Item 19 Staff Report Below Market Price ProgramMEETING DATE: 9-8-98
ITEM NO,
COUNCIL AGENDA REPORT
DATE: September 1, 1998
TO: MAYOR AND TOWN COUNCIL
FROM: TOWN MANAGER
SUBJECT: BELOW MARKET PRICE PROGRAM
A. ADOPT RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE AN
AGREEMENT WITH THE HOUSING AUTHORITY OF THE COUNTY OF SANTA
CLARA FOR BELOW MARKET PRICE PROGRAM SERVICES
B. AUTHORIZE $26,685 DECREASE IN REVENUE AND EXPENDITURE BUDGETS
FOR BELOW MARKET PRICE PROGRAM SERVICES TO $10,315
/ I
RECOMMENDATION:
1. Adopt resolution authorizing the Town Manager to execute an agreement with the Housing Authority of the
County of Santa Clara for Below Market Price Program Services.
2. Authorize $26,685 decrease in revenue and expenditure budgets for Below Market Program services to $10,315.
BACKGROUND
One of the most significant housing programs adopted by the Town is the Below Market Price (BMP) Program. The
BMP program was initiated in 1979 as a mechanism to increase the supply of housing affordable to individuals and
families with low to moderate incomes. The BMP program requires that a certain number of units in new residential
developments be designated for low and moderate income occupancy. The exact number of units required is established
by ordinance and depends on the type and size of development. For example, projects of 5-19 market rate units must
provide a number of BMP units equal to 10% of the market rate units. Certain projects may contribute an in -lieu fee
instead of constructing actual units. The in -lieu fee is then deposited in the Town's Affordable Housing Fund.
The current inventory of BMP units in the Town is 26 owner -occupied units. There are also 4 rental units and 29 rental
units at a continuing care facility. In addition, there are 7 owner occupied BMP units either under construction or
anticipated to be completed by the end of 1998/99. BMP ownership units are sold at affordable prices to low and
moderate income persons and certain restrictions are recorded with the grant deed to ensure that the units, even on resale,
will remain affordable. When BMP owners want to sell their units, they must give the Town the right of first refusal to
purchase it. The Town has six months in which to find a new buyer. The Town of Los Gatos contracts out for Below
Market Price Program services.
PREPARED BY:
Regina A. Fal
Community
RAF:kv
CSD46:A\cnc ts\mpserv.rpt
Reviewed by: L, Attorney Fiance lanninRevised: 9/1/98 10:26 am
Director
Reformatted: 10/23/95
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: BELOW MARKET PRICE PROGRAM
September 1, 1998
DISCUSSION:
Los Gatos staff prepared a request for proposal for Program services. Two agencies submitted bids to provide services
to the Town. (Please see attached table). Both agencies provide similar services to other municipalities.
Staff recommends that the Town contract with the Housing Authority of the County of Santa Clara. Established in 1968,
the Housing Authority manages 2,000 rental units and approximately 20 housing programs. Each program has different
eligibility requirements and screening processes. Over 12,000 participants are recertified annually allowing for
economies of scale not possible with a small agency like Community Housing Developers. A successful agency, the
Housing Authority employs over 200 people and produces 250 affordable housing units annually.
It is recommended that Council enter into a contract with the Housing Authority from October 1, 1998, to June 30, 1999,
with a provision for two one-year extensions. The Town has extended its agreement with Community Housing
Developers for selected services through September 30, 1998.
ENVIRONMENTAL ASSESSMENTS:
This is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT:
Authorize the following budget adjustments for BMP program 1111, project BMP2216:
REVENUES:
Account #
Description
Adopted 1998-99
Proposed Change
Revised
48216
Below Market Price Home
$37,000
($26,685)
$10,315
EXPENSES:
Account #
Description
Adopted 1998-99
Proposed Change
Revised
61190
Applicant Processing
$10,000
($10,000)
$-0-
61191
Affordable House Sales
$27,000
($27,000)
$-0-
61292
bmp - monthly service fee
$-0-
$2,415
$2,415
91293
bmp- single unit sales fee
$-0-
$4,650
$4,650
61294
bmp-sale greater than 1 unit
$-0-
$-0-
$-0-
61295
bmp-rental unit monitoring fee
$-0-
$750
$750
61296
bmp-application fee
$-0-
$ -0-
$-0-
61297
bmp-reimbursable costs
$-0-
$2,500
$2,500
$37,000
($26,685)
$10,315
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: BELOW MARKET PRICE PROGRAM
September 1, 1998
Housing Authority
Monthly service fees for 9 months @ $185 per month 9 x $185 $1,665
Rental monitoring fee estimating 5 units per year 5 x $150 $ 750
Single unit sales fee estimating 9 units per year
Determine Eligibility 9 x $150 $1,350
Facilitate Escrow 9 x $350 $3,150
Reimbursable Costs (advertise, title, appraisal) 3 x $800 $2,400
Community Housing Developers
Monthly Service Fee for 3 months @ $250 per month
Determine Eligibility @ $150 per applicant
Reimbursable Costs (postage, copying)
ATTACHMENT:
1. Proposal Summary
2. Draft Resolution (Exhibit A)
3 x $250
1 x $150
1 x $100
$ 9,315
$ 750
$ 150
$ 100
$ 1,000
Total $10,315
DISTRIBUTION:
1. Ron Morgan, Community Housing Developers, 255 N. Market Street, Ste., San Jose, CA 95110
2. Richard Warren, The Housing Authority of the County of Santa Clara, 505 W. Julian Street, San Jose, CA 95110
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Cities Served/Number of Units
Program Staffing
September 1, 1998 through June 30, 1999
Fees for Services:
$185 x 9 Months = $1,665
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Monthly Service Fee
Sale of Two or more units
Rental Unit Monitoring Fee
Application Fee
csd34A: \bmp\bmpcomp. wpd
Attachment 2
RESOLUTION
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN MANAGER TO
EXECUTE AN AGREEMENT WITH THE HOUSING AUTHORITY OF THE SANTA
CLARA COUNTY FOR BELOW MARKET PRICE HOUSING PROGRAM SERVICES
THE TOWN COUNCIL OF THE TOWN OF LOS GATOS RESOLVES AS
FOLLOWS:
WHEREAS, Town Code Section 29.10.3005 established the Below Market Price
Housing Program; and,
WHEREAS, The Town's Below Market Price Housing Program is a primary
component of the Town's affordable housing strategy; and,
WHEREAS, the Town desires to continue Below Market Price Housing Program
services within the Town of Los Gatos; and,
WHEREAS, the Town of Los Gatos solicited competitive bids from qualified agencies
providing below market price program services; and,
WHEREAS, The Housing Authority of the Santa Clara County is fully qualified to
provide Below Market Price services to the Town of Los Gatos; and,
WHEREAS, the Town finds the Housing Authority of the Santa Clara County
proposal best meets Town's needs.
NOW THEREFORE, BE IT RESOLVED that the Town Council of the Town of Los
Gatos does hereby authorize the Town Manager to execute an agreement with the Housing
Authority of the Santa Clara County for Below Market Price Program Services, (attached as
exhibit A) and further authorizes the Town Manager to execute Agreement Amendments extending
csd08: A:\Resos\cs090898.01
i
the term as long as they conform to the Council adopted budget.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town
of Los Gatos, California, held on the 3rd day of August, 1998, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYES:
ABSENT:
ABSTAIN:
SIGNED:
ATTEST:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
csd08: A:1Resos\cs090898.01
RESOLUTION 1998 - 143
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN MANAGER TO
EXECUTE AN AGREEMENT WITH THE HOUSING AUTHORITY OF THE SANTA
CLARA COUNTY FOR BELOW MARKET PRICE HOUSING PROGRAM SERVICES
THE TOWN COUNCIL OF THE TOWN OF LOS GATOS RESOLVES AS
FOLLOWS:
WHEREAS, Town Code Section 29.10.3005 established the Below Market Price
Housing Program; and,
WHEREAS, The Town's Below Market Price Housing Program is a primary
component of the Town's affordable housing strategy; and,
WHEREAS, the Town desires to continue Below Market Price Housing Program
services within the Town of Los Gatos; and,
WHEREAS, the Town of Los Gatos solicited competitive bids from qualified agencies
providing below market price program services; and,
WHEREAS, The Housing Authority of the Santa Clara County is fully qualified to
provide Below Market Price services to the Town of Los Gatos; and,
WHEREAS, the Town finds the Housing Authority of the Santa Clara County
proposal best meets Town's needs.
NOW THEREFORE, BE IT RESOLVED that the Town Council of the Town of Los
Gatos does hereby authorize the Town Manager to execute an agreement with the Housing
Authority of the Santa Clara County for Below Market Price Program Services, (attached as
exhibit A) and further authorizes the Town Manager to execute Agreement Amendments extending
the term as long as they conform to the Council adopted budget.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town
of Los Gatos, California, held on the 8th day of September, 1998, by the following vote:
COUNCIL MEMBERS:
AYES: Joanne Benjamin, Steven Blanton, Jan Hutchins,
Mayor Linda Lubeck.
NAYES: None
ABSENT: Randy Attaway
ABSTAIN: None
SIGNED: /s/ Linda Lubeck
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
/s/ Marian V. Cosgrove
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
INTERNAL TRACKLNG
DEPTMEN'T:
AGENDA ITEM:
ON DISC OR SHARE. FORM SENT TO DEPT.
PUBLISH IF REQUIRED - Date of Publication
ORDINANCES ONLY
AGE
WHEN SIGNATURE AND /s/ COPY (1 EACH) returned,
LIST ON SIGNATURE TRACKING & SEND TO MAYOR
MAIL TO DISTRIBUTION LIST
NO.of COPIES: :
2
PROOF OF MAILING PREPARED
SIGN BY CLERK/SEAL
ENTER INTO ECM ORDINANCE/RESOLUTION FILE
FILE IN VAULT
CODIFICATION IF ORDINANCE
clk:d166athrtlordtea2
OFFI OF THE TOWN CLERK
ORDINANCES & RESOLUTIONS
ORIGINATING DEFT:
COUNCIL AGENDA DATE:
COUNCIL AGENDA ITEM:
SUBJECT:
Number:
Date of Adopt:
,,afe4yzi-
cecbt.4)he6A-ilem PAA.4:_sz)
RESOLUTION
199— 4-3
9—
PUBLICATION REQUIRED;
COUNCIL ACTION:
AYES:
NAYS:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS NAMES:
Number.
Date of Intro:
Date of Adopt:
ZONE CHANGE:
Randy Attaway, Joanne Benjamin, Steven Blanton, Jan Hutchins,
Mayor(or Chairman) LINDA LUBECK
ORDINANCE
ORDINANCES and RESOLUTIONS MUST BE RETURNED TO TOWN CLERK
BY WEDNESDAY AT 12 NOON.
ORDINANCES MUST BE READY FOR IMMEDIATE PUBLICATION
TC; 07: RESO.ORD
Town Council Minutes September 8, 1998
Redevelopment Agency Los Gatos, California
COMPRESSED NATURAL GAS/FUELING STATION/PROJECT 9921/RESO 1998-142 (18.32)
Motion by Mrs. Benjamin, seconded by Mr. Blanton, that Council adopt Resolution 1998-142
entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE EXECUTION
OF AN AGREEMENT WITH NATURAL FUELS CORPORATION FOR THE CONSTRUCTION
OF PROJECT 9921- COMPRESSED NATURAL GAS FUELING STATION. Carried by a vote
of 4 ayes. Mr. Attaway absent.
BELOW MARKET PRICE PROGRAM/HOUSING AUTHORITY/RESOLUTION 1998-143 (19.19)
Motion by Mrs. Benjamin, seconded by Mr. Blanton, that Council adopt Resolution 1998-143
entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN
MANAGER TO EXECUTE AN AGREEMENT WITH THE HOUSING AUTHORITY OF THE
SANTA CLARA COUNTY FOR BELOW MARKET PRICE HOUSING PROGRAM SERVICES,
Carried by a vote of 4 ayes. Mr. Attaway absent.
MUSIC IN THE PLAZA (MIP)/FY 1998-99/RESOLUTION 1998-144 (20.20)
Motion by Mrs. Benjamin, seconded by Mr. Blanton, that Council adopt Resolution 1998-144
entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN
MANAGER TO EXECUTE A GRANT AGREEMENT WITH THE ARTS COUNCIL OF SANTA
CLARA COUNTY. Carried by a vote of 4 ayes. Mr. Attaway absent.
LOOMIS, FARGO & CO/SECURED SHIPMENTS/RESOLUTION 1998-145 (21.05)
Motion by Mrs. Benjamin, seconded by Mr. Blanton, that Council adopt Resolution 1998-145
entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN
MANAGER TO EXECUTE AN AGREEMENT WITH LOOMIS. FARGO & CO. FOR SERVICE
TO PICK UP AND RECEIVE SECURELY SEALED OR LOCKED SHIPMENTS, Carried by
a vote of 4 ayes. Mr. Attaway absent.
SANTA CRUZ AVENUE S 140/TOLL HOUSE/APPEAL/RESOLUTION 1998-146 (22.09)
Motion by Mrs. Benjamin, seconded by Mr. Blanton, that Council adopt Resolution 1998-146
entitled, RESOLUTION OF THE TOWN OF LOS GATOS GRANTING AN APPEAL OF A
PLANNING COMMISSION DECISION DENYING A PLANNED DEVELOPMENT TO
CHANGE THE ZONING DESIGNATION FROM C-2 TO C-2 PD TO CONSTRUCT A 27
ROOM ADDITION TO THE TOLL HOUSE HOTEL AND AN AMENDMENT TO THE
CENTRAL BUSINESS DISTRICT STREETSCAPE IMPROVEMENT GUIDELINES, Carried
by a vote of 4 ayes. Mr. Attaway absent.
BLOSSOM HILL ROAD 14734/WILLIAMSON CONTRACT CANCELLATION ((23.09)
SUMMERHILL HOMES DEVELOPMENT/RESOLUTION 1998-147
Motion by Mrs. Benjamin, seconded by Mr. Blanton, that Council adopt Resolution 1998-
entitled, RESOLUTION OF THE TOWN OF LOS GATOS MAKING FINDINGS AND
DETERMINING THE AMOUNT OF THE CANCELLATION FEE AND DIRECTING THE
CLERK TO RECORD A CERTIFICATE AND PUBLISH A NOTICE FOR THE EARLY
CANCELLATION OF WILLIAMSONACT CONTRACTS FOR PROJECT APPLICATION: PRJ-
97-045. DEVELOPMENT APPLICATION: DEV-97-001. ENVIRONMENTAL IMPACT
REPORT: EIR-97-001. WILLIAMSON ACT CANCELLATION: WA-006. PROPERTY
LOCATION: 14734 BLOSSOM HILL ROAD. APPLICANT: SUMMERHILL HOMES,
DEVELOPER. PROPERTY OWNER: REGENTS OF THE UNIVERSITY OF CALIFORNIA.
Carried by a vote of 4 ayes. Mr. Attaway absent.
TC: D10: MM090898
4
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