That the City Council approve the Density Bonus Regulatory Agreement and Declaration of Restrictive Covenants between the City of La Habra and MS Development, LLC, for rental restrictions of three one-bedroom units that will be made available to very-low income households, and authorize the City Manager to execute all documents associated with the agreement.

On January 28, 2019, the Planning Commission held a duly noticed public hearing and recommended the City Council approve Planned Unit Development Master Plan 18-01 for a proposed new apartment complex at 320-330 South Monte Vista Street.  On March 4, 2019, the City Council held a duly noticed public hearing to consider Planned Unit Development Master Plan 18-01; at that time the project was continued to April 1, 2019.  On April 1, 2019, the City Council approved Plan Unit Development Master Plan 18-01.

The approved project consists of constructing a 30-unit apartment complex located at 320-330 South Monte Vista Street.  The proposed Density Bonus Regulatory Agreement and Declaration of Restrictive Covenants (Agreement) restricts the rents of three one-bedroom units.  The rental of these three units are restricted to very-low income households, which are defined as households making 50% or less of the area median income based on household size.  For example, the annual income for a household of two individuals would be limited to no more than $51,251 per year in total in order to meet income eligibility requirements for the restricted units.  The maximum rent that currently could be charged for each unit is $1,281 per month.  In comparison, the average one-bedroom apartment in La Habra currently rents for $1,684 per month.  The developer has identified apartment units 203, 210, and 310 in Exhibit B as the restricted units.

Since this project incorporates an affordable housing component, it is eligible to utilize development concessions as permitted by State law and accordance with La Habra Municipal Code (LHMC) Chapter 18.80, Affordable Housing Incentives.  LHMC Chapter 18.80 is consistent with Senate Bill (SB) 1818, wherein developers are granted concessions, or permitted deviations, from the City's normal development standards to support the production of lower income housing units within the development.  The number of concessions is based on the amount of units that are restricted to very-low, low, or moderate-income households.  Additionally, for this project, LHMC 18.80 and SB 1818 allowed reduced parking standards granted by right, allowed for increased building height at 41 feet, and waived private open space/usable yard area requirements.

In order for the developer to receive building permits, the City Council must approve and authorize the City Manager to execute the attached agreement so that the covenants and restrictions can be recorded.