Attachment 2GPC 9/12/12
ITEM 3
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 ON AUGUST 8, 2012, HELD AT THE LOS
GATOS ADULT RECREATION CENTER, 208 E. MAIN STREET, ROOM 208, LOS
GATOS, CALIFORNIA.
The meeting was called to order at 5:32 p.m, by Commissioner Bourgeois.
ATTENDANCE:
Members present: Barbara Spector, Joe Pirzynski, John Bourgeois, Marico Sayoc, Marcia
Jensen, Barbara Cardillo, Todd Jarvis, Matthew Hudes
Members absent: None
Staff present: Wendie Rooney, Director of Community Development; Erwin Ordonez, Senior
Planner; Suzanne Avila, Senior Planner
ITEM 1 BELOW MARKET PRICE HOUSING PROGRAM GUIDLEINES AND
ORDINANCE REVISIONS
Director Wendie Rooney briefly noted the 2009 update of the BMP Housing Ordinance and
Guidelines and introduced Erwin Ordofiez who summarized the changes and responded to
questions from the Committee.
The Committee reviewed proposed changes to the BMP Program guidelines, asked various
questions and made the following revisions to the prepared draft:
• Reference to restrictions should be amended to read: "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 for the longest feasible time as
approved by an authorized body."
• Reference to mortgage financing should be amended to read: "All loans used to purchase
or refinance BMP units must be fixed rate and fixed term without balloon payments to
minimize homeowner exposure to increased risks of mortgage default.
• Reference to First Time Homebuyer definition should be amended to read: "Exception is
made consistent with the Federal Housing and Urban Development (HUD) definitions
(e.g. people who were homeowners prior to a divorce a displaced homemaker, a single
parent who has only owned with a former spouse a widow /widower of a veteran, etc.)
and for tenants residing in 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."
• Formatting for Initial Sales Prices examples should be improved for clarity.
ATTACRMENT 2
General Plan Committee Minutes
August 8, 2012
Page 2 of 3
Marcia Jensen made a motion to forward the draft BMP Guidelines to the Town Council with a
recommendation for approval. The motion was seconded by Joe Pirzynski and passed
unanimously.
ITEM 2 CONSIDERATION OF FINAL AFFORDABLE HOUSING OVERLAY
ZONE DESIGN GUIDELINES
Director Wendie Rooney discussed the progress in preparing the most recent draft of the
Affordable Housing Overlay Zone Design Guidelines since the last meeting.
The Committee reviewed "highlighted" revisions to the draft and discussed additional
refinements that should be made. After discussion, the Committee unanimously recommended
approval to the Planning Commission and Town Council with the following additional changes
to the prepared draft (motion Pirzynski, Spector second):
• Introductory paragraph should be revised to reflect the Committee's and Director
Rooney's revised text "The Town of Los Gatos has a rich heritage of varied homes
ranging from small cottages to larger homes..."
• Second paragraph of Introduction should delete typo: "the" Los Gatos.
• Housing Types, second paragraph, highlight should be revised to read "...density bonus
provision allowed by the AHOZ."
• Design Guidelines parking section should include new bullet item: "6. In housing
developments without garage parking, bicycle parking will be required per VTA
standards."
• Small Lot Single - Family Detached Homes Characteristics should be revised from:
typical densities range from "15 -24 DU /acre" to: "15 -20 DU /acre" to reflect 2,500 s.f.
lot minimum.
• Cottage Cluster Housing Development Standards Building Placement section highlight
should read "Structures facing public streets must have similar articulated facades on
both the street and courtyard facades."
• Cottage Cluster Housing Development Standards Massing and Articulation section
highlight should read "Pitched roofs are required for all structures and should include
the use of varied pitched roof styles, gables or dormers."
• South Bay Development Site section should be revised to reflect the Flood Plain
Management Plan.
• Oka Road/ Lark Avenue Sites A & B should be revised to reflect the Flood Plan
Management Plan.
Joe Pirzynski made a motion to forward a recommendation for approval of the Affordable
Housing Overlay Zone Design Guidelines to the Planning Commission and Town Council. The
motion was seconded by Barbara Spector and passed unanimously.
General Plan Committee Minutes
August 8, 2012
Page 3 of 3
ITEM 3 APPROVAL OF MINUTES FROM JUNE 13, 2012
Barbara Spector made a motion to approve the minutes from June 13, 2012. The motion was
seconded by Marico Sayoc and passed unanimously.
ITEM 4 ADJOURNMENT
The meeting was adjourned at 6:25 p.m. The next regular meeting of the General Plan
Committee is scheduled for August 22, 2012.
Prepared by:
Erwin Ordoiiez, Senior Planner
NADEVIGPM012minutes\GPC 8- 8- 12rev.doe
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a
RESOLUTION 2009 -108
RESOLUTION OF THE' TOWN COUNCIL OF TIME 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 29,1030010 through
29.10.2040 establishes a BelowMarlcet 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 possibld 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
W HE RE AS, the Program helps the Town meet State mandated housing goals; and
WHEREAS, this resolution revises the Town of Los Gatos Below Marlcei Price Housing
Program Guidelines.
NOW, THEREFORE, BE IT RESOLVED, thatTown Council of the'Town ofLos Gatos
(1) repeals Resolution 2008 -121; and (2) adopts the Town ofLos Gatos BelowMarket Price Housing
Program Guidelines attached as Exhibit A.
ATTACHMENT 3
PASSED AND ADOPTED at.a regular meeting of the Town Council held on the 50' day of
October, 2009, by the following vote;
COUNCIL MBMBERS:
AYES: Joe Pirzynski, Steve Rice, Mayor Mike Wasserman
NAYS: Diane McNutt and Barbara Spector
ABSLNT: None
ABSTAIN: None
SI ONE D:
MAYOR OF TIIE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
A'I"CBS�
CLERK ADMINISTRATOR. OF TBB TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
Exhibit A
TOWN OF LOS GATOS
BELOW MARI {ET PRICE HOUSING PROGRAM GUIDELINES
I. Purpose
A. Purpose: The overall purpose of the Below Market Price (BMP) IIousing
Program is to provide the Town of Los Gatos with a Supply of affordable housing,
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 hnorease the horising supply for households
that have median and low incomes compared to the median income for Santa
Clara County_ and meet the housing needs identified in the Town's General Plan
Housing Blement. The Program $rather 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 funds. All off -site BMP units shall be constructed
within the Town of Los Gatos. The construction and occupancy of the BMP unit
is determined according to these Town Council established guidelines and
Ordinance No. 2009-
B. Enabling Legislation: The Below Marlcet Price Pro grain is governed by Division
6 of the Town Code, The BMP Program is,adrninistmed under these .Below
Market Price Housing Program Guidelines.
11, Below Market Price Housing Requiremmis — General
A. Applicability; The BMP Program requirements shall apply to ail residential
developmdnt projects that n7clude five (5) or more residential units or parcels
which involve:
I. 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 condonirniums or other common
interest ownership, or
4. Conversion of non- residentat 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
Yuge I
EXHIBIT A
Of Attachment 3
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 determinied 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 -requi ed, as a
percentage of market -rate units, from 10% to 20% over the range of 20 to
100 market rate units.
3, One.hundred and one (101) unfits or more: The developer shall provide a
minimum number• of BMP units equal to twenty (20) percent of the
number of mar'lcet rate units.
BMP dwellings within a project of rental twits 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 Conunwrity
Bonefit requirements,
C. Fraction of a 13MP 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 BV1P 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 impractical 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 hu-lleu .payment
alternative to the required BMP unit in the case of Planned Unit development with
ui underlying zone of I-IR or a residential developments with five (5) to nine (9)
units. Prior to approving the tin -lien 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 -lieu option may be considered. The
required 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
BMP Guidelines Page 2
residential unit that triggered the BMP requirement, The provision for a 13M. P 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 -licit 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:
I . 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.
1✓. Housin Fund: und: 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 and residential developments with five (5) to nine (9) units projects that
have provided sufficient justification to the Town that an on -site BMP unit is not
viable.
Q. 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
LIMP Guidelines Page 3
Development project approval process for condominium conversion
developments,
H. Affordability Agreement: The developer of "for said" BMP units shall enter into
an affordability agreement 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 qualifred buyer.
III. Characteristics of BMP Units.
A. Size of urritsl The size. and design of BMP dwelling units shall be reasonably
consistent with the market rate wets 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 Iist, 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 RMP 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 tbroughout the development, to
the extent feasible; in all buildings, on eacb floor, and in each project phase. A
concentration of BMP units in one location is not desirable and wil l generally not
be allowed,
C. Finish of traits: The external appearance of BMP units should be indiscernible to
that of the market rate units in the project. The internal finish of BMP units
should be identical to that of the market rate units in the project, except that the
developer may request Town approval of substitutions for luxury interior finishes,
appliances, or fixtures, if such substitutions do not violate any Tovnn 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; Bayer Selection, and BMP Unit Sale and Resale
Procedures.
A Owner Occupied Units
1. Applicant Eligibility
BMP Guidelines Page 'l
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 (NMI),
adjusted for household size, as defined by the United States
Department of Housing and Urban bevelopment (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. Housin 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 aplalicable
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 Home Buyers: The Below Market Price (BMP) Program is for
First Time Horne 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 ace
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
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 ilne unit contains three bedrooms or more.
BMP Guidelines • -
Page 5
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:
Six points:
H. Senior citizens who reside in the Town at the time of application
and have lived iu 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 Town 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 propose 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,
e. Regular Full -Time and Regular Part -Tune Town employees as .
defined in the Town's Personnel Rules, who have been employed
by the Town for a period of no less than 12 months prior to the
time of application.
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. Tour 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
and have worked in the Town for at least the prior two years.
3. Two points:
RMP Guidelines Page 6
a. Households who have lived in the Town for at least 10 years and
have moved out within the last ten gears 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, firm most points to least points. Ali applicant has
two opportunities to refuse to purchase a unit before being removed from
the ciurent 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 pwrhase aunt,
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 ranldng, for units in the following order:
a. The unit they reside in if it is designated as a BMP unit
b. Any other available BM? unit.
BMP Guidelines Page 7
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). .
Fifty percent (50 %) of the units in a project shall be priced to be
affordable to Median Income Households; fifty percent (50 0/D) shall be
priced to be affordable to Low Income Households. Whenever the
calculations result in fiactional units, then the number of units priced to be
affordable to Low Income Households shall be rounded tip 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 Proj ect
Units Priced for
Low hioome iTousehoids
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 nut 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 (MrI) figures from: the United States Department of Housing and
Urban Development(HUD) for the San Jose, CA Primary Metropolitan
Statistical Area (PMSA), and through the following calculations:
a For units to be, priced to be affordable to Median Income
Households: the average of the 100% MFI amival income and the
80% MFI annual income (assuming .household size appropriate to
size of runt) x Multiplier = Initial Sales Price,
BMP Guidelines - Page 8
Assumptions of household size by size of unit are as
follows:
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 Cntidelines.
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 he 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 Hone Loan Mortgage
Corporation (Freddie Mae); and related costs; and using the
following formula:
Determination of Total Housing Cost: Sample sales price -
10% down payment = mortgage. Annual debt. service on
mortgage + annual properly taxes + annual homeowners
fees + annual private mortgage insurance (PMI) = Total
Annual Housing Cost,
2. Determination of Minimum Household Income: Assuming
one -third of household income goes for housing expenses,
Total Annual Housing Cost x 3 = Minimum Annual
Household Income.
3. Determination of Multiplier; Sample Sales Price/Minimum
Annual Household Income = Multiplier.
BMP Cmidelines
Pap 9
Household Size
Studio
1
1 Bedroom.
1
2Bedroom
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 Cntidelines.
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 he 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 Hone Loan Mortgage
Corporation (Freddie Mae); and related costs; and using the
following formula:
Determination of Total Housing Cost: Sample sales price -
10% down payment = mortgage. Annual debt. service on
mortgage + annual properly taxes + annual homeowners
fees + annual private mortgage insurance (PMI) = Total
Annual Housing Cost,
2. Determination of Minimum Household Income: Assuming
one -third of household income goes for housing expenses,
Total Annual Housing Cost x 3 = Minimum Annual
Household Income.
3. Determination of Multiplier; Sample Sales Price/Minimum
Annual Household Income = Multiplier.
BMP Cmidelines
Pap 9
Copies of the initial sales prices, and the calculations made, shall
be available on request from the Town's Community 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 unit, the Town must be notified in
writing by the owner.
2 When a Below Market Price dwelling unit becomes available for resale,
the Town shall set the resale price and make the unit available for
purchase through the BMP process.
3 The Town determines the resale price in accordance with the deed
restriction recorded on the property.
R Occuuancyof 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 during his or her ownership 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
household Income: In order to be eligible to rent a 13MP rental unit, a
household's annual income must be no greater than 80% of the Median
Family Income WI), adjusted for household size, as defined by the
United States Department of housing.and Urban Development (IIUD) 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
MFL Household assets may also be, considered in determining eligibility,
2. Ability to Pay Rent: A tenant's ability to pay monthly rent will also be
considered in determining tenant eligibility.
C. Tenant Selection: The properly 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.
BMP Guidelines Page 10
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 mith 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
runt will no longer be a 13MP 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: Comicil 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 (SUM) as referenced in Section
29.10.320(x) of the Town Code and as set forth below.
1. The SUIP consists of a no interest construction loan to a property owner
who intends to develop a new second emit, 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 remodel$. 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 Pan-My Income
(MFI), adjusted for household size, as defined by the United States
Department of Housing and Urban Development (HUD) for the San Jose,
CA Primary Metropolitan Statistical Area (PMSA), or '80% of the
construction cost if the unit is income and rent restricted to serve
households with incomes below 80% of MFI.
BMP Guidelines Page 1 r
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 Finds and shall remain affordable for 55 years. A
SUIP loan to construct a second mrit outside the Central Los Gatos
Redevelopment Project area shall be ftiinded using BMP Program Funds
and shall remain affordable fair 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 eflgible 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 501/0 of Fair Market Rents as determined by the Santa Clara
County Housing Authority. Tenantrents and incomes will be monitored
annually.
(Adoptedby Resolution 2009- September , 2009).
NADEV OOMORDINANCa AMGNDMnNPSWMP Program Culdeffim FInal.doo
BMP Guidelines Page 12