Desk Item
PREPARED BY: JOEL PAULSON
Community Development Director
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Community
Development Department Director, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 03/05/2019
ITEM NO: 4
DESK ITEM
DATE: MARCH 5, 2019
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: PROVIDE DIRECTION ON POTENTIAL AMENDMENTS TO THE TOWN’S
BELOW MARKET PRICE REGULATIONS
REMARKS:
In response to questions from a Council Member, staff has prepared the following information.
If we disallow single-family homes as rentals and only rentals are allowed, if a developer is
building ten single-family homes are they required to build two apartments? Or does this
mean we will get a lot more payments into our BMP fund?
If a developer is proposing 10 single-family homes then they would be required to build one
Below Market Price (BMP) unit. If the development is all single-family homes, then the current
BMP regulations require that the BMP unit be a single -family home.
The current BMP Guidelines only allow payments into the BMP fund to be considered for
Planned Developments with an underlying zone of Hillside Residential or residential
developments with five to nine units. When payments to the BMP fund are approved the in-
lieu fee is six percent of the building permit valuation for the entire project.
Do we collect enough to buy land and then build the same number of BMP units that the
developer would have built?
Our BMP fund currently has a balance of $3,845,018.48. This fund balance is not enough to
buy existing units and convert them into BMP units or buy land and pay all of the construction
costs for many BMP units depending on the ownership type (i.e. condominiums, townhome,
single-family, etc.).
PAGE 2 of 2
SUBJECT: PROVIDE DIRECTION ON POTENTIAL AMENDMENTS TO THE TOWN’S BELOW
MARKET PRICE REGULATIONS
DATE: MARCH 5, 2019
S:\COUNCIL REPORTS\2019\03-05-19\04 Town BMP Program\Desk Item Final.docx
Attachments previously received with the March 5, 2019 Staff Report:
1. BMP Guidelines
2. Zoning Ordinance Requirements for BMP Units
3. Income Limits for BMP Units
4. Fair Market Rent for BMP Units
5. Mayor’s suggestions on the Town’s BMP Regulations
Attachment previously received with the March 4, 2019 Addendum:
6. Public comments received between 11:01 a.m., Thursday, February 28, 2019 and 11:00
a.m., Monday, March 5, 201