1982-051-Specifying Rules, Procedures And Criteria For The Town's Below Market Price ProgramRESOLUTION 1982 -51
TOWN COUNCIL RESOLUTION SPECIFYING RULES, PROCEDURES
AND CRITERIA FOR THE TOWN'S BELOW HAR-= PRICE PROGRAM
This resolution effects the provisions of Zoning Ordinance Sections
3.90.100 through 3.90.135, regarding the Below Market Price Program.
This supersedes Resolution 1951 -211. Resolved:
A. Buyer Qualification
I. Priority of eligibility at the time of purchase:
a. First priority - (1) Senior citizens who have lived in the Town for at
least two years. A senior citizen is defined as any person 60 years
of age or older, or married couples living together when at least one
spouse is 60 years of age or older.
(2) Salaried Town employees as defined in the Town's
Personnel Rules, who have been employed by the Town for a period of no
less than 12 months.
b. Second srlorlt`7 - _ :J�"'7 7 4_V, �IJ:� s, "irk ?n the Ton:l of Los vales
and have lived and worked in the Town for at least two years.
c. Third priority - Single heads of households with dependent children
who have lived in the Town for at least two years.
d. Fourth priority - Persons who live or work in the Town of Los Gatos
and have lived or worked in the Town for at least two years.
e. Fifth priority - all other applicants who live or work within Santa
Clara County and are eligible according to family size and income
criteria.
All persons must qualify for their own mortgage without assistance from the
Town. Qualifications must include the ability to pay taxes, insurance, and any
homeowner association fees in addition to the mortgage.
2. Family Size /Unit Size.
The size of the fan-Lily will be considered when a home is sold. The
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number of bedrooms that a family qualifies for is based on the family size
according to the following schedule:
1 -2 Family Members .................... 1 Bedroom and Studio
2 -4 Family Members .................... 2 Bedrooms
3 -6 Family Members .................... 3 Bedrooms
No distinction is made between adults and children. For example a husband
and wife are eligible for a 2- bedroom unit,'as well as a parent and child.
3. Income limits by household size (800 - 120% of Santa Clara County Median
Income, December 1981).
of Median
! 80
120
Persons in
Household
26,325
1
17,550
2
20,050
30,075
3
22,550
33,825
4
25,050
37,560
5
26,600
40,575
6
28,150
42,225
7
29,750
44,625
8
31,300
46,950
4. A buyers qualification is determined by the family ability to make
the monthly payments for the unit.
The monthly housing cost shall include the following factors.
a. BMP Price
b. Current Lending Rates
C. Estimated Taxes
d. Estimated Insurance
e. Homeowners' Fees
f. Other expenses as determined necessary by the lender,
Closing costs for the unit shall include a fee to cover the administration
of the BMP Program.
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B. Buyer Selection
I. Applications will be prioritized in accordance with the established
Place of employment and income requirements.
2. A lottery will be used to rank each qualified applicant within each of
five priorities.
3. Applicants who qualify for a project will be drawn from the eligible
applicant pool as units become available for sale.
G. An applicant has two opportunities to refuse a unit before being
removed from the current applicant pool.
5. Applicants who do not qualify for a particular project shall retain
their elgibility.
C. Determination of Initial Selling Price
I. The initial sales price of the unit will be determined by consultation
between the Town Manager or delegate and the builder. TO Manager is
authorized to approve changes in specifications to lower the price of the
BMP units which do not affect any Town code or ordinance requirements, such
as changes in carpeting, lighting fixtures, etc.
2. The initial price is limited to direct construction cost and a proportionar
share of the costs of preparing working drawings and specifications, pro-
viding utility services, required off -site and on -site improvements, public
agency fees, bonds, insurance, financing and premium points, loan standby
fees, landscaping, parking, recreational fac lities, engineering and archi-
tectural fees related to construction.
3. The initial price shall not include cost of 'and, builder's profit, mar-
keting costs, planning, promotional or advocacy expenses, options, or pre-
liminary drawings.
D. Deed Restrictions
1. All Below Market Price dwelling units must bp owner- occupied except as noted
in (2) below.
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2. As owner of a Below Market Price dwelling unit is not permitted to
lease, rent, sublet, or otherwise assign his interests in the property,
except that the property may be leased for limited periods of time when
the owner is required to live elsewhere and expects to return. Tenants
will be limited to persons qualified under the Section 8 income limits.
All leases must be arranged through the Community Housing Developers
Corporation and the owner must accept tenants qualified by the Community
Housing Developers.
3. In order to lease a unit under the terms of (2) above, the owner must
still be qualified within the income limits of the Below Flarket Price
Program in effect at the time of the lease, otherwise the owner must sell
the unit.
4. The Town has the right of first refusal on the sale of the BMP units.
The Town must exercise its right of refusal within six months from notice
of availability of a unit. The developer has second right of refusal on
first sale of all new units if the Town is unable to find a buyer.
5. Resale provisions are provided in Section E below.
E. Resale of Units
1. If the owner elects to sell his unit, the Town and /or CHD must be notified.
2. When a Below Market Price swelling unit becomes available for resale, the
owner must allo;q the Town to set the resale price and make the unit avail-
able to other program applicants.
3. The Town, after, receiving a recommendation from the CHI), will determine
the resale price by adding to the original price:
a. the percentage increase in the median income index for Santa Clara County
as published by the United States Department of Housing and Urban Develop-
ment for the years the ownor has lived in the unit;
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b. the value of any substantial improvements the owner has made on the
property, and will deduct from the price of the unit any costs
incurred to repair damages to the Below Market Price dwelling unit.
4. The repair of any damage to the unit will be done prior to resale.
The CHID will arrange for the repairs. Money to cover the costs of
repair may be loaned to the C:M by the Town if there is a delay of
close of escrow and the CHD will reimburse the Town after the sale.
5. CID notifies the next qualified buyer in the application pool.
F. This resolution repeals and supersedes Resolution No. 1981 -211.
PASSED ACID ADOPTED at a regular meeting of the Town Council of
the Town of Los Gatos held on the 16th day of February , 1982, by the
following vote:
AYES: COUNCIL C4 BEP.S Ruth Cannon, Thomas J. Ferrito,
Brent N. Ventura and Peter W. Siemens
NOES: COUNCIL L =ERS None
ABSTAIN: COUNCIL MEMBERS None
ABSENT: COUNCIL MMBERS MarLyn J. Rasmussen
S-- G1,MD:
-A OR OF THE TOG]N OF LOS GATOS
ATTEST:
CLERK OF THE TOWN OF LC4/C'ATOS