11 Staff Report - Below Market Price Housing Program~owN nF MEETING DATE: 4/4/05
ITEM NO. 11
,os COUNCIL AGENDA REPORT
S G pt
DATE: March 24, 2005
TO: MAYOR AND TOWN COUNCIL
FROM: DEBRA J. FIGONE, TOWN MANAGER
SUBJECT: ADOPT A RESOLUTION ADOPTING REVISED BELOW MARKET PRICE
HOUSING PROGRAM GUIDELINES AND RESCINDING RESOLUTION
2003-117
RECOMMENDATION:
Adopt a resolution (Attachment 1) adopting revised Below Market Price Housing Program
Guidelines and rescinding Resolution 2003-117.
BACKGROUND:
The Town's Inclusionary Zoning Ordinance was adopted in 1979.. The ordinance requires
developers to provide a specified number of affordable owner-occupied or rental units, as
appropriate, in their new housing projects. In some instances, developers may pay fees in lieu of
providing affordable units. All units developed under the ordinance are managed under the Town's
Below Market Price (BMP) Housing Program.
The BMP Program is managed by the Community Services Department, in accordance with the
Council-adopted "Below Market Price Housing Program Guidelines" (BMP Guidelines). The
current Guidelines were adopted under Resolution 2003-117.
DISCUSSION:
The Community Services Commission, with input from the General Plan Committee and staff, has
conducted an extensive review of the BMP Guidelines, with the goal of improving the way in which
the BMP' Program provides affordable housing to the Los Gatos community. At its November 18,
2004 meeting, the Commission adopted a recommendation that Council adopt revised BMP
Guidelines (Exhibit A to Attachment 1).
PREPARED BY: Regina A. Falkner, Director of Community ServicesR4 f
N:\CSD\TCRPTS\2005 TCRPTS\BMP Guidelines 2005.wpd Y/47'
Reviewed by: 1S Assistant Town Manager Town Attorney Clerk Administrator
Finance Community Development Revised: 3/24/05 1:02 pm
Reformatted: 5/30/02
' PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT A RESOLUTION ADOPTING REVISED BELOW MARKET PRICE
HOUSING PROGRAM GUIDELINES AND RESCINDING RESOLUTION 2003-
117
March 24, 2005
Key Changes
As noted above, the goal of the recommended changes to the BMP Guidelines is to improve the way
in which the BMP Program works to provide affordable housing in Los Gatos. A summary of the
key refinements follows, and a redline version of the Guidelines is Attachment 2:
Community Benefit. The Town and developer may negotiate for the developer to provide
more than the minimum required number of BMP units, to fulfill a development's Community
Benefit requirements. They may also negotiate regarding the affordability mix of those units; also
under the Community Benefit requirements.
Status of Units. BMP units must be the same type as the market-rate units in the same proj ect
(i.e., BMP units in a project of owner-occupied units must also be owner-occupied). BMP units in
a project of rental units must also be rental units. Deed restrictions must be recorded for both owner-
occupied and rental units. This is current practice, and is now stated expressly in the guidelines.
Unit Standards. Standards for the size, location, finish, and facilities of BMP units are stated
expressly. In general, these features must be reasonably consistent with those of market-rate units.
All project facilities and amenities, such as parking, must be exactly the same as those for market-
rate units.
In-Lieu Fees. In-Lieu fees must be paid prior to the final occupancy of each phase, or each
unit for single-family developments.
Applicant Eli ibg ility. Language changes make.the guidelines consistent with the industry
standard, which cites a percentage of the Median Family Income (MFI), adjusted for household size,
as defined by the United States Department of Housing and Urban Development (HUD). In order
to purchase an owner-occupied BMP unit, a household must not exceed 100% of the MFI. In order _
to rent a rental BMP unit, a household must not exceed 80% of the MFI; priority is given to
households whose income is less than 50% of the MFI. In addition, a household must have at least
as many members as there are bedrooms in the unit it wishes to purchase. .
Applicant Assets. Household assets may be considered when determining eligibility. The
words, "such as real property" were added after "household assets" in order to better define the type
of assets under consideration. The Commission felt that a more specific definition would unduly
limit the flexibility of the program to respond to individual circumstances.
Buyer Selection. Points awarded under the buyer selection point system are to be awarded
by household, not by household member. For example, a household that includes two persons who
live in the town, and who have lived in the town at least the prior two years, would receive four
points for the household, not four points per person in the household. This has been the practice in
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT A RESOLUTION ADOPTING REVISED BELOW MARKET PRICE
HOUSING PROGRAM GUIDELINES AND RESCINDING RESOLUTION 2003-
117
March 24, 2005
the past, and is now stated expressly in the guidelines.
. Disability Definition. The word "handicapped" was replaced with "disabled" throughout the
document, to reflect updated usage. The federal Social Security Administration's standard of
"disabled" was inserted; previously, there was no definition included in the Guidelines.
Affordability of Units. In the past, households with income levels of up to 120% of the MFI
were eligible to purchase a new owner-occupied BMP unit. The proposed guidelines change the
income level standard to 100% or less of the MFI, with the goal of targeting those households with
the greatest need for the program. Half of the units in any development must be targeted, through
unit pricing, to households whose income is above 80%, but not greater than 100%, of the MFI. The
other half of the units must be targeted to households whose income is above 50%, but no greater
than 80%, of the MFI. Households with an income of less than 50% are eligible to participate in the
program, but no units are targeted specifically to those households.
Initial Sales Price of Units. Annually, the Town will set initial sales prices for each unit type,
and each income level target, rather than setting unit sales prices through negotiation with an
individual developer as done previously. The calculation to be performed, and the assumptions used
in the calculation, are stated expressly. In addition, it is now stated expressly that sales prices and
calculations are available on request from the Community Services Department.
Resale of Units. It is stated expressly that the owner of a BMP unit is responsible for
notifying the Town if he/she elects to sell it. The Town then sets the resale price, and makes the unit
available for sale through the BMP Program.
Second Dwelling Units. Loans made under the Second Unit Incentive Program must be
repaid in the term specified in the deed restriction recorded on the property. The guidelines will not
specify a standard repayment term.
Key Issues
In developing the recommended revisions, the Commission considered a number of issues central
to the provision of affordable housing, including the following:
Household income level. The Commission considered whether a priority should be given
to households at the lower income levels. A household must be at or below 100% of the area median
in order to be eligible for the BMP Program; any household at or below 100% of median may
participate. Commission members reached a consensus that, assuming that a household meets all
the eligibility requirements of the program, it would be appropriate to give the lowest income
households a priority. It was felt that this change would help to fulfill the goal of the program to
provide affordable housing to households most in need. The Commission decided to give one point
PAGE 4
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT A RESOLUTION ADOPTING REVISED BELOW MARKET PRICE
HOUSING PROGRAM GUIDELINES AND RESCINDING RESOLUTION 2003-
117
March 24, 2005
(page 6 of Attachment 2) to households at or below 60% of the area median, and to evaluate the
success of this approach at the end of the year.
Household expenses. The Commission considered whether the individual/family situations,
and ensuing greater expenses, of some households, should be considered. The Commission felt that
many individual situations are already accounted for in the point system (e.g., a single head of
household receives 5 points, household size receives 2 points per person). They also noted that they
did not wish to infringe on the right of households to determine their expenditures.
Job categories. The Commission considered whether some job categories should be given
priority, such as teachers, public safety workers, and/or other government workers. Commission
members discussed in detail the concept of providing incentives to certain community members to
live in town. They agreed that it is desirable that people from all socioeconomic levels and
occupations be represented in town, to continue its long history as a diverse and unique community.
They also agreed that persons, providing valuable services to town residents, should have the
opportunity to become town homeowners. The Commission felt that the best way to respond to
these values, within the parameters of the BMP Program, was to provide more points to applicants
who are currently working in town. Therefore, section II.B.l.d.(1) (page 5) was moved to become
section II.B.l.c.(2). This change gives persons who work in town at the time of application, and
have worked in town for at least the prior two years, four points rather than the three points they
receive currently. The Commission believes that this change, in concert with the rest of the point
system, will achieve the desired objectives.
The Commission noted that salaried Town employees are given points, which might be
viewed as a priority by job category. However, this section was inserted initially in response to the
Town's requirement that all Town employees must return to work in the case of an emergency for
which the Emergency Operations Center is activated. All salaried Town employees are categorized
as EOC workers, for who it is beneficial to live in town. Any Town employee who applied to the
BMP Program would also have to meet the income and other eligibility requirements of the program.
On the general subject of to which households the program should be targeted, the
Commission feels that it is important to note that many households often self-select out of the
program because of its resale restrictions. In return for the ability to purchase a home at a below-
market price, participating homebuyers agree to restrict the price at which they may resell the unit
in the future. This restriction is central to the Town's ability to maintain these units as affordable
housing. However, households that wish to realize a greater return on investment will generally
choose market-rate housing, which may be more difficult to afford initially, but which will allow for
greater returns in the future. Similarly, households that expect their incomes to increase over time
will also choose market-rate housing, for much the same reason. Households that include public
safety workers or teachers often fall into these categories.
PAGE 5
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT A RESOLUTION ADOPTING REVISED BELOW MARKET PRICE
HOUSING PROGRAM GUIDELINES AND RESCINDING RESOLUTION 2003-
117
March 24, 2005
CONCLUSION:
The Community Services Commission recommends that Council adopt the proposed revisions to
the BMP Guidelines, in order to improve the way in which the BMP Program provides affordable
housing in the Los Gatos community.
ENVIRONMENTAL ASSESSMENT:
The recommended action is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT:
No fiscal impact would result from the proposed action.
Attachments:
1. Draft Resolution of the Town Council of the Town of Los Gatos adopting revised Below
Market Price Housing Program Guidelines and rescinding Resolution 2003-117 (Exhibit A)
2. Redline version of the revised Below Market Price Housing Program Guidelines
Distribution:
Community Services Commission members
General Plan Committee members
Bud Lortz, Director of Community Development
Randy Tsuda, Assistant Director of Community Development
David Wei, Robson Homes, 2185 The Alameda, Suite 150, San Jose, CA, 95126
Attachment 1
RESOLUTION NO. 2005-
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
ADOPTING REVISED BELOW MARKET PRICE HOUSING GUIDELINES
. . AND RESCINDING RESOLUTION 2003-117
WHEREAS, the Town of Los Gatos Zoning Ordinance Sections 29.10.3000 through
29.10.3040 establishes a Below Market Price (BMP) Housing program to assist low and moderate
income Los Gatos citizens purchase homes at prices below market value; and,
WHEREAS, the Program requires construction of dwellings that persons and families
of low and moderate 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 low and moderate income; and,
WHEREAS, the program helps the Town meet State mandated housing goals; and,
WHEREAS, this resolution revises the Town of Los Gatos Below Market Price
Housing Program Guidelines.
NOW, THEREFORE, BE IT RESOLVED that the Town Council of the Town of Los
Gatos (1) repeals Resolution 2003-117; and, (2) adopts the revised Town of Los Gatos Below Market
Price Housing Program Guidelines attached as Exhibit A.
PASSED AND ADOPTED at a
of Los Gatos, California, held on the
COUNCIL MEMBERS:
AYES:
NAYS :
ABSENT:
ABSTAIN:
meeting of the Town Council of the Town
day of April, 2005 by the following vote:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
1
EXHIBIT A
TOWN OF LOS GATOS
BELOW MARKET PRICE HOUSING PROGRAM GUIDELINES
1. GENERAL PROVISIONS
A. Number of units
Every multifamily rental dwelling project at the time of building permit, every
residential condominium or planned development residential subdivision at the
time of subdivision; and every community apartment project and every residential
stock cooperative apartment or unit project at the time of subdivision if the
transaction involves subdivision, or at the time of sale, if it does not, shall contain
one or more BMP dwellings according to the rules listed below with the following
exception: Any planned development with an underlying zone of HR, shall only
be required to pay an in-lieu fee as established by this resolution. The Town and
developer may negotiate to provide more BMP units than required by the rules
listed below, to fulfill a development's Community Benefit requirements.
Projects containing five or more but fewer than twenty market rate units
must provide a number of BMP units equal to 10 percent of the number of
market rate units.
2. Projects which include 20 to 100 market rates units must provide BMP
units as determined by the following formula:
Number of BMP units = (.225 x total.# of market rate units) - 2.5
T ius formula acts to increase the number of BMP units required, as a
percentage of market-rate units, from 10% to 20% over the range of 20 to
100 market rate units.
3. All projects in excess of 100 market rate units must provide a number of
BMP units equal to 20 percent of the market rate units.
4. Whenever the calculations of below market price units result in a fraction
of one-half or more, the number of units to be reserved is increased to the
next whole number.
5. BMP dwellings within a project of rental units shall also be rental units.
BMP units within a project of owner-occupied units shall also be
designated as units for purchase. BMP units within a project that contains
both rental and. owner-occupied units shall also be designated as both
rental and as units for purchase, in a ratio similar to that of the market rate
units.
B. Unit Standards
Size of units
The size and design of BMP dwelling units shall be reasonably consistent
with the market rate units in the project. The Town and developer may
negotiate regarding the size of units if more units than required are to be
N:\CSD\BMP\Core DocurnentsOMP Guidelines Adopt April 2005.wpd, rev. 3/24/05 Page 1
provided under the Community Benefit requirements. BMP units should
be provided proportionately in the same unit type mix (number of
bedrooms) as the market rate units. In consideration of the household size
of the households on the current program interest list, the Town and
developer may negotiate to provide a greater proportion of a particular unit
type.
2. Location of units
BMP units shall be located throughout the development, to the extent
feasible; in all buildings, on each floor, and in each project phase. A
concentration of BMP units in one location is not desirable.
3. Finish of units
The external appearance of BMP units should be indiscernible to that of
the market rate units in the project. The internal finish of BMP units
should be identical to that of the market rate units in the project, except
that the developer may request Town approval of substitutions for luxury
interior finishings, appliances, or fixtures, if such substitutions do not
violate any Town code requirement.
4. Project Facilities
All project facilities and amenities, including parking, must be available
on the same basis to the BMP units as to the market rate units in the
project, to the extent feasible.
C. In-Lieu Fees
1. Establishment of Fee:
Projects with five or more but less than ten units may pay a fee in-lieu of
building a BMP unit in order to comply with BMP Program requirements.
Approval of Hillside Planned Developments with five or more residential
building sites shall require the payment of an in-lieu fee. The fee shall be
equal to the amount of six percent of the building permit valuation for the
project. The total building permit valuation is determined by the Building
Official.
2. Fees shall be paid prior to or at time of final occupancy as follows:
a. Multi-Family Owner Occupied Developments. Prior to occupancy
of each phase, a proportional amount of fees shall be paid, as
determined during the Planning approval process.
b. Multi-Family Renter Occupied Developments. Prior to occupancy
of each phase, a proportional amount of fees shall be paid, as
determined during the Planning approval process.
C. Single-Family Planned Developments. At time of final occupancy
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for each unit.
3. In-lieu fees will be deposited into the Town's Affordable Housing Fund.
Applications/recommendations for use of remaining funds will be
reviewed as received. Possible use of the funds include, but is not limited
to, the following':'
a. subsidizing the cost of owner occupied units to make them
affordable to low/moderate income households
b. purchasing rental units to make them affordable to low/moderate
income households
c. purchasing land for the future development of affordable housing
d. developing affordable housing
e. supplementing of affordable housing projects developed through
the Los Gatos Redevelopment Agency
f. funding administration of the program, as approved by the Town
Council in its annual budget process
D. Confidentiality
Any information provided by an applicant in order to demonstrate eligibility for
the program is confidential and not considered public information to the extent
permitted by law except for statistical information on the BMP units and general
demographic information on the buyers and renters of BMP housing units.
T7 1 T P + + +t.. T + +
I Ough nP~r Program in'iplementation, he i oWn is attempting to provide a
supply of low-moderate income housing. The Town does not wish to set the
occupants of such housing apart from the general community, attaching a stigma
to the occupants. Furthermore, no public interest is served by disclosure of this
information. The address of the projects containing BMP units may be provided
as well as a range of sales prices.
II. OWNER OCCUPIED UNITS
A. Applicant Eligibility
1. Household Income:
In order to be eligible to purchase an owner-occupied BMP unit, an
applicant's annual household income must be no greater than 100% of the
Median Family Income (MFI), adjusted for household size, as defined by
the United States Department of Housing and Urban Development (HUD)
for the San Jose, CA Primary Metropolitan Statistical Area (PMSA).
Household assets, such as real property, may also be considered in
determining eligibility.
2. Housing Costs:
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a. In order to be eligible to purchase an owner-occupied BMP unit, an
applicant must also demonstrate the ability to pay monthly housing
costs. The monthly housing cost shall include the following
factors:
(1) unit price
(2) current lending rates
(3) estimated property taxes
(4) estimated homeowner's insurance costs
(5) homeowners's association fees, if applicable
(6) other expenses as determined necessary by the lender
b. All persons must qualify for their own mortgage without assistance
from the Town. Qualifications must include the ability to pay
taxes, insurance, closing costs and any homeowner association fees
in addition to the mortgage.
B
Buyer Selection
1. A point system is used to establish a ranking of applicants for the purchase
of an available unit. Applicants will be ranked according to total points
and must have at least one point to be eligible to purchase a unit. In
addition, applicant households must contain at least the same number of
pEiSGi1S as the riuluber Gf bedrGGluS in a unit, at the blue Gf appiication, in
order to be eligible to purchase that unit, if the unit contains three
bedrooms or more.
All points are calculated per household, not for each individual within the
household For example, a household in which two members are senior
citizens would receive six points for senior citizen status, not twelve points
for two members having senior citizen status. Points are awarded as
follows:
a. Six points:
(1) Senior citizens who reside in the Town at the time of
application and have lived in the Town for at least the prior
two years. A senior citizen is defined as any person 62
years of age or older at time of application or married
couples living together when at least one spouse is 62 years
of age or older at time of application.
(2) Senior Citizens who have lived in the Town for at least two
years and have moved out of the Town within the last five
years prior to the time of application.
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(3) Disabled persons who reside in the Town at the time of
application and who have lived in the Town for at least the
prior two years. The definition of "disabled" for the
purpose of assigning points under this section shall be that
used by the U.S. Social Security Administration for the
purpose of determining eligibility for Social Security
disability benefits.
(4) Households required.to relocate their residence as a result
of Council action or mobile home park closure.
(5) Salaried Town employees as defined in the Town's
Personnel Rules, who have been employed by the Town for
a period of no less than 12 months prior to the time of
application.
b. Five points:
(1) Single heads of household with dependent children who
reside in the Town at the time of application and have lived
in the Town for at least the prior two years.
C. Four points:
(1) Persons who live in the Town of Los Gatos at time of
application and wno have lived in the Town at least the
prior two years.
(2) Persons who work in the Town of Los Gatos at time of
application and have worked in the Town for at least the
prior two years.
d. Two points:
(1) Households who have lived in the Town for at least 10
years and have moved out within the last ten years prior to
the time of application.
(2) Household size is worth two points per person.
One point:
(1) Households who live or work within Santa Clara County at
the time of application.
(2) Households with an annual household income at or below
60% of the Median Family Income (MFI), adjusted for
household size, as defined by the United States Department
N:\CSD\BMP\Core Documents\BMP Guidelines Adopt April 2005.wpd, rev. 3/24/05 Page 5
of Housing and Urban Development (HUD) for the San
Jose, CA Primary Metropolitan Statistical Area (PMSA).
2. A lottery will be used to rank each qualified applicant in the case of a tie.
3. Applicants are provided the opportunity to purchase available units in
order of point ranking, from most points to least points. An applicant has
two opportunities to refuse to purchase a unit before being removed from
the current applicant pool.
4. Applicants who do not qualify for a particular project or who are not
provided the opportunity to purchase a unit in a particular project shall
retain their eligibility to apply for future projects.
5. 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.
C. Determination of Initial Selling Price
1. BMP units shall be priced to be affordable to households in two income
categories: Median Income Households (those whose income is above
80%, but no greater than 100%, of the County Median Income); and Low
income Households (those whose income is above 5^v%, but no greater
than 80%, of the County Median Income).
Fifty percent (50%) of the units in a project shall be priced to be affordable
to Median Income Households; fifty percent (50%) shall be priced to be
affordable to Low Income Households. Whenever the calculations result
in fractional units, then the number of units priced to be affordable to Low
Income Households shall be rounded up to the next whole number, and the
number of units priced to be affordable to Median Income Households
shall be rounded down to the next whole number, including zero (0). The
following table applies this formula to projects with 1, 2, and 3 units:
Total Number of BMP
Units in Project
Units Priced for
Low Income Households
Units Priced for Median
Income Households
1
1
0
2
1
1
3
2
1
NACSD\BMP\Core,Documents\BMP Guidelines Adopt April 2005.wpd, rev. 3/24/05 Page 6
The Town and developer may negotiate regarding the affordability mix of
units, to fulfill a development's Community Benefit requirements.
The affordability level of a unit shall be for the purpose of setting the
initial selling price only, and do not prevent its sale to any household
eligible to purchase an owner-occupied BMP unit, as set forth in these
Guidelines.
2. Annually, the Town shall set the initial unit sales price for each unit type
(number of bedrooms), for each of the two income categories. These
initial sales prices shall be set using the most recent Median Family
Income (MFI) figures from the United States Department of Housing and
Urban Development (HUD) for the San Jose, CA Primary Metropolitan
Statistical Area (PMSA), and through the following calculations:
a. For units to be priced to be affordable to Median Income
Households: the average of the 100% MFI annual income and the
80% ME annual income (assuming household size appropriate to
size of unit) x Multiplier = Initial Sales Price.
(1) Assumptions of household size by size of unit are as
follows:
Unit Size
Household Size
Studio
1
1 Bedroom
l
2 Bedroom
2
3 Bedroom
3
4 Bedroom
4
These assumptions of household size by size of unit shall
be for the purpose of setting the initial sales price only, and
do not prevent the sale of any unit to any household eligible
to purchase an owner-occupied BMP unit, as set forth in
these Guidelines.
b. For units to be priced to be affordable to Low Income Households:
the average of the 80% MFI annual income and the 50% annual
income (assuming household size appropriate to size of unit) x
Multiplier = Initial Sales Price.
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Calculation of Multiplier. A Multiplier shall be calculated; based
on reasonable assumptions about unit sales prices, based on the
most recent comparable sales of BMP units; current lending rates,
as determined by the most recent Primary Mortgage Market Survey
(PMMS) conducted by the Federal Home Loan Mortgage
Corporation (Freddie Mac); and related costs; and using the
following formula:
(1) Determination of Total Housing Cost: Sample sales price -
10% down payment = mortgage. Annual debt service on
mortgage + annual property taxes + annual homeowners
fees + annual private mortgage insurance (PMI) = Total
Annual.Housing Cost.
(2) Determination of Minimum Household Income: Assuming
one-third of household income goes for housing expenses,
Total Annual Housing Cost x 3 = Minimum Annual
Household Income.
(3) Determination of Multiplier: Sample Sales Price/Minimum
Annual Household Income = Multiplier.
Copies of the initial sales prices, and the calculations made, shall be
available on request from the Town's Community Services Department.
D. Deed Restrictions
Council approved Deed Restrictions shall be recorded with each Below Market
Price dwelling unit.
E. Resale of Units
1. If the owner elects to sell his/her unit, the Town must be notified in
writing by the owner.
2. When a Below Market Price dwelling unit becomes available for resale,
the Town shall set the resale price and make the unit available for
purchase through the BMP process.
3. The Town determines the resale price in accordance with the deed
restriction recorded on the property.
III. RENTAL UNITS
A. Administration
The program shall be administered by the Town or its designee.
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B. Applicant Eligibility
Household Income:
In order to be eligible to rent a BMP rental unit, a household's annual
income must be no greater than 80% of the Median Family Income (MFI),
adjusted for household size, as defined by the United States Department of
Housing and Urban Development (HUD) for the San Jose, CA Primary
Metropolitan Statistical Area (PMSA). Priority will be given to those
households whose income is less than 50% of the MFI. Household assets
may also be considered in determining eligibility.
2. Ability to Pay Rent
A tenant's ability to pay monthly rent will also be considered in
determining tenant eligibility.
C. Tenant Selection
The property owner or manager of the development shall market the BMP unit(s),
and solicit rental applications. Applications from tenants selected by property
owner or manager will be forwarded to Town or designee for verification of
income eligibility.
D. Management
gar in
1 RMP re..~ ntal 1 units shall be managed by y the property ertc n.gy~mer or man ..ab.,.
L
the same manner as other units in the development.
2. Tenants of BMP rental units are eligible to receive conciliation and
mediation services provided through the Town's Rental Dispute
Resolution Program except as they regard rent increases.
E. Unit Rents
Rents may not exceed 80% of the most current Fair Market Rents as determined
by the Santa Clara County Housing Authority.
F. Annual Review
If a tenant's income increases so that it falls between 80 and 100 percent of MFI,
then the rent may be increased in accordance with the Town's Rental Dispute
Ordinance; and the unit shall still be considered a BMP Rental Unit. However, if
a tenant's income exceeds 100 percent of MFI, the rent may be increased to the
average rent of similar units in the complex; in this latter case, the unit will no
longer be a BMP unit and the next available unit that is comparable in size shall
be designated as a BMP unit in its place, and must be rented to an eligible
household so that the number of BMP units within the project remains the same.
N:\CSD\BMP\Core DocumentsOMP Guidelines Adopt April 2005.wpd, rev. 3/24/05 Page 9
G. Deed Restrictions
Council approved Deed Restrictions shall be recorded for each Below Market
Price rental dwelling unit.
IV. RENTAL UNITS - NEW SECOND DWELLING UNITS
A. Administration
The program shall be administered by the Town or its designee.
B. Second Unit Incentive Program
The property owner of a New Second Dwelling Unit, as defined in Section
29.10.3 10 of the Town Code, may choose to participate in the Second Unit
Incentive Program (SUIP) as referenced in Section 29.10.320(a) of the Town
Code and as set forth below.
The SUIP consists of a no interest construction loan to a property owner
who intends to develop a new second unit. The loan amount shall be
determined based on the square foot construction cost as set forth in the
current version Uniform Building Code as adopted by the Town for new
construction and remodels. The loan amount will be calculated at 100% of
the construction cost if the unit is income and rent restricted to serve
households with incomes below 50% of the Median Family Income (MFI),
adjusted for household size, as defined by the United States Department of
Housing and Urban Deveiopment (HTiJD) Ri the Sr aJose, CA Primary
Metropolitan Statistical Area (PMSA), or 80% of the construction cost if
the unit is income and rent restricted to serve households with incomes
below 80% of MFI.
2. When a property owner participates in the SUIP, a deed restriction shall be
recorded on the property. The deed restriction shall stipulate the rental
rate, tenant income level, duration of affordability and loan repayment
requirement as well as any.other criteria as determined appropriate by the
Town.
A SUIP loan to construct a second unit within the Central Los Gatos
Redevelopment Project area shall be funded using Redevelopment
Affordable Housing Funds and shall remain affordable for 55 years. A
SUIP loan to construct a second unit outside the Central Los Gatos
Redevelopment Project area shall be funded using BMP Program Funds
and shall remain affordable for 30 years. The SUIP affordability
restrictions as set forth in this section may only be amended by action of
the Town Council.
4. A tenant's ability to pay monthly rent will also be considered in
N:\CSD\BMP\Core Documents\BMP Guidelines Adopt April 2005.wpd, rev. 3/24/05 Page 10
determining tenant eligibility. Applications from tenants selected by the
property owner or manager will be forwarded to the Town or its agent for
verification of income eligibility. Rental agreements shall be submitted to .
the Town or its agent to verify compliance with the provisions of this
section. Tenants are eligible to receive conciliation and mediation services
provided through the Town's Rental Dispute Resolution Program except
as they regard rent increases.
5. Units targeted to households with incomes up to 80% of the Median
Family Income (MFI) shall have rents restricted to 80% of Fair Market
Rents as determined by the Santa Clara County Housing Authority. Units
targeted to households with incomes up to 50% of CMI shall have rents
restricted to 50% of Fair Market Rents as determined by the Santa Clara
County Housing Authority. Tenant rents and incomes will be monitored
annually.
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Attachment 2
TOWN'S OF LOS GATOS
BELOW MARKET PRICE HOUSING PROGRAM GUIDELINES
1. GENERAL PROVISIONS
A. Number of units
Every multifamily rental dwelling project at the time of building permit, every
residential condominium or planned development residential subdivision at the
time of subdivision, and every community apartment project and every residential
stock cooperative apartment or unit project at the time of subdivision if the
transaction involves subdivision, or at the time of sale, if it does not, shall contain
one or more BMP dwellings according to the rules listed below with the following
exception: Any planned development with an underlying zone of HR, shall only
be required to pay an in-lieu fee as established by this resolution. The Town and
developer may negotiate Lo provide more BMP units than required by the rules
listed below, to fulfill a development's Community Benefit requirements.
1. Projects containing five or more but fewer than twenty market rate units
must provide a number of BMP units equal to 10 percent of the number of
market rate units.
2. Projects which include 20 to 100 market rates units must provide BMP
units as determined by the following formula:
Number of BMP units = (.225 x total # of market rate units) - 2.5
This foiiiiuia acts tG increase the number of BMP units required, as a
percentage of market-rate units, from 10% to 20% over the range of 20 to
100 market rate units.
3. All projects in excess of 100 market rate units must provide a number of
BMP units equal to 20 percent of the market rate units.
4. Whenever the calculations of below market price units result in a fraction
of one-half or more, the number of units to be reserved is increased to the
next whole number.
5. BMP dwellings within a broiect of rental units shall also be rental units.
BMP units within a project of owner-occupied units shall also be
designated as units for purchase. BMP units within a project that contains
both rental and owner-occupied units shall also be designated as both
rental and as units for purchase, in a ratio similar to that of the market rate
units.
B. Unit Standards
1. Size of units
The size and design of BMP dwelling units shall be reasonably consistent
with the market rate units in the project. The Town and developer may
negotiate regarding the size of units if more units than required are to be
N:\CSD\BMP\Core Docurnents\BMP Guidelines Redline.wpd, rev. 2/10/05 Page 1
provided under the Community Benefit requirements. BMP units should
be provided proportionately in the same unit type mix number of
bedrooms) as the market rate units. In consideration of the household size
of the households on the current program interest list, the Town and
developer mu renegotiate to provide a eater proportion of a particular unit
We.
2. Location of units
BMP units shall be located throughout the development, to the extent
feasible: in all buildings, on each floor, and in each project phase. A
concentration of BMP units in one location is not desirable.
3. Finish of units
The external appearance of BMP units should be indiscernible to that of
the market rate units in the project. The internal finish of BMP units
should be identical to that of the market rate units in the project, except
that the developer may request Town approval of substitutions for luxurX
interior finishings, appliances, or fixtures, if such substitutions do not
violate any Town code requirement.
4. Project Facilities
All project facilities and amenities, including parking, must be available
on the same basis to the BMP units as to the market rate units in the
project, to the extent feasible.
C. In-Lieu Fees
1. Establishment of Fee:
Projects with five or more but less than ten units may _pay a fee in-lieu of
building a BMP unit in order to comply with BMP Program requirements.
Approval of Hillside Planned Developments with five or more residential
building sites shall require the payment of an in-lieu fee. The fee shall be
equal to the amount of six percent of the building permit valuation for the
project. The total building permit valuation is determined by the Building
Official.
2. Fees shall be paid prior to or at time of final occupancy as follows:
a. Multi-Family Owner Occupied Developments. Prior to occupancy
of each phase, a proportional amount of fees shall be paid, as
determined during the Planning _approval process.
b. Multi-Family Renter Occupied Developments. Prior to occupancy
of each phase, a proportional amount of fees shall be paid, as
determined during the Planning approval process.
C. Single-Family Planned Developments. At time of final occupancy
N:\CSD\BMP\Core Documents\BMP Guidelines Redline.wpd, rev. 2/10/05 Page 2
for each unit.
3. In-lieu fees will be deposited into the Town's Affordable Housing
Applications/recommendations for use of remaining funds will be
reviewed as received. Possible use of the funds include, but is not limited
to, the following:
a. subsidizing the cost of owner occupied units to make them
affordable to low/moderate income households
b. purchasing rental units to make them affordable to low/moderate
income households
c. purchasing land for the future development of affordable housing
d. developing affordable housing
L. supplementing of affordable housing _proiects developed through
the Los Gatos Redevelopment Agency
f. funding administration of the program, as approved by the Town
Council in its annual budget process
D. Confidentiality
Any information provided by an applicant in order to
demonstrate eli _ ig bility for the program is confidential and not considered public
information to the extent permitted by law except for statistical information on the
BMP units and general demographic information on the buyers and renters of
BMP housing units. Through BMP program implementation, the T own is
attempting to provide a supply of low-moderate income housing. The Town does
not wish to set the occupants of such housing apart from the general community,
attaching a stigma to the. occupants. Furthermore, no public interest is served by
disclosure of this information. The address of the projects containing BMP units
may be provided as well as a range of sales prices.
II. OWNER OCCUPIED UNITS
A. Applicant Eligibility
Household Income:
In order to be eligible to purchase an owner-occupied BMP unit, an
applicant's annual household income must be no greater than 100% of the
Median Family Income (MFI), adjusted for household size, as defined by
the United States Department of Housing and Urban Development (HUD)
for the San Jose, CA PrimarMetropolitan Statistical Area (PMSA).
Household assets, such as real property, may. also be considered in
determining eligibili1y. income limits are set according to household si
N:\CSD\BNT\Core DOcuments\BNM Guidelines Redline.wpd, rev. 2/10/05 Page 3
2. Housing Costs Buyer .
a. In order to be eligible to purchase an owner-occupied BMP unit. an
applicant must also demonstrate the ability to pay monthly housing
costs. A buyer's qualification is determined by the '
unit. to make the monthly paymenfs f6r ffie The monthly housing
cost shall include the following factors:
(1) unit price
(2) current lending rates
(3) estimated property taxes
(4) estimated homeowner's insurance costs
(5) homeowners's association fees, if applicable
(6) other expenses as determined necessary by the lender
b. All persons must qualify for their own mortgage without assistance
from the Town. Qualifications must include the ability to pay
taxes, insurance, closing costs and any homeowner association fees
in addition to the mortgage.
B
Buyer Selection
1. A point system is used to establish a ranking of applicants for the purchase
of an available unit ranking. applicant rating and Applicants will be
ranked according to total points and must hale at least one point to be
eligible to purchase a unit for consider . In addition, applicant
households must contain at least the same number of persons as the
number of bedrooms in a unit, at the time of application, in order to be
eligible to purchase that unit, if the unit contains three bedrooms or more.
All points are calculated per household, not for each individual within the
household For example, a household in which two members are senior
citizens would receive six points for senior citizen status, not twelve points
for two members having senior citizen status. Points are awarded as
follows:
a. Six points:
(1) Senior citizens who reside in the Town at the time of
application and have lived in the Town for at least the prior
two years. A senior citizen is defined as any person 62
years of age or older at time of application or married
couples living together when at least one spouse is 62 years
of age or older at time of application.
(2) Senior Citizens who have lived in the Town for at least two
N:\CSD\BMP\Core Documents\BMP Guidelines Redline.wpd, rev. 2/10/05 Page 4
years and have moved out of the Town within the last five
years prior to the time of application.
(3) Handicapped Disabled persons who reside in the Town at
the time of application and who have lived in the Town for
at least the prior two years. The definition of "disabled" for
the purpose of assigning points under this section shall be
that used by the U.S. Social Security Administration for the
purpose of determining eligibility for Social Security
disability benefits.
(4) Households required to relocate their residence as a result
of Council action or mobile home park closure.
(5) Salaried Town employees as defined in the Town's
Personnel Rules, who have been employed by the Town for
a period of no less than 12 months prior to the time of
application.
b. Five points:
(1) Single heads of household with dependent children who
reside in the Town at the time of application and have lived
in the Town for at least the prior two years.
C. Four points:
(1) Persons who live in the Town of Los Gatos at time of
application and who have lived in the Town at least the
prior two years.
Persons who work in the Town of Los Gatos at time of
application and have worked in the Town for at least the
prior two years.
e. Two points:
(1) Households who have lived in the Town for at least 10
years and have moved out within the last ten years prior to
the time of application.
(2) Household size is worth two points per person.
N:\CSD\BMP\Core DocurnentsOMP Guidelines Redline.wpd, rev. 2/10/05 Page 5
f. One point:
(1) Households who live or work within Santa Clara County at
the time of application.
Households with an annual household income at or below
60% of the Median Family Income (MFI), adjusted for
household size, as defined by the United States Department
of Housing and Urban Development (HUD) for the San
Jose, CA Primary Metropolitan Statistical Area (PMSA).
2. A lottery will be used to rank each qualified applicant in the case of a tie.
Applicants are provided the opportunity to purchase available units in
order of point ranking, from most points to least points. An applicant has
two opportunities to refuse to purchase a unit before being removed from
the current applicant pool.
4. Applicants who do not qualify for a particular project or who are not
provided the opportunity to purchase a unit in a particular project shall
retain their eligibility to apply for future projects.
5. An The highest ranked applicant must obtain pre-approval for a mortgage
loan within one week after notification of its eligibility to purchase a the
unit. The applicant thus", subiiiit documentation ofioail approval VJitiuii
three four weeks of notification of its eligibility to purchase a the unit.
C. Determination of Initial Selling Price
1. BMP units shall be priced to be affordable to households in two income
categories: Median Income Households (those whose income is above
80%, but no greater than 100%, of the County Median Income): and Low
er
Income Households (those whose income is above 50%, but no great
than 80%, of the County Median Income).
Fiftv percent (50%) of the units in a Droiect shall be priced to be affordable
to Median Income Households; fifty percent 50% shall be priced to be
affordable to Low Income Households. Whenever the calculations result
in fractional units, then the number of units priced to be affordable to Low
Income Households shall be rounded up to the next whole number, and the
number of units priced to be affordable to Median Income Households
shall be rounded down to the next whole number, including zero 0). The
following table applies this formula to projects with 1, 2, and 3 units:
N:\CSD\BMP\Core Documents\BMP Guidelines Redline.wpd, rev. 2/10/05 Page 6
Total Number of BMP
Units Priced for
Units Priced for Median
Units in Project
Low Income Households
Income Households
1
1
0
2
1
1
3
2
1
The Town and developer may negotiate receding the affordability mix of
units, to fulfill a development's Community Benefit requirements.
The affordability level of a unit shall be for the purpose of setting the
initial selling price only, and do not prevent its sale to any household
eligL ible to purchase an owner-occupied BMP unit, as set forth in these
Guidelines.
Annuallv, the Town shall set the initial unit sales Drice for each unit tvDe
(number of bedrooms), for each of the two income categories. These
initial sales prices shall be set using the most recent Median Family
Income (MFI) figures from the United States Department of Housing and
Urban Development (HUD) for the San Jose, CA Primary Metropolitan
Statistical Area (PMSA), and through the following calculations:
a. For units to be priced to be affordable to Median Income
Households: the average of the 100% MITI annual income and the
80% MFI annual income (assuming household size appropriate to
size of unit) x Multiplier = Initial Sales Price.
fD Assumptions of household size by size of unit are as
follows:
Unit Size
Household Size
Studio
1
1 Bedroom
1
2 Bedroom
2
3 Bedroom
3
4 Bedroom
4
These assumptions of household size by size of unit shall
N:\CSD\BMP\Core Documents\BMP Guidelines Redline.wpd, rev. 2/10/05 Page 7
be for the purpose of setting the initial sales price only, an
d
do not prevent the sale of any unit to any household eligible
to purchase an owner-occupied BMP unit, as set forth in
these Guidelines.
b. For units to be priced to be affordable to Low Income Households:
the average of the 80% MFI annual income and the 50% annual
income (assuming household size appropriate to size of unit) x
Multiplier = Initial Sales Price.
C. Calculation of Multiplier. A Multiplier shall be calculated. based
on reasonable assumptions about unit sales prices, based on the
most recent comparable sales of BMP units; current lending rates,
as determined by the most recent Prima ya Mortgage Market Survey
(PMMS) conducted by the Federal Home Loan Mortgage
Corporation Freddie Mac); and related costs; and using the
following formula:
Determination of Total Housing Cost: Sample sales price -
10% down payment = mortgage. Annual debt service on
mortgage + annual property taxes + annual homeowners
fees + annual private mortgage insurance (PMI) = Total
Annual Housing Cost.
Determination of Minimum Household Income: Assuming
one-third of household income goes for housing expenses,
Total Annual Housing Cost x 3 = Minimum Annual
Household Income.
Determination of Multiplier: Sample Sales Price/Minimum
Annual Household Income = Multiplier.
Copies of the initial sales prices, and the calculations made, shall be
available on request from the Town's Community _Services Department.
i
i
l
i
f fl
-
d
ill b
-
l
i
d
i
d b
ce
3. The in
t
a
sales pr
o
ie
ar
t w
d
l
y eons
a
tat
on
e
eterm
ne
d
l
i
hi
h
i
between the Town M
anager, or
e
egat
i
e and the
eve
oper w
t
n t
e pr
ee
i
i
ffi
d
ranges calculated as d
n. Th
efined here
or
ze
e Manager
s au
to approve
changes in specificati
ons to lower the p
di
rice of the BMP urAts vvl-Ach do not,
i
h
h
violate any Town cod
e or or
nance re
qu
remerAs, me
as c
carpeting,
lighting
fix
tures,
etc. The it
fitial priee will be set by a BNfP
pt iee ap eement, whi
l
ch must be signed
l
i
e
'
by, ffie Town Manager and th%-.1
i
i
f
h
deve
oper prior to the
P
am
ng
o
v
ew o
t
e praitet7
-
N:\CSD\BMP\Core Documents\BMP Guidelines Redline.wpd, rev. 2/10/05 Page 8
4
h
i
i
i
l
f
i
i
i
d
.
T
e
n
t
a
price
o
a tm
t may
ne
tt
e direct e
onstruction costs an
d may
include a proport
ionate share of the costs of pr
oviding utility 0%,L V
ikA.101
required on-site i
mprovement, financing and p
remium points, loa
n standby
fees,
landseaping
hi
i
provided thaf t
parking,
and
l
ll
f
he price shail not ex
ceed an
amourA w
ch w
l
a
ow a range o
qualified
buyers (as defined a
bove)
TI-fe initial price shail not inelude cost of land, builder's profit, marketing
costs, > expenses, promotional or a&ocaey
options prefimmum7YF
b. hiftiai Sales P
i
rice Ranges
Min
mum and
R., fbilowing
maxin=n sales i
prices cue established by eompleting
formula f6r a range of family sizes..
ineome > 1
00, and 120 pereent of medi defined b
D. Deed Restrictions
Council approved Deed Restrictions are shall be recorded with each Below
Market Price dwelling units.
E. Resale of Units
1. If the owner elects to sell his/her unit, the Town must be notified in
N:\CSD\BMP\Core Documents\BMP Guidelines Redlinempd, rev. 2/10/05 Page 9
writing by the owner.
2. When a Below Market Price dwelling unit becomes available for resale,
the owner n--s` a4lo the Town shall to set the resale price and make the
unit available for purchase through the BMP process to other n
applieants.
3. The Town determines the resale price in accordance with the deed
restriction recorded on the property.
4. Town markets the unit and ranks applicafions, to idenfify the top qualified
applicants.
F. Tees
In-lieu Fee .
requirements are
now in Section
I.C, page 2.
3. fn-fieu fees will be dep
Ftmds will be used, in
Appheationsfteeomme
re viewed as reeeived.
Div--she folio
a. landbanking
i
d
h
osited into the Tow
part, for administra
ndations for use of
Possible use of the
f
n's Affirdable f lousing Fund.
tion of the program.
remaining funds will b%.-.
fa~s incinde, btrt is not finfite
i
k
i
d
b. wr
ting
own t
affordable to lo
e cost o
owner oe
whnoderate incom
f
ts to ma
e the
cup
e
tm
e house~tolds
ibl
e. puredhasing rent
al units
or rerAing
e tenants.
to elig
III. RENTAL UNITS
A. Administration
The program shall be administered by the Town or its designee.
N:\CSD\BMP\Core Documents\BMP Guidelines Redline.wpd, rev. 2/10/05 Page 10
B. Applicant Eligibility
Household Income:
In order to be eligible to rent a BMP rental unit, a household's annual
income must be no greater than 80% of the Median Family Income (MFI),
adjusted for household size, as defined by the United States Department of
Housiniz and Urban Development (HUD) for the San Jose, CA Primary
Metropolitan Statistical Area (PMSA). Priority will be given to those
households whose income is less than 50% of the MFI. Household assets
may also be considered in determining eligibili1y.
fn order to be eligible, appheants nmst have a household income undei
pereenf of the eounty,s inedian income as defined by the Fed
2. Ability to Pay Rent
A tenant's ability to pay monthly rent will also be considered in
determining tenant eligibility.
C. Tenant Selection
The property owner or manager of the development shall market the BMP unit(s),
and solicit rental applications. Applications from tenants selected by property
owner or manager will be forwarded to Town or designee for verification of
income eligibility.
D. Management
1. BMP rental units shall be managed by the property owner or manager in
the same manner as other units in the development.
2. Tenants of BMP rental units are eligible to receive conciliation and
mediation services provided through the Town's Rental lbfediation Dispute
Resolution Program except as they regard rent increases.
E. Unit Rents
the eotmty's Median hicome as defined by the Federaf Department of Housing
and Urban Development. Priority will be gilven to those households whose
ineorne is less than 50 percent of the median ineome as defimd by H.U.D. Rents
will be restricted may not exceed 80% of the most current Fair Market Rents as
determined by the Santa Clara County Housing Authority.
F. Annual Review
If a tenant's income increases so that it falls between 80 and 100 percent of MFI
the eounty's Median income, then the rent may be increased in accordance with
N:\CSD\BMP\Core Documents\BMP Guidelines Redline.wpd, rev. 2/10/05 Page 11
the Town's Rental Dispute Ordinance; and the unit shall still be considered a BMP
Rental Unit. However, if a tenant's income exceeds 100 percent of MITI the
medial , the rent may be increased to the average rent of similar units in the
complex; in this latter case, the unit will no longer be a BMP unit and the next
available unit that is comparable in size shall be designated as a BMP unit in its
place, and must be rented to an eligible household so that the number of
subsi-di~ed BMP units within the project remains the same.
G. Deed Restrictions
Council approved Deed Restrictions shall be recorded for each Below Market
Price rental dwelling unit.
IV. RENTAL UNITS - NEW SECOND DWELLING UNITS
A. Administration
The program shall be administered by the Town or its designee.
B. Second Unit Incentive Program
The property owner of a New Second Dwelling Unit, as defined in Section
29.10.3 10 of the Town Code, may choose to participate in the Second Unit
Incentive Program (SUIP) as referenced in Section 29.10.320(a) of the Town
Code and as set forth below.
1 The SUIP consists of a no interest construction loan to a property owner
who intends to develop a new second unit. The loan amount shall be
determined based on the square foot construction cost as set forth in the
current version Uniform Building Code as adopted by the Town for new
construction and remodels. The loan amount will be calculated at 100% of
the construction cost if the unit is income and rent restricted to serve
households with incomes below 50% of the Eaurrty,s Median Family
Income (MFI), adjusted for household size, as defined by the United States
Department of Housing and Urban Development (HUD) for the San Jose,
CA Primary Metropolitan Statistical Area (PMSA), or 80% of the
construction cost if of the unit is income and rent restricted to serve
households with incomes below 80% of ' the MFI.
2. When a property owner participates in the SUIP, a deed restriction shall be
recorded on the property. The deed restriction shall stipulate the rental
rate, tenant income level, duration of affordability and loan repayment
requirement as well as any other criteria as determined appropriate by the
Town. years.
hoans shall be repaid in 30 3. A SUIP loan to construct a second unit within the Central Los Gatos
N:\CSD\BMP\Core Documents\BMP Guidelines Redline.wpd, rev. 2/10/05 Page 12
Redevelopment Project area shall be funded using Redevelopment
Affordable Housing Funds and shall remain affordable for 55 years. A
SUIP loan to construct a second unit outside the Central Los Gatos
Redevelopment Project area shall be funded using BMP Program Funds
and shall remain affordable for 30 years. The SUIP affordability
restrictions as set forth in this section may only be amended by action of
the Town Council.
4. A tenant's ability to pay monthly rent will also be considered in
determining tenant eligibility. Applications from tenants selected by the
property owner or manager will be forwarded to the Town or its agent for
verification of income eligibility. Rental agreements shall be submitted to
the Town or its agent to verify compliance with the provisions of this
section. Tenants are eligible to receive conciliation and mediation services
provided through the Town's Rental Dispute Resolution Niediafio
Program except as they regard rent increases.
Units targeted to households with incomes up to 80% of the eounty's
Median Family Income MFI levels shall have rents restricted to 80% of
Fair Market Rents as determined by the Santa Clara County Housing
Authority. Units targeted to households with incomes up to 50% of CMI
6oun-ty's Median Ineome levels shall have rents restricted to 50% of
the Fair Market Rents as determined by the Santa Clara County Housing
Authority, 't'enant rents and incomes will be monitored annually,
(Adopted by Resolution 2003-117, Oetober 6, 2003)
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