15 Desk Item - Annual Update on Affordable Housing ActivitiesMEETING DATE: 1/20/03
°wN o~ ITEM NO.
DESK ITEM
SOS Gh COUNCIL AGENDA REPORT
DATE: JANUARY 20, 2004
TO: MAYOR AND TOWN COUNCIL
FROM: DEBRA J. FIGONE, TOWN MANAGER
SUBJECT: ANNUAL UPDATE ON AFFORDABLE HOUSING ACTIVITIES
DISCUSSION:
Council Member McNutt raised an issue concerning the report entitled Annual Update on
Affordable Housing Activities noting that on the second page of the report it indicates that
should the property at 20 Dittos Lane be acquired, that staff would issue an RFP to non-profit
housing developers for an affordable housing development on this property. Council Member
McNutt has indicated that such an RFP should not be restricted solely to non-profit developers,
but also should include for-profit developers. Staff stands corrected, and concurs that such an
RFP should also be send to for-profit developers.
PREPARED BY: Marty Woodworth P''C
Redevelopment Manager
N:\DEV\Marty\Forms\affordablehousingdeskitemj an2004.wpd
Reviewed by: a Assistant Town Manager !`)V- Town Attorney Clerk Finance
`~ommunity Development Revised: 1/20/04 12:40 pm
Reformatted: 5/30/02
MEETING DATE: 1/20/04
t°wN of ITEM NO. j
COUNCIL AGENDA REPORT
!ps GAt°9
DATE: JANUARY 13, 2004
TO: MAYOR AND TOWN COUNCIL
C.
FROM: DEBRA J. FIGONE, TOWN MANAGER
SUBJECT: ANNUAL UPDATE ON AFFORDABLE HOUSING ACTIVITIES
RECOMMENDATION:
Accept report on affordable housing activities.
BACKGROUND:
On September 16, 2002, the Town Council held a Study Session to discuss the Town's affordable
housing activities. Staff prepared a detailed report (Attachment 1) for the Study Session that
discussed the Town's affordable housing activities. In addition, staff prepared a detailed Draft
Redevelopment Agency Affordable Housing Strategy that outlined a number of potential affordable
housing activities to pursue.
Annually, staff would like to update the Council on the current affordable housing activities being
undertaken by the Redevelopment Agency ("Agency") and by the Town. In this manner Council can
be informed of activities and provide comments to staff.
DISCUSSION:
New affordable housing units in Los Gatos are generally provided in two ways: 1) using
Redevelopment Agency Low and Moderate Income Housing Funds, and; 2) through the Town's
Below Market Price program and with CDBG funds. Listed below are the affordable housing
activities currently being pursued in each of these two categories.
PREPARED BY: Marty Woodwortl
Redevelopment and Economic Vitality Director
Reviewed by: Assistant Town Manager Attorney Clerk Finance
IEL-~iommunity Development Revised: 1/13/04 8:57 am
Reformatted: 5/30/02
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: ANNUAL UPDATE ON AFFORDABLE HOUSING ACTIVITIES
January 13, 2004
Redevelopment Agency Low and Moderate Income Housing Fund
Under Redevelopment Law, 20 percent of all tax increment revenue collected by a redevelopment
agency must be spent on affordable housing. The Agency currently has approximately $2.6 million
in its Low and Moderate Income Housing Funds ("LMIHF") with annual revenues of approximately
$800,000. This annual income stream is generally unencumbered (there are no bonds or other debt
service payments required of it).
The Agency has undertaken two projects over the past year. The first is the Habitat for Humanity
house on Charles St. that was completed in September, 2003. The Agency contributed $310,000 to
make this project a reality. The second project, which was completed in early December, 2003, is
the Project Match five unit very low income senior group residence on Blossom Hill Rd. The
Agency contributed $262,000 in LMIHF and the Town contributed $126,801 in CDBG funds to this
project.
The Agency is currently working with the owners of 20 Dittos Lane regarding a potential purchase
of this 1.5 acre property. Should the Agency be able to acquire this property it would then issue a
Request for Proposals (RFP) to non-profit housing developers for an affordable housing
development on this property. Staff, at a later date, will need to get direction from the Council
regarding the type of affordable housing project desired and an idea of the density that might be
suitable for the site.
2. Below Market Price Affordable Housing Program
Under the Town Code, new housing developments of five or more units must either provide a
certain number of Below Market Price units (BMP) or pay an in-lieu fee to the Town. The Town
has approximately $1 million in its BMP in-lieu fund available for affordable housing projects.
These funds can be combined with Agency funds in order to finance a project such as Dittos Lane
or could be used on a separate Town initiated project.
During the first half of 2004, staff will be focused on revising the BMP Guidelines. The goals
of this revision are to maximize the program's benefit to the community, and to facilitate more
effective administration. Issues to be addressed include:
Demographics: What is the typical household size, income, and composition of the local
households who could most benefit from the BMP Program? How should these household
characteristics affect unit size or price?
Community Benefit Units: How should the program address proposed community benefit
units? (i.e., - units which the developer wishes to reserve for certain populations, such as teachers
or public safety employees. To date approximately three of these types of units have been
proposed).