05 Staff Report - Below Market Housing Programpow 0
~~F~Iit 5
d P
tos=A~os COUNCIL AGENDA REPORT
MEETING DATE: 11/3/08
ITEM NO: S
DATE: OCTOBER 27, 2008
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER
SUBJECT: ADOPT A RESOLUTION ADOPTING REVISED BELOW MARKET PRICE
HOUSING PROGRAM GUIDELINES AND RESCINDING RESOLUTION
2005-117.
RECOMMENDATION:
Adopt a Resolution adopting revised Below Market Price Housing Program Guidelines and
rescinding Resolution 2005-117.
BACKGROUND:
This report was presented to Council at its August 18 meeting. The Council referred the item to
the Community Services Connnission for review and com vent. The Community Services
Commission considered the proposed Guideline revisions at its October 2 meeting and voted to
recommend to Council that the revisions be approved.
The Community Services Department manages a Below Market Price Housing Program (BMP)
to allow low and moderate income households to become home owners. Recently, the owner of a
BMP unit has requested to sell their home in order to purchase another newer, upgraded BMP
unit at a different development. In reviewing the request, Staff noted that the Town's Below
Market Price Guidelines and Resolution require modifications to more directly address this
question. This report includes a review of the current BMP Program and Guidelines and offers a
comparison to BMP Programs in other local municipalities.
PREPARED BY: Regina A. *Ic~s Communit Director
Reviewed by: %KS Assistant Town Manager Town Attorney
Clerk Administrator Finance Community Development
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT A RESOLUTION ADOPTING REVISED BELOW MARKET PRICE
HOUSING PROGRAM GUIDELINES
OCTOBER 27, 2008
DISCUSSION:
Below Market Price Program
The Town's BMP Program has a limited number of homes, typically condominilnns or
townhomes, which are sold at a price below the current market value. 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.
The Town contracts with the Housing Authority for Program administration. Initial eligibility
for the program is based on household income; households may not exceed 100% of the area
median income, adjusted for household size, as determined by the U.S. Department of Housing
and Urban Development (HUD). All applicants are responsible for securing their own financing.
All units must remain owner-occupied.
The BMP Program also has a limited number of rental units available. In order to be eligible to
rent a BMP unit, a household may not exceed 80% of the area median income, adjusted for
household size, as determined by HUD.
Applications are ranked according to criteria established by the Town Council using
characteristics such as current residence in Los Gatos, current employment within Los Gatos,
senior citizen status, disability status, and household size. Successful applicants are typically
families with children, who are current residents of Los Gatos.
The Housing Authority reviews assets of potential buyers to ensure adherence to the income
restrictions. The BMP owner may use the equity gained to purchase a home at fair market value
and free up the existing BMP unit to expand the program to another family in need.
The BMP program is administered with the intent of providing potential first time home buyers
with an opportunity to enter the housing market and increase self sufficiency through equity
gained as a result of homeownership. However, the Town's Below Market Price Guidelines and
Resolution do not specifically snake this statement,
Proposed Guideline Addition
A review of similar programs in six other local communities indicates that all have some limit on
previous honk ownership. Of the six municipalities reviewed, three had a limit on previous
home ownership. The table below indicates home ownership limitations required by BMP
Programs in other municipalities.
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT A RESOLUTION ADOPTING REVISED BELOW MARKET PRICE
HOUSING PROGRAM GUIDELINES
OCTOBER 27, 2008
BELOW MARKET PRICE PROGRAM COMPARISON
City
First Time Home
Ownership Requirement
Campbell
Must be a first-time home buyer.
Cupertino
Not specified
Morgan Hill
Applicant may not have owned a home for the last 3 years prior to
applying.
Mountain View
Not specified
Palo Alto
Not specified
Sunnyvale
May not have owned residential property in the counties covered by
Association of Bay Area Governments ( ABAG) or Association of
Monterey Bay Governments (AMBAG) (Alameda, Contra Costa,
Marin, Monterey, Napa, San Benito, San Francisco, San Mateo,
Santa Clara, Santa Cruz, Solano and Sonoma) for three years prior
to submittal of a BMP application.
Los Gatos Proposed
Same as Sunnyvale requirements listed above.
Staff rccormnends that the Sunnyvale requirement be added to the Town's BMP Guidelines. The
specific language is stated below and has been included on page 4 of the draft guidelines.
first Time home Buyers;
The Below Market Price (BMP) Program is far First Time Home Buyers. A First Time
home Buyer, by definition, is an applicant whose name has not appeared on a residential
title in the counties covered by the Association of Bay Area Governments (ABAG) or
Association of Monterey Bay Governments (AMBAG) which are Alameda, Contra Costa,
Marin, Monterey, Hapa, San Benito, San Francisco, San Mateo, Santa Clara, Santa
Cruz, Solano and Sonoma for at least three (3) years prior to application. Exception is
made for people who were homeowners prior to a divorce settlement.
Additional BMP Pro ram Review
During the next year, the BMP Program and condominium conversions will be reviewed as part
of the Housing Element and General Plan update, Additional recommended changes to the
ordinance and/or guidelines will be made, if appropriate, based on comparison with best
practices. Consequently, changes will also be recommended to assist households displaced as a
result of the conversion of apartments to condominiums if directed by Council.
CONCLUSION:
Staff recommends that the program be limited to first time home buyers who have not owned
property in the above listed counties for 3 years prior to submittal of an application. This change
reinforces the intent of the program and prevents BMP owners from "trading" units simply to
purchase a newer or larger unit.
PAGE 4
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT A RESOLUTION ADOPTING REVISED BELOW MARKET PRICE
HOUSING PROGRAM GUIDELINES
OCTOBER 27, 2008
BMP Homeowners who benefit ftom the program are potentially able to use the equity to
purchase a home at market price. The BMP homes left behind become available to others in need
and the program continues to grow its scope and ability to serve more of those in need. While the
housing shortage in the area is unlikely to be resolved in the near future, this program strives to
make a small impact on the overall economic vitality of our community.
ENVIRONMENTAL ASSESSMENT:
The recommended action is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT:
None
A ttaclhm ents
Draft resolution adopting Revised Below Market Price Housing Program Guidelines
Distribution:
Arun & Usha Gaikwad
Diana Moreno, Santa Clara County Housing Authority
ATTACHMENT 1
RESOLUTION 2008-
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
ADOPTING REVISED BELOW MARKET PRICE HOUSING GUIDELINES
AND RESCINDING RESOLUTION 2005-117 TO CONFIRM THAT THE
PROGRAM IS INTENDED TO ASSIST FIRST TIME HOMEOWNERS
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 to confirm that the program is intended to assist first time
homeowners,
NOW5 THEREFORE, BE IT RESOLVED that the Town Council of the Town
of Los Gatos (1) repeals Resolution 2005-117; and, (2) adopts the revised Town of Los
Gatos Below Market Price Housing Program guidelines attached as Exhibit A.
PASSED AND ADOPTED at a regular meeting of the Town Council of the
Town of Los Gatos, California, held on the 18th day of August, 2008, by the following
vote:
COUNCIL MEMBERS:
AYES:
NAYS :
ABSENT:
ABSTAIN:
SIGNED: /s/ Mayor Barbara Spector
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST: /s/ Jackie D. Rose
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
EXHIBIT A
TOWN OF LOS GATOS
BELOW MARKET PRICE HOUSING PROGRAM GUIDELINES
GENERAL PROVISIONS
A. Nutnber 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.
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 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
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
BMP Guidelines Page I
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.
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 amcnities, 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
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 he 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
BMP Guidelines Page 2
for each unit.
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.
Through BMP. program implementation, the Town 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.
IL 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 .lose, CA Primary Metropolitan Statistical Area (PMSA).
Household assets, such as real property, may also be considered in
determining eligibility.
BMP Guidelines Page 3
2.
Housing Costs:
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,
First Time Home Buyers:
The Below Market Price (BMP) Program is for First Time Home
Buyers. A First Time Home Buyer, by definition, is an applicant whose
name has not appeared on a residential title in the counties covered by the
Association of Bay Area Governments (ABA G) or Association of Monterey
Bay Governments (AMBAG) which are Alameda, Contra Costa, Marin,
Monterey, Ngpa, San Benito, San Francisco, San Mateo, Santa Clara,
Santa Cruz, Solano and Sonoma for at least three (3) years prior to
application. Exception is made for people who were homeowners prior to
a divorce settlement.
B
Buyer Selection
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 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
BMP Guidelines Page 4
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.
(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) Regular Full-Time and Regular Part-Time 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.
(6) 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.
b. 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 }Tears.
(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.
C. 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.
BMP Guidelines Page 5
(2) Household size is worth two points per person,
d. 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 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°/x, of the County Median Income); and
Low Income Households (those whose income is above 50%, 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:
BMP Guidelines Page 6
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
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 (MET) figures from the United States Department of Housing
and Urban Development (HUD) for the San .lose, 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% MFI 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
I
I Bedroom
1
2 Bedroom
2
3 Bedroom
3
4 Bedroom
4
BMP Guidelines Page 7
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.
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 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
BMP Guidelines Page 8
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.
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
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 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
BMP Guidelines Page 9
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.
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
29.10.310 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 Development (HUD) for the San
Jose, 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.
3. A SUIP loan to construct a second unit within the Central Los Gatos
BMP Guidelines Page 10
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 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.
(Adopted by Resolution 2008- August 18, 2008)
NACSDITCRPTS12008 TCRPTS\BMP Guidelines 2008.wpd
BMP Guidelines Page I 1