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Agenda Item
ASR
Control 16-000183 |
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MEETING DATE: |
11/08/16 |
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legal entity taking action: |
Board of Supervisors |
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board of supervisors
district(s): |
5 |
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SUBMITTING
Agency/Department: |
OC Community Resources (Approved) |
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Department contact
person(s): |
Steve Franks (714) 480-2788 |
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Julia Bidwell (714) 480-2991 |
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Subject: Addendum to Affordable
Housing Implementation Agreement Rancho Mission Viejo
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ceo CONCUR |
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Clerk of the Board |
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Concur |
Approved Agreement to Form |
Discussion |
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3 Votes Board Majority |
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Budgeted: N/A |
Current Year Cost:
N/A |
Annual Cost:
N/A |
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Staffing Impact: |
No |
# of Positions:
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Sole Source:
N/A |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 11/10/2015
#26, 12/17/2013 #49, 7/18/2006 #50, 11/8/2004 #3 |
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RECOMMENDED ACTION(S):
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1. |
Adopt Resolution, which includes each of the following actions: adopt the Statement of Findings and Facts for EIR No. 623 for Orange County Affordable Housing Implementation Plan—Ranch Plan Project; adopt Mitigation Monitoring and Reporting Program for EIR No. 623; adopt Statement of Overriding Considerations for EIR No. 623 and certify EIR No. 623 for Orange County Affordable Housing Implementation Plan—Ranch Plan Project. |
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2. |
Approve Addendum Number Two to the Affordable Housing Implementation Agreement between Rancho Mission Viejo and the County, which includes a “Private Sector Alternative” as an additional option to develop affordable housing in Planning Areas 3, 4, 5 and 8 of the Rancho Mission Viejo Ranch Plan Development. |
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3. |
Authorize OC Community Resources Director or designee to execute Addendum Number Two to the Affordable Housing Implementation Agreement in substantially the form of Attachment A as well as any and all documents necessary for the development of affordable housing utilizing the method outlined in Addendum Number Two, without further Board Action, upon approval of any documents by County Counsel. |
SUMMARY:
Approving Addendum Number Two to the Affordable Housing Implementation Agreement to provide a Private Sector Alternative for Planning Areas 3, 4, 5 and 8 of the Rancho Mission Viejo Development and adopting a resolution for EIR No. 623 will assist the County in meeting requirements of the Rancho Mission Viejo Development Agreement and provide additional options for the development of affordable housing.
BACKGROUND INFORMATION:
On November 8, 2004, the Board of Supervisors approved the Rancho Mission Viejo (RMV) Development Agreement for the Ranch Plan Planned Community (Development Agreement). As part of the Development Agreement, RMV dedicated 60 gross acres of land to the County for the development of rental housing for low and very-low income households.
On July 18, 2006, the Board approved the Affordable Housing Implementation Agreement (“AHIA”) which implemented the affordable housing obligations in the Development Agreement and specifically described the process for the offering, acceptance and transfer of the 60 dedicated acres from RMV to the County. It also imposed a time requirement for the County to develop the property.
Addendum
Number One
On December 17, 2013, the Board approved Addendum Number One to the AHIA which included a "Private Sector Alternative" as an additional option to develop affordable housing within Planning Area 1 and Planning Area 2.1 of the Rancho Mission Viejo Development. Addendum One allows RMV, or an affordable housing developer of their choosing, to develop the affordable rental housing in exchange for credit against the 60 gross acres to be dedicated to the County. Under the terms of Addendum One, in exchange for RMV providing completed affordable rental housing at no cost to the County, at a minimum of 25 dwelling units per net acre, the County will credit RMV two acres for every one acre developed for affordable rental housing. RMV has since selected Western National Group to develop a 107-unit affordable rental housing development in Planning Area 1 and a 112-unit affordable rental housing development in Planning Area 2. There are no additional sites identified in Planning Areas 1 and 2 for the development of affordable housing.
On November 10, 2015, the Board approved the Affordable Housing Strategic Plan, which authorized OC Community Resources to negotiate with Rancho Mission Viejo, LLC for the further development of affordable housing sites on the balance of the 44.4 acres utilizing the Private Sector Alternative so as long as the terms were generally consistent with the requirements of the previous Agreement. The Board directed OC Community Resources to return to the Board for approval of the agreement with Rancho Mission Viejo, LLC.
Addendum Number Two
OC Community Resources is returning to the Board for approval of Addendum Number Two to the AHIA. Similar to Addendum Number One, Addendum Number Two includes the same "Private Sector Alternative" option with the same terms of two for one acreage credit to RMV in exchange for developed affordable rental housing. Likewise, under Addendum Number Two, the County will receive an Irrevocable Offer of Dedication (IOD) for acres developed as affordable rental housing under the Private Sector Alternative as required in the Development Agreement. Pursuant to the IOD, the County can accept ownership of the property approximately 15 years after recordation of the IOD through 55 years after recordation of the IOD. If the County does not accept the IOD by the end of the 55th year after recordation, the property would be retained by RMV.
The only difference between Addendums Number One and Number Two is that Addendum Number Two extends the Private Sector Alternative as a development option for the remaining Planning Areas 3, 4, 5 and 8.
Approval of Addendum Number Two to the AHIA is an additional option in the County's Affordable Housing Strategic Plan and continues to address the financial reality of limited housing funds, while maintaining the ability to continue to support development of affordable rental housing across the County.
Should the Board choose not to approve Addendum Number Two to the AHIA, the development of affordable housing in planning areas not covered by Addendum Number One will rest solely with the County as outlined in the previously approved AHIA.
Program Environmental Impact Report No. 623
Pursuant to the Development Agreement and Addendum Number One to the AHIA, a Program Environmental Impact Report No. 623 (PEIR) was prepared and provides a comprehensive evaluation of the potentially significant environmental impacts associated with development of affordable housing in Planning Areas 3, 4, 5 and 8 of the Rancho Mission Viejo Development, under the AHIA (the Project). The PEIR takes into consideration the possibility of the Private Sector Alternative being approved as a development option.
Because Addendum Two to the AHIA allows, but does not require, the use of the Private Sector Alternative, in order to analyze the environmental impacts of the Project in accordance with CEQA, PEIR 623 evaluated three different development scenarios with differing assumptions on the extent to which the Private Sector Alternative is utilized. Each of these scenarios was evaluated at a comparable level of detail within the PEIR. In all three scenarios, the affordable rental housing would be provided at a density of no less than 25 dwelling units per net acre, and would be distributed throughout the remaining Planning Areas within the Ranch Plan. Scenario 1, which assumes that all of the remaining 44.4 acres of lands to be offered for affordable housing would be developed under the builder-financed Private Sector Alternative, would provide approximately 22.2 developed acres, or 555 affordable housing units. Scenario 2 assumes a combination approach where a third of the 44.4 acres was developed using the Private Sector Alternative, a third was given as credit for the Private Sector Alternative and the remaining third was developed using public-sector resources, under the method originally provided for in the AHIA. Scenario 2 would provide approximately 29.6 acres of affordable housing, or 740 affordable housing units. Scenario 3 assumes that the remaining 44.4 acres would be developed entirely from public resources and would provide approximately 44.4 acres of affordable housing, or 1,110 affordable units.
In addition to the three development scenarios, the PEIR considered two variations of the No Project Alternative. The first variation, the No Project/No Addendum Two alternative, assumes Addendum Two to the AHIA is not approved and that the only option to implement affordable housing units in Planning Areas 3, 4, 5 and 8 was that which was set forth in the original AHIA. The second variation, the No Project/No Development alternative, assumes no development of affordable housing in these planning areas. If Addendum Two to the AHIA is not approved it would preclude the opportunity to use the Private Sector Alternative for the development of Affordable Housing units in Planning Areas 3, 4, 5 and 8, but the County could still develop affordable housing under the existing AHIA. The impacts associated with the development would be the same as those identified for Alternative 3, which also assumes full reliance on public-sector resources. If sufficient public-sector resources are not available, as provided for in the AHIA, it is possible that dedicated lands would be returned to RMV and not be developed with affordable housing. Therefore, the total amount of land that gets developed with affordable housing in Planning Areas 3, 4, 5 and 8 could range between zero acres (if no public-sector resources are available) to 44.4 acres.
The PEIR identified two significant Project impacts, and concluded that these impacts were significant and unavoidable. PEIR No. 623 determined that the Project would have significant environmental effects in the area of cumulative air quality impacts from construction emissions, and in the area of greenhouse gas (GHG) emissions. The finding that the Project’s contribution to cumulative construction air pollutant emissions is a significant impact reflects an acknowledgement that construction of affordable housing units at each site would occur in conjunction with development of the Ranch Plan Planning Subareas. Since the Ranch Plan Program EIR No. 589 concluded that there would be significant and unavoidable construction emissions impacts that would result from construction of the Ranch Plan, with an emphasis on oxides of nitrogen (NOx) emissions, and the Project would be constructed concurrently with the Ranch Plan, in an abundance of caution, PEIR 623 concluded the Project’s construction air emissions would contribute to the Ranch Plan’s construction emissions, and result in a significant cumulative impact. It should be noted, the cumulative construction air quality impact would be applicable to any affordable housing development (i.e., Scenarios 1 through 3 and any development under the No Project/No Addendum Two Alternative).
PEIR 623 discussed GHG emissions using both program-level and project-level GHG “efficiency” thresholds recommended by the South Coast Air Quality Management District (SCAQMD). These efficiency thresholds measure GHG emissions performance on the basis of “service population,” which, for the Project, is a per-person ratio based on the total number of Project residents. Impacts are projected to be less than significant using the program-level efficiency threshold. However, the Project’s GHG emissions are calculated to exceed the SCAQMD project-level threshold, and thus were determined to be significant. The PEIR evaluated various measures to reduce the GHG emissions impact, including measures contained within the 2010 California Air Pollution Control Officers Association (CAPCOA) guidance document. The analysis in the PEIR found many of the feasible CAPCOA recommendations have been incorporated into the California Building Code or County Code requirements, and therefore are already folded into the Project. Installation of solar was considered, but factors such as site restriction (available physical area), cost (about $27,000 per unit), and uncertainty as to whether there would be provisions to sell the excess energy back to San Diego Gas & Electric (SDG&E) for distribution indicated that the implementation of photovoltaics to the extent needed to bring the GHG emissions to below a level of significant, was infeasible. Scenario 3 would have to generate more than 7 million kilowatt hours per year beyond the needs of the 1,110 units to reduce the GHG impacts to less than significant. At this time, SDG&E has a cap on their net energy metering program and the sum of approved installations and applications in the queue exceed the cap. This impact would be applicable to all three development scenarios.
Compliance with CEQA:
Draft PEIR No. 623 was circulated for public review and comment for a 45-day period between July 15, 2016, and August 29, 2016. A total of six comment letters were received. In accordance with the requirements of CEQA, full and complete responses to those comments received during the public review period were prepared and are included in the Final PEIR No. 623. In addition to certifying the proposed FEIR, the resolution presented for consideration would approve the Findings, Facts in Support of the Findings, a Statement of Overriding Considerations and the mitigation Monitoring and Reporting Program for the Project.
FINANCIAL IMPACT:
N/A
STAFFING IMPACT:
N/A
REVIEWING AGENCIES:
OC Public Works
ATTACHMENT(S):
Attachment A - Addendum Number Two to Affordable Housing
Implementation Agreement for Rancho Mission Viejo
Attachment B - Draft Program Environmental Impact Report No. 623 (IP# 15-157;
SCH No. 2015051062)
Attachment C - Responses to Comments on Program Environmental Impact Report No.
623
Attachment D - Resolution Certifying Program Environmental Impact Report No,
623, including Findings and a Statement of Overriding Considerations and
Mitigation Monitoring and Reporting Program