Number
Address I City/State/Zip Code
Living Space
1
1
21700 Doss Place (single story)
Santa Clarita, CA 91350
1,216
1
87
21701 Doss Place (single story)
Santa Clarita, CA 91350
1,216
1
2
21702 Doss Place
Santa Clarita, CA 91350
1,586
1
86
21703 Doss Place
Santa Clarita, CA 91350
1,586
1
3
21704 Doss Place
Santa Clarita, CA 91350
1,586
1
a5
21705 Doss Place
Santa Clarita, CA 91350
1,586
1
4
21706 Doss Place
Santa Clarita, CA 91350
1,586
1
84
21707 Doss Place
Santa Clarita, CA 91350
1,586
1
5
21708 Doss Place
Santa Clarita, CA 91350
1,586
1
83
21709 Doss Place
Santa Clarita, CA 91350
1,586
1
6
21710 Doss Place
Santa Clarita, CA 91350
1,586
1
82
21711 Doss Place
Santa Clarita, CA 91350
1,586
1
7
21712 Doss Place
Santa Clarita, CA 91350
1,586
1
81
21713 Doss Place
Santa Clarita, CA 91350
1,586
1
8
21714 Doss Place
Santa Clarita, CA 91350
1,586
1
80
21715 Doss Place
Santa Clarke, CA 91350
1,586
1
9
21716 Doss Place
Santa Clarita, CA 91350
1,586
1
79
21717 Doss Place
Santa Clarita, CA 91350
1,586
1
71
21702 Jack Place (single story)
Santa Clarita, CA 91350
1,216
1
72
21704 Jack Place
Santa Clarita, CA 91350
1,586
1
73
21706 Jack Place
Santa Clarita, CA 91350
1,586
1
74
21708 Jack Place
Santa Clarita, CA 91350
11586
1
75
21710 Jack Place
Santa Clarita, CA 91350
1,586
1
76
21712lackPlace
Santa Clarita, CA 91350
1,586
1
77
21714 Jeck Place
Santa Clarita, CA 91350
1,586
1
78
121716 Jack Place (single story)
Santa Clarita, CA 91350
1,216
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EXHIBIT C
ESTIMATED FEES APPLICABLE TO THE FIRST PHASE
AND ANTICIPATED TO BE APPLICABLE TO THE SECOND PHASE
Notes: Each duplex structure contains two units. The above are estimated fee amounts. Actual amounts due for each
fee will be based on the fee schedule in effect at the time HFH submits applications for building permits and
certificates of occupancy and upon the content of those applications.
A^Building Fees are inclusive of: Fire District Fee, Law Enforcement Impact Fee, Plan Check application processing,
Plan Check services, Building Inspection Fee, Building Standards Commission, Electrical Fees, Mechanical Fees,
Plumbing Fees, Sewer Fees, Strong Motion Fee, Record Maintenance Fee, Permit Issuance
LA #4832-6161-0271 V1