CHC 02-18-99CALL TO ORDER
Meeting was called to order at 3:30 p.m.
Members Present:
Members Absent:
Staff Present:
Others Present:
~i999
Dick Schuster, Sylvia Machamer, Cecilia Fu, Joseph Coddingtom
Kathy Robinson
None
Vera Gil, Yvonne Kelley, Bob Cowan
Mary Ellen Cheil, Carolyn Kiely
Approval of Minutes:
Kathy Robinson stated she was not in attendance at the meeting as stated in the minutes. Dick
Schuster asked that "special meeting" be changed to "regular meeting."
Dick Schuster moved that the minutes be approved with the changes as submitted, Sylvia
Machamer seconded
VOTE: 2-0-3 abstaining
Written Communications:
None
Oral Communications:
None
NEW BUSINESS:
1. Amendments to Housing Mitigation Manual: Vera Gil stated that she would like to go over
amendments to the Housing Mitigation Manual. This is normally done on an annual basis and
recommendations are then forwarded to Council. Vera Gil stated that she included a copy of a
memo from Mary Ellen Cheil and that City Council had asked the committee to look at changing
the priority system for BMR units to include public employees as a first priority.
Mary Ellen Cheil stated that Cupertino Community Services has concerns regarding thc
affordable units and the placement and qualifying of individuals. Mary Ellen stated that CCS
would like this committee to "tighten up" the guidelines for individuals applying lbr allbrdablc
units. An example would be one couple who applied for a BMR unit; both quit their.jobs and thc
husband went back to school and the wife was doing daycare in order to qualify. This couple
had made $80,000 the previous year. These are the types of situations CCS has Ibund
themselves involved in. Her question is does the committee want to support these types
individuals who have the ability to afford market rate, but choose to lower their earning power in
order to qualify for a BMR unit? Mary Ellen stated that Carolyn Kiely, who administers the
BMR placement, has a list of issues she encounters on a daily basis.
Carolyn Kiely stated that the list contains about 18 items (with recommendations) that she
encounters and would like some direction as to how to address them. One of the main concerns
deals with the priority list stating that people who work in Cupertino are eligible. Ms. Kiely said
that she gets very creative people who do things such as babysitting or even cleaning homes so
they qualify under this guideline. Another issue is category three, which talks about I'amily
members living in Cupertino. This is a gray area because there is no definition lbr Ihmily. Thc
other main issue would be DeAnza students. Most of these students do not income qualil'y and il'
two or more students were to combine their income, they would not qualify. Tbe studants get
frustrated due to their illusion of possibly getting housing, then never really being able to.
Carolyn talked about those applicants who own property out of state or even the country, and
because they don't have to include on California taxes, they are exempt t¥om specifying on thc
BMR application.
After a lengthy discussion on the issues revolving around the Below Market Rate units, thc
committee agreed that procedural changes need to be made relative to the BMR program.
The Committee went through the entire manual and recommended changes, additions, and
deletions.
Vera Gil stated that she would continue this item so that changes can be made to thc I lousing
Mitigation Manual as well as addressing those concerns outlined by Carolyn Kiely.
Dick Schuster asked for an update on the Rehabilitation Loan Portfblio as well as thc existing
loans.
Adjourned to March 11, 1999
SUBMITTED BY:
Yvottne Kelley
ATTEST:
Kimberly SmitheCity Clerk
c/windows/housing/afh 11499.doc
APPROVED BY:
nson, Chair