Item 2 - Exhibit 11 - Comments from a Planning CommissionerFrom: Jeffrey Barnett
Sent: Tuesday, August 11, 2020 4:48 PM
To: Joel Paulson <jpaulson@losgatosca.gov>
Subject: Planning Commission Meeting 8.12.20 Item 2
Good afternoon, Joel.
Below are my comments concerning the proposed changes to the Code and the
Guidelines related to the BMP Program. The proposed changes and my comments
(in brackets) are in red font.
Would you kindly distribute this as a desk item.
Sec. 29.10.3010. – Program —Intent. The below market price (BMP) program
requires the provision of dwellings that persons and families of moderate and low
income can afford to buy or rent, and assures to the extent possible that the
resale prices of those dwellings, and rents if they are rented, will be within the
means of persons and families of moderate and low income. [this harmonizes the
statute internally and also with the Guidelines; the missing language appears
to be an oversight.]
Sec. 29.10.3030. - Price. The price of BMP units is controlled for the first buyer
and for future buyers by the BMP Guidelines as adopted and amended from time
to time by Council resolution and as follows: 1. The initial price is limited to direct
construction cost and a proportionate share of the costs of preparing working
drawings and specifications and providing on-site and off-site improvements,
determined according to rules set by the Council. 2. The initial price does not
include the cost of land, profit, or marketing costs. 3. Each BMP unit will be
subjected to recorded title restrictions concerning manner of fixture sales,
occupancy and leasing. 4. Each buyer of a BMP unit must agree to sell the unit to
a moderate or low income buyer designated by the Town. The Town will
designate moderate income persons according to rules adopted by the Council in
effect at the time the seller purchased the unit. 5. The resale price cannot exceed
the original selling price plus the value at the time of sale of improvements added
by the owner, and plus an amount equal to the increase in cost of living or
housing during the owner's tenure. The index or method to be used in calculating
the increase is established by the Council. 6. If a BMP unit to be resold has not
been properly maintained or for any other reason is in poor condition and in need
EXHIBIT 11
of cleaning or repair, the Town may elect to do the work or have it done and
recover the cost from the sale price limited as provided in subsection (5). 7. The
regulations will specify the period for controlled resales. The time period will be in
perpetuity or for as long as is practical. [same comment]
Guidelines – Page 9 - 4. (b) ii
ii. For persons who are retired at the time of application, the applicant’s work
history immediately prior to the date of retirement shall be considered in
determining the length of employment. The Town may require applicants to
submit pay stubs, W-2 forms, tax returns, or other satisfactory evidence as proof
of employment at a Santa Clara County business. Length of employment shall be
calculated from the from the final date for submitting a Town Eligibility
Preapplication. [I do not understand the logic here. Should “from” be “to”?]
Guidelines -Page 10 (b) ii
For persons who are retired at the time of application, the applicant’s work
history immediately prior to the date of retirement shall be considered in
determining the length of employment. The Town may require applicants to
submit pay stubs, W-2 forms, tax returns, or other satisfactory evidence as proof
of employment at a Santa Clara County business. Length of employment shall be
calculated from the final date for submitting a Town Eligibility Preapplication.
[same issue here].
Guidelines – Page 11 (8)
An applicant must obtain pre-approval for a mortgage loan within one week after
notification of eligibility to purchase a unit. The applicant must submit
documentation of loan approval within three weeks of notification of eligibility to
purchase a unit. These time limits may be extended by the Town for good cause.
[the timeline benchmarks may be too short].
Guidelines – Page 16 D a
a. The Town or its designee will provide the “BMP Renter Occupancy Certification
Form” to all BMP tenants who have lived in a BMP unit for at least one year. If the
BMP renter fails to submit a signed Occupancy Certification Form within thirty
(30) days of the written request, then the lease shall automatically terminate, and
the rent will increase to market rate, as determined by the apartment owner,
property manager or the Town within sixty (60) days of written notice from the
apartment owner/property manager. [In the case of multifamily developments,
such as condominiums and planned developments, there is no “apartment
owner”, and any retained property manager for the common interest
development is unlikely to accept this responsibility. The Town should be able to
set the fair market rate in the event of a tenant’s failure to timely submit a signed
Occupancy Certification Form]
Guidelines – Page 17 6
6. Executed Lease Agreement and BMP Addendum: The apartment owner,
property manager or tenant shall provide the Town or its designee with a copy of
the executed lease agreement and BMP Addendum within five (5) business days
of execution. [similar concern]
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