Item 24 Staff Report Adopt Resolution Authorizing the Town Manager to Execute Amendment to the Agreement with Community Housing Developers for Implementation of the Below Market Price Housing Programrq
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
DATE: October 9, 1991
TO: MAYOR AND TOWN COUNCIL
FROM: TOWN MANAGER
SUBJECT:
COUNCIL AGENDA
DATE: 10/21/91
ITEM NO.
ADOPT RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE
AMENDMENT TO THE AGREEMENT WITH COMMUNITY HOUSING DEVELOPERS
FOR IMPLEMENTATION OF THE BELOW MARKET PRICE HOUSING PROGRAM
RECOMMENDATION:
Adopt resolution authorizing the Town Manager to execute an amendment to the agreement with Community
Housing Developers (CHD) for implementation of the Below Market Price (BMP) Housing Program.
BACKGROUND:
In November 1988, the Council adopted a resolution authorizing the Town Manager to enter into an
agreement with CHD to implement the Town's Below Market Price Housing Program. The program's
purpose is to administer the Town's Inclusionary Zoning Ordinance. An agreement was executed; its term
was January 1, 1989, through June 30, 1990. The agreement was extended, by amendment, to June 30,
1991. The attached amendment to the agreement extends the term another year. It also increases the
compensation to the agency.
DISCUSSION:
The agreement between the Town and CHD states that the Town will pay CHD two fees:
1. An administrative fee --administrative services include information and referral, developing and
maintaining relationships with lenders, and maintaining lists of eligible applicants to the program. This
fee is paid by the Town.
2. The other fee is a sales fee. This cost is paid by the seller and buyer. To avoid over -burdening lower
income households, the Town subsidizes units targeted to them.
Household Income Range
below 80%
80% to 90%
100% to 120%
PREPARED BY: Regina A. Falk
Community Se
RAF:dr
CSD05:A: \CNCLRPTS\AMENDCHD.AGR
Fee to Owner/Seller Town's Cost
rector
$2,000 $2,000
$3,000 $1,000
$4,000 -0-
ATTACHMENTS: See Page 2 for list of Attachments.
DISTRIBUTION: See Page 2 for Distribution L'
Reviewed by:
10/9/91 12:31 pm
File #
Attorney Clerk Finance Treasurer
COUNCIL ACTION/ACTION DIRECTED TO:
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE AMENDMENT TO
THE AGREEMENT WITH COMMUNITY HOUSING DEVELOPERS FOR IMPLEMENTATION OF THE BELOW
MARKET PRICE HOUSING PROGRAM
October 9, 1991
The annual fee for the last fiscal year was $2,000. The sales fee was $4,000 per unit. A $500 reduction was
provided for any additional units being sold at the same time within the same development. CHD is
proposing an annual fee of $3,000 and the addition of an application fee of $25 per application; this would
be paid by the applicant. The sales fee would stay at $4,000 per unit.
Staff contacted other agencies regarding fees they charge for implementing housing programs similar to our
BMP program. The results are summarized in Attachment 1. The Santa Clara County Housing Authority
(HA) is the only agency which provides both ongoing information and referral and sales services. (The Palo
Alto Housing Corporation provides these services for the City of Palo Alto; they have not, however, isolated
the costs for implementing the program.) The annual fees charged by the Housing Authority are comparable
to those proposed by CHD. CHD estimates that it spends an average of ten hours per month providing
information regarding the program. This equates to 120 hours per year. If CHD were to charge the hourly
fee of $28.85 per hour charged by the HA, then the annual fee would be $3,462.
CHD is not recommending an increase in the sales fee. The fee is $4,000 per unit. The HA charges $3,000
per unit including a $500 administrative fee. CHD is proposing to add a minimal program application fee
of $25 per application. This is half of the $50 per application charged by the HA. The HA charges a $3,500
initiation fee to any new contracting agency.
CONCLUSION:
The fees proposed by CHD are comparable to those charged by the Santa Clara Housing Authority. CHD
staff have been professional and helpful in assisting callers and applicants. Staff recommends extending
the term of the contract at the negotiated rates.
FISCAL IMPACT:
The Below Market Price Program is self-supporting. Costs of the BMP Program are paid from fees
contributed by developers in -lieu of building affordable units. The BMP fund has a balance of $129,800 of
which $51,180 is encumbered for the West Parr Avenue development.
ATTACHMENTS:
1. Fee Comparison.
2. Letter from Dan Mountsier of Community Housing Developers dated October 7, 1991.
3. Resolution Authorizing the Town Manager to Execute an Amendment to the Agreement with Community
Housing Developers for the Implementation of the Below Market Price Program.
DISTRIBUTION:
Community Housing Developers, 111 N. Market Street, Suite 440, San Jose 95113
Sylvia Sieman, Palo Alto Housing Corporation, 540 Cowper St. #G, Palo Alto 94301
Initiation Fee
Annual Fee
Sales Fee
Application Fee
Advertising
Notes:
ATTACHMENT 1
FEE COMPARISONS
CHD
-0-
SANTA CLARA HOUSING AUTHORITY
$3,500 (estimated; to be
reviewed after 3 months)
$3,000 $28.85/hr. (Housing Authority
will bill quarterly for general
outreach and information and
referral services provided)
$4,000 first unit
$3,500 each add. unit
in development
(assume 5% annual
increase)
$25 paid by applicant
All costs for
advertising charged
directly to the Town.
$3,000 per unit
$3,000 each add. unit
(includes $500 administrative
fee paid by applicant; half
refundable if sale is not made)
$50 paid by applicant
The Santa Cruz Housing Authority will provide services regarding resale only.
Their fee is 1.5% of the sales price.
The Palo Alto Housing Corporation has never charged the City of Palo Alto for
its services.
CSD05:A:\CNCIRPTS\AMENDCHD.ATT
fl n
.10/08/91 11:15 2Y408 292 1231
COMM HOUSING DEV 002
ATTACHMENT 2
COMMUNITY HOUSING DEVELOPERS
255 NORTH MARKET STREET • SUITE 290 • SAN JOSE, • CA * 95110
408 279-7676 FAX 408 292-123
October 7, 1991
Ms. Regina Falkner, Manager
Community Services Division
208 E. Main Street
Los Gatos, CA 94030
Dear Regina:
As you know, our contract expired last July. It has been great
working with the Town and we desire to continue doing so.
Changes in the real estate market place that make transactions
substantially more difficult necessitate that we request an
increase in compensation in the new contract. Lending is now
extremely difficult, requiring far more time and effort to qualify
buyers. This means more time working with each applicant and
having more top applicants not work out. These conditions will
necessitate additional effort to get more highly qualified
applicants on the list.
We request an increase in the annual fee to $3,000 and a $25
application fee for program applicants. The per unit fee would
remain the same. We believe these fees are in line with other
services. Please call if you have any questions.
d4rely,
4�r
Dan Mountsier
Project Manager
r° l
ATTACHMENT 3
RESOLUTION
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
AUTHORIZING THE TOWN MANAGER TO EXECUTE
AMENDMENT TO AGREEMENT WITH COMMUNITY HOUSING DEVELOPERS FOR
IMPLEMENTATION OF THE BELOW MARKET PRICE HOUSING PROGRAM
WHEREAS, TOWN AND COMMUNITY HOUSING DEVELOPERS (CHD)
executed an Agreement for provision of Below Market Price Housing
Program services in November 1988 for the period from January 1,
1989, through June 30, 1990; and
WHEREAS, TOWN AND CHD executed an Amendment to the
Agreement which extended the term of the Agreement to June 30,
1991;
AGREEMENT:
IT IS THEREFORE AGREED by the parties as follows:
1. Exhibit B, be replaced by attached Exhibit B.
2. Section III to read:
The terms of this Agreement shall be through
June 30, 1992, from the date of execution by the
TOWN and CHD.
3. The terms and conditions of the original
Agreement, except as herein amended, shall remain
in full force and effect.
CSDO8:A:\RESOS\CS102191.R01
-1-
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS
GATOS DOES HEREBY RESOLVE AS FOLLOWS: authorize the Town Manager
to execute the Amendment to the Agreement for provision of Below
Market Price Housing Program services on the date written above,
effective July 1, 1991, through June 30, 1992, attached as
Exhibit A.
PASSED AND ADOPTED at a regular meeting of the Town
Council of the Town of Los Gatos, California, held on the 21st
day of October, 1991, 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
CSDOB:A:\RESOS\C5102191.R01
-2-
ATTACHMENT 3, EXHIBIT A
AMENDMENT TO AGREEMENT WITH COMMUNITY HOUSING DEVELOPERS
FOR COMMUNITY SERVICES - FISCAL YEAR 1991-92
This AMENDMENT TO AGREEMENT is entered into this day of , 1991,
to be effective retroactive to the 1st day of July, 1991, by and between TOWN
OF LOS GATOS, a municipal corporation ("TOWN") and COMMUNITY HOUSING DEVELOPERS,
a nonprofit corporation ("CONTRACTOR").
WHEREAS, TOWN and CONTRACTOR executed an Agreement for provision of
services necessary to implement the Town's Below Market Price Program on January
1, 1989, through June 30, 1990; and
WHEREAS, TOWN and CONTRACTOR executed an Amendment to the Agreement
effective July 1, 1990, through June 30, 1991; and
WHEREAS, the Town Council has approved an allocation of funds for Fiscal
Year 1991-92 to CONTRACTOR;
AGREEMENT:
IT IS THEREFORE AGREED by the parties as follows:
1. Term of the contract be extended from July 1, 1991,
2. TOWN agrees to reimburse CONTRACTOR according to
out in Exhibit B, entitled "Budget" which
to June 30, 1992.
the schedule set
is attached hereto and
incorporated herein. Payments to CONTRACTOR of
Agreement is amended to read as follows:
Semi -Annual Performance Report Due
(July -December) January 15, 1992
(January -June) July 15, 1992
3. Exhibit B, Part I, be replaced by Exhibit
the
original
Payment Date
January 31, 1992
July 31, 1992
B, Part I, attached.
4. The terms and conditions of the original Agreement and the subsequent
amendment, except as herein amended, shall remain in full force and
effect.
IN WITNESS WHEREOF, the parties have executed this Amendment to the
Agreement for community services on the date written above, effective July 1,
1991.
APPROVED AS TO FORM: TOWN OF LOS GATOS
Katherine Anderton David W. Knapp
Town Attorney Town Manager
ATTEST: COMMUNITY HOUSING DEVELOPERS
Marian V. Cosgrove John Stern
Town Clerk Executive Director
APPROVED AS TO CONTENT:
Regina A. Falkner
Community Services Director
CS013:A:\CONTRACT\COMMOUS.DEV
ATTACHMENT 3, EXHIBIT B
EXHIBIT B, BUDGET AND PAYMENT PLAN
Program Budget July 1, 1991-June 30, 1992
Fee for Services
Annual Fee $3,000 (1)
Other Payments (2)
Sale of Unit $4,000 (3)
Application Fee (4)
Expenses
Personnel
Supplies
Other
$4,000
Total Income $4,000
(1) Base annual fee of $3,000 will be charged to administer the program. The
fee will be paid by the Town semi-annually upon receipt of an approved
invoice with a semi-annual report.
(2) All advertising costs and appraisal fees will be submitted to and paid
directly by the Town as costs are incurred. Payment of other out-of-
pocket expenses, such as printing and postage, will be advanced by CHD.
CHD will submit a reimbursement request to the Town, which will pay all
documented approved expenses.
(3)
A fee of $4,000 per unit will be charged for each BMP unit sold. A fee
of $3,500 will be charged for additional units in the same development
(after the first unit) that are sold concurrently. A concurrent sale would
consist of units whose timing of availability for sale allows for a joint
mailing, a joint advertisement, a joint open house, and a joint priority
list of applicants. Fee will be paid to CHD by Town. Fees, or portion
of fees, paid by buyer and seller will be paid to the Town out of escrow.
(4) An application fee of $25 will be paid to CHD by each program applicant.
CSD13:A:\contract\comhous.bud
RESOLUTION 1991-229
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
AUTHORIZING THE TOWN MANAGER TO EXECUTE
AMENDMENT TO AGREEMENT WITH COMMUNITY HOUSING DEVELOPERS FOR
IMPLEMENTATION OF THE BELOW MARKET PRICE HOUSING PROGRAM
WHEREAS, TOWN AND COMMUNITY HOUSING DEVELOPERS (CHD)
executed an Agreement for provision of Below Market Price Housing
Program services in November 1988 for the period from January 1,
1989, through June 30, 1990; and
WHEREAS, TOWN AND CHD executed an Amendment to the
Agreement which extended the term of the Agreement to June 30,
1991;
AGREEMENT:
IT IS THEREFORE AGREED by the parties as follows:
1. Exhibit B, be replaced by attached Exhibit B.
2. Section III to read:
The terms of this Agreement shall be through
June 30, 1992, from the date of execution by the
TOWN and CHD.
3. The terms and conditions of the original
Agreement, except as herein amended, shall remain
in full force and effect.
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS
GATOS DOES HEREBY RESOLVE AS FOLLOWS: authorize the Town Manager
to execute the Amendment to the Agreement for provision of Below
Market Price Housing Program services on the date written above,
effective July 1, 1991, through June 30, 1992, attached as
Exhibit A.
PASSED AND ADOPTED at a regular meeting of the Town
Council of the Town of Los Gatos, California, held on the 21st
day of October, 1991, by the following vote:
COUNCIL MEMBERS:
AYES: Randy Attaway, Joanne Benjamin, Steven Blanton
Mayor Brent N. Ventura
NAYES: None
ABSENT: None
ABSTAIN: Eric D. Carlson
SIGNED:
/s/ Brent N. Ventura
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
AMENDMENT TO AGREEMENT WITH COMMUNITY HOUSING DEVELOPERS
FOR COMMUNITY SERVICES - FISCAL YEAR 1991-92
This AMENDMENT TO AGREEMENT is entered into this day of , 1991,
to be effective retroactive to the 1st day of July, 1991, by and between TOWN
OF LOS GATOS, a municipal corporation ("TOWN") and COMMUNITY HOUSING DEVELOPERS,
a nonprofit corporation ("CONTRACTOR").
WHEREAS, TOWN and CONTRACTOR executed an Agreement for provision of
services necessary to implement the Town's Below Market Price Program on January
1, 1989, through June 30, 1990; and
WHEREAS, TOWN and CONTRACTOR executed an Amendment to the Agreement
effective July 1, 1990, through June 30, 1991; and
WHEREAS, the Town Council has approved an allocation of funds for Fiscal
Year 1991-92 to CONTRACTOR;
AGREEMENT:
IT IS THEREFORE AGREED by the parties as follows:
1. Term of the contract be extended from July 1, 1991, to June 30, 1992.
2. TOWN agrees to reimburse CONTRACTOR according to the schedule set
out in Exhibit B, entitled "Budget" which is attached hereto and
incorporated herein. Payments to CONTRACTOR of the original
Agreement is amended to read as follows:
Semi -Annual Performance Report Due Payment Date
(July -December) January 15, 1992 January 31, 1992
(January -June) July 15, 1992 July 31, 1992
3. Exhibit B, Part I, be replaced by Exhibit B, Part I, attached.
4. The terms and conditions of the original Agreement and the subsequent
amendment, except as herein amended, shall remain in full force and
effect.
IN WITNESS WHEREOF, the parties have executed this Amendment to the
Agreement for community services on the date written above, effective July 1,
1991.
APPROVED AS TO FORM: TOWN OF LOS GATOS
Katherine Anderton David W. Knapp
Town Attorney Town Manager
ATTEST: COMMUNITY HOUSING DEVELOPERS
Marian V. Cosgrove John Stern
Town Clerk Executive Director
APPROVED AS TO CONTENT:
Regina A. Falkner
Community Services Director
CSD13:A:\CONTRACT\COMHOUS.DEV
EXHIBIT B, BUDGET AND PAYMENT PLAN
Program Budget July 1, 1991-June 30, 1992
Fee for Services
Annual Fee $3,000 (1)
Other Payments (2)
Sale of Unit $4,000 (3)
Application Fee (4)
Expenses
Personnel
Supplies
Other
$4,000
Total Income $4,000
(1) Base annual fee of $3,000 will be charged to administer the program. The
fee will be paid by the Town semi-annually upon receipt of an approved
invoice with a semi-annual report.
(2) All advertising costs and appraisal fees will be submitted to and paid
directly by the Town as costs are incurred. Payment of other out-of-
pocket expenses, such as printing and postage, will be advanced by CHD.
CHD will submit a reimbursement request to the Town, which will pay all
documented approved expenses.
(3)
A fee of $4,000 per unit will be charged for each BMP unit sold. A fee
of $3,500 will be charged for additional units in the same development
(after the first unit) that are sold concurrently. A concurrent sale would
consist of units whose timing of availability for sale allows for a joint
mailing, a joint advertisement, a joint open house, and a joint priority
list of applicants. Fee will be paid to CHD by Town. Fees, or portion
of fees, paid by buyer and seller will be paid to the Town out of escrow.
(4) An application fee of $25 will be paid to CHD by each program applicant.
CSD13:A:\contract\comhous.bud
October 21, 1991
Los Gatos, California
LEOTAR CRT CONTINUED
VARIANCE APPLICATION V-91-2. (L02 LEOTAR COURTIAPPELLANT, OLIVER C: AND
SUSAN G. FLACH), regarding the findings and decision after the September 3, 1991 public
hearing on an appeal related to 102 Leotar Court. Carried by a vote of 3 ayes. Mayor Ventura
and Mr. Carlson abstained.
SANTA ROSA DRIVE 300/WOZNIAK/APPEAL/RESOLUTION 1991-214
Motion by Mr. Blanton, seconded by Mr. Attaway, that Council reconsider the vote and adopt
Resolution 1991-214 entitled, RESOLUTION OF THE TOWN OF LOS GATOS DENYING
APPEAL OF PLANNING COMMISSION DECISION TO APPROVE AN APPLICATION TO
EXPAND AN EXISTING SINGLE-FAMILY RESIDENCE IN THE HR-2-1/4 ZONE;
ARCHITECTURE AND SITE APPLICATION S-85-22B, (304 SANTA ROSA DRIVE/OWNER;
STEVE WOZNIAK APPELLANT: GFJALD DAVIDSON), regarding the findings and decision
after the September 3, 1991 public hearing on an appeal related to 300 Santa Rosa Drive.
Carried by a vote of 3 ayes. Mayor Ventura and Mr. Carlson abstained.
LEGAL PUBLICATIONS/AGREEMENT/LOS GATOS WEEKLY -TIMES
RESOLUTION 1991-226
Motion by Mr. Blanton, seconded by Mr. Attaway, that Council adopt Resolution 1991-226
entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING AGREEMENT
BETWEEN THE TOWN AND THE LOS GATOS WEEKLY -TIMES NEWSPAPER FOR LEGAL
ADVERTISING FROM NOVEMBER 1. 1991 THROUGH OCTOBER 31. 1992, Carried by a
vote of 4 ayes. Mr. Carlson abstained.
NEIGHBORHOOD CENTER/POLICIES &PROCEDURES/RESOLUTION 1991-227
Motion by Mr. Blanton, seconded by Mr. Attaway, that Council adopt Resolution 1991-227
entitled, RESOLUTION OF THE TOWN OF LOS GATOS ADOPTING POLICIES AND
PROCEDURES FOR THE LOS GATOS DOWNTOWN NEIGHBORHOOD CENTER Carried
by a vote of 4 ayes. Mr. Carlson abstained.
SPARK FOUNDATION/RESIDENTIAL REHABILITATION/CBDG/RESOLUTION 1991-228
Motion by Mr. Blanton, seconded by Mr. Attaway, that Council adopt Resolution 1991-228
entitled, RESOLUTION OF THE TOWN OF LOS GATOS APPROVING A HOUSING
REHABILITATION GRANT TO SPARK FOUNDATION. INC_ AND AUTHORIZING THE
TOWN MANAGER TO ENTER INTO A STANDARD COMMUNITY DEVELOPMENT BLOCK
GRANT AGREEMENT WITH THE SPARK FOUNDATION, Carried by a vote of 4 ayes. Mr.
Carlson abstained.
BMP PROGRAM/COMMUNITY HOUSING DEVELOPERS/AGREEMENT
RESOLUTION 1991-229
Motion by Mr. Blanton, seconded by Mr. Attaway, that Council adopt Resolution 1991-229
entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN
MANAGER TO EXECUTE AMENDMENT TO AGREEMENT WITH COMMUNITY HOUSING
DEVELOPERS FOR IMPLEMENTATION OF THE BELOW MARKET PRICE HOUSING
PROGRAM, Carried by a vote of 4 ayes. Mr. Carlson abstained.
TC:02:MM102191
3