7 Desk ItemMEETING DATE: 913/13
ITEM NO. t-1
DESK ITEM
COUNCIL AGENDA REPORT
DATE: SEPTEMBER 3, 2013
TO: MAYOR AND TOWN COUNCIL `I /
FROM: GREG LARSON, TOWN MANAGER
SUBJECT: ADOPT A RESOLUTION REVISING THE BELOW MARKET PRICE (BMP)
HOUSING PROGRAM GUIDELINES SCORING CRITERIA.
REMARKS:
In response to Council Member inquiries regarding defining first responders and the one year
employment requirement for school employees and first responders, staff discovered that an earlier
version of Attachment 4 (revised Exhibit A to resolution) was distributed in error with the addendum
report. A corrected version is provided with this desk item as Attachment 5 which incorporates
recent Council comments as follows:
g. All licensed pre-school and public or private K-12 school employees of schools and
districts geographically located in and serving the Town, and who have been employed in
such capacity for at least one year at the time of application.
h. All certified emergency first responders (e.g. sworn police officers, fire fighters, and
emergency medical technicians and paramedics) who have been employed in such
capacity for at least one year at the time of application by an agency serving the Town.
In addition, the Town has received and responded to correspondence regarding this matter which are
both included as Attachment 6.
Attachments previously received with Aug.ust 19.2013. Staff Report:
1. Resolution revising the Below Market Price (BMP) Housing Program Guidelines Scoring
Criteria and repealing Resolution 2012-034
2. General Plan Committee Meeting Minutes of June 12, 2013
3. Copy of Resolution 2012-054
PREPARED BY: Sandy L. Baily. Director of Community Development
Reviewed by: _5 Assistant Town Manager
Town Attorney Finance
N- DE' fC REPORTS. 20I31BM1P Program Guidelines )erring Rev Siatl Rcpoft9-3- 13.Jesk.Joc Revised: 9 3.13 1 18 PM
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: : Below Market Price Program Guidelines
September 3, 2013
Attachment previously received with Addendum:
4. Revised Exhibit A to draft resolution (Attachment I)
Attachments received with this Desk Item:
5. Corrected Exhibit A to draft resolution (Attachment 1)
6. [-mail correspondence from Lee Quintana and staff response
SLB:EO:ct
Exhibit A
TOWN OF LOS GATOS
BELOW MARKET PRICE HOUSING PROGRA11I GUIDELINES
I. Purpose
A. Purpose: The overall purpose of the Below Market Price (BMP) Housing
Program is to provide the Town of Los Gatos with a supply of affordable housing.
While the program is available to all qualified applicants, the general intent of the
program is to provide affordable housing for households who work or currently
live in Los Gatos. The main goal is to increase the housing supply for households
that have median and low incomes compared to the median income for Santa
Clara County and meet the housing needs identified in the Town's General Plan
Housing Element. The Program further intends to ensure, to the greatest extent
possible, that rent and re -sale of these housing units will remain affordable to
median and low income levels for the longest feasible time as approved by an
authorized body. AIthough the Town has a fee -in -lieu of constructing actual
units option for defined circumstances, the primary objective of the BMP Program
is to obtain actual "rental" or "for sale" housing units rather than equivalent funds.
All off -site BMP units shall be constructed within the Town of Los Gatos. The
construction and occupancy of the BMP unit is determined according to these
Town Council established guidelines and authorizing ordinances.
B. Enabling Legislation: The Below Market Price Program is governed by Division
6 of the Town Code. The BMP Program is administered under these Below
Market Price Housing Program Guidelines.
II. Below Market Price Housing Requirements — General
A. Applicability: The BMP Program requirements shall apply to all residential
development projects that include five (5) or more residential units or parcels
which involve:
1. New construction of ownership or rental housing units, including mixed
use developments and addition of units to existing projects, or
2. Subdivision of property for single family or duplex housing development,
or
3. Conversion of rental apartments to condominiums or other common
interest ownership, or
4. Conversion of non-residential use to residential use.
B. Number of BMP Units: All residential developments consisting of five (5) or
more units are required to participate in the BMP Program. The requirements for
participation increase by development size as shown below:
BMP Guidelines
ATTACHMENT 5
1. Five (5) to Nineteen 19 market rate units: The developer shall provide a
minimum number of BMP units equal to ten (10) percent of the number of
market rate units.
2. Twenty (20) to one hundred (100) market rates units: The developer shall
provide a minimum of BMP units as determined by the following formula:
Number of BMP units = (.225 x total # of market rate units) - 2.5
This formula acts to increase the number of BMP units required, as a
percentage of market -rate units, from 10% to 20% over the range of 20 to
100 market rate units.
3. One hundred and one (101) units or more: The developer shall provide a
minimum number of BMP units equal to twenty (20) percent of the
number of market rate units.
BMP dwellings within a project of rental units shall also be rental units. BMP
units within a project of owner -occupied units shall also be designated as units for
purchase. BMP units within a project that contains both rental and owner -
occupied units shall also be designated as both rental and as units for purchase, in
a ratio similar to that of the market rate units.
The Town and developer may negotiate to provide more BMP units than required
by the rules listed in these guidelines to fulfill a development's Community
Benefit requirements.
C. Fraction of a BMP Housing Units: In determining the number of BMP units
required, any decimal fraction of .5 or above shall be rounded up to the nearest
whole number. Decimal fractions below .5 shall be rounded down to the nearest
whole number.
D. Residential In -Lieu Payments: The general intent of the BMP Program is to
provide the Town of Los Gatos with a supply of affordable housing for
households who work or currently live in Los Gatos. However, there may be
circumstances when the construction of the BMP unit is impractical or there are
unusual circumstances .that make the construction of the unit inconsistent with
Town policy. The Town, at its sole discretion, may consider an in -lieu payment
alternative to the required BMP unit in the case of Planned Unit development with
an underlying zone of HR or a residential developments with five (5) to nine (9)
units. Prior to approving the in -lieu fee alternative, the applicant must
demonstrate to the satisfaction of the Town why a BMP unit cannot be (1)
developed on the same site as the market rate units, and if it cannot be provided
on the same site then, (2) develop at an appropriate off -site location within the
Town limits. If the developer provides sufficient justification that both of these
alternatives are not viable, then a fee in -lieu option may be considered. The
required in -lieu fee is as established by a separate resolution and is to be paid to
BMP Guidelines Page 2