1993-049-Authorize The Town Manager To Execute A Below Market Rate Agreement With American Baptist Homes Of The West For The Terraces, 800 Blossom Hill RdRESOLUTION 1993 -49
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
AUTHORIZING THE TOWN MANAGER TO EXECUTE A
BELOW MARKET RATE AGREEMENT WITH
AMERICAN BAPTIST HOMES OF THE WEST
FOR THE TERRACES, 800 BLOSSOM HILL ROAD
WHEREAS, the requirement for Below Market Price units is included in the
Terraces Planned Development (PD) overlay ordained in Ordinance No. 1788; and
WHEREAS, the attached agreement (Exhibit A) with American Baptist
Homes of the West stipulates elements of the Terraces BMP housing program
implementation;
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS
GATOS DOES HEREBY RESOLVE AS FOLLOWS: Authorize the Town Manager to
execute an Below Market Rate Agreement with American Baptist Homes of the West for
the Terraces.
PASSED AND ADOPTED at a regular meeting of the Town Council of the
Town of Los Gatos, California, held on the 5th day of April, 1993, by the following vote:
COUNCIL MEMBERS:
AYES: Randy Attaway, Steven Blanton, Linda Lubeck,
Mayor Joanne Benjamin
NAYES: None.
ABSENT: Patrick O'Laughlin
ABSTAIN: None.
SIGNED:
qt�A�YOORF THE WN OF LOS GATOS
LOS GATOS, CALI ORNIA
ATTEST:
LJ
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
CSD08:A: \RESOS \CSO40593. R49
TOWN C'' -Zll4
AG F:
AGREEMENT BETWEEN AMERICAN BAPTIST HOMES OF THE WEST,
INC. AND THE TOWN OF LOS GATOS RELATING TO BELOW MARKET
PRICE HOUSING AT THE TERRACES
American Baptist Homes of the West, Inc., (hereinafter "ABHOW "), doing business
as the Terraces of Los Gatos, enters into this Agreement with the Town of Los Gatos
(hereinafter 'Town ") to provide housing and services at reduced rates to eligible senior
citizens as part of the Terraces program.
The Terraces of Los Gatos is a Licensed Residential Care Facility for the Elderly
and a Continuing Care Retirement Community regulated by the State of California.
ABHOW agrees to provide and rent 29 Below Market Price (hereinafter "BMP") units to
eligible senior citizens. As used in this Agreement, "senior" means persons aged 62 or
older.
I. ADMINISTRATION
ABHOW will retain administrative control and responsibility of the program
provided for in this Agreement as required by company policy and developed to meet the
demand of Federal Conditions of Participation in Medicare as a certified provider.
ABHOW will administer the BMP units in compliance with this Agreement and its Exhibit
A, and the following sections of the Town's current Resolution Specifying Rules, Procedures
and Criteria for the Town's BMP housing program:
I.B. Applicant Priority
I.C. Confidentiality
III.A. Applicant Eligibility
• III.C. Tenant Selection
A copy of the current Resolution is attached hereto and made a part of this Agreement as
Exhibit B.
2. BELOW MARKET PRICE MONTHLY SERVICE FEES
The initial BMP monthly service fees are specified in the attached Exhibit A which
is made a part of this Agreement. These fees are determined by subtracting the percentage
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of subsidy as specified in this Agreement from the market rate monthly service fees for
units at the Terraces. The monthly service fees includes both service and shelter elements.
ABHOW agrees to rent 29 units located at the Terraces at the BMP monthly service fees
as specified in this Agreement. Said units shall be rented to eligible senior citizens in
accordance with the standards provided in this Agreement.
The market rate monthly service fees shall be reduced in the percentage specified
below to determine the amount of the below market price monthly service fees. These
percentages may not be decreased.
Alcove 12.5 percent
1 Bedroom /1 Person 18.2 percent
1 Bedroom /2 Persons 14.7 percent
Also see Exhibit A-
3. APPLICANTS
Except as otherwise provided in this Agreement, to receive consideration for the
BMP units, all applicants must meet the admissions criteria set for all other applicants at
the Terraces and must be able and willing to enter into a Continuing Care Agreement.
In order to be eligible, applicants for the BMP units must have an annual household
income of 80 percent or less of the Metropolitan San Jose's median income as defined by
the U.S. Department of Housing and Urban Development.
4. AVAILABILITY OF UNITS
In accordance with the Town's approval of the project, ABHOW will make available
and shall rent 29 Alcove and /or 1 bedroom units as BMP units. Twenty -nine units is 20
percent of the market rate units constructed at the Terraces project. If ABHOW is unable
to rent a BMP unit to a qualified individual or individuals after best efforts have been
made to do so for a period of not less than 90 days, the unit may be rented at the market
rate so long as the next vacant unit is then designated a BMP unit and best efforts to find
a qualified individual for the BMP unit are made for at least 90 days. If more than one
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BMP unit is filled by a market rate tenant, then all new vacancies will be designated BMP
units until 29 units are designated as BMP units. Temporary vacancies due to temporary
assignment to the Assisted Living or Nursing Facilities will not count as vacancies to be
designated BMP units.
Refusal to accept a specific unit by an eligible BMP applicant will not prejudice the
applicant's place on a waiting list.
5. MARKETING
ABHOW will market all units.
6. ANNUAL REVIEW
ABHOW will submit an annual summary of occupancy and activity in the BMP
program to the Town's Director of Community Services. The Town will monitor the BMP
program at the Terraces every six months during the first two years after the date this
Agreement is entered into and will monitor the Terraces BMP program annually thereafter.
ABHOW will notify the Town whenever the total BMP unit count falls below 29 and will
inform the Town of efforts to increase the waiting list. ABHOW will also notify the Town
of new vacancies to be designated as BMP units. ABHOW will notify the Town 60 days
prior to any increase in the market rate monthly service fee and the BMP monthly service
fee.
Dated: !61173 _ Ame ican Baptist Homes of the West, Inc.
avid B. F r n
Executive 'i resident
Dated: / a Town of Gatos
avid W. Knapp
Town Manager
\ y
CSD74:A: \COM'RACr\TERRACESAGR A TEST:
Page 3 of 3 MARIAN V. COSGRO E, TOWN CLERK
EXHIBIT A
The Terraces of Los Gatos Below Market Price Program
CSD14:A: \contract \A erBapt.fin
Alcove
One Bedroom
Double Occ.
Market Rate MSF*
1,440
1,650
2,180
Service Element Price
585
615
1,145
Shelter Element Price
855
1,035
1,035
* Monthly Service
Fee
Federal Guidelines to determine
applicant eligibility
1992 -93 HUD income
levels for Metropolitan
San Jose @ 80
percent of median
income:
Single Person
$27,000
Couple
$30,900
Maximum Shelter Price
Single Person
(27,000 x 33% /12)
$743
Couple
(30,900 x 33% /12)
$850
Alcove
One Bedroom
Double Occ.
Shelter Element Price
855
1,035
1,035
Maximum Shelter Price
743
743
850
Raw Differential
112
292
185
BMP Monthly Subsidy
180
300
320
BMP Monthly Service Fee
1,260
1,350
1,860
Subsidy as Percentage of
Market 12.5%
18.2%
14.7%
Rate MSF.
CSD14:A: \contract \A erBapt.fin