Item 12 Staff Report Habitat for HumanityDATE:
TO:
FROM:
SUBJECT:
MEETING DATE: 11/16/98
ITEM NO.
COUNCIL AGENDA REPORT
November 12, 1998
MAYOR AND TOWN COUNCIL/REDEVELOPMENT CHAIR & MEMBERS OF THE
REDEVELOPMENT AGENCY
TOWN MANAGER/EXECUTIVE DIRECTOR
HABITAT FOR HUMANITY
A. RECORD LAND (APN 529-22-028) DONATED TO THE TOWN BY THE
CALIFORNIA DEPARTMENT OF HIGHWAYS AT $5,183.64
B. ADOPT RESOLUTION DECLARING PARCEL (529-22-028) AS SURPLUS TOWN
LAND
C. REFER DEDICATION REQUEST TO PLANNING COMMISSION FOR
CONSIDERATION IN ACCORDANCE WITH GOVERNMENT CODE SECTION
65402 ET.SEQ.
D. APPROVE LAND SALE (APN 529-22-028) TO SILICON VALLEY HABITAT FOR
HUMANITY AND AUTHORIZE RELATED BUDGET ADJUSTMENTS
E. AUTHORIZE GRANT NOT TO EXCEED $310,000 TO SILICON VALLEY HABITAT
FOR HUMANITY FROM REDEVELOPMENT AGENCY HOUSING SET ASIDE
(4440-72118)
F. DIRECT STAFF TO PREPARE DOCUMENTS FOR COUNCIL AND AGENCY
APPROVAL
RECOMMENDATION:
1. Open and Hold the Public Hearing.
2. Close the Public Hearing.
3. Record land (APN 529-22-028) donated to the Town by the California Department of Highways at $5,183.64.
4. Adopt Resolution declaring parcel (529-22-028) as surplus Town land.
5. Refer dedication request to Planning Commission for consideration in accordance with government code section
65402 ET.SEQ.
6. Approve land sale (APN 529-22-028) to Silicon Valley Habitat for Humanity and authorize related budget
adjustments.
7. Authorize grant, not to exceed $310,000, to Silicon Valley Habitat for Humanity from Redevelopment Agency
Housing Set Aside (4440-72118).
8. Direct Staff to prepare documents for Council and Agency approval.
BACKGROUND:
Silicon Valley Habitat for Humanity (Habitat) would like to acquire the Town owned lot at 22 Charles Street to build
a home. In July, Council approved funds for an appraisal and preliminary title report. The property was appraised at
$260,000.
PREPARED BY: LEE BOWMAN EJ� REGINA A. FAL
Planning Directo /Deputy Executive Community Service ctor
Director
Reviewed by: CV-- Attorney Finance
Revised: 11/12/98 10:11 am
Reformatted: 10/23/95
PAGE 2
MAYOR AND TOWN COUNCIL/REDEVELOPMENT CHAIR & MEMBERS OF THE REDEVELOPMENT
AGENCY
SUBJECT: HABITAT FOR HUMANITY
November 12, 1998
DISCUSSION:
Several months ago, the Community Services Commission and Habitat began discussing the possibility of constructing
a home in the Town. Habitat uses donated labor and materials to construct homes for income eligible households.
Households are selected through a comprehensive screening process. Habitat is willing to give priority to Los Gatos
residents. Selected households must contribute a minimum of 500 hours to the project and participate in Habitat
sponsored classes preparing them for home ownership.
Once construction is completed, the homes are sold by Silicon Valley Habitat for Humanity at cost to families who pay
no interest mortgage payments averaging $300 - $500 per month over a 30 year term. Mortgage payments to Silicon
Valley Habitat for Humanity are recycled to build future homes for other eligible families.
The Charles Street lot was granted to the Town in the late 1950's as a result of Highway 17 construction. Community
Services Commissioner Alastair Dallas, a registered architect, has drawn a site plan for the lot. The lot is large enough
to accommodate a 3-bedroom, 2-bath, 1,150 square foot house.
1. Grant
Construction of a Habitat home would contribute to the Town's affordable housing goals. Affordability can
only be achieved with grants and donations. Because the lot is in the Redevelopment area, RDA Housing Set -
Aside funds can be granted to Habitat to purchase the lot from the Town. A grant agreement including
conditions, will be presented to Council and Agency for approval. The grant will include funding for the land
purchase, closing costs, traffic impact fees, utility connections, zoning and building permit approvals.
Once the grant has been approved, Habitat for Humanity will need to file an application for Architecture and
Site Approval to construct the house and a variance application to request a reduction in the back up space from
the parking area. The applications will be reviewed by the Development Review Committee. Since a variance
is required, both applications will be considered by the Planning Commission at a public hearing. Notices for
the hearing will be mailed to all property owners and occupants who are within 300 feet of the parcel.
2. Public Comment/Participation
To date, Habitat has made two efforts to introduce itself to the neighborhood. On Saturday, May 9, Habitat
Board Member Mary Ahearn and Commissioner Alastair Dallas spoke with some of the neighborhood residents-
-none of which commented negatively about Habitat. In addition, Habitat sent a notice to all property owners
within a 300 ft. radius of the property inviting them to a public meeting to talk about Habitat and its proposal
to acquire the Charles Street lot. Three property owners attended the May 28 meeting. The only concern voiced
was that the preliminary house plan may be too large to accommodate the site. In response, Mr. Dallas laid out
tape indicating the house size. Tonight's meeting was noticed to all properties within a minimum 300 foot radius
of the site.
3. Property Transfer
The lot was given to the Town by the California Department of Highways in the late 1950's. The property is
about 4,356 square feet. To determine the gift value to the Town, Staff used the same value placed on the Miles
Avenue property—$1.19 square foot. Acceptance of the property ($5,183) will allow the Town to record the
property as a fixed asset for accounting purposes.
The title report identifies an exception in the State's relinquishment of the property to the Town requiring certain
steps including the State's approval for using the land for purposes other than highways. If this condition is
applicable, we will request further Council approval, as necessary.
PAGE 3
MAYOR AND TOWN COUNCIL/REDEVELOPMENT CHAIR & MEMBERS OF THE REDEVELOPMENT
AGENCY
SUBJECT: HABITAT FOR HUMANITY
November 12, 1998
CONCLUSION:
Habitat's construction of a home in the Redevelopment area, affordable to a very to low income household, helps the
Town to meet General Plan and RDA housing goals. In addition, Habitat home construction is a community supported
and community building effort.
If Council approves the recommended action, Staff will proceed by preparing necessary documents. The RDA will enter
into a grant agreement with Habitat to reimburse the Agency for land costs plus $50,000 for pre -construction and related
costs. We would expect to return to Council for authorization to execute the agreements in January.
ENVIRONMENTAL ASSESSMENTS:
Property purchase and granting is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT:
1. Record land donated to the Town by California Department of Highways at $5,183.64. Parcel (APN 529-22-
028) was donated to the Town in the late 1950's but never recorded on the books. Using the same valuation
as property donated at approximately the same time, the land should be recorded as follows:
4,356 square feet
$1.19 value per square foot
$5,183.64
2. Record sale of land (APN 529-22-028) from general fund to Habitat appraised at $260,000. Authorize the
following transactions and related budget adjustments:
Record sale of fixed asset (111-48607) S260,000.00
Dispose of fixed asset (land) (900-16100) $ (5,183.64)
Increase reserve for parking structure by gain on sale $254,816.36
3. Authorize grant and budget adjustment in the amount of $310,000 to Habitat from housing set aside (4440-
72118). The grant is not included in the adopted budget. It will be funded from the fund balance at 7/1/98 of
$578,290. Direct costs will be reimbursed by the Agency upon invoice receipt.
Attachments:
1. Letter from Habitat
2. Letter from Rabbi Melanie Aron
3. Letter from Deborah Coutant, President, Congregation Shir Hadash
4. Resolution deeming APN 529-22-028 requested by Habitat for dedication as surplus land
5. Area Photographs
6. Site Plan
Distribution:
Bill Arnopp, Director, Bay & Valley Habitat for Humanity, 888 North First Street, Suite 215, San Jose, CA 95112.
Betty Feldhym, 20184 Franklin Avenue, Saratoga, CA 95070.
Community Services Commission.
RAF:tl
CSD46:A:\CNCLRPTS\HABITAT.RPT
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Bay & Valley
Habitat for Humanity, Inc
888 North First Street, Suite 215
San Jose CA 95112
Telephone 408.294.6464
Mayor Linda Lubeck
Town of Los Gatos
110 East Main Street
Los Gatos, Ca. 95031
Dear Mayor Lubeck:
Greetings from Bay & Valley Habitat for Humanity.
rril.t Ur 1 HE
JUN171998
•Nr
JUN221
We would like you and the members of the Town Council to consider donating a parcel of
land the town owns on Charles Street, across from 22 Charles Street, to Habitat for Humanity
so that we may build a 3 bedroom home for a very low income family residing in Los Gatos.
We are a 501 (C)(3) non- profit agency that has been building homes in Santa Clara County
in partnership with very low income families for the past 12 years. During that time we have
built ten homes in Alviso, two homes on East Mission Street in San Jose and rehabed a
family home in the Campbell. Currently we are building three Victorian style homes on
Sherman Street in downtown San Jose. We anticipate completing these homes by late July.
Then we will begin building a duplex also on Sherman Street. We should complete the
duplex by late October.
Our homes are decent, affordable, quality homes that are built by Habitat volunteers and the
qualified families. Many Los Gatos residents are long time volunteers who have participated
in all of our home building activities. Our building program is all about sweat equity and
pride of ownership We provide a handup not a handout. We would select a very low income
family living in Los Gatos. They would invest 500 hours of labor on their home working
with Habitat volunteers. Once the home is built, we would sell the home to the family, AT
COST, and provide them with a 0 % mortgage loan for thirty years. The cost of a Habitat
home is approximately $95,000. A monthly mortgage payment including taxes and
insurance is approximately $490.00 per month.
Thank you for considering this proposal. If you have any questions, please feel free to
contact me at Bay & Valley Habitat for Humanity at (408) 294-6464.
Sincerely,
Bill Arnopp
Executive Direct
B�L VALLEY ILABITAT FOR HUB ...ry
FAMILY SELECTION/PARTNERING GU DELL'YES
Family Selection Guidelines
Habitat welcomes applications from any family unit. Habitat does not discriminate on the
basis of race, color, religion. national origin, sex. handicapping condition, family status.
marital status, or age (except that the applicant must be legally able and competent to
enter into a binding contract). Subject to special exceptions, a family unit may not exceed
the capacity of the Habitat home (not more than two persons per bedroom).
Basic Eligibility.
a. The family must live in sub -standard 'housing., and
b. The family must meet current income guidelines for Habitat eligibility as established
by the Board of Directors: and
c. The Family does not qualify for conventional real estate financing.
The family must have a history of :financial responsibility.
a. The family must have a history of steady income.
b There must be a demonstrated ability to repay the loan to Habitat.
Family members must be legal residents of the United States.
Families are not selected until property has been secured and finalized.
o Families shall be selected from within Santa Cara County boundaries.
The Habitat Board of Directors reserves the right to weigh other factors as deemed
appropriate. The decision of the Board will be considered final in ail cases.
Family Partnering Guidelines
3 There must be a willingness. desire. and commitment by the family to participate in the
planning and building of the home and in the buiiding of Habitat homes for others.
There must be a demonstrated willingness and ability by the family to properly maintain
the Habitat home.
0. The process of Habitat partnering starts when the family is selected. The basic principles
of partnering are:
a. Family partnering may be done by Habitat committee members, a sponsor or an
advocate such as a previously selected Habitat family.
b. Partnering will be time -limited and focused on providing assistance and support
necessary to achieve full self-sufficiency.
\dnrwed M Board of 1)ir+e<tors 3'18197
,: 111les
How FandNes
Are Selected
Bay & Valley Habitat's
Family Selection
Committee, comprised
of community volun-
*.eers and board mem-
bers, selects qualified
families living in sub-
standard conditions in
Santa Clara County
and whose incomes
are too low to qualify
for home loans
through conventional
financial institutions.
However, their income
must be high enough
to afford modest mort-
gage payments and
the expenses of home
ownership. The families must be legal residents of the United
States and must invest 500 hours of "sweat equity" in the
construction of their homes. Working side -by -side, homeown-
er families, donors and other Habitat volunteers create a spirit
of partnership and develop a sense of community which ben-
efits everyone.
Once construction is completed, the homes are sold by
Bay & Valley Habitat AT COST — NO PROFIT to the homeowner
families, who pay, over 30 years, small monthly NO INTEREST
MORTGAGE PAYMENTS averaging $300-$500 per month.
Mortgage payments to Bay & Valley Habitat are recycled to
build future homes for more needy families.
Bay & Valley Habitat welcomes applications from any family
unit after land has been acquired. Habitat does not discrimi-
nate on the basis of race, color, religion, national origin, sex,
disabling condition, family status, marital status or age.
Applicants must be legally able and competent to enter into a
binding contract.
Bay & Valley
Habitat for Humanity, Inc.
888 North First Street, Suite 215
San Jose, CA 95112
Telephone (408) 294-6464
Fax (408) 294-6462
www.habitatsanjose.org
ev 1/38
Bay & Valley
Habitat for Humanity
Serving Santa Clara County
Since 1986
Working in partnership with very low
income families to build affordable,
decent housing in Santa Clara County.
(408) 294-6464
The Mission of E & Valley Habitat for . -vanity is the
elimination of substandard living conditions in Santa-ara nty.
Bay & Valley Habitat works to accomplish its mission by building decem 'ordable housin in partners with qualified low income fare,':--c"..\\
There is a low-income housing crisis in our county. Inadequate housing not onI 4 social is a, health issue as well.
Medical practitioners see a direct link between their patients' disorders anctjheir living environ • = t.
Over 18,000 families in our county live below poverty level in inadequate eplorable housing coriditions.
They have little hope for a better life. Habitat provides that hope and -makes homeownership possible.
You Can't Make A Better Investment Than
In Habitat's Low Income Housing Program
Funding for Habitat homes comes from churches, corporations,
foundations, clubs and private individuals. Habitat tithes
10% of its building funds, unless the contribution
is restricted by the donor, to Habitat International.
The tithe is used to construct homes
overseas. Home building costs are
far less expensive overseas than
in the United States. Every Habitat
home built in the United States
results in at least two homes '
being built in another country. .�
111111;!-
;ii...i I ,. 101111
.� _,.-:�
1
i
Your Corporation, Civic Club, Congregation,
Church or Organization Can Adopt•A•House!
All you have to do is make a
commitment to provide the
financial resources (suggested
minimum S35,000) and the
volunteer work force required
to build a Habitat house. If
you wish to learn more about
the Adopt -A -House Program,
contact the Habitat office at
(408) 294-6464, or fax (408)
294-6462.
Bay & Valley's Accomplishments
Between 1991 and December 1997, Bay & Valley Habitat, in
partnership with homeowners, completed ten homes in Alviso
and two homes in San Jose. Twelve families now occupy decent,
affordable homes.
Also, early in 1996, a
small two bedroom
home in Campbell
was rehabilitated and
enlarged.
Currently, five homes
are being built in San
Jose. By the end of
1998 Bay and Valley
Habitat will have built
17 homes.
Habitat for Humanity
A hand up,
not a handout.
•
How Yo :an Help
Bay & Valley
Habitat for Humanity
The heart and soul of Bay & Valley Habitat for Humanity is its
volunteers, especially thaseenergetic volunteers who put in
countless hours wiekftg a hammer on a construction site, those
who help ine.ouc office, or who serve on committees.
Donations cone from a variety of sources: churches and other
places of worship, corporations, foundations and private individ-
uals. Donatiods,come in many forms - remembrances of birth-
days, anniversaries, weddings, special occasions and memorials,
as welras from direct solicitations.
Please complete and return the following to Habitat:
❑ My tax-deductible donation is enclosed.
❑ I have land to donate or selk.
❑ I have tools or construction materiaio donate.
❑ I want to help build a house. S
❑ I want to offer a no -interest loan taF4aDb
E I want Habitat to make a presentationtoour ganization.
❑ I want to help in the Habitat office.
❑ I want to serve on a committee (please check
❑ Family Selection, ❑ Family Nurturing, ❑ Fund Raisi ". -
❑ Finance, ❑ Building, E Site Selection, ❑ VolunteerCpetdination,
❑ Materials Procurement, 0 Public Relations
❑ I want to be placed on your mailing list.
Name
Address
City Zip
Employer City
Telephone [home] (
[work]
Bay & Valley
Habitat for Humanity, Inc.
888 North First Street, Suite 215
San Jose, CA 95112
Telephone (408) 294-6464
Fax (408) 294-6462
www.habitatsanjose.org
Re. 1/98
Habitat for Hun ity
International
Habitat for Humanity is a Christian organization which helps
low-income people build their own homes.
The philosophy of Habitat is that the economically disadvantaged
need capital, not charity, and co-workers, not caseworkers, in
order to obtain a decent house in a decent community.
How Habitat Started
In 1968, Millard Fuller, businessman and lawyer from Alabama,
and Dr. Clarence Jordan, founder of Koinonia Farms in Americus,
Georgia, began work to eliminate substandard housing in Sumter
County, Georgia. Determined not to act as a money lender and
charge interest when lending to the poor, Koinonia Farms began
building and selling houses to the poor at no profit, no interest in
1968. Rapid building continues in Sumter County today. Habitat
International is heading a building project to eliminate all substan-
dard housing in Sumter County by the year 2000.
In 1973, Millard and Linda Fuller carried the Koinonia Farms con-
cept to Zaire, Africa, and launched a building program for more
than 160 houses. When they returned to the United States in
1976, the Fullers settled in Americus, Georgia, and created Habitat
for Humanity in order to expand their work. Former President •
Jimmy Carter and his wife became active volunteers in 1984.
Habitat is headquartered in Americus, Georgia, and has more than
1,400 affiliates across the United States. Habitat also operates in 59
countries around the world. By the end of 1997 over 60,000 homes
were built worldwide, with over 20,000 of them in the United States.
Persons willing to work as volunteers on former President Jimmy
Carter's annual work project or any Habitat building project in
the United States or overseas can contact the Habitat office in
Americus, Georgia, at (912) 924-6935.
Affiliate Countries
Africa/
Middle East
Botswana
Burundi
Central
African
Republic
Egypt
Ethiopia
Ghana
Kenya
Malawi
Nigeria
South Africa
Tanzania
Dem. Rep. of
Congo
Uganda
Zambia
Zimbabwe
Asia/
Pacific
Australia
Fiji Islands
India
Indonesia
New Zealand
Pakistan
Papua New
Guinea
Philippines
Republic of
Korea
Sri Lanka
Solomon
Islands
Nepal
Japan
Europe
Armenia
Hungary
Poland
Northern
Ireland
Netherlands
Great Britain
Romania
Portugal
Kyrgustan
Slovenia
Germany
Laths
Arks
Argentina
Bolivia
Brazil
Colombia
Costa Rica
Dominican
Republic
El Salvador
Gutamaia
Guyana
Haiti
Honduras
Jamaica
Mexico
Nicaragua
Peru
Ecuador
Antigua/
Barbuda
Trinidad &
Tobago
Paraguay
North
Americo
Canada
United States
Bay 8 alley
Habitat for Humanity
Bay & Valley Habitat for Humanity, Inc., an affiliate of Habit-
for Humanity International, was incorporated as a non-prc
organization on July 21, 1986. Under the direction of a volun-
teer board of directors, Bay & Valley Habitat offers a hand -up,
not a hand-out to low income families by working in partner-
ship with them to build affordable, decent housing in Santa
Clara County.
The houses are built using volunteer labor and tax-deductible
donations of money and materials contributed by churches
and other places of worship, businesses, foundations and pri-
vate individuals.
We need your help to get the next home off the ground.
Bay & Valley Habitat for Humanity, Inc., is a 501(c)(3) non-profit corporation.
Donations are tax deductible to the fullest extent allowable by current IRS regulations.
Our Federal tax identification number is 93-0926083
trin 'i' V1
Rabbi Melanie Aron
Mayor Linda Lubeck and
Los Gatos Town Council
Town of Los Gatos
P.O. Box #949
Los Gatos, CA 95031
Dear Mayor Lubeck and Council Members;
ATTACHMENT 2
OFFICE OF THE
sEP 8 105
AMOR 1. TOWN COUNT'
The recent request by Bay and Valley Habitat for Humanity to construct one new home in
the Los Gatos area presents us all with a unique and very special opportunity. As a non-
profit organization, Habitat has a long history of serving the community by providing the
capital and co-workers necessary to build decent, affordable homes. Our town can sit by
and ignore the critical local need for housing, or we can move forward decisively to
recognize the situation and seek solutions.
I urge you and the members of the Town Council to approve Habitat's plans for the
purchase of land and the construction of this Los Gatos home. Working together in this
voluntary partnership can only foster our sense of giving back to the community and
provide the rich rewards of sharing a common goal.
Rabbi Melanie Aron
CONGREGATION SHIR HADASH • 16555 Shannon Road, Los Gatos, CA 95032-4615 • (408) 358-1751
'Lr,rnu1,w
Mayor Linda Lubeck and
Los Gatos Town Council
Town of Los Gatos
P.O. Box #949
Los Gatos CA 95031
Dear Mayor Lubeck and Council Members;
ATTACHMENT 3
JFFICE OF THE
SEP 81998
4AYOR & TOWN COUNT'
At the present time Santa Clara County is facing a severe housing crisis. The demand for
affordable homes has never been more evident and our local communities are being asked
to address this issue in constructive, compassionate ways. In attempting to meet this great
demand. Bay and Valley Habitat for Humanity provides a viable, visible, and very valuable
contribution.
Under Habitat for Humanity's partnership building program, Local churches, synagogues,
businesses, foundations, and private individuals work side -by -side with homeowner
families to build homes, create a spirit of partnership, and develop a sense of community
which benefits everyone. In recent weeks Habitat has made known its desire to construct
one home in the Los Gatos community using volunteer labor and tax-deductible donations
of money and materials.
On behalf of the 500 families who are members of Congregation Shir Hadash I urge the
Los Gatos Town Council to grant the necessary approval for Habitat to proceed with its
construction plans and continue its efforts to serve our community.
Sincerely,
Deborah Coutant
President
/
CONGREGATION SHIM HADASH • 16555 Shuinon Road, Los Gatos, CA 95032-4615 • (408) 358-1751
Attachment 4
RESOLUTION
A RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS DECLARING APN #529-22-028
AS SURPLUS TOWN OWNED LAND
WHEREAS, the Town owns APN #529-22-028 located at 22 Charles Street; and
WHEREAS, the 4,356 square foot parcel was given to the Town by the California
Department of Highways in the late 1950's as a result of Highway 17 construction; and
WHEREAS, Silicon Valley Habitat for Humanity (Habitat) wishes to acquire the parcel to
construct an affordable single family residence; and
WHEREAS, the Town realizes the need to provide affordable housing opportunities for
Town residents; and
WHEREAS, the parcel Habitat requests is currently vacant and unused; and
WHEREAS, the dedication will allow Habitat to commence with a development application
to construct an affordable housing unit.
RESOLVED, the Town Council deems APN 529-22-028, located at 22 Charles Street,
(shown on Exhibit A) to be surplus land.
1
PASSED AND ADOPTED at a regular meeting of the Town Council held on the day of ,
1998 by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
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
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Attachment 5
Fe:'-.:ary 23, 199S
22 Charles
Street
Lot 20
Book 529 Page 22
0.10 Ac
Proposed
Residence
271 Los
Gatos BIvd.
Looking west
Looking east
Los Gatos Boulevard, looking west down
Charles Street.
Proposed
ff-5tre
ParKira
Prorio6ed
510 S.F. F0O T PRiNT
1150 S.F. TOTAL
35R,2BA
Proposed
Residence
Off-street
Parking
Proposed
Residence
301 Los
Gatos Blvd.
Alastair Dallas • (40S) 395-6767
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Attachment 6
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