Staff Report
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
DATE: FEBRUARY 28, 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
RECOMMENDATION:
Provide direction on potential amendments to the Town’s Below Market Price (BMP)
regulations.
BACKGROUND:
The Town first adopted BMP regulations in 1979. The BMP regulations have been modified
over the years since they were first adopted. The most recent modifications to the
regulations occurred in 2009.
The Town’s BMP regulations have resulted in a current inventory of 54 for sale BMP units
and 117 rental BMP units. Although not a result of the Town’s BMP regulations, the Town
also has another 191 affordable units that were created by affordable housing developers.
In addition, the Phase 1 North 40 development includes 49 affordable senior units and one
moderate income management unit. Many of these units have deed restrictions to
maintain a permanent supply of affordable housing in the Town.
The Mayor requested that this matter be placed on this Town Council agenda. See
Attachment 5 for suggestions from the Mayor.
PAGE 2 of 2
SUBJECT: PROVIDE DIRECTION ON POTENTIAL AMENDMENTS TO THE TOWN’S BELOW
MARKET PRICE REGULATIONS
DATE: FEBRUARY 28, 2019
S:\COUNCIL REPORTS\2019\03-05-19\Town BMP Program\Staff Report.docx
DISCUSSION:
Attachment 1 contains the current BMP Guidelines and Attachment 2 contains the current
Zoning Ordinance requirements for BMP units. Income limits and fair market rent for BMP units
are included in Attachments 3 and 4, respectively.
Staff will be available at the meeting to answer questions regarding the Mayor’s suggestions or
other topics and looks forward to receiving direction on potential amendments to the Town’s
BMP regulations.
CONCLUSION:
This meeting will provide an opportunity for the public to provide input and the Town Council
to provide direction regarding BMP regulations. Based on the Town Council’s direction, staff
would prepare potential amendments to the BMP regulations that would then be considered
by the General Plan Committee (where applicable), Planning Commission, and Town Council.
ALTERNATIVES:
Alternatively, the Council may:
1. Refer the matter to the Policy Committee; or
2. Direct staff to leave the BMP Guidelines and/or Zoning Ordinance requirements for BMP
units unchanged.
Attachments:
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