07 Staff Report - Amending Town Code Revised Below Market Price Program Guidelines~owN °F MEETING DATE: 1015109
ITEM NO.
COUNCIL AGENDA REPORT
~0sca~~s.
DATE: September 24, 2009
TO: MAYOR AND TOWN COUNCIL/
CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY
C
FROM: GREG LARSON, TOWN MANAGER/EXECUTIVE DIRECTOR
SUBJECT: INTRODUCTION OF AN ORDINANCE AMENDING TOWN CODE
CHAPTER 29, DIVISION 6, SECTIONS 29.10.3000 THROUGH 29.10.3040
HOUSING ASSISTANCE PROGRAM AND ADOPTION OF THE
RESOLUTION REPEALING RESOLUTION 2008-121 AND APPROVING
THE REVISED BELOW MARKET PRICE (BMP) PROGRAM GUIDELINES
RECOMMENDATION:
1. Hold the public hearing and receive public testimony on proposed ordinance and
resolution (No Motion Required)
2. Close the public hearing (No Motion Required)
3. Direct Clerk to read title of proposed ordinance (Attachment 2) (No Motion Required)
4. Motion and vote to waive reading of text (Motion Required)
5. Motion to introduce ordinance (Attachment 2) (Motion Required)
6. Direct Clerk Administrator to publish notice (No Motion Required)
7. Approve the resolution repealing resolution 2008-121 and approving the revised BMP
Program Guidelines (Attachment 1) (Motion Required)
BACKGROUND:
On December 15, 2008, the Town Council approved a Planned Development (PD) for a
condominium conversion at 347 Massol Avenue (Bay Tree Apartments). The project approval
necessitated some modification to the Town's Below Market Price (BMP) Program. Guidelines
and Ordinance, specifically to address existing special circumstances senior households that may
be displaced when the apartments are converted to condominiums. During this same time
period, the Los Gatos Meadows senior living facility presented a conceptual campus
redevelopment proposal to the Town Council. One of the issues raised during the presentation
was the challenge of providing the required BMP units within the continuum care facility.
Consequently, the Meadows requested that BMP requirements be met through an off-site option.
Based on these two projects, the Town Council directed staff to make a number of changes to the
PREPARED BY: WENDIE R. ROONEY, Community Development Director
Reviewed by: Assistant Town Manager/ Town Attorney
Clerk A n nistrator Finance Community Development
NADEVICNCLRPTS1200918MP ordinance.doc
PAGE 2
MAYOR, TOWN COUNCIL, CHAIR, AND MEMBERS OF THE REDEVELOPMENT AGENCY
SUBJECT: INTRODUCTION OF ORDINANCE AMENDING CHAPTER 29, DIVISION b,
SECTIONS 29.10,3000 THROUGH 29.10.3040
September 24, 2009
BMP Program to accommodate these unique situations. The proposed amendments are intended
to:
1. Provide an exception to the eligibility requirements for special circumstances senior
households residing in apartments that are converted to condominiums;
2. Allow flexibility in phasing requirements for certain applications that are processed as a
Planned Developments;
3. Allow BMP units to be provided off site if authorized by Town Council; and
4. Clean up existing language.
The General Plan Committee (GPC) reviewed the draft guidelines and ordinance on April 22,
2009, and July 22, 2009; the Community Services Commission reviewed the documents at its
September 3, 2009, meeting; and the Planning Commission reviewed the draft guidelines and
ordinance at its September 9, 2009, meeting. The Planning Commission staff report has been
incorporated into this report, and, therefore, is not included as an attachment. Each reviewing
body made a number of recommended modifications that will be discussed in the following
Discussion section.
Exhibits 1 and 2 contain the draft ordinance and resolution. In both of these documents,
recommended edits are in underline format for new text, strike-through format for deleted text,
and italics for existing text that has been reformatted for clarity purposes.
DISCUSSION:
The principal changes to the Draft BMP Guidelines and Ordinance (Attachments 1 and 2,
respectively) are as follows:
Town Council Directed Changes
Provide an exception to the Buyer Selection Process for special circumstances senior tenants
who are residing in an apartment that is converted to a condominium (Attachment 1, Exhibit
A, Page 7, Section NB.9). The tenant would have a first right of refusal to buy the BMP
unit if he or she meets the income qualifications of the program.
While the Town Council's direction to provide the first right of refusal to purchase a BMP
unit was focused on "special circumstance seniors" who were residing in apartments that are
proposed to be converted to condominiums, staff recommended expanding the exception to
any tenant, regardless of age, that could be displaced through the condominium conversion
process. This recommendation was based on the fact that the existing BMP Guidelines
Buyer Selection Process address most types of households, including senior, disabled, single
heads of households, Town employees, etc., and that the displacement could be a hardship to
all tenants, not just seniors. The GPC expressed concern with allowing the first right of
refusal to all tenants regardless of how long they have resided in the apartment and thus
recommended narrowing the range of perspective tenants that could qualify. Staff
PAGE 3
MAYOR, TOWN COUNCIL, CHAIR, AND MEMBERS OF THE REDEVELOPMENT AGENCY
SUBJECT: INTRODUCTION OF ORDINANCE AMENDING CHAPTER 29, DIVISION 6,
SECTIONS 29.10.3000 THROUGH 29.10.3040
September 24, 2009
recommended, and the GPC supported, a proposed new provision to the guidelines that
limited the eligible tenants to those who resided in the apartment prior to the property owner
issuing the "Notice of Intent to Convert" the apartments to condominiums. This legal, State
required notice must occur a minimum of 180 days prior to the Town's public review of the
proposed condominium conversion application.
Finally, in order to provide the tenant the first right of refusal to purchase the unit, an
exception to the First Time Home Buyers qualification requirements is also necessary.
Attachment 1, Exhibit A, Page 5, Section IV.A.2 includes this recommended exception that
would allow tenants who have resided in the apartment prior to the issuance of the Notice of
Intent to Covert to qualify as a First Time Home Buyer and thus meet the eligibility
requirements to purchase the BMP unit. The tenant would also need to meet other BMP
income qualification requirements.
• Provide for phasing of BMP units in Planned Development projects that are converting from
apartment complexes to condominiums (Attachment 1, Exhibit A, Page 4, Section II. G). The
phasing would allow the tenant to remain in his or her unit until such time that he or she
vacates the unit. Once it is vacated, it would be sold as a BMP unit to a qualified buyer.
Town Council directed this change be made to allow for the special circumstances seniors
who were potentially be displaced with the Bay Tree condominium conversion process.
Staff, however, is recommending that Council retain the ability to approve future changes in
phasing for other unique circumstances that may occur by allowing the Town Council to
approve changes to phasing during the Planned Development review process.
• Provide an off-site construction provision for continuum care facilities, such as the Los Gatos
Meadows (Attachment 1, Exhibit A, Page 3, Section ILF). Residents of a continuum care
facility do not own their units and move to a new unit or room when their level of assistance
and care changes. Consequently, it would be problematic to maintain on-site BMP units
when the residents transition from one unit and level of care to another. The off -site
provision would allow a continuum care facility to either buy or construct its required BMP
unit at an off-site location that is within the Town of Los Gatos.
General Plan Committee Recommended Changes
During its review, the General Plan Committee (GPC) also recommended the following changes
to the BMP Program (see Attachments 3 and 4 for a summary of the GPC comments):
+ Include a provision in the Guidelines that reflects the Deed Restriction requirement, requiring
owners to occupy their BMP unit rather than renting it. Although the deed restrictions that
are recorded on the BMP unit require the owner to occupy the unit, staff has added a new
provision (Attachment 1, Exhibit A, Page 10, Section W.F.) that requires that the qualified
owner live in the owner-occupied unit,
PAGE 4
MAYOR, TOWN COUNCIL, CHAIR, AND MEMBERS OF THE REDEVELOPMENT AGENCY
SUBJECT: INTRODUCTION OF ORDINANCE AMENDING CHAPTER 29, DIVISION 6,
SECTIONS 29.10.3000 THROUGH 29.10.3040
September 24, 2009
• Prohibit the owner-occupied BMP unit recipient from upgrading to a larger or newer BMP
unit. The existing Guidelines currently address this suggestion through the requirement that
recipients meet the first time homebuyer definition. An existing BMP recipient would not
qualify as a first time buyer since he or she presently owns a home in the Nine Bay Area
Counties and thus not be able to buy another BMP unit.
• Eliminate the in-lieu fee option for the smaller residential projects of five (5) to nine (9) units
(Attachment 1, Exhibit A, Page 3, Section II.D.a.). The Committee felt that since the overall
purpose of the program is to create BMP units that are interspersed with market rate units
throughout the community, then these projects should provide a BMP rather than paying the
in-lieu fee.
• Eliminate the in-lieu fee option for projects that are five (5) units or more within the Hillside
Residential (HR) Zone (Attachment 1, Exhibit A, Page 3, Section H.D.b.). Again, the
Committee felt that since the overall purpose of the program is to create BMP units that are
interspersed with market rate units throughout the community, then a hillside residential
subdivision should provide a BMP unit through either buying an existing unit or constructing
a unit. GPC suggested that the developer should provide the unit in a suitable off-site, non-
hillside Los Gatos location. Presently, the guidelines require developments in the HR Zone
District to pay an in-lieu fee that. is equal to six (6) percent of the building permit valuation
for the entire project. The in-lieu fee option was presumably established for these types of
developments because the Town did not want to encourage increased density and residential
units in the hillsides.
In order to assist the Planning Commission and Town Council with their deliberation of the
aforementioned GPC recommendations, subsequent to the July 22, 2009, GPC review of the
draft guidelines, staff surveyed other jurisdictions regarding the GPC's recommendations on
eliminating the in-lieu fee option and off-site construction. The summary of findings is
contained in Attachment 6. It is important to note that the GPC did not have this summary
information during their discussions and ultimate recommendation on this issues.
Of the eight jurisdictions surveyed, all contain an in-lieu alternative to providing the Below
Market Price unit and five of the eight allow off-site construction to meet the program
requirements. The in-lieu fee option generally applies to the smaller development projects and, in
most cases, requires the City staff or City Council approval (Attachment 6).
Staff also consulted the non-profit California Coalition for Rural Housing report entitled
Inclusionary Housing in California: 30 Years of Innovation. Prepared in March 2003, the report
summarizes the results of a survey of the 107 California cities and counties with inclusionary
housing programs. In regards to in-lieu fees and off-site construction options, the survey finds
that most jurisdictions offer developers alternatives to constructing affordable units within the
market rate project. Most common is paying fees in-lieu of constructing the required unit. Of
the 81 percent of the reporting programs that provide an in-lieu fee option, 45 percent are
PAGE 5
MAYOR, TOWN COUNCIL, CHAIR, AND MEMBERS OF THE REDEVELOPMENT AGENCY
SUBJECT: INTRODUCTION OF ORDINANCE AMENDING CHAPTER 29, DIVISION 6,
SECTIONS 29.10.3000 THROUGH 29.10.3040
September 24, 2009
automatic and 55 percent required that the developer demonstrate that on-site construction is
infeasible. Lastly, 67 percent of the jurisdictions permit developers to construct units at off site
locations. Often the off-site construction is allowed if the developer agrees to either increase the
number of units or number of bedrooms.
Another factor to consider when determining whether to eliminate the in-lieu fee option for
smaller and hillside residential development is how effective the in-lieu fee fund has been at
providing affordable housing opportunities. Since 1993, the BMP in-lieu fund has generated
approximately $1.8 million dollars. The fund is principally used to buy units that are at-risk of
losing their affordability and for administrative costs, including the contract with the County
Housing Authority. As of end of 07/08, the fund has a balance of approximately $1.4 million
dollars.
While there has been minimal use of the fund, the recently prepared Affordable Housing Strategy
identifies several existing housing programs as well as new programs for the Town to pursue
with its BMP and RDA Housing Funds, including contributions to the Santa Clara County
Housing Trust, First Time Homc Buyer Program, Housing Conservation Fund, Creating a
Property Acquisition Fund, etc. Moreover, the report also suggests that the BMP funds, along
with the RDA funds, can be leveraged to achieve a greater number of affordable units.
Two additional factors to consider when determining whether to eliminate the in-lieu fee option
are: (1) how the Town would respond to the case where a developer could not find an
appropriately priced unit, and (2) would the conversion of a market rate unit in an existing
multifamily owner-occupied development to an affordable unit raise neighbor opposition. In this
latter case, it raises the question whether that Town is obligated to notify the surrounding
tenants/owners.
In summary, as illustrated in the two surveys, in-lieu programs are very common, especially for
smaller residential developments. While most jurisdictions prefer to integrate the affordable units
with the market rate units, off-site construction is often allowed if it is demonstrated that greater
community benefits can be achieved with an off-site alternative. However, it is important to
consider how the off-site unit is integrated into a different neighborhood, especially if an existing
market rate unit is converted to a BMP.
The in-lieu program has generated a respectable amount of funds over the past 16 years. While
the BMP in-lieu fund has not been used to construct new units, it has provided funding to
maintain existing affordable units that were in jeopardy of losing their affordability, and
program monitoring and BMP eligibility verification (through a contract with the Housing
Authority). The State does not mandate BMP Programs. Therefore, the Town has full discretion
on how to administer the program.
Community Services Recommended Chan1jes
The Community Services Commission generally found the program revisions acceptable. The
one issue where the Commission differed from the GPC and staff recommendation was the
PAGE 6
MAYOR, TOWN COUNCIL, CHAIR, AND MEMBERS OF THE REDEVELOPMENT AGENCY
SUBJECT: INTRODUCTION OF ORDINANCE AMENDING CHAPTER 29, DIVISION 6,
SECTIONS 29.10.3000 THROUGH 29.10.3040
September 24, 2009
exception to the First Time Homebuyer qualifications and Buyer Selection Process. Presently,
the guidelines state that an applicant is considered a first time home buyer, and thus eligible for a
BMP, if they have not appeared on a residential title in the nine Bay Area counties within the
past three (3) years. The Commission felt that a full exception to the First Time Homebuyer
requirements and the Buyer Selection Process (by having first right of refusal to purchase the
BMP unit) raised potential "fairness" issues with the other BMP Program applicants. However,
recognizing the uniqueness of the condominium conversion situation, the Commission suggested
reducing the requirements so that the tenant could be considered a First Time Home Buyer if he
or she has not appeared on a residential title in the nine Bay Area counties within the past 2 years
rather than the current program requirements of 3 years. Based on staff and the Planning
Commission's recommendations, staff has not made this revision to the attached draft ordinance.
However, should the Town Council agree with the Community Services Commission, the
revision could be made during the first reading of the draft ordinance and the final adoption.
Finally, Community Services Commission also recommended the Town Attorney review the
proposed exceptions to ensure there are not any fairness concerns or liability issues. The Town
Attorney does not believe that the exception provisions would constitute a fairness issue, since
the tenant would also need to meet the income level qualifications and the Town has complete
discretion on the BMP Program's implementation.
PlanninEt Commission Recommended ChanlZes
The Planning Commission generally agreed with the Town Council direction and GPC
recommended changes (Attachment 5). The Planning Commission agreed with the GPC that
hillside residential projects should construct the BMP unit rather than paying an in-lieu fee.
While the GPC recommended that the BMP unit be provided off site (either through constructing
a unit or purchasing and converting an existing market rate unit), the Planning Commission felt
that the BMP unit should be provided on-site and only if an on-site unit is deterinined to be
infeasible, then an off-site unit should be constructed or purchased. The Planning Commission
further recommended that an in-lieu fee option only be allowed if the developer provides
sufficient justification that both on- and off-site alternatives are not viable. Finally, the Planning
Commission agreed with the GPO's recommendation to eliminate the in-lieu fee option for non-
hillside smaller residential projects of five (5) to nine (9) units and the Council direction to allow
exceptions to the First Time Homebuyer Selection Process and the First Time Homebuyer
qualifications in cases of tenants in condominium conversion projects.
Staff Recommended Chanl4es
During the review of the draft guidelines and ordinance, staff recommended the following
modifications to the documents:
• Reformat the guidelines and include both the "Purpose" statement and "Enabling
Legislation" (Attachment 1, Exhibit A, Page 1, Section LA and I.B). The "Purpose"
statement helps to clarify the overall intent of the program and will offer guidance to staff
PAGE 7
MAYOR, TOWN COUNCIL, CHAIR, AND MEMBERS OF THE REDEVELOPMENT AGENCY
SUBJECT: INTRODUCTION OF ORDINANCE AMENDING CHAPTER 29, DIVISION 6,
SECTIONS 29.10.3000 THROUGH 29.10.3040
September 24, 2009
statement helps to clarify the overall intent of the program and will offer guidance to staff
and the Council if any exceptions are proposed to the program. The Enabling Legislation
clarifies that the BMP Program is administered via the guidelines and Division 6 of the Town
Code (ordinance).
Inclusion of an Affordability Agreement requirement. Although the BMP requirements are
recorded on the subject property, the Affordability Agreement will help ensure that the units
are sold to qualified buyers and will only be released once the escrow process is completed.
• As previously noted, staff also expanded the eligibility exception to the First Time
Homebuyer definition and Buyer Selection Process to include all tenants living in an
apartment that is proposed to be converted to a condominium if they resided in the apartment
prior to the issuance of the Notice of Intent to Convert.
• Finally, staff made a number of other small changes to clarify existing procedures.
FINDINGS:
General Plan Conformance
The BMP Guidelines revisions and related Town Code Amendments are consistent with the
following General Plan Policies and/or Implementing Strategies. Staff reconunended support for
the finding is included in Italics.
H.P.1.1 Maintain and/or adopt appropriate land use designations and other
development tools to encourage development of affordable housing. The
revised BMP Program addresses the changing needs of the Town's
Affordable Housing Program. The revisions will address unique situations
raised by continuum care facilities and condominium conversions and will
help further the program goals by ensuring that these unique uses will be
able to continue contributing to the affordable housing stock.
H.I.1.5 Below Market Price Program: Continue to implement the BMP Program in
order to increase the number of affordable units in the community... The
proposed BMP Program revisions will help to ensure the continued
implementation of the BMP Program by addressing unique situations and
facilitating their compliance with the program goals.
CONCLUSION:
The attached guidelines and ordinance reflect Town Council direction, Planning Commission
recommended changes, generally the GPC suggested changes, and staff revisions. The one
PAGE 8
MAYOR, TOWN COUNCIL, CHAIR, AND MEMBERS OF THE REDEVELOPMENT AGENCY
SUBJECT: INTRODUCTION OF ORDINANCE AMENDING CHAPTER 29, DIVISION 6,
SECTIONS 29. 10.3000 THROUGH 29.10.3040
September 24, 2009
recommended change that has not been -made to either the guidelines or the ordinance is the
Community Services Commission's reconunendation that tenants in condominium conversion
not be granted a complete exception to the Buyer Selection Process or the First Time Home
Buyer definition. As discussed above, the Community Services Commission supported reducing
the qualifications for tenants in condominium conversions from the mandatory 3 year period of
time since owning a home in the Bay Area to 2 years; however, they did not support a complete
exception to the requirements for fairness reasons. Should the Town Council agree with the
Community Services Commission recommendation, staff would recommend introducing the
draft ordinance and staff would revise the ordinance between introduction and adoption to reflect
the Community Services Commission recommendation. Staff would also recommend continuing
the resolution so it can be revised consistent with the Community Services Commission
recommendation and it can be adopted concurrently with the adoption of the ordinance.
ENVIRONMENTAL ASSESSMENT:
It has been determined that the project could not have a significant impact on the environment
and is not subject to the California Environmental Quality Act (Section 15061 (b)(3)).
FISCAL IMPACT:
There is no direct fiscal impact to the Town to amend the Below Market Price Housing Program.
However, if the Town Council approves the Planning Commission and GPC recommendations to
generally require that the developer of HR Zone District subdivisions construct the BMP unit
rather than paying in-lieu fees, the fund will decrease over time and ultimately be exhausted.
Moreover, the Town will need to determine an appropriate funding source for the costs
associated with administering the BMP Program, including the contract with the Santa Clara
County Housing Authority.
Attar imPntw
1. Draft Council Resolution with BMP Guidelines
2. Draft Zoning Ordinance Amendments
3. April 22, 2009, GPC Minutes
4. July 22, 2009, GPC Minutes
5. September 9, 2009, Planning Commission Minutes
6. Survey of Eight Bay Area Jurisdictions' In-Lieu Fee and Off-Site Construction
Provisions
WRR: cgt
NADEVICNCLRPTS120091BMP Ordinanmdoc
RESOLUTION 2009 -
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
ADOPTING REVISED BELOW MARKET PRICE HOUSING GUIDELINES AND
REPEALING RESOLUTION 2008-121
WHEREAS, the Town of Los Gatos Zoning Ordinance Sections 29.10.3000 through
29.10.2040 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 rent or buy, and assures to the extent possible that the resale
prices of those dwellings units 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 Town Council of the Town of Los Gatos
(1) repeals Resolution 2008-121; and (2) adopts the Town of Los Gatos Below Market Price Housing
Program Guidelines attached as Exhibit A.
Attachment 1
PASSED AND ADOPTED at a regular meeting of the Town Council held on the
day of , 2009, by the following vote:
COUNCIL MEMBERS:
AYES :
NAYS :
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
N:5DEYVLES0SMMP GUIDFLTHES-2009 DOC
2
Exhibit A
TOWN OF LOS GATOS
BELOW MARKET PRICE HOUSING PROGRAM GUIDELINES
(September 2009 Draft)
1. Purpose
A. Purpose-..-- The overall purpose of the Below Market Price (BMP) Housing
Program is to provide the Town of Los Gatos with a supply of affordable housin2.
While the program is available to all qualified applicants, the general intent of the
program is to provide affordable housing for households who work or currently
live in Los Gatos. The main goal is to increase the housing supply for households
that have median and low incomes compared to the median income for Santa
Clara Couulty and meet the housing needs identified in the Town's General Plan
Housing Element. The Program further intends to ensure, to the greatest extent
possible, that rent and re-sale of these housing units will remain affordable to
median and low income levels in perpetuity. Although the Town has a fee-in-
lieu of constructing actual units option for defined circumstances, the primary
objective of the BMP Program is to obtain actual "rental" or "for sale" housing
units rather than equivalent finds. All off-site BMP units shall be constructed
within the Town of Los Gatos. The construction and occupancy of the BMP unit
is _deterixrined according to these Town Council established guidelines and
Ordinance No. 2009-
B. Enablinp, Lep-islation: The Below Market Price Program is governed by Division
6 of the Town Code. 'rhe BMP Program is administered under these Below
Market Price Housing Program Guidelines.
it, Below Market Price Housing Requirements - General
A. Applicability: The BMP Program requirements shall apply to all residential
developlnerrl projects that include five (5) or more residential units or parcels
Which involve:
1. Neiv construction of OlVnership or rental housing units, including inixed
use developments and addition of knits to existing projects, or
2. Subdivision of property for single family or duplex housing development,
or
3. Conversion of rental apartments to condominiums or other common
interest oivnership, or
4. Conversion of non-residential use to residential use.
B. Number of BMP Units: All residential developments consisting of five (5) or
more units are required to participate in the BMP Program. The requirements for
participation increase by development size as shown below:
BMP Guidelines Page 1
Five (5) to Nineteen 19 market rate units: The developer shall provide a
minimum number of BMP units equal to ten (10) percent of the number of
market rate units.
2. Twenty (20) to one hundred (100) market rates units: The developer shall
provide a minimum of 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.
One hundred and one (101) units or more: The developer shall provide a
minimum number of BMP units equal to twenty (20) percent of the
number of market rate units.
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.
The Town and developer may negotiate to provide more BMP units than required
by the rules listed in these guidelines to fulfill a development's Community
Benefit requirements.
C. Fraction of a BMP Housing Units: In determining the number of BMP units
required, any decimal fraction of .5 or above shall be rounded up to the nearest
whole number.
D. Residential In-Lieu Payments: The_ general intent of the BMP Program is to
provide the Town of Los Gatos with a supply of affordable housing for
households who work or currently live in Los Gatos. However. there may be
circumstances when the construction of the BMP unit is unpractical or there are
unusual circumstances that make the construction of the unit inconsistent with
Town policy. The Town, at its sole discretion, may consider an in-lieu payment
alternative to the required BMP unit in the case of Planned Unit development with
an underlying zone of HR. Prior to approving the in-lieu fee alternative, the
applicant must demonstrate to the satisfaction of the Town wlia BMP unit
cannot be (1) developed on the same site as the market rate units, and if it caiunot
be provided on the same site then, (2) develop at an appropriate off -site location
within the Town limits. If the developer provides sufficient justification that both
of these alternatives are not viable, then a fee in-lieu option may be considered.
The rewired in-lieu fee is as established by a separate resolution and is to be paid
to the Town prior to issuance of the certificate of occupancy for the market rate
BNII' Guidelines Page 2
residential unit_that triggered the_BMP requirement. The provision for a BMP unit
applies if the project is built under the rules of an overlay zone unless the rules of
the overlay zone provide otherwise.
The in-lieu fee shall be equal to the amount of six (6) percent of the building
permit valuation for the entire project. The total building permit valuation shall
be determined by the Town Building Official.
Fees shall be paid prior to or at time of final occupancy as follows:
1. 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,
2. 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.
3. Single-Family Planned Developments: At time of final occupancy for
each unit.
E. Housing Fund: In-lieu fees will be deposited into the Town's Affordable Housing
Fund. Applications and or recommendations for use of remaining funds will be
reviewed as received. Possible use of the funds include, but is not limited to, the
following:
1. Subsidizing the cost of owner occupied units to make them affordable to
low/moderate income households
2. Purchasing rental units to make them affordable to low/moderate income
households
3. Purchasing land for the future development of affordable housing
4. Developing affordable housing
5. Supplementing of affordable housing projects developed through the Los
Gatos Redevelopment Agency
6. Funding administration of the program, as approved by the Town Council
in its annual budget process
F. Off-Site Construction: The Town Council may consider off-site construction of
BMP units for continuum care facilities and for Hillside Residential (HR) Zone
District moiects that have Drovided sufficient iustification to the Town that an on-
site BMP unit is not viable.
BMP Guidelines Page 3
G. Phasing of the Construction of On- and Off-Site BMP Units: On- and off-site
BMP units shall be constructed and Certificate of Occupancies secured
concurrently with or prior to the construction of the market-rate units. The BMP
requirement will be calculated on the basis of the whole development. The Town
Council may grant an exception to these phasing requirements during the Planned
Development project approval process for condominium conversion
developments.
H. Affordability Agreement: The developer of "for sale" BMP units shall enter into
an affordability Tagreement with the Town. The agreement will ensure that the
BMP units are sold to qualified buyers and will be released by the Town through
the escrow process once the BMP is sold to a qualified bum
III. Characteristics of BMP Units
A. 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 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. There shall not be significant identifiable
difference between the BMP and market-rate units visible from the exterior. The
size and design of the BMP units must be reasonably consistent with the market-
rate units in the development.
B Location of units: BMP units shall be dispersed 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 and will generally no
be allowed.
C. Finish of units: The external appearance of BMP writs 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 finishes,
appliances, or fixtures, if such substitutions do not violate any Town code
requirement.
D. 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.
IV. The BMP Unit Purchase Process; Buyer Selection, and BMP Unit Sale and Resale
Procedures.
BMP Guidelines Page 4
A. Owner Occupied Units
1. Applicant Eligibility
a. 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.
b. Housing Costs: 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
homeowners' association fees, if applicable
5. other expenses as determined necessary by the lender
c. 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.
2. First Time Horne 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 (ABAG)
or Association of Monterey Bay Governments (AMBAG) which are
Alameda, Contra Costa, Marin, Monterey, Napa, 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 and tenants residing in
a
rental apartment proposed to be converted to a condominium or other
common interest ownership prior to a Notice of Intent to Convert the
development to an ownership residential unit.
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
BMP Guidelines Page 5
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:
1. Six points:
a. 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.
b. Senior Citizens who have lived in the Tow for at least two years
and have moved out of the Town within the last five years prior to
the time of application.
C. 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.
d. Households required to relocate their residence as a result of
Council action or mobile home park closure.
C. Regular Full-Time and Regular Part-Time Town employees as
defined in the Tow's Persotulel Rules, who have been employed
by the Town for a period of no less than 12 months prior to the
time of application.
f. 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.
2. Four points:
a. 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.
b. Persons who work in the Town of Los Gatos at time of application
BMP Guidelines Page 6
and have worked in the Town for at least the prior two years.
3. Two points:
a. 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,
b. Household size is worth two points per person.
4. One point:
a. Households who live or work within Santa Clara County at the
time of application.
b. 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).
5. A lottery will be used to rank each qualified applicant in the case of a tie.
6. 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.
7. 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.
8. An applicant must obtain pre-approval for a mortgage loan within one
week after notification of eligibility to purchase a unit. The applicant
must submit documentation of loan approval within three weeks of
notification of eligibility to purchase a unit.
9. Exception to the Buyer Selection Process: An exception to the Buyer
Selection Process may be granted to a resident of a rental apartment that is
proposed to be converted to an "owner occupied" condominium or other
common interest ownership development. In order to qualify for the
exception, the resident must have resided in the rental apartment prior to
the issuance of the Notice of Intent to Convert the development to an
ownership project and shall meet the financial eligibility requirements to
qualify for a BMP unit. The resident shall be provided first right of
refusal regardless of point ranking, for units in the following order:
BMP Guidelines Page 7
a. The unit they reside in if it is designated as a BMP unit,
b. Any other available BMP unit.
C. Determination of Initial Selling Price: 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 50%, but no
greater than 80%, of the County Median Income).
I. Nifty 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
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:
BMP Guidelines Page 8
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:
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
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 + amiual 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
BMP Guidelines Page 9
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 diets
Development 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 twit, 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.
F. Occupancy of Units:
Consistent with the deed restriction that will be recorded on the subject property,
the household purchasing a BMP unit must occupy the unit as his or her primary
residence durina his or her ownershiD of said unit.
V. Requirements for BMP Rental Development
A. Administration: The program shall be administered by the Town or its designee.
B. Applicant Eligibility
1. 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.
BMP Guidelines Page 10
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 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.
G. Deed Restrictions: Council approved Deed Restrictions shall be recorded for each
Below Market Price rental dwelling unit.
V1. RENTAL UNITS -NEW SECOND DWELLING UNITS
A. Administration: The program shall be administered by the Town or its designee.
B. Second Unit Incentive Program: 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.
I. 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
BMP Guidelines Page 1 1
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
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 2009- September , 2009)
N:%DEVIJOEL10RD1NANCE AMENDMENMBMP Program Guidelines Final.doc
BMP Guidelines Page 12
ORDINANCE
AN ORDINANCE OF THE TOWN OF LOS GATOS
AMENDING TOWN CODE CHAPTER 29, DIVISON 6, SECTIONS 29.10.3000
THROUGH 29.10.3040 HOUSING ASSISTANCE PROGRAM
THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES ORDAIN AS
FOLLOWS:
SECTION I
Town Code Chapter 29, Division 6 (Sections 29.10.3000 through 29.10.3040,
Housing Assistance Program) is deleted in its entirety.
SECTION II
Town Code Chapter 29, is hereby amended to read as follows:
ZONING REGULATIONS
Article I. In General
DIVISION 6. HOUSING ASSISTANCE PROGRAM
Sec. 29.10.3 000. Intent.
Sec. 29.10.3005. Below market price program - Established.
Sec. 29.10.30t0. Same - Intent.
Sec. 29.10.3015. Application.
Sec. 29.10.3020. Definitions.
Sec. 29.10.3025 Scope.
Sec. 29.10.3030. Price.
Sec. 29.10.3035. Project denial.
Sec. 29.10.3040. Administration.
SECTION III
Town Code Chapter 29, Division 6 is replaced as follows:
Page 1 of 6
Attach-ment 2
DIVISION 6.
HOUSING ASSISTANCE PROGRAM
Sec. 29.10.3000. Intent.
This division is adopted to meet housing needs shown in the housing element of the general
plan.
(Ord. No. 1316, § 3.90.010, 6-7-76; Ord. No. 1430, 6-4-79)
Sec. 29.10.3005. Below market price program--Established.
This division establishes the below market price program (BMP)
(Ord. No. 1316, § 3.90.100, 6-7-76; Ord. No. 1430, 6-4-79)
Sec. 29.10.3010. Same--Intent.
The below market price (BMP) program requires suction the provision of dwellings that
persons and families of 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 moderate income.
(Ord. No. 1316, § 3.90.105, 6-7-76; Ord. No. 1430, 6-4-79; Ord. No. 16853 6-2-86)
See. 29.10.3015. Application.
This division shall apply to all multiple-family dwelling projects, residential condominium
projects, condominium conversions, and to all residential planned development projects (division
2 of article VIII of this chapter) either approved after July 4, 1979, or whose approval includes a
condition requiring eonstrue-tio the provision of BMP dwellings. Projects in the R-1 and HR
zones are excepted from BMP participation. The exception does not apply if the project is built
under the rules of an overlay zone unless the rules of the overlay zone provide otherwise.
(Ord. No. 1316, § 3.90.110, 6-7-76; Ord. No. 1430, 6-4-79; Ord. No. 1685, 6-2-86)
See. 29.10.3020. Definitions.
For the purposes of this division the following definitions shall apply:
BMP dwelling means any residential dwelling unit designated for very low, low, and
moderate income under the rules of this section.
Person of moderate income means one whose income falls within the range specified by the
Town Council in the resolution authorized by section 29.10.3040.
(Ord. No. 1316, § 3.90.115, 6-7-76; Ord. No. 1430, 6-4-79; Ord. No. 16855 6-2-86; Ord. No.
2115, § II, 9-15-03)
Sec. 29.10.3025. Scope.
Page 2 of 6
9-
xeF
i:
i
ltif
il
t
l d
lli
~
4
t th
ti
f b
ildi
it
,
y
n
i
affl
y fen
a
we
ng pFE
ee
a
e
me o
u
perm
,
ng
t
4
d
t
i e
ti
l
t
l
4
-
; eyef
a
artment or unit
ro
apar
projee
an
men
evefy
jeet at the tim
f
bdi
i
i
s
n
e
-s
ee
[ eeep€ra
i
,~e
if th
t
ti
i
l
p
p
a4 the t
subdivision
e o
su
v
s
on
ime of sale
if R d
h
ll
t
e
r-a*sae
eft
nvo
ves
, BMP
1
t
i
,
dL
s--aESe in
-t
,
oes no
, s
a
-een
b
l
~
4h th
th
l
)
a
none (
ti
th
t
l
d
g
g
e
develo
ment with an u
e
ow
aa
e ru
es
e
nder-l
in
zone
of T
4
R
4
all
l
b
eiEeep
on
a
any p
anne
i
d t
i
li
p
y
g
,
-
-
fl-
- s
on
y
e f
equ
re
o pa-y an
n
eu
The Below Market Price Program requirements shall apply to all residential development
projects that include five (5 or more residential units or parcels which involve.
1. New construction of ownership or rental housina units. including mixed use
developments and addition of units to existing projects, or
2. Subdivision of property for single family or duplex housing development, or
3. Conversion of rental apartments to condominiums or other common interest
ownership, or
4. Conversion of non-residential use to residential use.
The residential developments consisting of five or more units are required to provide the
following number of BMP units:
(1) Projects containing five (5) or more but less than twenty (20) market rate units
must provide a number of BMP units equal to ten (10) percent of the number of market
rate units.
-R PFcq crots v~44 five (5) or- +nefe but less than ten (10) fflarket fate ~ff~s iiia-y Ve'Y
fee in lieu of building a BMP unit in oFcler to eemply with this r-eEf4r-ement.
-(3)fQ Projects with from twenty (20) to one hundred (100) market rate units must
provide BMP units as determined by the following formula:
Number of BMP units = .225 (total # of market rate units) - 2.5
(4)_3 All projects in excess of one hundred (100) market rate units must provide a
number of BMP units equal to twenty (20) percent of the market rate units.
(5)_C4) Whenever the calculations of BMP 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) The Town, at its sole discretion. may consider an in-lieu pavment alternative to
the required BMP unit in the case of Planned Unit development with an underlying zone
of HR. Prior to approving the in-lieu fee alternative, the applicant must demonstrate to
the satisfaction of the Town why a BMP unit cannot be (1) developed on the same site as
the market rate units, and- if it cannot be provided on the same site then, (2) develop at an
Page 3 of 6
a ro riate off -site location within the Town limits. If the developer provides sufficient
justification that both of these alternatives are not viable, then a fee in-lieu option may be
considered. The required in-lieu fee is as established by a separate resolution and is to be
12aid to the Town prior to issuance of the certificate of occupancy for the market rate T
residential unit that triggered the BMP requirement. The provision for a BMP unit applies
if the project is built under the rules of an overlay zone unless the rules of the overlay
zone provide otherwise.
BMP units shall be constructed and Certificate of Occupancies secured concurrently with
or prior to the construction of the market-rate units. The BMP requirement will be
calculated on the basis of the whole development. The Town Council may rant an
exception to the phasing requirements during the project approval process.
(Ord. No. 1316, § 3.90.120, 6-7-76; Ord. No. 1430, 6-4-79; Ord. No. 1685, 6-2-86; Ord. No.
1687, 8-4-86; Ord. No. 1838, § I, 11-5-90)
Sec. 29.10.3030. Price.
The price of BMP units is controlled for the first buyer and for future buyers by the BMP
Guidelines as adopted and amended from time to time by Council resolution and as follows:
(1) The initial price is limited to direct construction cost and a proportionate share of the
costs of preparing working drawings and specifications and providing on-site and off-
site improvements, determined according to rules set by the Council.
(2) The initial price does not include the cost of land, profit, or marketing costs.
(3) Each BMP unit will be subjected to recorded title restrictions concerning manner of
future sales, occupancy and leasing.
(4) Each buyer of a BMP unit must agree to sell the unit to a moderate income buyer
designated by the Town. The Town will designate moderate income persons according
to rules adopted by the Council in effect at the time the seller purchased the unit.
(5) The resale price cannot exceed the original selling price plus the value at the time of
sale of improvements added by the owner, and plus an amount equal to the increase in
cost of living or housing during the owner's tenure. The index or method to be used in
calculating the increase is established by the Council.
(6) If a BMP unit to be resold has not been properly maintained or for any other reason is
in poor condition and in need of cleaning or repair, the Town may elect to do the work
or have it done and recover the cost from the sale price limited as provided in
subsection (5).
(7) The regulations will specify the period for controlled resales. The time period will be ui
per ep tuity or for as long as is practical.
Page 4 of 6
(Ord. No. 1316, § 3.90.125, 6-7-76; Ord. No. 1430, 6-4-79)
Sec. 29.10.3035. Project denial.
If an applicant for zoning approval declines to provide BMP units required by ordinance, the
zoning approval shall be denied.
(Ord. No. 1316, § 3.90.130, 6-7-76; Ord. No. 1430, 6-4-79)
Sec. 29.10.3040. Administration.
The Council shall adopt by resolution regulations concerning all aspects of the BMP
program, including the elements of location of the units, price, buyer eligibility standards, rent,
the length of the period during which a unit will be subject to BMP restrictions, the form of
recorded instruments and any other matter consistent with the provisions of this section.
(Ord. No. 1316, § 3.90.135, 6-7-76; Ord. No. 1430, 6-4-79; Ord. No. 1685, 6-2-86)
SECTION IV
If any of the provisions of this ordinance or the application thereof to any person or
property is held invalid, such invalidity shall not affect the other provisions of this ordinance
which can be given effect without the invalid provision or application, and to this end the
provisions of this ordinance are declared to be severable.
SECTION V
Any judicial review of this ordinance shall be by writ of mandate, under Code of Civil
Procedure 1085. Any action or proceedings seeking to attack, review, set aside, void or annul
this ordinance shall be commenced within 90 days after adoption of this ordinance.
This Ordinance was introduced at a regular meeting of the Town Council of the Town of Los
Gatos on , 2009, and adopted by the following vote as an ordinance of the Town of
Los Gatos at a meeting of the Town Council of the Town of Los Gatos on
2009. This ordinance takes effect 30 days after it is adopted.
COUNCIL MEMBERS:
AYES:
NAYS:
Page 5 of 6
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMIONISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
Page 6 of 6
TOWN OF LOS GATOS
110 East Main Street, Los Gatos, CA 95030 (408) 354-6872
SUMMARY MINUTES OF A REGULAR MEETING OF THE GENERAL PLAN
COMMITTEE OF THE TOWN OF LOS GATOS APRIL 22, 2009 HELD AT THE
NEIGHBORHOOD CENTER, 208 EAST MAIN STREET, LOS GATOS,
CALIFORNIA.
The meeting was called to order at 5:30 pm by Jane Ogle.
ATTENDANCE
Members present: John Bourgeois, Barbara Cardillo, Marcia Jensen, Tom O'Donnell,
Jane Ogle, Joe Pirzynski, Chuck Sloan, Barbara Spector
Members absent: None
Staff present: Wendie Rooney, Director of Community Development, Suzanne Davis,
Associate Planner; Joel Paulson, Associate Planner.
Public attendees: Ray Davis, Laura Worthington-Forbes, Rick Freeman
VERBAL COMMUNICATIONS:
Ray Davis stated that having the General Plan Community meeting on a Saturday
precluded parents from attending the meeting due to conflicts with weekend youth sports.
ITEM 1 Below Market Price Housing Program
Joel Paulson introduced the item, noting the BMP Ordinance amendments and revised
guidelines are tentatively scheduled to be considered by the Planning Cormmission on
May 13, 2009. The Community Services Commission will consider the draft documents
on May 3, 2009. Mr. Paulson summarized the following principal changes to the Below
Market Price Housing Draft Guidelines and Ordinance dated April 16, 2009.
BMP Housing Program Guidelines:
• Made changes to specifying when BMP units are required to be included in a
project (Draft Guidelines, Page 1, Section I.A).
• Added exception allowing BMP units to be developed off-site (Draft Guidelines,
Page 2, Section B.2).
• Added a provision to allow current residents within a condominium conversion
project to qualify under the First Time Buyer requirements (Draft Guidelines,
Page 4, Section II.3).
Attachment 3
General Plan Committee
April 22, 2009
Page 2 of 3
Committee Comments:
• Use of the word "fewer" versus "less" should be consistent and follow rules of
grammar.
• Clarify the rationale behind allowing a developer to provide units off-site and
incorporate criteria for determining the appropriateness of allowing off-site units
(indicate how and when off-site units are appropriate).
• Add provisions to ensure that BMP units are to be distributed throughout a project
rather than clustering the units.
• Indicate circumstances that will constrain the Town from obtaining affordable
units.
• The guidelines should clearly indicate that the Town's objective is to have the
units provided on-site rather than paying an in-lieu fee.
• Develop criteria that would be used for determining if a Planned Development
application is exempt from providing BMP units.
• The guidelines should clearly state the goal and purpose of the program are to
provide on-site BMP units.
• Create a framework that would be used to determine when BMP units can be
provided off-site and when an in-lieu fee can be paid. This should be contained in
a separate "Exception Provision" rather than in the "General Provisions".
• The Community Services Commission should review the Draft prior to Town
Council consideration.
• Add a requirement that off-site units must be developed within the Town of Los
Gatos.
• The Guidelines should include phasing requirements for BMP units that are
developed off-site and the original project should have conditions or triggers that
require the development of the off-site units at a prescribed time.
• Section B.3 should include criteria for determining qualifications of a resident in a
condominium conversion project to purchase a BMP. The criteria could be based
on length of residency or the tenant residing in the unit prior to the Notice of
Intent to convert the building to a condominium (Section B.3, Page 6).
BMP Ordinance: Mr. Paulson summarized the proposed changes to the Draft BMP
Ordinance. The proposed changes are as follows:
• Added "condominium conversions" to the applicability Section (Section
29.10.3015).
• Added exception criteria to allow the Town Council to grant exceptions to the
BMP requirements (Section 29.10.3025).
Included provisions that allow the Town Council to modify the price of the BMP
units and the in-lieu fees (Section 29.10.3030).
• Added to the Administration Section that the Town Council can modify the
requirements for where the BMP units are constructed (Section 29.10.3040).
General Plan Committee
April 22, 2009
Page 3 of 3
Committee Comments:
• Ensure that the Ordinance numbering is accurate.
• The "Scope Section" {Sec. 29.10.3025) should provide better clarity on when
BMP units are required and when a fee can be paid in lieu of providing the units.
+ The Draft Ordinance does not address non-compliance. Revise to include a non-
compliance section.
+ Units should remain affordable for as long as practical or as long as can be
required by State law. The Town prefers to have units restricted in perpetuity.
APPROVAL OF MINUTES
Barbara Spector noted that some areas of minutes are unclear.
Joe Pirzynski agreed and said that the minutes should clearly document decisions..
The February 25 and March 25, 2009 minutes will be reviewed by staff and returned to
the Committee for action.
ADJOURNMENT
Meeting was adjourned at 6:35 PM. The next meeting of the General Plan Committee is
scheduled for May 13, 2009.
Prepared by:
Suzanne Davis, Associate Planner
N:UDF V IGP CVo09mi nuteslGYC-042209. do u
TOWN OF LOS GATOS
I10 East Main Street, Los Gatos, CA 95030 (408) 354-6872
SUMMARY MINUTES OF A REGULAR MEETING OF THE GENERAL PLAN
COMMITTEE OF THE TOWN OF LOS GATOS JULY 22, 2009 HELD AT THE
NEIGHBORHOOD CENTER, 208 EAST MAIN STREET, LOS GATOS,
CALIFORNIA.
The meeting called to order by Chair Jane Ogle at 5:00 pm.
ATTENDANCE:
Members present: John Bourgeois, Barbara Cardillo, Marcia Jensen, Tom O'Donnell,
Jane Ogle, Chuck Sloan and Barbara Spector.
Members absent: Joe Pirzynski
Staff present: Bud Lortz, Deputy Town Manager; Wendie Rooney, Director of
Community Development; Suzanne Davis, Associate Planner; Joel Paulson, Associate
Planner.
Town consultants: Agnes Chan, Chad Markell and Joanna Jansen, Design, Community &
Environment (DC&E).
VERBAL COMMUNICATIONS:
None
ITEM 2 HOUSING ELEMENT UPDATE: HOUSING SITES INVENTORY
Joanna Jansen, DC&E, introduced the item, explaining that a default density standard
has been set by the State Department of Housing & Commmunity Development (HCD).
For Los Gatos the default density is 20 units per acre. The Town's high density
residential zoning (RM:13-20) allows 20 units per acre. The (nixed use commercial land
use designation has no maximum density. The goal is to demonstrate that land can be
rezoned to provide higher density housing. State law requires Housing Elements to
identify a list of housing sites that can accommodate the Town's Regional Housing
Needs Allocation (RHNA). To achieve 374 affordable units (very low, low and moderate
income) at 20 units per acre, a total of 18.7 acres needs to be identified. If projects
include 20% affordable housing, a total of 93.5 acres needs to be identified. A sites
inventory list has been drafted that includes a total of 88.4 acres. The maximum
development capacity is 1,759 units if the land is developed at 20 units per acre and,
using the Town's existing inclusionary housing requirements, would yield 351 affordable
-u its. The North 40 area has not been included in the inventory. Three options have
been identified as follows:
Attachment 4
General Plan Committee
July 22, 2009
Page 2 of 4
Option 1: Identity 18.7 acres for affordable housing. The land would need to be rezoned
to High Density Residential or apply an Affordable Housing Overlay Zone.
Option 2: Utilize existing Mixed-Use Commercial sites (primarily car dealership sites).
These sites total 28.3 developable acres. The Town would need to apply an Affordable
Housing overlay zone (with density of 20 units per acre).
Option 3: Identify additional sites. A total of 93.5 acres is needed to accommodate
affordable housing assuming 20% of units developed are affordable.
John Bourgeois asked how the 20% figure was arrived at, and whether it is an optimistic
number. It was noted that the BMP Ordinance requires 20% for projects of 100 units or
more.
Tom O'Donnell commented that the cost for the different scenarios is an important
consideration. Bud Lortz said that a fiscal analysis will be needed for elements of the
three options.
Wendie Rooney noted that once policies are developed an implementation plan will be
done.
Barbara Cardillo clarified that an overlay zone is a rezoning. Bud Lortz noted that an
overlay zone retains the underlying zoning designation whereas a rezoning changes the
zoning designation specifically to high density residential.
Barbara Spector commented that changing the land use designation to high density (20
units per acre) raises issues such as traffic and impact on school districts. Bud Lortz said
that traffic would need to be evaluated. Both school districts are basic aid. School impact
fees can be applied. The Town is working with the school districts on demographic data.
Marcia Jensen commented that it is a bad idea to designate all the sites on Los Gatos
Blvd. because of the potential traffic impact.
Wendie Rooney noted that there are other sites including Vasona Junction and the former
courthouse on Capri Drive that could be considered.
Joanna Jansen noted that the sites on Los Gatos Blvd do not need to be rezoned since the
Mixed Use Commercial designation already allows high density residential.
Bud Lortz said that the goal is to achieve a certified Housing Element. A map of school
districts will be obtained for the next meeting.
John Bourgeois asked about mixed use opporturi ties on Los Gatos Blvd. being counted
versus other locations such as Oka Road, as it is desirable to have affordable units
throughout the community. It was clarified that a hybrid between two scenarios is
possible.
General Plan Committee
July 22, 2009
Page 3 of 4
Barbara Cardillo asked about senior development. Wendie Rooney noted that locations
should be near services. She cited the Terraces as a good example of planning senior
facilities near services (grocery stores, banks, etc.).
Tom O'Donnell commented on meeting the requirements in an intelligent manner. How
much effort and time should go into this relative to the likelihood that it will actually
happen.
Jane Ogle asked about the history of the housing plans and how they have worked over
time. Bud Lortz said the Town has worked hard on providing affordable housing and
would probably be graded a B+.
Discussion ensued on whether to provide higher level direction or to go through and
comment on the individual sites included in the inventory.
Barbara Cardillo suggested providing a set of guidelines and principles that take into
consideration impacts on school districts, traffic and not concentrating units in one area.
Marcia Jensen asked for clarification on where direction is needed. There have been a
number of comments that affordable housing should be dispersed.
Barbara Spector commented that housing should not be concentrated on Los Gatos Blvd.
and affordable housing should be dispersed throughout Town. She indicated that she likes
the Dittos Lane site.
Wendie Rooney said the table will be revised with sites that can accominodate 20 to 50%
affordable units.
ITEM 1 BELOW MARKET PRICE HOUSING PROGRAM: GUIDELINES
AND ORDINANCE AMENDMENTS (June 2009 Draft)
Wendie Rooney introduced the item stating that comments received from a discussion two
weeks ago are noted in the margins of the draft document. There are two areas where
input is needed from the Committee:
(1) Payment of an in-lieu fee for smaller projects (5 to 9 units) is proposed to be
eliminated and
(2) Addition of criteria allowing the ability to provide off-site units in circumstances
where they can't be provided as part of the project, such as a continuum care
facility.
There was an extended discussion on continuum care facilities and how the BMP
regulations should be applied. It was decided that convalescent hospital should be
deleted. The Committee consensus was to recommend that the Town Council be asked to
reconsider payment of an in-lieu fee for hillside projects.
General Plan Committee
July 22, 2009
Page 4 of 4
Barbara Cardillo wanted to make sure there is a requirement for the owner(s) to live in
the BMP unit versus renting it out. She also felt there is a need to limit or prohibit
existing BMP owners from upgrading to a new unit and displacing new buyers.
ITEM 3 APPROVAL OF MINUTES
Tom O'Donnell made a motion to approve the minutes of June 24, 2009. The motion was
seconded by Chuck Sloan and passed 6-0-1 (Barbara Spector abstained).
OTHER BUSINESS
Chuck Sloan requested a schedule of the remaining meetings for 2009.
ADJOURNMENT
The meeting was adjourned at 6:50 PM. The next meeting of the General Plan
Committee is scheduled for August 11, 2009.
Prepared by:
Suzanne Davis, Associate Planner
N.1BF V\GPCVC09minu[cs1CPC-072209.doc
TOWN OF LOS GATOS
PLANNING COMMISSION MEETING
ACTION MINUTES
TOWN COUNCIL CHAMBERS
110 E. MAIN STREET
WEDNESDAY, SEPTEMBER 9, 2009
Chair Thomas O'Donnell called the meeting to order at 7:00 p.m.
ROLL CA 1.1,
Present: Chair Thomas O'Donnell, Vice Chair John Bourgeois, Commissioner Charles
Erekson, Commissioner Marcia Jensen, Commissioner Marico Sayoc, and
Commissioner Joanne Talesfore.
Absent: Commissioner Philip Micciche.
Others: Community Development Director Wendie Rooney, Associate Planner Joel
Paulson, Assistant Planner Marni Moseley, Assistant Planner Jennifer Savage,
Assistant Civil Engineer Trang Tu-Nguyen, and Recording Secretary Linda
Rowlett.
PLEDGE OF ALLEGIANCE
Led by Chair Thomas O'Donnell.
APPROVAL OF MINUTES OF AUGUST 26, 2009
Commissioner Joanne Talesfore commented she will abstain from voting on the minutes of
August 26, 2009, because she had recused herself from part of that meeting.
Motion by Commissioner Charles Erekson and seconded by Vice Chair John Bourgeois to
approve meeting minutes of August 26, 2009.
Motion carried 5-0 with Commissioner Philip Micciche excused and Commissioner Joanne
Talesfore abstaining.
WRITTEN COMMUNICATIONS
Chair Thomas O'Donnell commented that desk items were received for Item #1 and Item #4.
Planning Conunission Page 1 September 9, 2009
Attachment 5
REQUESTED CONTINUANCES NONE
SUBCOMMITTEE REPORTS
General Plan Committee Vice Chair John Bourgeois reported that the committee met
earlier tonight to review the revised draft Housing Element goals and policies. The next step is
to bring it to the Planning Commission.
General Plan Update Advisory Committee Vice Chair John Bourgeois reported the
committee met last week to go over the new proposed goals and policies for the Environment
and Sustainability section of the General Plan.
Chair Thomas O'Donnell commented that there is currently a lot of activity on the General
Plan and invited the public to attend the meetings.
VERBAL COMMUNICATIONS (AUDIENCE)
Ray Davis
• Commented that he would like an apology from Commissioner Philip Miceiche because of
what happened at the meeting of August 26, 2009.
• Commented he could not believe the assumptions made by the Town Council regarding the
Planning Commission's denial of the Francis Oaks Way project, and that he does not
understand why Los Gatos does not have the Chair of the Planning Commission speak to the
Town Council and answer questions at the Town Council meeting regarding appeals.
• Commented that the cement plant discussion will be on September 17, 2009, at the Quinlan
Community Center in Cupertino.
CONSENT CALENDAR NONE
CONTINUED PUBLIC HEARINGS
1. 14680 Quito Road. Architecture and Site Application S-09-005. Requesting approval to
demolish a pre-1941 home, to construct a new single family residence, to exceed the
allowed. FAR, and to construct two new accessory structures with reduced setbacks on
property zoned R-1:10. APN 407-14-001 PROPERTY OWNER: Lyle Wagner.
APPLICANT: Dennis Hayes. PLANNER: Marni Moseley, Assistant Planner. (Continued
from June 24, and July 8, 2009)
Assistant Planner Marni Moseley presented the staff report and referenced Desk Item #1.
Chair Thomas O'Donnell opened the public hearing.
Dennis Hayes, Applicant
• Handed out copies of a diagram to the Commission and gave a presentation on the proposed
project.
Planning Commission Page 2 September 9, 2009
• Commented that Mr. Wagner met with the Laughlins and the Popes and was able to get
written agreements with them regarding a remedy to their concerns on the art studio and the
garage.
• Commented that Mr. Wagner spoke with Mr. McCarney who indicated he felt comfortable
with the new location of the building as long as the Popes signed the agreement.
• Commented that Mr. Wagner spoke with Ms. Lungard and got a sense that she is more
comfortable with the proposal.
Dennis McCarney
• Referenced the Pope's agreement and commented he supports everything in it as written,
noting that it differs from the agenda.
Chair Thomas O'Donnell
• Commented that Desk Item #1 includes the signed agreements referenced by Mr.
McCarney, and closed the public hearing.
Motion by Commissioner Joanne Talesfore and seconded by Commissioner Charles
Erekson to approve Architecture and Site Application S-09-005. The required findings were
made as noted in Exhibit 2 of staff report dated June 24, 2009, and the application incorporated
conditions as noted in Exhibit 9 of staff report dated June 24, 2009, and Exhibit 15 of staff report
dated September 9, 2009, including Conditions # 12 and # 13 of Desk Item 41 dated September 9,
2009.
Motion carried 6-0 with Commissioner Philip Miceiche excused.
Community Development Director Wendie Rooney recited appeal rights.
2. BMP Ordinance and Guidelines Zoning Code Amendment A-49-01. Consider
adoption of an ordinance amending Town Code Chapter 29, Division 6, Sections
29.10.300 through 29.10.3040 Housing Assistance Program and approval of a resolution
revising the Below Market Price (BMP) Guidelines. APPLICANT: Town of Los Gatos.
PLANNER: Wendie Rooney, Director of Community Development. (Continued from
August 26, 2009) (Heard out of order.)
Community Development Director Wendie Rooney gave a presentation on the BMP (Below
Market Price) Program Zoning Ordinance Amendment A-09-01.
Commission Questions:
• Asked if only $400,000 of the $1.8 million in-lieu funds have been spent.
• Asked if the fund has been used to create any new units.
• Asked about the exception for first time home buyers and if the tenants need to be notified if
a conversion process is in place, and if there is a distinction between current tenants and
future tenants.
• Asked for clarification on the First Time Home Buyer 2-year exception.
• Asked for clarification if all First Time Home Buyer eligibility requirements would have to
be met for tenants renting an apartment being converted to condominiums.
Planning Commission Page 3 September 9, 2009
• Asked if the in-lieu program only applies to the Hillside Residential (HR) Zone.
• Asked about General Plan Committee's (GPC) recommended change about prohibiting
owner-occupied BMP unit recipients from upgrading to a larger unit and if it also applied to
downgrading to a smaller unit.
• Asked if the problem with building on-site in the HR is density or financial considerations.
• Asked if it is the Council's preference to have actual units purchased or to augment the fiend
for a future strategy of buying homes that would be more affordable.
• Asked for clarification on what specifically is being decided regarding the in-lieu option.
• Asked why there is not a third option to consider of including a BMP unit in the HR Zone if
it does not increase density.
Community Development Director Wendie Rooney responded to Commission Questions:
• Commented the in-lieu funds have not consistently maintained the $1.8 million balance and
that the fund balance varies depending on what units have been bought and sold.
• Commented the fund has not been used to construct new units.
• Commented that prior to the Notice of Intent to Convert, a current tenant would qualify, but
not new tenants after notification process has begun.
• Commented the Community Services Commission's (CSC) recommendation is to not
eliminate the eligibility requirements, but to reduce the length of period from when a tenant
owned their previous home from 3 years to 2 years for first time home buyers rather than
granting an exception.
• Commented that the only other First Time Home Buyer eligibility requirement would be
income.
• Commented that the in-lieu program currently applies to all projects of five to nine units in
both the HR Zone and non-Hillside and the proposed change is to continue to allow the U1_
lieu fee option only for HR.
• Commented the GPO's concern involved upgrading to a larger or newer unit, but whether
upgrading or downgrading, tenants would not be eligible because they were already a
homeowner. If someone decided to move out and rent for 3 years, they could come back and
reapply for a BMP unit if they qualified income wise.
• Commented the main concern for building on-site in the HR Zone is trying to keep the
intensity and density down, but financial assumptions may have also been included.
• Commented she could not speak to Council's preference, but the overall program goal is to
produce as many units as possible.
• Commented the decision is whether to keep the current guidelines, which give the applicant
the option of on-site or in-lieu fee or eliminating the option of the in-lieu fee.
• Commented the BMP is not counted in the density, but you do end up with more density if
you require it on-site, and there is a heightened level of concern for density in the hillsides.
Vice Chair John Bourgeois
• Commented he appreciates the CSC's concern but is in favor of granting the exception to a
tenant of a condominium conversion project prior to the Notice of Intent to Convert.
Chair Thomas O'Donnell confirmed that all Commissioners agreed with Vice Chair
Bourgeois's comment of granting the exception, and asked for clarification on the two issues.
Planning Conunission Page 4 September 9, 2009
Community Development Director Wendie Rooney
• Commented the first issue is that an exception to the First Time Home Buyer provision be
allowed in a condominium conversion, and the second issue is to put the burden on the
developer in HR Zones to prove why they cannot construct a unit in the development, or buy
a unit in town, or failing that, they would be allowed the in-lieu option.
Chair Thomas O'Donnell acknowledged the arrival of Lee Quintana and advised her that the
discussion was completed and the Commission had already reached a consensus on the issues.
He reviewed the Commission's actions for Ms. Quintana, and following her request, Chair
O'Donnell invited her speak on the issue.
Lee Quintana
* Commented she agrees with keeping the density in the hillsides down, and believes a
developer can build an extra smaller size BMP unit without having the appearance of adding
to the intensity. She believes the goal of the Town is to have affordable housing in Town and
does not understand why it cannot happen in the hillsides as well.
Motion by Commissioner Marcia Jensen and seconded by Commissioner Joanne Talesfore
to: 1. Forward the draft BMP Guidelines (Attachment 1) to the Town Council with a
recommendation to adopt the draft resolution approving the program revisions, including the two
supplemental recommendations that were made by a consensus of the Planning Commission on
September 9, 2009 to:
• Modify the fee in-lieu option for the projects in the Hillside Residential Zone District
by requiring that the developer provide sufficient justification to the Town why a
BMP unit cannot be (1) developed on the same site as the market rate units, and if it
cannot be provided on site then, (2) develop at an appropriate off -site location within
the Town limits. If the developer provides sufficient justification that both of these
alternatives are not viable, then a fee in-lieu option may be considered.
• Provide an exception to the First Time Home Buyers qualification requirements for
tenants who are residing in an apartment that is converted to a condominium.
2. Make the required finding that the Zoning Ordinance Amendments are consistent with the
General Plan (contained in the report).
3. Forward a recommendation to Town Council for adoption of the amendments to the Zoning
Ordinance (Attachment 2).
Motion carried 6-0 with Commissioner Philip Micciche excused.
NEW PUBLIC HEARINGS (Heard out of order)
347 Massol Avenue. Architecture and Site Application S-09-21 Subdivision Application
M-09-05. Requesting approval of exterior modifications to the existing multi-family
structures, parking lot modifications and site improvements, and a 56 lot subdivision to
convert the existing apartments to condominiums on property zoned RM:12-20:PD. APN
510-14-004. PROPERTY OWNER: Lyon Bay Tree Apartments LLC. APPLICANT:
Lyon Realty Advisors. PLANNER: Joel Paulson, Associate Planner.
Planning Commission Page 5 September 9, 2009
Survey of Eight Bay Area Jurisdictions' Below Market Price/Rate Program
Provisions
Jurisdiction
Provide an In-Lieu Fee Option
Provide an Off-
site Construction
Option
San Carlos
Yes, in-lieu fee option is available for developments that
Yes, but must yield a
are one (1) unit to (6) six units - Council discretion.
greater number of
units than on-site
option - Council
discretion.
Lafayette
Yes, in-lieu fee option is available for developments for
Yes, but must exceed
all developments that are 30 or more units - Council
the Below Market
discretion.
Rate (BMR) Program
requirements
Council discretion.
Cupertino
Yes, in-lieu fee option is available of one (1) to six (6)
No
units. Projects of seven (7) or more units must provide
on-site BMR units.
Campbell
Yes, in-lieu fee option is available for projects that have a
Yes, if the City
density of six (6) or fewer units/acre - Council
determines that the
discretion.
off-site construction
will provide greater
public benefit.
Mountain
Yes, in-lieu fee option is available for development of
No
View
three (3) or more units under two circumstances. In-Lieu
fee is allowed if the obligation results in a fraction of a
unit or when the price of the homes in the development is
too expensive to be practical for a BMR unit.
San Mateo
Yes, in-lieu fee option is available for projects consisting
Yes, if the City finds
of five (5) to ten (10) units or when the calculation of
that on-site
BMR units in projects results in a fractional unit less than
constriction is
0.5,
infeasible.
Menlo Park
Yes, in-lieu fee option is available for projects consisting
Yes
of five (5) or more units City staff discretion.
City of Santa
Yes, for low or very low housing - Council discretion.
No
Cruz
Minimum size is five (5) units and no maximum project
size.
Attachment 6