06 Staff Report - Amending Town Code The Housing Assistance Program.~pW N OF
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~oAjoS COUNCIL AGENDA REPORT
DATE: October 13, 2009
TO: MAYOR AND TOWN COUNCIL ~}(J
FROM: ORRY P. KORB, TOWN ATTORNEY~1!'"
MEETING DATE: 10-19-2009
AGENDA ITEM:
SUBJECT: ADOPT AN ORDINANCE AMENDING THE TOWN CODE CHAPTER 29,
DIVISION 6, SECTIONS 29.10.3000 THROUGH 29.10.3040 REGARDING
THE HOUSING ASSISTANCE PROGRAM
RECOMMENDATION:
Adopt an ordinance to amend the Town Code Chapter 29, Division 6, Sections 29. 10.3000
through 29.10.3040.
DISCUSSION:
On October 5, 2009, Council voted to introduce an ordinance amending Town Code Chapter 29,
Division 6 Sections 29.10.3000 through 29.10.3040 regarding the Housing Assistance Program
and adopted a resolution approving revised Below Market Price (BMP) Program Guidelines.
Adoption of the attached ordinance finalizes the decision to amend the Town Code provisions
regarding the Housing Assistance Program.
Attachment: Ordinance introduced October 5, 2009.
PREPARED BY: ORRY P. KOR13, TOWN ATTORNEY OPK.ACLAq) [N\Aft'1lc-.,&OrdO.Rep°rssMMPOd]0-33-09iPd]
Reviewed by: `T'own Manager a Assistant Town Manager Clerk
Finance NCommunity Development
Rev: 10/14109 5:43 pm
Reformatted: 7/19/99 raeu 301-05
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 IT
Town Code Chapter 29, is hereby amended to read as follows:
ZONING REGULATIONS
Article I. In General
DIVISION 6. HOUSING ASSISTANCE PROGRAM
Sec. 29.10.3000. Intent.
Sec. 29.10.3005. Below market price program - Established.
Sec. 29.10.3010. Same - Intent.
See. 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.
Page 1 of 5
SECTION III
Town Code Chapter 29, Division 6 is replaced as follows:
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 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 fiunilics of moderate income.
(Ord. No. 1316, § 3.90.105, 6-7-76; Ord. No. 1430, 6-4-79; Ord. No. 1685, 6-2-86)
Sec. 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 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)
Sec. 29.10.3020. Definitions.
For the purposes of this division the following definitions shall apply:
BMP divelling means any residential dwelling unit designated for very low, low, and
moderate income under the rules of this section.
Person of'moder•a!e income means one whose income falls within the range specified by the
Town Comicil 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. 1685, 6-2-86; Ord. No.
2115, § II, 9-15-03)
Page 2 of 5
Sec. 29.10.3025. Scope.
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 housing 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.
(2) 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 ff of market rate units) - 2.5
(3) 1111 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.
(4) 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 payment alternative to
the required BMP unit in the case of Planned Unit development with an tunderlying zone
of HR or a residential developments with five (5) to nine (9) units. 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 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-licu option may be considered. The
required in-lice 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 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 grant an
exception to the phasing requirements during the project approval process.
Page 3 of 5
(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, § 1, 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 worldag 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 in
perpetuity or for as long as is practical.
(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)
See. 29.10.3010. 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)
Page 4 of 5
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 October 5, 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:
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
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