Attachment 2Arn Andrews
From: Hamid Taeb <HTaeb@habitatebsv.org>
Sent: Friday, October 20, 2017 9:33 AM
To: Arn Andrews
Cc: Joel Paulson; Kevin Elliott; Melinda Platt
Subject: RE: Update on Los Gatos Town Property 20 Dittos Lane
Attachments: Habitat Dittos Ln proposal 11-13-2017.pdf; Habitat 2nd proposal-12 Units from College
Ave.pdf
Follow Up Flag: Follow up
Flag Status: Flagged
Dear Mr. Arn Andrews:
In the last ten months, Habitat has worked extensively to provide two separate proposals as possible affordable housing
development opportunities at 20 Dittos Lane for the Town of Los Gatos. These two proposals have stated the following:
Proposal 1 - On January 13, 2017 Habitat provided a proposal expressing interest to develop the site at 20 Dittos
Lane with 3 to 4 affordable units using the current access (see attached). The proposal contemplated offing the
homes to families earning up to 120% of AMI. During various meetings Habitat conducted with neighbors, it became
apparent that they did not support the development for more than 2 homes. Habitat also held meetings with Santa
Clara County Fire Department and learned that the condition of the current access does not support a development
of more than 2 units.
Proposal 2 -Habitat evaluated the possibility of an access from College Avenue to mitigate the concerns of neighbors
and the Santa Clara County Fire Department. Through extensive engineering analysis, Habitat arrived at a solution to
create access from College Avenue to the flat area of the site. To properly finance the expensive access and the
project, Habitat envisioned providing a minimum of 12 homes within two story structures
as condominiums/townhouse of 1 to 3 bedrooms units ranging from - to SQFT (see attached Summary
Budget dated). The development contemplated reusing the blocks and stones of the existing retaining walls that had
been preserved on the property. Habitat envisioned offering the units to families earning below 120% of AMI. The
offering would give priority to people currently working in the Los Gatos area such as teachers and public servants.
We understand that the Town Council on September 19, 2017 provided guidance and limited the density on the
property to 4 units. Habitat is interested, willing and able to develop the site using the existing access from Dittos
Lane and without any modification to the access to provide 3 to 4 affordable units per proposal 1 provided that the
Santa Clara County Fire Department and immediate neighbors including the owners and residents of El Gatos
Apartments will support and allow the development of 3 to 4 affordable units. Habitat is also willing to work with
Town staff, Council, and neighbors to provide more affordable homes similar to proposal 2 using College Avenue as
the ultimate access for the development.
We appreciate your time and consideration of our proposals to transform this vacant lot into an opportunity to provide
affordable homes to the teachers, public servants, and residents of the Town of Los Gatos.
Regards;
1
Hamid Taeb
Director of Real Estate Development
Habitat for Humanity East Bay/Silicon Valley
Phone: 510-803-3355
HTaeb@HabitatEBSV.org
East Bay: 2619 Broadway, Oakland, CA 94612
Web: HabitatEBSV.org 1 Facebook: /HabitatEBSV I Twitter: @HabitatEBSV I eNews
40.4%.
Habitat
1 for Humanity
East Bay/Silicon Valley
IAGINE
WHAT MORE WE CAN BUILD
Notice: This message may contain confidential information. Unauthorized use, disclosure, distribution, or copying is prohibited. If received in error, please return to
sender.
From: Arn Andrews[mailto:aandrews@losgatosca.gov]
Sent: Tuesday, September 26, 2017 1:58 PM
To: Hamid Taeb <HTaeb@habitatebsv.org>; TAlarcon@LegacyWealthVentures.com; sarah.chaffin@hotmail.com;
Goddard, Nick (SJC) <Nick.Goddard@colliers.com>; Iazykrancho@aol.com; geraldscottfineart@gmail.com
Cc: Joel Paulson <jpaulson@losgatosca.gov>
Subject: Update on Los Gatos Town Property 20 Dittos Lane
H i,
You are receiving this email because you have previously expressed interest in 20 Dittos Lane, either through our
previous RFP process or other channels. On September 19, 2017, the Town Council provided further guidance on the
disposition and use of Dittos Lane. The Town Council confirmed that the property should be utilized for Below Market
Rate (BMR) housing in keeping with the original intent of the properties acquisition. In addition, the Council opined that
the preferred goals for the property would entail a maximum of four units, target low and moderate affordability
income ranges, and lastly attempt to preserve the historic and environmental nature of the site.
The Council is providing an additional opportunity to previous, and new proposers, who wish to submit proposals
reflective of the aforementioned goals. Initial submissions should be directed to myself by October 22, 2017. Please let
me know if you have any questions. Thank you.
Arn Andrews • Assistant Town Manager
110 East Main Street, Los Gatos CA 95030
Ph: 408.354.6836 • aandrews@losgatosca.gov
www.losgatosca.gov • https://www.facebook.com/Iosgatosca
2
Habitat
1• •• for Humanity'
East Bay/Silicon Valley
January 13, 2017
Kay Winer
Assistant Town Manager
110 East Main Street
Los Gatos, CA, 95030
Telephone: (408) 399-6834
RE: Development proposal for 20 Dittos Lane
Dear Ms. Winer,
Habitat for Humanity East Bay/Silicon Valley (Habitat) is excited for the potential opportunity to partner
with the Town of Los Gatos. Habitat is submitting this proposal to develop affordable, for -sale housing at
the property located at 20 Dittos Lane. Habitat is proposing that the Town of Los Gatos donate this
property in order to make it feasible to provide a 100% affordable development. A sample development
budget is enclosed.
This development will allow Habitat to take a vacant parcel of land in the Town of Los Gatos and convert
it into a vibrant affordable for -sale housing project that will contribute to the surrounding community.
Habitat anticipates developing the site with three to four 3- and 4-bedroom homes. The units will range
from approximately 1,200 to 1,400 square feet. The homes will have a mix of horizontal and vertical
board and shingle siding. Attractive trim materials and architectural details such as brackets, extended
overhangs, and a variety of siding types will increase the visual appeal of the building. The homes will be
simple and modestly sized but will incorporate many green building features which will address passive
solar design, energy efficiency, water efficiency, resource conservation, and indoor air quality. Habitat
expects that all homes in this project will be GreenPoint certified, as other recent projects have been.
Habitat anticipates that the homes would be built in one phase.
Access to the property will be through an existing adjacent development (the El Gato Penthouse
Apartments) and Habitat intends to design the site circulation to allow for a standard turnaround for
fire, emergency, and service vehicles.
The homes will be targeted towards households earning no greater than 120% of the area median
income. The homes will come with a minimum 30-year resale restriction, which are designed to keep the
homes affordable when families are ready to sell and prevents the homes from being sold at market
rate. Habitat typically retains the first option of purchase, which means that if a family decides to sell
their home, Habitat can purchase it and resell it to a new qualified family at an affordable sales price.
it starts with HDr starts
With YOU
HabitatEBSVorg 1866.450 4432 I EAST BAY 2619 Broadway, Oakland, CA 94612 I SILICON VALLEY 513 Val ey Way, Milpitas, CA 95035
Please find enclosed the following supplemental exhibits:
1. Exhibit A: Sample development budget
2. Exhibit B: Organization Information
3. Exhibit C: Fiscal Year 2016 Audited Financial Statement
We appreciate the opportunity to be considered for this project. Please contact me at
HTaeb@HabtiatEBSV.org or (510) 803-3355 if you have any questions.
Thanks very much,
Hamid Taeb
Housing Director
Exhibit A
Preliminary Development Budget
Permanent Sources
County Bond
Habitat Contribution
Home Sales Proceeds - Low
Home Sales Proceeds - Mods
Total Development Budget
Homes
Build. Ft'
4
5,208
Jan. '17 Preliminary Budget
Total Per Unit % of Total Cost
300,000
430,661
610,800
1,176,381
150,000 (1)
215,330 (1)
305,400 (1)
588,191 (2)
11.9%
17.1%
24.3%
46.7%
Total Permanent Sources $ 2,517,842 $ 629,460 (3) 100%
Development Costs
Land 0.0%
Due Diligence 75,000 18,750 3.0%
Design Consultants 176,980 44,245 7.0%
Site Development 736,000 184,000 29.2%
Home Construction 768,221 192,055 30.5%
Permits and Fees 329,708 82,427 13.1%
Administration 235,239 58,810 9.3%
Finance & Carrying 108,646 27,161 4.3%
Marketing/Homeowner Relations 88,048 22,012 3.5%
Total Development Costs $ 2,517,842 $ 629,460 100%
Net Project Inflow! (Outflow)
(1) Per unit is based on the number of low income homes.
(2) Per unit is based on the number of moderate income homes.
(3) Total Permanent Sources per unit is Total Permanent Sources divided by the total number of homes.
This budget assumes a 4-home development; the numbers may change based on varying details, such as
product type and unknown site conditions.
Exhibit B
Organization Information
Habitat for Humanity East Bay/Silicon Valley revitalizes neighborhoods, builds affordable and sustainable
housing solutions, and empowers families through successful homeownership. Since 1986, Habitat has
partnered with volunteers, the community, and qualified families with limited incomes to strengthen
communities in Alameda, Contra Costa, and Santa Clara counties.
Habitat envisions a world where everybody has a decent place to live, and provides housing solutions
ranging from new construction to home renovations and owner -occupied home repairs. Habitat also
provides housing counseling to help households achieve long-term affordable housing.
Areas of specialization and expertise:
New Home Construction
Through Habitat's flagship new construction program, as a licensed general contractor we have
continuously built homes with volunteers since our founding in 1986. Habitat's involvement in the new
construction process includes acquiring sites, identifying sources of financing, managing a design team,
obtaining entitlements, pulling necessary engineering and building permits, managing subcontractors,
constructing the homes, and identifying qualified homebuyers. In the predevelopment phase, Habitat
acquires vacant sites, and selects and manages a design team consisting of contracted architects and
civil engineers in order to create healthy home designs that meet the needs of future homeowners.
Habitat homes are designed to be simple and modestly sized, but the homes incorporate many green
building features which address passive solar design, energy efficiency, water efficiency, resource
conservation, and indoor air quality. All homes are designed to meet or exceed energy efficiency
standards and incorporate sustainable building practices to achieve Build It Green certification.
Throughout the process, Habitat prides itself in building strong relationships with multiple stakeholders:
with the city staff who complete approvals; with the volunteers and donors who enable our work; and
with our clients whose success motivates all that we do. Habitat's new construction projects engage the
community by having most of the construction completed by community volunteers, and by requiring
that homeowners contribute 500 hours of sweat equity towards their home.
In order to set our homeowners up for success, we require them to participate in a series of trainings.
We provide training in leadership development, conflict resolution, and communication so that the
homeowners are prepared for the challenges of managing a homeowners association and organizing
their neighbors to tackle other community improvements. We identify emerging leaders and nurture
their development, helping them acquire the tools they'll need to make the changes they wish to see in
their lives and neighborhoods. The Habitat developments and larger surrounding neighborhoods
become sustainable because the training we offer extends beyond owning a home.
Please see enclosed, examples of ongoing and completed Habitat developments.
Home Renovations
Through Habitat's home renovations program, we purchase homes in need of repair, rehabilitate them,
and sell them to restricted income buyers. Habitat is experienced in renovating homes with significant
deferred maintenance issues and has acquired and renovated approximately 70 homes over the past
few years. These homes range in age from 10 to nearly 100 years old, and in size from just over 700
square feet to over 2,000 square feet. Habitat has developed a thorough due diligence process for
investigating homes and assessing their renovation needs. In order to make these homes affordable to
lower income homeowners in the long term, Habitat preemptively fixes major issues anticipated to arise
within the first 5-10 years of homeownership.
Habitat's renovations engage the community in a number of ways by having most of the renovation
work completed by community volunteers, and by requiring that all homeowners contribute 250 hours
of sweat equity towards their home. As a licensed general contractor, Habitat supervises home
renovations using labor provided by subcontractors, Habitat homebuyers, and community volunteers.
Habitat brings a "whole -systems" approach to its renovations, creating homes that conserve energy,
water, and material resources and are healthy, safe, and comfortable for the occupant.
General Contracting
Owner -Occupied Home Repair:
In 2012, Habitat expanded its services to serve owner -occupied homes in need of repairs, often with
severely deferred maintenance needs. In this program, Habitat works with lower income households to
provide low-cost, safety -focused repairs that enable homeowners to remain in their homes and
neighborhoods. To date, Habitat has provided general contractor repair services to almost 100
homeowners. Habitat acts as a general contractor, overseeing the work of the volunteers and
subcontractors. Habitat trains the homeowners and teams of volunteers to perform repairs that are
critical to the health of the family and the building. Common scopes of work include repairs for roofs,
ramps and accessibility upgrades, window installation, exterior painting, and exterior carpentry,
including fences, porches, railings, and trim. For critical repairs that volunteers cannot perform, Habitat
works with subcontractors to service and replace furnaces, water heaters, electrical, and plumbing.
Homeless Shelter:
Habitat is partnering with Abode Services on a project to rehabilitate two residential houses on Vermont
Street in San Jose, and provide 16 rooms for homeless individuals or couples. Habitat is acting as the
general contractor for this project.
Housing Counseling
Habitat is committed to helping all East Bay and Silicon Valley residents achieve long-term affordable
housing, not just Habitat homeowners. Through our Housing Counseling program, we work with families
to accomplish financial goals and become ready for homeownership. We are approved by the US
Department of Housing and Urban Development (HUD) to provide pre -purchase counseling; pre-
purchase homebuyer education; financial management/budget counseling; financial, budgeting, and
credit education; and non -delinquency post purchase workshops. Our housing counselors help
individuals and households repair credit, reduce debt, and achieve or preserve dreams of
homeownership. Since July 2013, Habitat has provided counseling services to over 700 individuals.
Homebuyer and Financial Literacy Workshops are offered to individuals who are already on the path to
homeownership. Habitat also has a Homebuyer's Club which gives potential homeowners the tools to
take on the responsibilities of homeownership and includes topics such as understanding the home
buying process, budgeting, savings strategies, and keeping debt under control.
Examples of Habitat Developments
Central Commons, Fremont
30 homes (construction to commence this year)
Muir Ridge, Martinez (Unincorporated Contra
Costa County)
20 homes (under construction)
Pleasant Creek Homes, Walnut Creek
10 homes
Kinsell Commons, Oakland
22 homes
Exhibit C
Fiscal Year 2016 Audited Financial Statement
DEVELOPMENT APPROVAL — 20 Dittos Lane, Los Gatos
Existing Site, Access, and Neighboring Properties
Site Boundary
Neighboring Multifamily Buildings
Existing Access through neighboring properties
Unit:
12 Unit Site Plan
ems, �X
d } GtG
Babb r
1 Bedrooms @ 612 SQFT = 4 Stack Flat
2 Bedrooms @ 992 SQFT = 4 2 Story
3 Bedrooms @ 1192 SQFT = 4 2 Story
Total 12
Parking:
Assigned Parking
Guest Parking
Total
= 24
= 8
= 32
Parking Ratio:
2 Per Unit
.75 Per Unit
2.75 Per Unit
Dittos Ln, Los Gatos
Summary Budget
7/13/2017
Low Income
Mod. Income
Total Homes
Build. Ft2
1 BR
2 BR
3 BR
4 BR
Total Homes
1
1
1
-
3
3
3
3
-
9
4
4
4
-
12
11,204
Permanent Sources
Town of Los Gatos - Land Donation
Habitat Contribution
County Funds
Home Sales Proceeds - Low
Home Sales Proceeds - Mods
Home Sales Proceed - WISH Funds
Total Development Budget
Homes
Build. Ft2
12
11,204
June '17 Board Budget
Total
3,100,000
240,000
3,000,000
830,000
3,990,000
45,000
Per Unit % of Total Cost
258,333
80,000 (1/
250,000
276,667 (1)
443,333 (2)
15,000 (1)
27.7%
2.1%
26.8%
7.4%
35.6%
0.4%
Total Permanent Sources $ 11,205,000 $ 933,750 (3) 100%
Development Costs
Site Acquisition/Due Diligence 3,150,000 262,500 28.1%
Design Consultants 495,000 41,250 4.4%
Site Development 3,600,000 300,000 32.1%
Home Construction 2,000,000 166,667 17.8%
Permits and Fees 650,000 54,167 5.8%
Administration 750,000 62,500 6.7%
Finance & Carrying 300,000 25,000 2.7%
Marketing/Homeowner Relations 260,000 21,667 2.3%
Total Development Costs $ 11,205,000 $ 933,750 100%
Net Project Inflow / (Outflow)
(1) Per unit is based on the number of low income homes.
(2) Per unit is based on the number of moderate income homes.
(3) Total Permanent Sources per unit is Total Permanent Sources divided by the total number of homes.
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DEVELOPMENT APPROVAL — 20 Dittos Lane, Los Gatos
Examples of Roadway Retaining Walls