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AHC 1990 - 1995
AFFORDABLE HOUSING QOMHITTEE 1 of 4 IINUTES MAY 11_, 1990-DEC. 14, 199"' AFFORDABLE H OU SING COMMITTEE MINUTES MAY 11 , 199U -DECO 1491995 AFFORDABLE HOUSING MEETING IRATE STATUS OF MMUTES VV 11 i qil N p u 9y 613 4 it 7irm-MOMMW CUPEYt'1` O HOUSTG COMMON DATE MINUTES DATE M04UTU MEETING DATE APPROVED DISTRIBUTED io -a o-s S17 9 sommommommoommom Y Rt SENIORS AND IiANDICAPPED HOUSING FUND COMMI`ITEE MEETI TG May 11, 1990 MEMBERS PRESENT: Bob Cowan, Jerry Ferguson, Michael O'Quin, and Blaine Snyder. Also present: Bert Altmann, Vivian Ayres, Arlyne June, Tons McCue, Marilyn Norling, and Joann Sloan. Vice-Chair Michael O'Quin called the meeting to order at 10:15 AM. ORAL COMMUNICATIONS: None. ANNOUNCEMENTS: None. OLD BUSINESS: The minutes of the April 19, 1990 meeting were approved. Report: Two persons have been placed in the affordable units at Chateau Cupertino. NEW BUSINOS: 1 Consideration of funding requests from Housing for Independent People (HIP): A. $50.009 for a group home for six low-income seniors. (in cooperation with PEoiect Match): Vice-Chair O'Quin reported on a visit that Marilyn Norling, B&bara Koppel and he made to the group homes run by Project Match and the HIL Foundation. He reported that they appeared to be clean, and well run. Marilyn gave a brief background report for each project. Bob Cowan reminded the Committee about funding sources, giving a brief history of the BMR program and In Lieu Fees. Tom McCue, HIP, gave a detailed background of the organization and indicated that this project would be in conjunction with Project Match. The group home project would provide shared housing for 5-6 low-income elderly. Mr. McCue asked the City to provide 50,000 in seed money. Other funding has not yet been obtained, but matching funds will be sought at the state and/ or federal level. Arlyne June, Project Match, told of the kind of help offered by the organization. She indicated that acceptance of other groin horses has not been a problem. She also explained operational reserve amounts. Ms. June indicated that the biggest problem of providing affordable housing in Cupertino is the high cost of housing and the Dow income of the people who need the housing. B. $50,000 for a Ugun home for six evr&pmentally disabled adults Sin cooparation with HIL Foundation). Bert Altmann, HIL Foundation, gave a brief background of HEL. The City of Saratoga has set aside $25,000 for the project. The Packard Foundation has also given a grant to HIL. Other funding would come from Proposition 77, and the McKinney fund. CHRP money from the state may also be available. These monies will be available in August. The project is expected to be self supporting after housing is obtained. Marilyn indicated that Cupertino residents would have priority in filling vacancies in bob projects. The committee made the following recommendations: A. Conditions for Each Project: 1. Recommend a $ 50,000 loan of CDBG funds from the Seniors and Handicapped (lousing Fund for each project. Loan terms: 5 percent interest-only payments of $2,500 per year for 5 years; then reversion to 3 percent interest and fully amortized payments ($346 per month/$4,146 per year) for 15 years. Payments to go into the Seniors and Handicapped Housing Fund. 2. Each loan is dependent on HIP's obtaining other necessary funding. The loan from the City will be paid at the time of escrow. 3. I-louses purchased must be in Cupertino or Cupertino's Urban Service Area. wr CCl ent Select on f1m Pr®P I Match raW H e 1. First preference will be given to individuals who are residents of Cupertino, work in Cupectino, or bave family members in Cupertino or Cupertino!s Urban Service Area. 2. In order to recruit appropriate tenant referrals from Cupertino, Project Match will network with local organizations such as. Cupertino Community Services and Sunny View West. C Client Selection for HIL Foundation Home: Since a sixth resident has been selected based on compatibility with the existing five residents, no Cupertino residency conditions were recommended by the housing committee. The meeting was adjourned at 11:30 AM. ATTEST: APPROVED: City Clerk V Chairperson X y..:1 ,:.:^ ,.11' 't.' 113. .` . >-.1: t•7ti.l' '1+t.1. r< I y` t Gi r y 1 .• - ..rr +. •.- •.•.tea n:• - a- CI. . I` Imo.\. 11 1 - - • - 11:- - .10 C • C-9 - ill tl: .r - - .0 ...- 1 - •'. --• •.:Ir,•:7 V• t_ -,.•, 1 :r ti ,- :qly r I :• - 11•;a - M la Ali I •••tea• i .r • -. • i' _ •t.- • - - • 7 tvU al rr i t 111 r a• 1• • ot--[I 6.Ul 71 - •S • tl• _t'. a P • i C1 •: .L - =5 to Yo we; 1 •. .• • - i J ;f)" '•.). .Ill •;r. il- •.. i 1' - .ni— • - •..mil - a. .r •- •r •.,.• - • • ••:n{S: _- w lei Qf. •' r •_. .1•-• • ill:. - c7 - '•a•:• - • 1 -^ '• -- g.: Z• a A'• • w 1: a 1 1 1 1 •:II - u' r!r. •ra• r L 1 • •) MkIl - • • - :Ifs • - •:•J we; r•. 1rt. :ul.•1 1 / l 1 IJ 1l'+ '':r.`i5': ':•.• i•:.._ - rti:.- .•• --• .'%lid.t !• d e tqa r. rtc - tic- -r • •1 •:r..r. I :' ?. 1 1:?.`. a. .- it. i . a - .cr• .emu•: 1 .It. '_r - ..lr i •:-:f: . q w. ••t - • • ;G.. « . -R.J •1 .:. • ••;IPft' -' H.=1i!J r A •': •:. t • • • rl s •y •1. •` -• R-•Ili•fi, t v _- • •. °•t 1 it n r., v ...11t y - i t •1 ••.1 .ill if:== ` •i-r _ •yl - '•I r. •.cz_ r - ^ •• ill-' 1 - 1• ill. -•- C. chair MarrJa11 Goldman requested a swmezy of the amumt, of Ili fonds available for rase by the Affordable Housing Cmuittee. Marilyn awling informed the c memittes there was $45D,000 available. W of the $450,000, $100,000 has been = mitted to Housing for DWqxmdmt People projects which would sew 12 people. Mw =mittee is looking for ways of leveraging Roads to get the most for the available may. Scott M ztgamery disco—mead the tax deduc:tices available for developer's of lc;w-hxxme homing projects. the coanit#ee is facing is not haw to use the money available, but bow to leverage it into mom money. Scott M=tgamery discussed the financial incentives that could be shade available to developers who are willing to pie low income housing. Another option would be to take the available funds and local car to either match funds or provide the City with land to develop housing. Another option might be a long term lase of a vorperatian's e`u s laded. Scott M*gamery also discussed buying down the cost of mom. the City could also invest $100,000 in a C.D. at 3%, reach an acgeement with the bank to firgum a lay income project at 5%. 7 e bank is making the differaoe bettmen the 5% and 3%. 7he person that has bought the affordable unit is only paying a 5% mom• Carol McDowell bested making loans to developers rather than giving grants. till staters that the problem is not money, but how to get a project politically accaaptable, how to get it to make sense, how to structure finarr-ing and rent, and where to carkstruct. it. D. Bob Cogan explained the existing Planning policy for the City. People in the City do not want to see major development in the single family residential areas. Many bars ago a committee was f -m d to develop a housing strategy. '>he c=i ttee decided that small scale, scattered developments ratter than large scale developments would be mama acceptable to the public. Bob r aded that the City look at smaller developments cr more creative projects like mired use develoizaants because of citizen apposition to large scal developments in residential areas. Bob am-an also explained ABAG's fair share housing analysis. Zhe City will make a good faith effort to create 200 units in five years, but is being asked to create a lot more. If the City dces not receive a letter of omplianc a from the State Office of wing and Comity Development, public interest groups may sine. If a suit is filed against the City, the result could be that no building pits could be issued until the City is found to be in compliance. Commttee members were also interested in how many units are required in Clspert inu. Demand aging to ABAG is 2,481 units for all in=e IF groups. According to current zoning and assailable land, space is available for apprad ately 1000 units before the City is built cut. Mus does not take into account higher density in sow areas. thdlimited demand for affordable units can be assumed. t T_ '.`F.d4• •_il tT .'. ;TC N`xtc-cr 4 :• - - •._., -•.. - ri. -_W •::t 1i'• .>Cam.: It.. 1 :.. f. .1 f1 ` - . - •Y - i_ - :.•- • cal:. ice. .•1 - It-c •. I. • JI=' j L{: COMWr EE MEETING: January 28, 1891 Members Present: Bob Cowan, Marshall Goldman, Scott Montgomery, Blaine Snyder Members Absent: Michael O"Quin Also Present: Sally Brennan, Fran Ellis, Vera Gil, Marilyn Norling, Don Mackenzie and Phil Heitman. Marshall Goldman called the meeti:ig to order. ORAL COMMUNICATIONS: None. ANNOUNCEMENTS: None. OLD BUSINESS: The minutes of the December 20, 1990 meeting were approved as written. NEW BUSINESS: 1. Marilyn distributed the list of subsidized units in Cupertino and provided a brief description of how to read the form. The list is for informational purposes only. 2. Members and guests viewed a video tape produced by the Planning Intern. The video tape showed eleven exemplary affordable housing projects and one inferior project. 3. Committee members and guests discussed their housing option recommendations. Scott Montgomery presented his affordable housing proposal. In summary, his major points were: A. Limit density to 12 to 14 units per building. The buildings should not be built within a half-mile radius of each other, thus allowing better integration of lower income families in neighborhoods. B. Provide incentives for corporations and developers to provide property for affordable housing. tressed the following:Bob Cowan s g: A. Require a housing mitigation program to develop on-site housing in conjunction with commercial, office and industrial projects. B. Encourage mixed use projects. Work with banks to develop financing for these hard to finance projects. C. Contract with Cupertino Community Services to manage any affordable units that are developed. On a more ambitious front, Cupertino Community Services could serve as the non- profit housing developer. D. Mork with local churches and the school district to provide land for non-profit housing developers. Phil Zeitman made several suggestions to the committee. Phil served on the City's Goals Committee and has seen an increasing need for affordable housing. He believes the City should make use of the available space at Vallco/Tandem and Cupertino Village. Financing for these projects would come from housing mitigation fees, state and federal grants and local companies. Marshall Goldman discussed his affordable housing strategies which include: A. Identify specific sites suitable for affordable housing. B. Provide incentives for mixed use projects. C. Offer monetary incentives for owners of existing rental property to make a percentage of their units affordable. D. Give Cupertino residents first priority in any City sponsored projects. Blaine Snyder's affordable housing proposal contained the following key elements: A. Reactivate the Redevelopment Agency. B. Work with rental property owners to guarantee rents if they make a portion of their units affordable. C. Create a program where the City would pay property taxes on behalf of seniors who would "will" the property to the City. D. Challenge ABAG fair share numbers regarding the amount of employees generated by businesses in Cupertino. E Provide incentives for developers to create affordable housing, and don't discourage their doing business in Cupertino. Sally Brennan expressed interest in preating a policy whereby interested citizens could will their property for development of affordable housing. This was greeted with enthusiasm by committee members, and Scott Montgomery suggested that this policy not be limited to just Cupertino property. Land located outside of Cupertino could be traded with Cupertino land owners. Staff was directed to summarize the key elements of each person's housing options and develop some proposed housing policies for the City. In addition for the next Lneeting each committee mem was asked by Chair Marshall Goldman to write one housing eolicN that he feels is the most impgrtant one the Qity should ado®f The committee will refine these policies and make some recommendations to Council. 4. The next meeting of the Committee was set for February 26, 1991 from 3:30 to 5:00 p.m. The Housing Authority of the County of Santa Clara will present a proposal for fifty affordable senior units. AQ1OlJRNMENT: The meeting was adjourned to February 26, 1991 at 3:30. ATTEST: APPROVED: City Clerk Ch irperson Pf TARNEGULaRNOMMOF THE AFFORDARIM HOUSM FUND PEORUARF206 CALLIOGIUM MEMBERS PRESENT. COWAN.O`9UIN.SNYDER.MONTOOMEW. CHAIRMAN GOLDMAN GUES7S PRESENT`. FRAN ELIAS. CUPERMO UNION SCHOOL DIS71RIM SALJ.Y BRENNAN. CUPERTINO COMMUN171Y SERVICES; RICHARD WARREN. HOUSING AUTHORITY OF THE COUNTY OF SANTA CLARA: PHIL ZEITIKAN ACTION: Approval of minutes of January 28. 1991 votc All Aye NEW BUSINESS L Pmwiftdon of Homing Audumft AffordAft Homing Proposal Richard Warren. Housing Authority Housing Authority Income Is derived from administration of various State and Federal Government programs. The Housing Authority employs 140 people. HA interviews 160.000 people per year for housing programs. There are 12,000 people on their waning list for affordable housing: 70% needing family housing. 30% senior or SRO. The waning list is approgdmately 3 years in length. Section 8 housing is privately owned and rented through HA. Section 8 is low income housing subsidy program. Persons with less than 60% of median income pay 3046 of their income for rent. HUD subsidizes difference in rent between tenant's rent and contract rent deemed fair market rate by HUD. HA certifies housing Is safe and sanitary. HA negotiates what rent is fair to pay by HUD. HA does not handle all Section 8 housing: some Landlords contract directly through HUD. HA assists Landlords In obtaining money Erom banks for loans Parking ratio for senior housing projects had been .3. Currently projects are built at.7 parking ratio. HA anticipates doing 5 to 6 projects a year In SC County. HA issues bonds on large housing developments (280-380 units) with a cooperative agreement with the city. Includes long term regulatory agreement for affordable housing. Tax exempt bonds provide financW incentives to developers: usually 20 to 30%affordable housing within the development. Major sources of financing for HA today are state Rental Housing Construction Program RHCP). low interest rate. 3%residual payments or no payments for 4 years for rental housing construction. Also Low Income Housing Tax Credit (UMTC) program is offered by Federal Government. Applicants must apply before building. Application must be made to both programs. Ranking system decides who is funded. Family projects are easiest to finance currently, next easiest are SRO's. Most difficult at this time is senior housing. Ratio of applicants to dollars available in this program is 3:1. 1 AffogdqWe mousing Ftwd Committee ftV2 Ore MW.dollars for land puJMSe provided by HA(1 acre): city provides$250.000. 50 senior units SRO No and cost.land contribution by Vance:city provides ffi125.0: 51 SM ands(190 sq. ft.) FWWW loonsing M.0oo for land purchase of 38.000 sq. ft. by HA; city provides $250.000 plus fee waterer. totaling$450.0M 30 fancily units(1166 sq.ft.per unit). DISCUSSION sally Brennan stated that seniors are easiest to house politically in Cupertino., although the family proposal would house the most people. Scott Montgomery indicated that by his calculationsprice per unitunit forth family housing unit for SRO.$W.000 per unit for senior housing: and ffi 15 pMect• Ms. GfiarTeu Indicated that to makeproject 1 blunt) ffi?.36(5 units-senior5and ffi3' ould be: under an RHCP8 two family 3 bed.ffi639:SRO(21 Loans made by city could be repaid within 30 or 40 years. Marilyn Noriing indicated that the city was currently negotiating an affordable housing project- Bob Cowan Indicated that he felt the SRO be easible. tion at was l ee best Maine SnYder option for added that he believes that although it may mixed use at the regional shopper der- ACTION The following motion was made by Mr. Snyder : The Committee encourages the Housing Authority to pursue the fancily housing protect and bring back a speciftc proposal for theCommittee's review which could be forwarded to the City Council. Mr. Cowan amended the notion to include the SILO project. vote All Aye z Cauddemdon of p wposed horsing policies. Motion was made by Chairman Goldman,to continue Item 2 to Tuesday.March 19 at 3:30 p.m. g Conaldceraatlan of Ca tla®Coamerxnofty Serviees egmtraet ffar emit aaai pLcement arvi©es cad for the dcvdqpmmt of other a5wd"housing opi ons. Shy Brennan explained ways which CCS screens and develops placement options for peoplerequestinghousing. CCS will only bill city what the service costs them. Some of the expensesrequiredforstartupthisyearwillnotbeneedednerdbudgetyear. CCS has their own liability insurance. t Afib9dWe Housing f page S Mr. Cowan felt this could beMW an 3118 of the Map which could manage 9mAH how projects. ACTION Motion was made by Mr. Snyder to accept the CCS proposal. vow All Aye Mir. Montgomery indicated that he had met with Bob Summers. San Jose Diocese. Mr. ng Montgomery felt the seminary building would be perfect for an SRO project in axCh o for approval of housing by the city on the adjacent property and could possibly a site t be considered by the committee. Mr. Cowan indicates Parks and Rec Commission is looking at Diocese property for parks and recreation uses. Marilyn Norling pointed out that in the Goals Committee report there was a emendation to look at that site for senior housing. Chairman Goldman asked if the Diocese had a specific proposal. lair. Idontgomery responded that they did not.but they wished the idea to be brought before the Committee. Mr. Cowan stated that the Council options-, therdare Parks and Recreationwishedtotiom. Chairman Goldman indicated that the eventual useise9slookingintothawoptions of that property would be controversial- meeting was 94ourned at 5:25 p.m. Minutes transcribed by Diane Stauber Diane Stauber Administrative Secretary AP>'ROVED: Chairperson y- Cel:City erk OF IM BUZURM pRESENr. CO AN.a(;=.DER.MCI NEW. CHAIRMAN GOLDMAN GUESTS: PI IlI.?.EYIMM.FRAN EUJ&MJ41W 1=11.. 3AMY BFMNM.EUt`ENE l3LAlCESLEE,JYM MOIMSY. ACTION: Approveg of minutes of February 26. 1991 subject to the following changes: Page 3,last paragraph: but he wished...change to...but they wished... Page 3.after. ..would be perfect for an SRO project..add: in exchange for approval by the city of housing on the adjacent property.. Top of page 2 : ..the proposals..change to..the hypothetical proposals... Page 2 after: Mr. Cowan indicated that he felt...add: Mr. Snyder added that he believes that although it may be feasible. it my not be the best option for mixed use at the regional shopping center. VOW All Ayc ANNOUNCEMENTS Chairman Goldman indicated Mr. Jim Morley and Eugene Blaked1w.Calif Real Eslabe Management Corp,are present to make a presentation, affordable housing l, r 2. ConaiQeaatt of proposed affmdable a utd nft& Jim Morley. California Real Estate Management Corp. Mr. Money's proposal intends to require$435 in rent for an SRO unit In order to match some of the incomes of loan wage earners,s$10.48 per hour to$9.54 per hour. San Diego has 1/3 SRO for homeless or mentally dysfunctional and 2/3 to loco income. The difference is the homeless can receive counseling and do a lot of the work with the homeless. Layouts would include bathrooms in unit. Wenty--four hour security would be in place at front desk: no common entries from other locations. San Jose will be putting up an 180-untt project with entries from garage and 5mt street. Tenant ratio for parking is lower in SRas than apartments. San Jose ordinance is.25; Mr. Morley feels in this area parking ratio would probably be 5. Tea people would be needed to staff the building so 180 units would be needed to cover staffing Casts. Affordable Housing Fund Ca,mittee Pap Z DTiS USSWN Mr.O'gutn asked what kind of people would be interested in SRO's in Cupertino. Mr. Morley said students.retail employees.manufacturing.anyone under$10 per hour. Room sizes in San Jose are 90® 150 square fee. Mr. Cowan asked about the feasibility of smaDer of 30 or 40 units with a resident manager. Mr. Morley indicated that this type project could attract undesirable people. Mr. Kroll asked if SJ exempts them from their fee structure. Mr. Morley replied that parks and commercial fees are exempted in W. Mr. Morley indicated that a bond issue is sometimes offered to help with financing; housing funds sometimes are part of the Manias. Minimum number of units Mr. Morley is proposing is 150 to 180. 17,500 sq.ft. is the amount of land needed for this project. San Jose 38.500 sf.with outside parking structure with .5 parking ratio.90 parking spaces,180 units. Mr. Morley indicated that the built in employment base at Tandem and Vallco would be excellent for an SRO project at the Vallco location. Rents projected if built today would be$495 per month. affordable to those making$9.50 per hour or less.anywhere fiom 7.50 to$10.00. Mr.Morley stated he would need a fee waiver from Cupertino to implement this project. Proposal includes$400.000 to be paid for land. School district could impose fees at commercial rate if school board approved It. Delivered cost per unit is approximately 33.000 phis land. Operating cqxmses are 42 to 43%. SAMCO gives a discount on loan rate. 192 sq.ft.would be feasible if handicapped provisions had to be implemented. Code will be changed as of January 1993 so that all rooms must have handicap provisions. Mr. Morley indicates income guidelines could be implemented for the tenants. Proposed$495 rent is market rate and it would not be feasible to get lhigher rent. He stated that vacancy rate runs at 2 to 3 percent in other SRO's in the Valley. Mr. Kroll finds apartment parking ratio runs 1.85 to 2 can per unit in the Valley. Shared parking between office and apartments works better than retail because retail's peak parking times are the same as residential. Mr. Morley indicated that Vallco has indicated they would build more parking to support the SRO building. Mr. Zeitman expressed concern that the city would not have control over the rental costs of the units. He would want an agreement between the City and the project owner that rents would be left affordable. One of SAMCO's restricttons is 51%would be rented affordable as part of the financing agreements. Affordable Housing Fund ttee Rige 3 SW*Brennan expressed ern that the project may stand empty atone point. Mr. Ze tmw said he did not feel Cupertino could support this large of a prowL especially politica!1y. Mr.O'Quin believes density of people is an issue and also Mi type of affordable housing is needed in Cupertino. Mr. Montgomery does not feel any one of the proposals before the committee are mutually exclusive. Pursuing this project would not keep the City from pursuing other projects. Sally Brennan asked how this would Lieet affordable housing income and unit guidelines. Marilyn Norling stated we L:•a+,:wide 900 units of affordable housing. Fran Ellis from the school district stated that school district employees must make a long commute and affordable housing is needed for school district stab: Sally Brennan feels as a policy Cupertino should support school districts. Mr. Snyder feels we must consider Cupestlno's N114BY attitude and over 40 units would cause political problems if residents perceived undesirables would move in. Mr. Cowan indicated that Prometheus'project of 99 units on 1.5 acres is not high density and a development like that in certain areas.such as Vallco.can be viable. He feels SRO is one tool needed to meet Cupertino's housing needs. Mr. O'Quin does not feel the risk of drug addicts and other undesirables is not as fly as in San Francisco or San Jose. He stated that the object in Cupertino is not to meet homeless needs but to meet the need of low income employees in Cupertino. Chairman Goldman asks the proposal to be tabled to the next meeting. L Consideraftm of proposed rent schedule. Mr. Kroll indicated that the question is how to pay for affordable housing. Horsing financing in the 1980's. specifically office buildings, have reverted to the federal government. Many of the tools used to obtain affordable housing, such as affordable housing projects being linked to commercial projects. are no conger viable since commercial building is declining. Buildings of housing is down over the last 5 years. Chainnsn Goldman asks Mr.Kroll how much a one bedroom apt would have to rent for in order to pay to build the apartment building. Average unit in Santa Clara today costs$105,000 to build. Mr. Montgomery indicates$650 per month phis costs. Marilyn Norling indicated that the affordable rent schedule which is before the Committee was created for potential projects with affordable units. Staff surveyed other cities and state and federal guidelines were reviewed. State and Federal guidelines show 30%of Income as affordable. High incomes in this area make affordable rents 892.which is market rate or higher. Sunnyvale uses 25%of income which works better with SC Valley salaries, exclusive of utilities. Mr. Kroll and Mr. O'Quin stated that they use 33 1/3%as an income guideline. Sally Brennan and Mark Kroll felt that nonprofit managers are a good way to get housing into a community. Mr. Kroll indicated that the average assessed value is close to$90,000 per unit in Cupertino. Nonprofits could save money on taxes. ems,_u F=d t Affordab ousing Page 4 W.Snyder asked if pr paW tax and devel few did not haw to be pad woWld 091Ir. troll be willing to Qnon=egmentwherein.pro&woWd nt be W&W thin 8 percentage. , NMI indicated that or g subsIdWS hypothetical would be a preftrable way to get SR0's. 1Vlr: stated 1 g May keep up an SRO project Outer thancontrolledbutprofitwouldstillmotiwateownertoprovide better uPkWP- Shy Brennan indicated there are nonprofit developer's which manage prajects like this. Chr. Goldman stated for-profits,and non-profits can both be considered once he issueofWhetherornotSRO's should be done in Cupertino is resolved. Chr. Goldman asked if definition of affordable housing in Cupertino can be defined inteamsoftherentstructureprovidedbystaff(these are the same rents OLAeshave the City worked the of Sunnyvale uses). Mr. Kroll stated that Surmyaale's peter HMR units they have been building. Mr. Moatgomeery suggests that staffs proposed average rents lx caIled guidelit"for affordable housing rents. ACnON Mr.Montgomery put forward a motion to accept sWrs rental figures as affordablehousingrentguidelinestoberecommendedtoCityCouncil. Mr. Snyder seconded the motion. vet All Aye Chr. Goldman indicated that affordable housing policy can be packaged at the neat meeting. Meeting was adjourned at 5:10 p.m.to the nest regular meeting on April 11. 1991 at 3.30. Minutes transcribed by. APPROVED: D e Stauber Administrative Secretary Cha rperson ATTEST: City Clerk 6 11s ERS pRESENT BOB CCTAN. MONPGOUMW' CHAIRMAN MEMB MARSHALL GOIDMAN MEMBERS ABSENT: MICHAEL aQUIN.BIAM SNYDER GLJEStS SENT:NANCY WWWff.FRAN ELUS AND GENE WELCH ORAL CO IATIOM' None AXN04lNC None. OLD BUS L at Bui s ofWanh 196 1991 Vow All Aye Pow( faan much 1% U81 ConsidemOm YmPosed housing McCune The commies reviewed the policies submitted by WdWdual members. Submission by Michael uQuin 1) AnabW affordable housing projects to assure that Projects have enough reserves for maintenance Deng a public relations affordable housing program to show the benefits of 2) Develop and using to all Cupertino residents. Submission by Phil Zeitman 1) Encourage mLced-use development 2) Consider specific sites 3) Develop a public relations program 4) Create a housing mitigation Program 5) Implement inclusionary zones for apartment Projects Submission by Fran Ellis 1) Encourage mixed use projects with retail or office use Affordable Houshig Fund Committee Page 2 Submission by Scott Montgomery 1) City should snake a commitment to provide low income housing. 2) Goal for this policy should be 200 units within the next five years. Mr. Montgomery indicated that marry alternatives should be considered when trying to implement the above policy. Chairman Goldman asked if policies should tend to be more positive than negative: Mr. Montgomery responded yes. that ruling out various alternatives at a policy stage would be premature. Chairman Goldman indicated that the Committee would like to provide a menu of positive incentives to developers from which they could choose to develop affordable housing projects. Mr. Montgomery questioned the policy of discouraging condo conversions. He indicated that strategies should be considered as opposed to policies. L Develop Housing ffiitlgW=Program Mr. Montgomery suggested removing the words"non-profit"from housing policy#i 1. Marilyn Norling indicated that the reason for this wording was to allow developers the opportunity to contract with an agency to either manage the affordable units or build the units for the developer. Mr. Cowan indicated that the idea behind non-profit would be to develop a relationship with CCS or another agency which could handle the oversight of affordable housing projects. Either for profit or non profit agencies c dd work in this context. Chairman Goldman asked about the progress of the Nexus Study. Marilyn Norling Indicated that by close of business tomorrow all the proposals will have been reviewed and the field will be narrowed down to three consultants. Mr. Cowan indicated that the City Manager would like the Committee to interview the consultants. Ms. Norling indicated that the Nessus Study would be in two phases: first to show the connection between development and its impact on housing needs in the City and secondly to recommend mitigation strategies. Chairman Goldman indicated that he would like the Committee to interview the top three consultants. Nancy Burnett expressed concern over allowing a for profit agency to manage an affordable housing project as opposed to a non-profit agency. Chairman Goldman indicated that the City would be the party which would set the level of rents. Ms. Norling indicated that the housing staff monitors agencies which manage housing projects. The Committee concurred with Mr. Montgomery with his suggestion to replace the word non-profit"with "agency'. a Develop Fbancing Strategies No Discussion Affordable Dousing Fund Committee Page 3 use Pcojects Bob Cowan indicated he would like wording kom the General Plan regarding the floor area ratio and mbxd use developments to be added to the policy. Nancy Burnett,asked if opens space requitements would be site-sic. Mr. Cowan Indicated that it would depend upon the environment desired in the particulm project. 4L Identify Available Bites Mr. Cowan asked how the sites would be identified: if they were identi@ed in a public forum. it could be politically sensitive. Ms. Norling indicated that the wording should be changed to"identify sites for housing" as opposed to "identify sites for affordable housing" Mr. Montgomery indicated that if the word "considered"were changed to"review"that could also eliminate a problem with public resistance to affordable housing. Chairman Goldman indicated he would be in favor of omitting steam 4. since it targets specific sites and creates problems. He asked the Committee as a strategy for affordable housing. is identifying specific sites a good strategy? Mr. Cowan indicated a makes him nervous: Mr. Montgomery indicated that some sites must be however.the list should not be eachnave or indicate that they are the best sites in the City for affordable housing. Chairman Goldman indicated that his cqxwience has been that citizens want affordable housing.but not in their own nehborhoad. therefore targeting sites may be politically undesirable. The Committee decided to omit item 4. is Allowed Density No Discussion L priority to Those Associated With Cqpertino Mr. Montgomery indicated that the heading should be changed to "Priority." Mr. Cowan asked if legally priority could be limited. Ms. Norling indicated that as long as the City does not state that only those who live,work or have family in Cupertino are served. priority can be given to those groups legally. Also, advertisemenft in newspapers cannot indicate preference for specific characteristics. 7. wart EXIsting Muket Rate Umits to Aftrdable Units Chairman Goldman indicated that this option would be market based affordable housing. In a given year.a contract would be offered to any apartment house owner for a given amount of money that for a certain length of time some units would be rented at affordable rates. Mr. Montgomery asked that the title of#7 be "Permit Conversion of Fig...". Committee agreed to change the title. A Create a Rowing Endowment Papgram Aff"dable Housing Fund Committee Pap 4 0 Discussion 1 Mr. Cowan would like to see a nun pro-active approach to Homeowner Associations and their notification of impending projects. Chairman Goldman suggested considering the idea of a"Council of Neighborhoods"or something similar. M the 02dhwm e Current ordinance precludes converting apartments to condos if the apartment vacancy rate is above 5%. This would add a clause that would prevent developers f-am demolishing the apartments. Mr. Cowan indicated that Council could prevent an applicant ftmn demolishing apartments by refusing to rezone the land once the apartments were demolished. However.he feels it would be firmer ground legally to have a statement in the General Plan regarding types of tenancy in residential zones. Mr. Montgomery asked that staff come up with language that would save existing apartment zoning. either by expanding the condo conversion ordinance or by some other method. Nancy Burnett suggested the following wording: "Mend the condo conversion ordinance to prevent loss of the existing supply of apartments." Mr. Montgomery asked if it is appropriate for this Committee to target condo conversion policy. Chairman Goldman indicated that due to the significance of this subject.perhaps this subject could be deterred to another meeting when others who might have more input could attend and give their views. 1L Loxt l6nn Leases Gertrude Welch from Council of Churches is currently working with cuurr.ihw in the area to allow affordable housing to be built on their property. Staff is directed to prepare a report to go to Count presenting the Carnmittes's Rent Guidelines and Housing Policies. Staff should request direction on these policies from Council. The Committee decided to meet on April 29. 1991 at 3:00 p.m.to Interview the applicants for the Nexus Study and to review stairs revisions to the blousing Policies. NEW None ADJOUFMM to the nest regalar meeting of Apt 296 IMIL at 3:00 p L Minutes bansezMed W. Diane Stauber APPROVED: 194aae StauberDimeStwaer secretaw 111 6. /Ju HG-1 Chairperson ATTES . Cit Cler MINUTES OF THE REGULAR MEETING OF THE AFFORDABLE HOUSING FUND COMMITTEE 1991 APU dq , CALL TO ORDER MEMBERS PRESENT: CHAIRMAN MARSHALL GOLDMAN,808 COWAN, MICHAEL aQUIN, BLAINE SNYDER,AND SCOTT MONTGOMERY, GUESTS PRESENT: NANCY BURNETT,FRAN ELLIS,ROBERT QUAIL AND PHIL ZEMViAN ANNOUNCEMENTS OLD BUSINESS I . Approval of minutes of April 11, 1991 Scott Montgomery requested that the minutes reflect that the Committee concurred with his suggestion to replace the word "non-profit" with "agency". Vote: All Aye.The minutes were approved subject to the above changes. 2 . Approval of proposed housing policies. Mr. O'Quin indicated that Policy 8 (Educating the Public) should also include a policy to educate the business community. There are business advantages to employers in Cupertino having their employees live here. The recommended wording for Policy 8 is "Community Education: Form a housing advocacy group,as suggested by the Citizen Goals Committee,to educate residents and the business community about the need for and benefits of affordable housing and advocate for housing improvements." Mr. Montgomery moved for approval of the recommended wording. Mr.O'Quin seconded the motion. Mr. O'Quin indicated that co-ops may be an option to create an equity participation program with for sale affordable housing. Chair Goldman asked Mr. O'Quin to bring to the committee at the next meeting an explanation of what co-op programs entail. At the next meeting Chair Goldman would like to discuss ownership affordable housing options. Mr. Cowan stated that the existing BMR program is only the ownership of existing units; there is no purchase of new units planned . Chair Goldman stated that the two issues which have not been looked at is ownership affordable housing and expanding the condo conversion ordinance. Also Chair Goldman would like to see a chart developed by staff that would show what is affordable for purchase in Cupertino. Affordable Housing Funs! Committee Page 2 NEW BUSINESS 1 . proposed modifications to Housing for Independent People Agreement Mr. Montgomery asked Marilyn Norling to define the modifications. Ms. Norling indicated HIP was approved to develop two homes, one for S developmentally disabled adults and the other for six low income seniors. HIP has encountered problems acquiring two houses which are affordable for these two groups. HIP's funding source has dried up for this project. Instead of the two group homes HIP would like to use the 100,000 for a project serving mentally disabled adults. HIP would need to make a presentation to the Committee. They have a May 31 deadline for applying for funds. Ms. Norling Indicated that a meeting must be set to hear HIP's proposal so Council could hear it by the May 20 meeting. Chair Goldman suggested that the Committee should simply discuss the issues today rather than try to set up a special meeting. The new home will serve 8 residents instead of 12, 3 residents from Mountain View which reduces to 5 the number of Cupertino residents. Mr. Snyder asked if the clients have already been identified. Ms. Norling responded that HIP staff stated that Miramonte Mental Health Services maintains a waiting list of eligible clients, some of which are Cupertino residents.t Mr. Snyder stated that he questions why current Cupertino residents would want to move Into this new project. Mr. Cowan stated that these adults require special care and they are probably moving out of family settings and are being institutionalized. Mr. Snyder stated that he would not have a problem with it if this were the case. Mr.O'Quin asked if income generated would be used to pay back the City and indicated the question of pay track is not adequately answered in the submitted letter from HIP. Ms. Norling stated it would be a loan but she would like to see some payback of the loan before income was greater than expenses. The $100,000 would come from the Affordable Housing Fund. Mr. Montgomery indicates that a total of$245,000 does not sound like enough money. Ms. Noding indicated that the matching funds would bring the total to $490,000. Mr. Snyder asked if $100,000 would be better applied to a low income housing development. Chair Goldman indicated that per person it would be cheaper to develop affordable housing for nondisabled persons. Mr. Cowan indicated originally this program was designed to meet the needs of seniors and the disabled. The Committee agreed to continue this item to to Tuesday, May 14 at 4:00 p.m. 2 . Nexus study consultant interviews The following consuftants were interviewed by the Committee: Konrad-Rae and Associates Mundie and Associates Planning Resource Associates ti_ AffoIO Housing F page S o m The Committee the mommomof each®f three consultant proposals. Pending referee Mr.Sr der m e a tMOIbn to understand" res mk. oanalysisor cW ication f draft um cheer and a bettere of them and g of the ecoshorter time frame to produce gnomic anatys;s is report 0 PRA is unable Mr. Montgomery amends the n I*add that mate of the comet ee— to Sege• Mundie Associates would be the nded alte Mr. Montgomery sewnded the mown. The meeting was adjourned at 5:52 p.m. Minu s transc ramd by: Diane Staubsr Administrative Secretary APPROVED: ATTEST: Chaizpe son C ty Cler s THE MINUTES OF REGULAR MEETING OF THE AFFORDABLE HOUSING FUND COMMITTEEREE MAY 14 1991 CALL TO ORDER MEMBERS PRESENT: CHAIRMAN MARSHALL GOLDMAN,B013 COWAN, MICHAEL OQUIN,BLAINE SNYDER,AND SCOTf' MONTH, ANNOUNCEMENTS OLD BUSINESS 1 . Approval of minutes of April 29, 1991. 2 . Approval of proposed housing policies. MOTION WAS PASSED TO APPROVE THE ABOVE VOTE: ALL AYE NEW BUSINESS 1 . Proposed modifications to Housing for Independent People Agreement Ms. Norling submitted approximate fund balances for the Affordable Housing Fund. Laura Piikington and Al DiLudovico from Housing for Independent People (HIP) and Lynn Farr and Karen Wine from Miramonte Mental Health Services were in attendance to present HIP's current proposal. HIP would like to use the $100,000 in loans they were granted last year to purchase a four-plex which would serve mentally disabled adults. HIP would combine the Cupertino loan, a grant from the City of Mountain View and conventional loans with a McKinney grant of $245,000. The project would serve 5 disabled, very low income individuals from Mountain View and Cupertino. Lynn Farr indicates Miramonte provides treatment and rehabilitation services to adults with psychiatric disabilities. Individuals in the proposed project would all have some type of psychiatric disability and would be low income; unable to wools or of limited ability to work. Community Alliance is Miramonte's program to provide a support network to help the clients work and function successfully In community. Karen Wine Indicated that members are living independently. On an as needed basis members request services from Community Alliance. Employees of Community Alliance respond to calls from members; members can also call other members for assistance. Mediation for household conflicts is also offered. Community Alliance holds community meetings, activities and projects for members. Community Alliance tries to develop a community among Its members so that they can lean on earb other for support and social connections. Vocational training, case management, counseling, residential treatment and senior in-home support are other programs which Miramonte offers. Affordable Housing Fund Committee Page 2 B Miramonte receives 60% of its funding from SC County Mental Health Fund;others are United Way and other fund raising activities. Mr. Snyder asked how clients are located. Lynn Farr Indicates County's outpatient clinic, through Miramonte's in patient clinic, Alliance for Mentally Ill, psychiatrists, etc. Mr. Snyder asked If Intent for new clients from Cupertino Is to take them from a current family situation, or the clients are already living by themselves and they are being moved into the program. Lynn Fsrr Indicated It old be either of those options. Population that Miramonte serves Is 'significantly psychiatrically disabled.0 Ages are 16 to 35. Clients may be currently employed; ore their own; with their families.; in a hospital. Waiting list Is 15 to 17 people at any given time. Now applications and assessment process are always Implemented. Miramonte clients' primary sources of Income are varied. Social Security, employment, unemployment benefits. Those on Social Security can only afford $180 per month in rent. Mr. O'®uin asks HIP if most housing is purchased. Mr. DILudovloc stated yes. With HIP's income management fee, insurance, landscaping, maintenance reserve Is set aside. All funding sources require these reserves. HIP has a good working relationship with Miramonte; 5 properties currently. HIP takes care of property and Miramonte takes care of clients. Santa Clara County Department of Mental Health has come to recognize that housing is a significant form of treatment for the mentally disabled. Percentage of rental income for management fee is 10%. Mr. Montgomery asked what the costs of their 60 projects were ar9d how they compare to the project proposed before the Committee. Mr. DiLudovico states that the projects differ because of size and type differentials; also HIP is operating statewide so the costs vary due to location and funding source;some are hotels and they are lower. This project is close to normal cost per unit; between 10,000 to $15,000 per unit. Mr. Snyder asked what requirement exists limiting the home's location to Cupertino. Would the money be better spent where more beds could be affordable? Mr. Cowan Indicates the city is interested in meeting their fair sham of housing goals. Mr. MUM asks If that goal requires actual housing is in the city. Mr. Goldman asks HIP if there are any other houses In Cupertino. Mr. DILudovico says no. HIP indicates issue is city's; money is required to be used in city limits of Cupertino. HIP indicates they have not found a site within the city limits of Cupertino. They have a possible site 100 ft. outside city limits. Mr. Goldman asks if people living there need the site to be In Cupertino; HIP states clients do not need to live in Cupertino. There Is not currently any housing for this type of population in Cupertino. Mr. Goldman asks if anyone on waiting list is from Cupertino. Miramonte answers they do not know. If there were an opening and no one from Cupertino had applied, Miramonte would give h to a client in another city. Affordable Housing Fund Committee Page 3 Mr. Cowan asked if a four plex or a single family home is more cost effective. Mr. DiLudovico Indicated a four plea Is cheaper. Mr. Cowan replied that costs for SM918 family home appear lower In last proposal. Laura Pilkington Indicated funding sources which were counted on In prior proposals have run out; that Is why current proposal Is higher. Mr. Goldman asked if the committee would approve of project If it was outside the city limits. Ms. Norling indicated the State would not give Cupertino credit for meeting Its fair share numbers In the housing element if Cupertino put money Into a project outside the city limits. Mr. Cowan states a good faith effort must be made to most housing needs of the residents of the city. It would not help Cupertino to meet their housing obligations. Mr. Snyder Indicates that he feels money would be bettar spent outside the city limits, since Cupertino land Is so expensive. Mr. DiLudavloo Indicated that If Cupertino funded a project within Its sphere of Influence It may be able to get credit for It. Ms. Norling indicated that sphere of Influence would not be a problem. Laura Pilkington indicated she can't find anything within the city limits. Mr. Cowan Indicated most of the sites available in the sphere are single family homes. Mr. Cowan Indicated if a site can be found outside of sphere or within sphere he would support It; within sphere would be preferred. Motion Mr. Cowan made a motion which recommends approval to Council of project as submitted, stipulating that HIP may locate the project outside the sphere of Influence, If the State would give Cupertino credit for It, and then only If HIP Is unable to locate It inside the sphere of Influence. Ms. Norling recommends amending the motion to indicate that a four plex project must be in escrow within six months of the Council approval of the project, or the money will no longer be available. Vote Aye: Cowan,®'Quin,Snyder,Goldman Absent Mr. Montgomery The meeting was adjourned at 5:00 p.m. Minutes transcribed by: 0wrfaisen Administrative Secretary ATTEST- APPROVED: City Clerk// Cligirperson r A.mnvm Mi_ i JMZ 29, 1991 CPZL 20 Preset: Chairman, Yard aU GDP, tfidwal O'Qain, Snyderl and Scott. KCDtgtBY Members Abakint: Bab ODD Staff Present:Housing and wines Norling Homing SpeniaLi st Gi l planning Dq)uty city Clark Wb fe Also Present: Lmma Pi'*+m. Housing for Fsr pewas Nancy Ott Mark Kroh C,e tzLWe Welch, ommcii of Churdles sue mirch-Mmtschlom Iola flendriceen Mavis Stith, leagm Of WMM V OLO wSnWSS Xpproval Of mim&es of April 29, 1991. M71'IQ'Z WAS PASSM TO APPROM WE ABOVE VM: ALL AYE MW WSINESS 1. owership, Housing- A. OD-CP Housing - Kidael 0'4un CIaLxperson Cgo1dman ashed ashy this is a good idea Or a bad idea. M r. O'Quin Mwented a repmt stating that housing cxn=atives are a may to .ble resi is of a .1ti-family cMW1GK to bath sbare in tty app ceaiatiQn and bave a say in the policies and mongeMESt of cao mplax. 9e advantages: 1. Allows j equityparticparticipation a stakePeoplewbomoveintothislawearZMWPAYhave nanc ally and p CallY. It maw it ME* palatable for 1- 0 MnKMS QF M IM=M nor= 0r JM 25, 1991 UOU said that belew-MI[St cooperatives inam VMYY building. It is 00 tlt t70 finance became everybody the othw than the fact that it leads to m e differentthan toaxepeopleheaBtwaitthegteudto pride horsing is'one f to bold title. Pis. Burnett asked t had to the pmercy Gm en oo- P in Santa Clara. me of the was sucoessful had bowhadd u financed t t sera. the Pil1 W, timitedo- maple 9 tim t2m; housing aff dable opting out of it.because there's no n Mr. Gol,don asked of she w fin; iar faith any does a lot of p= saidCYvz t limit®d equity gW have 10 or 15 gAng in Snta ( W. Coldman requested uifoactian on other T?rolelCts in the area. Mr. amyder asked if this kLnd of unit vmuld confwn to the General PIM. M. Hord said it w-A ld,ofservinglow vas directedto got addit=nal MftWMt= f= the neact meeting if available. in t3£'S. B. ate CXalerstlip programs pi+Qa+ rags .. a te P and dw- M * in Sin MBt=, fibsaPalowasanofan vw P 195,000 o/tmm house (950 sq. ft.). afforddAe S s chart and f o c affordable0 11 120+ Of median income s. Nwling said 80-120% of median is was M 14r. Goldwan asked vet t statehele t f o wing and refer M the , Diivisim of Hausiug Pc»l.icy Oo m nitY said that at first she tjxmcAjt sae couldn't do omerdhip Cupertino`y t.ho ,y. ]IMP s q the sty sbe 1 owing ."'jrerti o 11RJu b+sr" an outLtitles, g y amming is comminced we can. She passed 0 she said tjw bottom line is Optims/Rescurcesdevelopthisand spWd time o11 2- rd o R,! Fr Y 6 g 6 Bg ctlog PA a 093am lisp R ¢ e 8 Y g J gipp e p 5 q Pg 6 i 1 •-•pIG... II•- =r •• a•r{i.IP=.:1. '• t_= M :f• .N;.1'.:= ,.'1..= LI"•= II• c•. •:•r' •. - "..r• r • • - :-•.: _ /rt try i: 'i:1: ..-r.. -=.•;.1'•'.-' a.n fl'• •.;•. ,^ FI•' •.( _ •:. - c.•. 11'=.1./ 11:•:. = v.• :•;_- it[i r=r = .1 ,:-._-;1. i C• •II:-1 (r .. - 1•. •;t 1:. =;t:•'- i :iJ:' w•Li= 1 1 a•.:N 7 • - 1,: M. 1 _. 1:_. •:11",III. _- ....:•:' .:• _ r•-Il'.= ..1:- •I :+_:.:1 •'..1 FI:•: _? • I 4/+ •.a ==..w;[".R."-,• • - I " " Y 1f1-• .-Z___•. 11.-11 11 _ G. • '•yl : /._ _ _ 1=:•: •il=r1- 4- :•` - • _.l. -• 1 fP 11• Ii l.- )'.•I1::1 a':1 • 1.• .lea • = x•: _ 1'-• =ll-1 L1":'•. 1.1".G .- 1 _:;(•:•. •;Ir= -11.• 1.= f•''' •- -17`-'..11 IF 1.-•, •_ r 1. '••'fl.• .11s- 1 1•' •}I = -_ - - •:--- •U,... _.• • _•'i II11.•-i..: _ IF tall=Lll t, • Ilr.t t=-• - C/f.•:1 '.1,•. IF 11 Z4 Iv ol IF all IF JI•tr u• _+ 1 t;- rl•t .- ar F tr - ii• • it'.a' - - - -. •IF h111 c. U -- • ::•:-' _ _r• - - - •>••II. . 1,• t •l.•11:1.=a i @• •;Il - • - .•' '• - .• 11-t •l1 s:•1 •••. •1 • I•'G .11:•: 1:= m7171 19 WJMIB25, U91 M. p1_ngtm dhoti if City lamd were walable fzw affmdable s Mr. Go: said units co ald be buUt cu the Fremmt older site, but people taccaptit. MB. PilkingbM said with a lamg-tem lam to ta, they can find I&. Goldman said we have to find a pLM. No. NMI said that it had been done in Menlo Park, and she thinla3 owertina is a nMr8 enl i ened CoMnI city. Ir. Go1dan aummeed that the next meeting would be held m Aug=t 20. At 5:30 p.m., the meeting was adjourned. Gegu y City Clark APPROVED: Cho rpsrson 7- r C: BSI•! 1 ti- • J vim• .r. .— Ff li •• IM 01 to y. •.i5 'rv: r•'•IFU y' it r.•ti 1 N 11 • tt J 1 ••:a r r, i= l.• a:a • • •~ t Presmted 2. to Affm4able Merin! Policies - bV XWiUn fling. 9 policies. tom. Nwlinq P p too the Aff=dWstheleagus of chariges to ff Policies we"s WoMen vim. dies of IS is nevi e distributed. New tent was as rlira®d too t Pa lf ciesi shmm with a liras it. Ma major only clarifi,cactiasas. It ryas that the revised policies be to the Planning tiara for their approval- MMCK was PASM 'o APPROVE THE ABGvE VM: ALL AYE 3. Role of Affordable Homing Ctndttee- ths attached list of five q*lons for cow Ms. possNorlible p ttee* Ito 00mittee option 1 ' is of possible roles of the Affordable i siaag reviewed owl pions bot notrSefflOnt stio and cif to view and make tiom to the Planningremaffordable bowing units.osed for ot reachwithrre an vhat stye ein th ocamittep should r a bowisproject, r t , before tMect he promsby reviewed by the Planning 1on or BobCO the id staff now the lion grad the a'tY cil. ob Oo said and felt that handles partial affordable housing ffirst grad tta t2Ys an app cati,o[a si ould got ia ,andaa i M on the bousilIg c it-tee for review and a final Bert did not reach a issue hater. Members discussed various decisionalternativon timing car' the ittes s involvement.1lais itss caratir ed to the next ram" he resting was adjourned at 5:35 P•m- Minutes Transcribed by: Thm,ese M. Schmidt xo iM Intsrn Attest= City Clerk fi F Hmm q®WRMq= gam@ ice Y3i FM MIX3 i fM So MI CUL ice/ Ylembms Present: Chaizman Marshall Goldman, Michael ®'Quin, Scott Mail! Bob Cowen 5 Absent: Blaine Snyder Staff Present: Marilyn Norr'ling Vera Gil Yvonne Kelley Also Present:Dirk Schuster, Frank Strazzarino, Leanne Papa, William Wic,b ire, Gertrude Welch, Sally Brennan, Nancy &wnett, Iola Hendrimen, Mike Bruner, Jim Eller, Mollie Dalpae Norm CM Approval of Minutes of August 27, 1991 Motion was passed to approve the above VOM 4-0 Aye 1 1. Naxw Study Status Report - Administrative Draft is complete, final should be ready in January for review by Committee. Chairperson Goldman gave an overview of the Nexus Study Report and what it entails. He then asked if there were any questions regarding the report or if there were any concerns not on the agenda. Gertrude Welch was concerned whether Portofino Development would be heard before this Cc mi.ttee or the Planning Cmmissicn. Bob Cowan stated that it was soled before the Planning Commission on December 9, but was withdrawn because the new plan was not ready to be submitted. Questions were asked regarding what the Oaauttee's input on the report will be. Chairperson Goldman explained that this Oonmtittee will review the document and make relations to the City Ccncil. MMMUMS cr AVEUMANE BIUMM N== URWmt 5, 1991 PA on 2. Role of acrmitcee/Proposed ordinance Marilyn Norlirg gave an overview of the history of the Senior and Hwz cap Housing Fund Clamnittee and how it bey the Affordable HmL ing Committee. The City Attorney felt it necessary to draft an ordinance since this a mittee has wed and will make rao ations to the City C mmil. Chairpersm Goldman adjourned for five minutes so that everyone ate could read the draft Role of 0muttee/Proposed Ordinance. Chairperson Goldman stated that the caqposition of the ommittee is one iznpartant first step to get public acne. Jim Eller aMested that a repr ntative of the business amity be added to the committee. It was agreed that a representative of the business c m mitt' be comidered as an added of the calmuttee. Michael O'Quin suggested that a representative of the Chamber of Coamerce serve as a conduit between the CImmcattee and the public. Frank Strazzarinc felt strongly about this and is willing to do whatever necessary. He also stated he leaned to wd Option D. Zex= of Office - It was agreed that the term of office will be four years serving no longer than tim consecutive terns unless appointed to fill an unexpired term of less than two years Chai Zson - The City Om=il amber will remain as Chair and the Vice-Chair shall serve for one year. Monthly meetings will be scheduled as named. The meeting will be the first Thursday of the month at 3:30 p.m. Compensation - None Duties- Res sibilities - After discussion of each item, it was agreed to: 1. Add F.1 Th provide information about affordable housing. 2. Change G. to read -Tb meet with neighborhood, ommunity, regional and business groups as necessary to receive inpat and assist in generating affordable housing. 3. Add I. Help identify source<a of funds to build and develop affordable housing. 1:.8er'Y ,S. r x"' tu^. ,.-may: ,^ v: .;f a •A'• . yy y.Y F xx h...€ 1'•..n,:.t s=1 a tt r Np - It1t r • au 60 Oki 1 tali 111 t I- Jit:.:- c• I it-•' 11 Ilt 1 s - r li •. L.+t oco it So lit V•' - Wit or 1 it sl =• •I t1. II w^`-. 'soil IP a ' 11 IL w r° ro ro AJ ja is • B g g 9 t s ilk Ail 0 y lt 4 I Hit= "••- .• '•."•n a" r • • +:,1 a.a •. tl.n -- rc INK, r r..r b..- fir•._ It:.1.. •nt. • - •.. _ Y 1_ GPs 1 fr i i"' t it i( 1 Jil' I it f.'- r , 1 it , I rl t it = _ T x rl i iT 7 rl i it L j. A it i rr c r J ry1, rl it rl, ! r , it !,. ij 1 1 rl II rt T rl. 1 71 11 l r d 1 r a Ji it l i{ a rl. r iJ • 11 f , I 1. ti q it i • i • i{ 1 it t rl : i i • r i i( aV . ( 1 : i) it l r Z l • i fl • it ,. it r r M-F 4 S• P'. e 1.a- stile 1 . t11:1 I.il".i I. y I. f r ' a - t u 'sa I Cr2W CCHNEPM FEBRUM 6, IM CKL go Members Present: Chairman XWO11all C3oldman, Scott Mmtgmery, Bob OMM, Blaine fir, del O°Quin Staff Present: Marilyn Ncrling, Vera Gil, Yverie Kelley Also Present: Annette Rodriques, Dan Wolfe, M. Isis Warburton, Susan Iola Aendriosen, Dicdc S[diuster, Gertregle Welton, Sally Bramun, Nancy Burnett, Pkwk Strazzarima, Mike Bruner, Jchn Statton ME Chairman Goldman arniCAM0ed that all for appuin ZEW t to the Affordable mousing Comitttee are clue March 13. He encouraged all interested persons to apply. muncil will canduat interview and make its decision on Mardi 17. Chairman Goldman read a letter from Sumiyviev Reran Homes Ew utive Directar, Roan Zielske, to express their support of the Nexus study In reviewing the of land use and creation of additional housing needs. 1. Qiairman Goldman asked for approval of the minutes of the special meeting of January 29, 1992. Micd±ael O•Quin moticned that a car ecticn be made to page two, paragraph 4; "while income has kept pace." Ihis should mead: ..."while income has not kept pace." With that correction, motion was and seconded approving the minutes of the special meeting of January 29. Vote: 5-0 CM BUSnEW 2. Nexus Study Discussion - Chairman G}o Rb a+ p n explained that the purpose proposeofthemeetingtodayisto for public input first, then tack to ccmmittee for some fulalizat:iai. Major Issues: j that are Wilt, but do not contain housing, but do produce St=dd policy be set for housing to supplement buildings? AFFORDABLE HOUSING OONMITTEE 2 of 4 AINUTES MAY 11 1990-DEC. 14 1993 y t y'4 3. - h =7: •... .... s1 ='' .•..: ".r ••'lam •- .^ f f I 1 ;• i ti 7• •.-•;.r; •fir. _.• tl • 1 In..Igor. _.• - •rich;' f : . •S s • • is r- m tt i.'gT .;.. *'`' .. -_ '.:-sy'1 atyr-'_ ,,:. :.,L;.v, ^M: .. t•4r li..-. • Put-I r..• t_ '.. - fit. =F 11=._ .. • •. FI • •. - _ • i.. cal 0! r i. -v •.-. 11 = .. •? t ' it ••..•r's_. is All 0 oi r . 1 r sF c.• .._ ..' _ i•1)'. 1 - 11• 1 _.ill.mil.I •1: 1.- _- -'c.11 _.r i...•i•i • c• •. 0 i111 I Y y1, •;- >n c • ,• ram?:; Ilr•=-L •-. f..=7 _ .tl:. ., ,1':..;..:IIT:. 7iJ.. :•,;• .•. ,^ r ...- :. r. . r • YIP:.'3 • ,_:1 I: .J lit. r.. - J : -'.y,._w.- ::111--.:.:_ i rl Il JI- - •.l is Ylr:. v 'i•.=Jlli- U` '"'-` .c1 Il=Y 1-1..r_ 'clil- h ,4., a•G, usu r r l r,L oc fit IL. i- •.l: .• •- • • 1•.=. • ram =• s.,- 71 r A sRMUSIM ctsmittlee NWMh 5, 2VA FaW 2- Kevin James asked what the its range being considered "affordable housing" was? Vera stated AFH guidelines are 30% of ice. Chairman Goldman asked about rent charge for families. Marilyn and Vera both stated that $250 to $300 would most likely be the rand of rent per bedroom. Betty Mann questioned whether an efficient use of money would be to purchase a house or assist people with finances. The purchase of this house with CMG funds would pretty much deplete the account. Jim Morley inquired about whether this fund could be used to assist pule with apartments in large apartment cooplexes. Micdhael O'Quin asked whether there were any other projects for which this money could be used. Marilyn answered yes, but nothing is definite. County and HUD staff have concerns regarding the amount of money in this fund and how long it has been there. Scott Montgomery asked what the time frame was for confirming the city's position. Vera stated the District Attorney would like an answer as soon as possible. A statement was made regarding the availability of wing a single family home versus leveraging moray to buy or assist persons with affordable housing. The City can purchase a single family home at any time if necessary. After a brief discussion between members, it was agreed that due to the time constraints, this would not be an appropriate option to pursue. A better way of leveraging this money should be consider. Motion moved and seconded to deny acquisition of this house. Staff will look at guidelines regarding purchasing of other houses if this opportunity arises again. 2. Consideration of eonxept of developing a Single Roam Occupancy (SM) project as part of the expansion of the Vallcco Fbstdon Park shopping center. Chairman Goldman gave the ommttee a brief back on this particular item. He stated that as part of the Vallro shoppir;i center agreement, they should either provide 50 affordable units or cause to be built 50 affordable units, or pay a mitigation fee of $500,000. He stated that Jim Morley mooned him regarding making a presentation to this committee or City staff regarding building of a SRO project at Valloo. Chairman Goldman them introduced Jim Morley. Jim Morley gave a presentation regarding similar projects in San Diego and one currently being built in San Jose. He passed out photos showing other M units and discussed their composition. a Y'. It i1 - •'.. -.• Zia •A. ll..,. 7 t {:.J' •;1 t.J •.. •; :t :4w:,' • ;• 1. l .:• All it •T irl - • •• t •;- JF fittli oil v VI Me it t 5 g a a:4-'-,}s:TM ,3i.G" "a•a ,`` y,y"`. *.i• L'"Y.3..3,' e '% t r - r x Y;: O.' L' i i 1 1 l r I t,' tt: I n. :. •r ':a _ 'M it T a4 r, •Y ' a: ••::r':az Ur=-Tii•.>. . • - 1 SIT - -- i YO:. t. 1. -• r Ir.1:. 1. . .'•.. -•. •.:II : •..y2 •. ii.:" ,• inl"-,, ,.1 YI'LY c.• I• - • It'--.. •f- c:•. • J" r It Pi' ;- it IL 1vii IL y_ - !• • -' T - •:`:1- ...may ^ J a* r) !'.:- - 11^-• 11:.ILA •: .-t c j mac. .•.; • j i f r Ado leVAUMM OoIDittee M{.. Oowan stated that another factor V1 censider is maw transit and how housing and jobs are affected by the location of the rails. Imo'. Montgomery that this forum bald be more conommed about identifying possible soluEticins instead of placing blame. Zhis is a rarity in that companies and government are coming together in a partnership to work together in order to cow a problem. w. Lazzarini, motive Director, Governmental Affairs with the H7A, meted tapping into the resources available, i.e. Riess that can provide housing and create incentives for these things to happen. Chairman Goldman asked for a 5-mi mite mess for public ,arid committee membem to get some refreshments. 3:15 meeting was reconvened by Chairman Goldman. NLs. asked for a definition of an overlay zone and rezoning to residential. Mr. Dailey explained that an overlay zone would allow placement of double designation parcel s. A discussion regarding the amount of units per acre and whether a percentage could be affordable ensued. Chairman Goldman summi.zed the concept eked by the ocamittee by saying that a certain percentage of the units would remain affordable. w. sotrato stated his concept being that if a developer provided, say 1.5% affordable units, than the density would ce up to 50 units per acre. Mt. Sobrato added that with ilmentives given to cagwu es in order to attain the growth r+rranted, that AD. produce a percentage of housing and the free market will take place for the mining homing. Chairman Goldman asked that staff and the business eomnzdty cane back to the table and explain in detail this dal. He also asked for some examples that are in place. Pam'. Oman asks Mr. Sobrato to adds the fact that whenever high densities have been offered &--velopers opted to go at the very low end of the range; i.e., Mar ani Prcp,, ty. Mr. Sobrato responded the problem with aax ship housing, anything over 13, 14 units per acre you have "stacked housing" and the developer is opera to lawsuits. Ous causes developers not to build because of the liability. Chairman Goldman explained what stacked homing was. Mr. Oowan explained that according to California law developers may be suers for latent repairs. As a result of this law, high density, for sale units are not being acted in large mnbers. ro 1.X7:. u '..a fit` _ ll:. • •11(: .liY-11: -=t - lY •_:'- •'. •. .i' 1.: •i •' tw-_.. 04 f•=t - :• q. `•;• all F • .. • --•. u .•{ .- r tip••r r i' r •,_. • AWJ 4 - ••: a -.' li •.c •1 r•I •:t - r - sw .•ar r, fit'• • J' w;ut•. -s 7J-•: a .1 • '•'.. • 1 :^•'- •.' - •'•.1 C1117• • - 0.0 sit If pap Much , L Mr. o,' a stated that this type Of hcusiug M3Y8 "Otbe theway to 7o ecw that to Matter, a moyew y B t MUM, add b iiis house t iy and 8 bliilftyham 2• ' m is for both regwdaY_ houses le, a i ilds them. y .y ,gig a api ical aeeee°`e d 50% mi tlm lei adiqm.e omemittee aged to adckwa this issw at oeKt mom- awting Ad7ctwied at 5:05 p.m. atfully submitted: Appxovedby: Yv uie e 1 Go Cmirperscn Attest: Dorothy 6modius, City Clerk varilyn/AI32092/ s RO r cr cr s:8 to CXLR® clam Members Pent: O aJn= Marsball Goldman, 3wtt Mmbgomery, Betty Maam, Dick Sdwster, Susan Mrfo Finds Members Absent: Michael 0103Lnrm Staff Pitt: Marilyn Fording, Vera Gil, CiddY Wrdall, Also Present: Kelvin James, Te&a Dand+O, Rafe %WtUrtM, Mollie Dalpae, Mir fturier, John Stattcn, Di dc. Rosemaier, Jim Marley, Sherman Tav3s, Sonja Shurr, Jean Gallup, Phil Zeitman, Nancy Bzamett, Iola Hendricsen, Gertrude Welch., Hevarley Bye Marilyn Norling amvx=ed a new bill being introduced, SH 2O37. 7his bill would allow Cities to provide cooperative homing and share housing element credit. APPAL Q:airman Goldman ash for approval of minutes fr Mares 20, 1992 meeting. Minutes were seconded and approved as submitted. MW 1. Proposal for funding from Imovative Housing - The Innovative Housing Representative could not attend so Farilyn Fling presented the staff report regarding tneir request for funding. Marilyn explained that the innovative Housing staff feels the is not enough money to sustain the adunistrative services provided for the Vwee homes it maintains in OVettfno. 7his includes counselors hired for visiting with residents at the hcxm=s. Also there have been difficulties with finarxm clue to residents losing their jabs. In January of this year the Innovative housing program approached the City to ask for CWG funds to tide them over. At this point, it was suggested that Innovative Housing cue to the Affordable Horsing Oommittes to asks for funds. Mario Pfnedo questioned the 7% vacancy rate and the market rate charged at two of the homes. Susan Mist-Kretschmanra asked whether the residents in these Brumes were counted in the numbers needed in the housing element. Marilyn answered that they are counted. L .r :` .:„, - Ta psi.-+ 1:-/ '/1 f st 11;,::-.. 7 '.Y _ Ll+ III J Y: • a. ..-....__ •: ti -vil .^ r'u!I -.- .•r a- w c.:_.r.=r .. .• ...s.•;..:•;-r -a• ..• j III:.J. • • _=i - • •.^ • . II: •.. •1 11 • •; =l.4.1• =• a; ...I •IIAI' : =• III: ;:• a.... ; .:r,.Y:- - .1•.r - i _ :.t dw'.I: 'i(..;i .-t- .. - IC t:. :.:iYol 1.. -v' _ w f.: iT - u_!l:.•_ c .,•er lkl, -1 1:,ltr• .::•4e:.#' ..-.ter .1- i )1.:.. v. :. . ...-. ,.1'-1. tf i•1 .:•Y - cti'.. J: : .•. -- rei' .I, ..a:'IiT '..• .-. 1.1': f'.._ is 1 i'i.rl. 7'' - - .., - -,fir. in.._.. .r -.'•-.._• nl t ti r':::r.rc...i.ln! n'- .: 4 _ - s: G, V/ ffi 7, YM, Dick O Pined, Scott Sue r Absent: Blaine ftdw Michael O°Quin, Robert C ciwan Staff Present: Marilyn Narl.ing, Vera Gil, Yvwne Kelley Also Present:Nollie Dalpas, Jim Eller, Jim Morley, Susan Lehman, Debbie Greiff, Marisa Y3artin, Ginlly Valentine, Kelvin Mike F Ini a 1 Davis, ley Bryant, ner Chairmn Goldman called meeting to order at 3:10. He reported that the Affordable Ding C cumit't a meeting will be abbmviated to allow time far the suboonmit tee to meat. We will hear from Innovative Housing retzentatives and then get an update on the neus study AFFUrNAL OW plic Q:airm'an Goldman asked far approval of minutes of the regular meeting held on April 2, 1992. Betty Nana maned for approval of minutes as M*Mitbed. MW HOSIEWS None 1. Ptmposal for fading from 3ruraarative Housing (con Id from 4/2/92 meeting). Debbie Greiff and Maria Martin, rept+esentatives from Innovative Homing presented a proposal for additional funding far their games in questions bit up in the last additionalmeetingregarding Chairman Goldman asked why additional funds are needed. f4s. Greiff arm that rents for arse house in (Minos had increased so much that residence could not pay. Those residents were relocated to San Jose and the house closed in Cupertino.o. In one of the other houses the residents had lost jobs or hours had been cut forcing Innovative Housing to pu* up the slack. The Simms have is running smoothly. Fuse of the closure of one of the homes, the request for funding was redimd from three homes to two. AffordableHawingOommittee, Page -^_ g 9May7, 1992 MarioioPinedo, asked utwther the $4,500 amount is still being requested even though the are now only two hme m instead of the original thy. Ms. Greiff wwasred that she derstards the $4,500 refit was made for three houses and would Wae to case the amount requested to $3,000. Ks. Greiff explained the seven pest vaancy rate. She stated that WarW thinrgs Came in to play with this nmber. She broke this dam to Sao percent for unrecoverable debts, five percent for actual vacancies. Chairman Goldman asked what the other Ytal entities had given from CDBG to Innovative housing. Ms. Greiff arm that she has requested $3,500 from Santa Clara, and has gotten it : r n menxlations from Palo Alto and Ice Altos for ftaximV. Requests for funding have not been approved as of this date. Chairman Goldman asked if this would be an ongoing request. Ms. Greiff replied the progr-aaam are in need of ongoing mWort, and, if necessary, they would Came bark for additional fti7rding. InwYative Dousing is trying to Structure the houses so that they are self sufficient to some a tent. Mario Pinedo asked if residents in the houses are c%rtino residents. Maria araweted that they are either residents oar are employed in the Q4mtino. Ms. Greiff also provided the roam by room rents for the Sims Haase: 190, $200, $225, $340, and $305. The Farallane hawse, which does not have the subsidy built into it, is $362, $372, $350, and $465. Zhe indirect vast allocation is a HUD term of determining a ratio of 7mrall admi n strative expenses versus program expenses. A HaD auditor has to Dame up with an indirect Cost allocation plan. They then authorize you to use this and, you are audited based on the ratio charged to all customers. Zhis is estimated at 15%. Ms. Greiff explained that the budget for the whole Peninsula Program is down about $15,000 for the year. Ihis includes all Committed funds. k ailing efforts include a direct donor program and trying to get monies from Samna Clara Fbundatian to set up a bank mortgage program. Aside from the =T al fundraising activities, these are two ways to try to get additional funding for the agary. Affordable H=Ing Ommittee IPage Three Kay 7, 1992 Dick Scluoter stated that he is in favor of providing some funding to Innovative Ylousing because this program is a wmthr&hi.le one. Befty Nam agreed with Di(* &*%Uster and also felt this was a good way to use funds. Nar'io Piro felt that the numbers dxxm were not error39n to n>eoessitate funding at tnis time, but addedthat at sty time funnds were necessary, he is in favor of some funding. Susan felt that $3,000 was a relatively inexpensive way to provide affordable housing units. She also added that she would Irate to see Innovative Housing leave the 04=tino area use of a denial Of funndirg. After disc ussion by members of the Committee, Susan wade a motion that $3,000 be given to the Innovative Housing program. Betty Nam seconded. Chairman Goldman motionrl that $3,000 was too high a number; he meted $1,500. Susan stated that this cram might be thought of as a one time amount due to the economic ernrixmm ernt. Scott No I felt that the budget is fully funded and that this request is unwarranted. H,9 was alseo conoerned that these funds would be used for the whole Peninsula program and not just for 04mrtino. Ms. Greiff said that whatever monies given by the City wauld be used for the houses in cupertim. Scott ManGgannery amended the motion by adding that designation of the $3,000 would be earmmiced for the Affordable dousing within Cupertino. Betty Mann called for the question. Chairman Goldman stated that the motion is to reaoemnnend to the City Cmvroil that $3,000 be provided to Innovative Homing as a subsidy for their enlisting houses for fiscal year 92--93 area that it is a one time subsidy. Chairman Goldman called for the vote: Ayes: 4; Mann, Sdhuister, Mi rch-ICrntsc tm arm, Goldman Noes: 2; Pirnedo, Montgomery Jim Morley the Apartment Industry Foundation discussed the status of a p al larngram whereby the City could provuie a subsidy to apartment owners to rem rents for low income pule. A meeting will be held with three major owners, Chairman Goldman and City staff to discuss the feasibility of this type of agreement prior to presenting it to the Committee. Chairman Gold gave a status report on the Sub 3 ttee Is dark with the conies on a housing mitigation strategy. He stated that the Companies are very voamerned about not being able to pay an in lieu fee. 7 hey feel that a choice should be given to then. Additional meetings will be held to try to reach coal on homing mitigation recommendations for the full O mmittee. a,. N Page Fcur Maim omattbo My 7, 1992 Meeting adjOWMed at 4:35 p.m. ReqzctfuUy submitted: fcw Submittal: awf Attest: D&ZEhy City Merle aiwilyn/anO-7-92 m I fill e loll E-4 gel OR lot E JE ri`.. 51: .• •llt:d D:.••1 '_• lP .• - .—..i 1-•:"1 `wYli3i`: 11 — 01rfI00 0. it It AD MUMM O TM FWAU AR NERTMG OFTMAWORDAMAROURNG CA Jum 29,1992 CALL TO ORDER Membenprowt Q airmm Mmball Goldman, Dick Schuga. D!ado Phwft ` Sue Maine Snyder,Rabat Cowan SWF Mipyn Vera CA Yvan=Kelley.Caddy Wall Also Prewft Sherman Dam Janet ZabnM Phil Las Wm , DIck Carey, Dolma Austin,R.H Dan 1011esu,Kelvin Jame%Lydia Tan.Cud Galante;l* Pcdntire, Rev. Ndiad Mitchell. Dish Roseamder, Ina John SdW t0, Beverley Bryant, Sally Bream Camel McDowell. Jan D?ffa, Lew Dando, C. Donald Allen,Oscar Raninw,John Halley,John Shank ANNOUNCEMENTS None ORAL COlVlMMCATIIONS None Chairman Goldman called meeting to wder at 3:20 p.m. APPROVAL OF NMVUTES Chairman Goldman rigid fm a motion to move the mid of the regular meemig of June 49 1992. Dick Schuster moved for approval of minutes.RtWon was seconded and approved by a>mammous vOWL OLD B USD1l M 1. Consider t;ual ons 0t sahcommittee aegaf ft rwxus study. Marilyn Noding presented the stag art giving an overview 0f the subaniummaa medbW 1, to date. She give a history of the formation of the Sbcammifte and its mcgubom At the April 2 miming it was that a subcommittee be fanned to study housing ragipUnn mftpw for office and mftsmd Members consisted of Marshall Goldman, Sue and Scott M=Wnmy The team representing the companies was composed of John Halley, Tandem; Glean Barber, Apple; Dias Rosemeir, Hewlett Pasc3rd. Reaching consensus was very difficult due to a number of feasoas. Marilyn explained that although consensus was reached by city teprVftatatdves, the conspraI did not have adequate time to schedule another meeting to obtain their consensus on all points that will be presented to this Committee and forwarded to City Canal. Tlrerefare.they will have the oppmamity today to oast and give their approval or disagreeinga The consensus points are as follows: Given today's housing problems,vAich must be addressed in the now General Plan, affmW'.c housing mitigation policies should apply to all square footage to be built is the fixtare. This vt include the approximately 1.3 million square fed of untmilt OMMIR&D space in the Ming General Plan ass well 88 CAmmifte June 29,1993 Meeting Minutes PaP2 2,000,000 square feet above the Current Genwal Plan. Companies would not be inquired to exceed a 15016 nexus. Such n em would Haire the companies to create 29 units of"empi le houdW for every l00000 sq. it of officdR&D development, comprising 23 moderatelmedian income units,5 low income units,and 1 nmadmt rate unit(the companies are free to build more market rate nits up to the permissible or"incentive based"density ranges of afaected properties). The price range for all affordable units should be targeted for company employee affordability wing to State HCD and HUD guidelines. Ownership units would be priced in today's dallars in the$150,000 to 200,000 range,and would be indexed to changes in the income guidelines. For ownership units,the term of affordability should be am less than 20 years. If rend units are built,they should be out-sourced(sold off to an affordable housing management firm to maintain affordability for at least 50 years. Companies may meet a portion of their affordable housing mitigation requirement by burying and converting existing market rate units within the City or within a two mile radius of their projects. These units,which would leave the market-rate arena, would be "replaced" with new market rate units, satisfying overall mitigation requirements. If these conversion units are proposed to be located outside Cupertino, the companies,along with the City, will approach ABAG an&or HCD to argue that the City should rive a transfer credit so that such units count toward meeting the CiWs fair share housing goals. If granted, Cupertino would extend the same consideration to companies developing in adjacent cities. If unable to obtain concurrence from ABAG and/or HCD, such conversions outside the city would not be credited toward satisfying the mitigation requite An option to pay an in-lieu fee should be mated. An incentive scale,which is based upon these policies, should be developed and designed by a panel of housing and finance experts to create an in-lieu slue marginally less desirable than the cost of creating boom& thereby encouraging companies to choose housing-creation o .r in-lieu payment. If possible,this scale should be developed in a manner that is not precedent suing for other communities. The fee is subject to Affordable Housing Committee review and City Council approval. Park fees for affordable units would be waived. Applications for offreaM&D projects should require a concurrent application for housing, unless there is sufficient housing development within the City to maintain the then-current jobsthousing balance. ff sufficient housing projects are underway in the City,companies may request the City to defer a concurrent application for housing,but in no case should such deferral be longer than 18 months. This measure would act as a leveling device to avoid creating periods of excess housing availability, which would negatively affect housing producers and discourage company participation in housing creation. Traffic reduction credits should be issued for mitigation housing built within 3/8 mile of an employment center. Such credits should be prorated bared on how close the housing is to the employment center. For example, housing within 1/8 mile could receive a 20°/®credit,housing within 1/4 mile,a 15%credit: and housing within 3/9 mile,a 10%credit. Any housing within 1/4 mile occupied by employees of the specific company would get a 100%traffic credit. This would encourage greater proximity between housing and jobs,which improves the opportunity for resident employees to walk to work. These policies are contingent upon State Housing and Community Development approval. Chairman Goldman asked for questions from the committee. There being none, It:asked the companies if they ham. Special Able Housing Came June 29, 1993 Meeting"nates Page 3 had cannoeM questions. John Harley deferred his comments until Bridge Housing made their presentation. Mck Rosemeter,Hewlett Packard,stated that his company is preps to support than items listed above at this point and time. He hoped that members of the subcommittee would give consideration to their position. Bob McIntire,Apple Camputer,stated that the in-lieu fees remain le but irs the cast of doing business in Cam. He also stated that, in his opinion, people do not want to °live above the store°. Living within a remnable distance is fine,but not within an 1/9 of a mile. Carol Galante.Vice President,Bridge Housing Corporation,gave a history of the organuMn stating that they are a Bay Area non-profit development company that has produced over 4,500 units of affordable horsing over the past 10 years. This has been accomplished by building on city donated land, m4n u fees and state tax brew for developing affordable housing. Ms. Galante stated that eight developments are now under construction, six of which are partially financed by a State financing program called the°Rental Housing Conaruct on Program.° These funds are now exhausted,but local housing producers are trying to get another similar ballot on the memnE in November. But due to these rcessionary times,proponents feel that this will be unsuccessfid. Although the other two developments receive none of this funding,they are partially financed by local entities. Lydia Tan,Bridge Housing,handed out copies of a brochure to inform members about the type of developments Bridge has con Scott Montgomery asked about the procedure for qualifying for affordable units. Ms. Gala said that for every unit available, at least two to thin applications are reviewed following stringent guidelines based upon income, credit references, etc. Scott also asked for clarification on what types of problems Bridge has had with neighborhood concerns. Ms. Galante stated that these involved avchitectuaal design,(king spaces,whether or not covered parking is provided)and traffic impact of project. Dick Schuster asked Ms Galante for an estimate of the amount of subsidy provided to applies. Carol stated that this is dependent upon the type of development and location. Chairman Goldman asked for audience comments and/or questions. Lois Warburton,representing League of Women raters-Cuperha /Sunnyvale. Lois read a statement from the Lead. This included suggesting the following three points: 1. Incorporate citizen involvement throughout process to ensure community involvement and understanding. 2. Hai development. 3. Targeted growth areas. Phil Zeitman,representing both the Oaks and C.U.RB.asked about the 2,000,000 sq.$.and what this would do to the traffic problem. He also asked about dropping park fin and whether or not this would be detrimental to the City. He stated that everyone uses the parks and the fees should be considered as a fee for all units whethar affordable or not. Iola Hendricson asked if the a mmittee would consider those persons with modest income(elderly)when coming up with ways to house people m this category. John Sobrato,Sobrato Developmew Co.,was oonc=W about the growth area as specified on the trap. He wanted clarification in regards to the map sbc-.—ang a 1/4 mile cirrde around an employment center whereas the ted talks about 1/4 mile from the employer's siw. I%&that as long as housing is provided,it should l'iM the purpose of building affordable units. Chairman Goldman explained that this point should be taken up at the City Council meeting of July 1. 77 Special AMENNO pig Committee Jane 29,M meeting bmums Page 4 Mr. Sobrsto also asked about readwaid densdies,in tbechan areas. Its was under the ' that 40`50 units to the acre world be appoved and was very surprised to see a on of 4-8 units to the acre. Chairman Goldman egJamed,that the concept was to cmft overlay zoning of 4 to 8 units per acre in them areas if market rate units were bed however if affordable units are built,the city would allow up-zoning,creating higher densities in those areas up to 28 units per tee. on is that if a company chooses to mitigate their requirement,br building units they would be given the ability to create higW density zoning in these areas. For Me purpose of market rate rafts,the density would still be 4 to 8 units per acre. Mr. Sobrato asked that this be clarifiesd before it reaches City Council. Chairman Goldman.assured him that it would be clarified in the staff report. Mr. Sobrato alw asked that the committee target low income instead of moderate income bye this is where the need is. This would enable the City to secure other types of state finding, tax free financing,and the ability to soil tax credits. John Hailey,Tandem Computer,expressed his concerns regarding an inclusionary project related to a market rate component What is the magic percentage for the affordable component related to the market rage componem? Tandem has been familiar with projects in the range of 20%inclusionary,which would make the proposal for 29 units,of which 28 were affordable,to generate approximately 145 units per 100,000 sq. ft that would need to be developed in order to have this type of mix. This would amount to a?5%nexus. Tandem's on is one of two possible 1. Tandem did.bring 600,000 sq.ft.of developable density to the existing General Plan. Alternate A is that the first 300,000 of the 600,00 would be motioned relatively the saffie way the Apple-Sobrata and Wegeld psjts were conditioned Tandem paid market value at the time the land was purchased and it did not include the type of housing conditioning that is being discussed today. Alternate B would be to consider 300,000 sq.ft.of the 600,000 sq.ft at a I S%nentrs straight 5om the nexus study equation with the appropriate market rate and affordable mix and that anything above the existing General Plan 1#-ve1 would be considered at a 22.3%nuns,also from the nexus equation at the appropriate reehatfonsb4 with markett rate to affmiable. Attune C is to cones the 600,000 sq. ft. that Tandem brings to the process to be conditioned in the same way that the Apple-Sobrato and Westfield projects were conditioned and that anything above the current General Plan be conditioned with the 29 unit recommendation that staff is considering. In coucWon,Mr.Hailey asked that the City consider allowing b gher density than 28 units per acre. Beverley Bryant,N A.I.O.P.,recommended that a rap be put on in-lieu fogs,streamlining the process period so that developers are out waiting around, and waiving of other kinds of foes such as transportation fees which are anticipated. Jim Eller, Attorney representing Westfield, Inc., requested that as much time be put in reviewing this 5mm the retail perspective, and low to apply it to retail as has been done with of6ce/indrutrial. Mr. Eller asked the Committee to consider expanding the credit concept so that if Bridge Housing were to complete a project in Cupertino,they would have credits and the ability to transfer to an Apple,Tandem or Westfield in the fume Mr. Eller also asked that the rental subsidy project concept be OWMded to allow companies to participate in a subsidy program. This might allow them to provide some types of affordable housing that is more affordable for than Dick Rossmeir,Hewle n Packard,stated that if any changes are made based on the changes suggested by Tandem, H.P.would have to re-look at the whole proposal if those changes were adOPIed. Oscar Ramirez,DeAnza College, stated that the majority of students and£acadty cannot afford to live within the s ,. A=29,1993 madingminams pap 5 City. Ammuo the and is great,DeAnza cannot afford to build bousms on du*camptaL Carol McDoweil,citizen,mWested companies donating land in lWa ofpayiog Em atai/or building Chai naan GoNam wrapped up polar comments and went to the Commmime Jbr their quedlow and/or oommeM Mario Paolo quesdoneil the 28 unft with one being mead rate. Dick Schmam mWested that of the 28 mdK have at least 3 low ins S would Igoe to add son of the ons ftm the June 29 memo stating that public impart be mceived throughout the prooess. She also asked that a clanficom' be made to item 4 of the final recommendation paper st&ng that developers canriot obtain existing market housing and tmn into moderate or low inn me. Scott Montgnmy stated that traffic credits should be addsmsed, whethm or snot a 1/4 or an 1/8 of mile is appropriate. He was also concerned about transfer craftis and the waiving of park fecs. Chairm a Goldman concluded the meeting by asking for the vote on the dish today. He thanked everyone for their impact and stressed that this would be a proud sew prod when approved. o 1. Add: of the 28 units,at least 3 will be low income. 2. Add the process for those including aftubble uaiffi. 3. Add: involvement of public frm the begimmiamg of project. Scott montgommy maft motion to approve„Mario Pinedo seconded. Vote was caW Ayes-3 Noes-0 Meeting was adjourned at 3:33 p.ra. Respectfidly submitted: Approved for Submittal: nne Kelley,Admen Secret# Marshall Goldmmn,Chairman Attest: Dorotliy City Clerk rMInick ane 29, S CWLIDCUM Past: amirman mwdsall Goldman, Dick Sdwster, Rio Piste, Ott Sm Blaine a ftbert CMM Staff Prat: marilyn Narling, Vera Gil, Ymme alley, Ciddy Wrardel.l Also Present: Mmm Davis, JaDnst Zsitwn, Pail Zeitman, Tois Dick Carey, Dm= Austin, R.H. Bann, Dan Yalesm, Kelvin James, Lydia Tan, C=l Wants, Bb per, nay. Michael MitcI9e11, Dick amemaier, Iola Jc n Spa 9,, BmW lsi yy, Bryant, anY Carol J1m , Less Duda, Cs Dawald Men, oFwdrez, Jdm Miley, Jobn Sonic None Cll. HEMMEW None Chairman Goldman called meting to arder at 3:20 p.m. atmirman Golan asked for a mAicn to appCOM the miM*W of the rgular meeting of June 4, 1992. Dick mmmd far approval of mirages. Motiaa was seconded and approved by a w=dmous Vote, CRID BaSHEISS 1. Clonsider final of staboommittee r s adY• pbrilyn Norling parted the staff repowt giving an overview' of the ttse meetings to date. Sbe game a histary of the fcrAat3m of the suboc®ittee and its members. At the April 2 meeting it was that a subcommittee be farmd to study bout mitigatim strategies far office and irrINtrial devslap=*. members cmmisted of: Narsban' Goldman, sue Mird*-XretscbmmM, and Scott Moniagamery. 71]e team representing the ccq=iw was coqxsed of Jcim Haney, TWdaM; Glenn Barber, Apple; Dick knemeir, Hewlett Padord. Readung omwasm was very difficult due to a rrzber of reams. 2S 9 y w t a C q! j Co 49 All 49 A aim) fl 44 Q Mo- 4J Ig > 4 ek %: 8, 0). to 0- co t4 m . 9 11% a W4 44 4d lit M, w fW 4J Idco fe r s r Adak 10 all a d PB e In ra sr tr It CL Ftr Iv 0 m 9 5- Ul sr 5. gig fib9@ HMMIM omwitbw JWO 29, IM pair Somm lils to add scrosd of the the Jam 29 a=F StStUg that Ptak i t be r ast"d the Ste that a ifioatlost bemaw to its 4 of the final atim Oat develcpats canot dbtaJn existing varket bmwing and to= into waderate cc ll it In=w. 7.,.ts d=9d cr not a A/4 ®C an 1/6 of mile is - 0 Be was also conmned abaft transfer its and the ataiving of plc fees. the Ming by askirg f= the vote an the to&y. $e eegay oo for them' inpit and shed that this aw1d be a precedent setting P Mect adn approved- 1. Add: of the 28 units, at least 5 will be for income. 2. Add: i nt O P ft farhbM of ect. its. 3. Add: Soot was m&tim to qVrom, Maio Pineft seowded- vote alas called Ayes - 5 Noes - 0 rleeting was adjourned at 5:35 p.m. Respectfully satmitted: ApPrcved for Butwdttal: yvam gam. Admin. Somebwy FAashall GoIcbM, CIMIMM Attest: Dorothy Cornelius, City Clerk marilyn/afh6-29 ram• tt.`rJt; •. •t:t ;:rrl .',t A.Gttr.t, l ' h•=C" -Ij. a C l. t^• .ui 3.t'.. t :«.11 C J' J 1: 11 J I:.- .• •III,1. :t•vS •- • ik -- .• : - •C.tt='-1'- • 1.. I .._ ti :- `l - .IT7C:.1 1" ..)",' 71.a •) -• .'1.•:•J • - tl I " - ro AftaM lble UmWiM OMMMOO Jil3y 2, 1 yaw e Marilyn Narling stated that awe agticn far retailem to VxwAft aff pausing waexl d be to have th a in a Single Aar OCOWIMT (SW) pMect or have a mimd use defame t as part of th1dr Marilyn asked for the tom®s amontB regarding retail tit. Scortt vAm*gcmwy stated that be needed tiara to think over what has been said and what other cpinions are ant there. Dick Schuster asked for f igures for retail dievelqpment and how this wauld calculate into possible affordable units. Sere asked about exploring options that would benefit retail as well suxx as: air rioxts, over Parking, wxlw Pam, dating a "nu xtlife" that would. allM people to shop and eat in the latter Part of the evening. Sue asked for an oral report cowerning the BNR program the City had and the reasons for its failure. Ybeting adjourned at 4:50. fly Submitted.- approved for Submittal: V r"a Ld I" O-L Kelley, AdminY Seamtary Chairnan Attu: f Dorothy 1$s, City Clerk marilyn/AM-2 Y-•''11.J.1 '-`. _ •, Ill: 1 :.t. 11: • •lll:. f I1.• .•': • .-'•.If •-..-- FI t - -d- .•: .•7._ •'EII:: fill it 1 - U- ..r•1 . ( Yf.;. it 06 got to a zi It WA 01 at 0 i 11- • HIY: 1 :•'ll7j V!61'll - •` _I s• 1•. ••.:IYU 1 J ] rlll._ :M •Ili - _ :-«". •1' aff A O 0 H tot UJ rt ro 5 G Affordable Hawing OmmittM July M. 1992 Meting Minutes Page gnme ChairmanGOldmann clarified the pnpme and guidelines for this camittee. He stated that po f this committee are forwarded to the planning ommissim and on to the city Ooa=il where the City OMW41 is cssnsibae for Ming any policy or choosing to make their ova policies. C21aiaman Goldman also explained that this committee caT=t set a fee until CIMMO l adqAs a mitigation Policy- John WIrato said the Om mittee old listen to the experts in the field of building affordable hawing and caner w4aat types of stipnalations exist. Irm Chairman Goldman reiterated that the Oomitt+ee only makes and not poLecy. He stated drat any conoerns about the Oc[mitteG's should be eqzemW to the City Oouncil. Chairman Goldman also described the prooess the City Cam=U t when this isle was on the agenda. Chairman Goldman stated that mica tes of the Camittee's meetings will be forwarded to the City Ootn=1 and Planning ssic n. Chair man Goldman sad that there be presentations at the next Committee nesting by apWAS from the housIng field and asked MIOP to inform their membership of the next meeting. 7he next Affordable Horsing Ommittee mwting was set for August 20, 1992, at 1:30 p.m. at City Ball. meeting Adjourned at: 5:30 p.m. Respectfully Submitted: Appray ed for Submittal: u uv__'Aq:!t Kelley, y,n. HAY Marshall Gol/dman, Chairman Attest: Dorothy Corzi6rius, City Cleric marilyn/AFH7-16 elm P 4, AMVEPM OF 7W REGUL4R AWIEMG OF TM"FOMME HOUMVG COMMUME AUGUST20, 1992 PANEL DISCUSSION CALL TO ORDER Members Present Chairman Marshall Goldman, Dick Schuster Mario Pmedo Scott Montgomery Sue Much Kretschmann,Michael O'Qum, Robert Cowan,Betty Mann Staff Present: Marilyn Norling,Vera Gil,Yvonne Kelley,Michele Bjurman Also Present: Gertrude Welch, Robert Cook, Michael Mitchell, Richard DeFabio Louise Lew John Hailcy,Mark Kroll,Loks Warburton, William Wickwire,B---b Koppel, Nancy Burnett,Ahn Eller,John Endicott,Beverley Bryant,Kelvin James Mark Lazzarim,Donna Austw OR 4L COMMUNIG4 77ONS None AFFORDABLE HOUSVVG SPEAKERS PANEL Chairman Goldman gave an outline of how the meeting would proceed. He giftd the panelists would each be allotted ten minutes for their presentation. After the presentations,the Committee would be given a chance to ask questions and then the public. Chairman Goldman introduced each pan"by giving a short biography of their experience and expertise. He then gave a brief history of the Affordable Housing Committee. Dan Lopez,Nmdent and ChwfEvecrrflave Officer of Cahfornia Conanundy Reinvestment Corporation-Mr.Lopez explained that his company works extensively with cities and counties, redevelopment agencies, housing authorities Approximately 1/3 of the loans are tax credit projects, while 1/4 of the loans are working with redevelopment agencies. Mr.Lopez stated that the standard types of loam given are basic apartment types,but monies are loaned for SRas. The third type of loans are for mixed use projects. Mr.Lopez also expressed that mixed use projects are very difficult to finance due to developers not having the wqwtise:in both arm of development, i.e., retail and housing; commercial and housing. Mr.Lopez also stated that there is a risk factor when financing mixed use projects. David Murphy Bice President of Peciflk Wegaw Bank in Cupertme - Mr. Murphy agreed with Mr. Lopez regarding financing on mixed use projects He felt that underwriting these types of projects are difficult due to a variety of reasons. Mr. Lopez gated that economics often comes into play with mixed use projects. He stated that most of the affordable projects financed have been self-help projects,with government financing behind them. KathyOrmseth, Manager, Union Bank Real Estate Loan Center-Ms.Ormseth stated that Union Bank has financed approximately five affordable projects in the List four to five yew. Union Bank currently has a community action plan which is the bank's plan for complying with the Community Reinvestment Act (CRA). With respect to the affordable housing in California every year,Ms.Ormseth estimated that last year 15-20 million dollars of this type of financing was done in Santa Clara County. Five mixed use projects were financed; the majority of those were office over retail and apartments over retail. The most successfiil were apartments over retail, probably due to the market being right for apartments and retail. Sponsorship of mixed use is important to bankers. Bankers also like examples of mixed use projects that have worked in the past. Allard"Housing Cammkim buding ham Augma 20.IM Pap 2of 6 Richard Warren, 4"Mamwmwd Dked"of the Housing Aulhorky of Sawa Clara County- Mr. Warren dated that his agency is not part of the County Government,but an independent public agency. He further stated that their office administers the Section 9 program for the Department of Housing. Currently the Housing Authority owns 1,000+units of housing 4OP/o of the houses are HUD projects. Although HUD projects an becoming searce due to lack of funding. Mr. Warren stated that the Housing Authority has sold all of their tax credits to the financial arm of Southern California Edison. If that program is extended, it will become the significant major program subsVWng affordable housing in the United States. The State of California has no money left for affordable housing. Currently the Housing Authority has about$50 million dollars of housing and probably another$20-30 million under consideration. A problem with development north of San.lose is that land prices are rising rapidly and it is hod to justify 20 units of affordable homing on one acre of land costing$I million an acre. Subsidies are needed that cities have through redevelopment agency funds,CDBG or other sources of funding they can contribute. Mr. Wanvn stated that the Housing Authority is considering 2 to 3 mixed use projects for joint venturing with a commercial developer. The property would be split and then subdivided. The developer would do his development and the Authority would do :heirs. From an underwriting standpoint and a lender's perspective, it is easier to rationalize the lending of money to a commercial developer who has commercial expertise and a housing developer who has housing expertise. Mr. Warren concluded by saying he is concerned about the lack of money for affordable housing and how it will impact our children. He stated that there are approximately 14,000 people on the housing registry and those are the people who are fortunate enough to get on the list. They no longer accept new names on this list. Fran Wagstaff-Executive Director of Mad-Peninsula Housing Coalition-Ms Wagstaff stated that Mid-Peninsula Housing Coalition has done some affordable ownership housing but mainly affordable rental housing. Ms. Wagstaff presented the committee with an analysis of what costs might be possible for employee assisted housing in Cupertino. The basis of the computations are on 28 units and what the gross sales price might be in terms of a subsidy. The assumption is$1 million/acre land costs in Qipertino with $500,000 per 28 units employer assisted. The second analysis looks at a rental project of 28 units with rents ranging from$514 for a one bedroom to$864 for 3 bedroom with some 3 bedrooms at$700/mo. rent. In order to achieve this,you need not only$500,000,but additional subsidy of$900,000 from the City or other sources. Ms. Wagstaff also stated the difficulty in making ownersbko housing affordable for a long period of time. Its much easier to do rental housing,where the regulatory agreements for rental housing are typically 55 years. This concluded the panelists' presentations. At this time questions and comments from the Committee were addressed. What policies are recommended for cities to produce housing? It is important for the public sector to understand where bankers are coming from and for bankers to understand how the public process works. If the City is going to solve the problem, it will need to work together on things such as the amount of subsidy it will provide ana Lu make it acceptable to the lender. What density are you typically getting? The most that is possible. Richard Warren stated that the Housing Authority typically doesn't like to finance large projects unless it is acquiring existing housing stock. The Housing Authority doesn't develop more than 30, 40 or 50 units tops. In San Jose, they built out about 20-21 units per acre. Kathy Ormseth stated that,at a subsidy of$30,000/unit,the Housing Authority could not afford to pay more than$17/1 Land in Cupertino prices about$25/ft. This allows a gap of 8/ft,$350,000/acre. Subsidy need of approximately$14,000/unit. Kathy also added that in terms of lending in Cupertino, it is important to enjoy a healthy employment base. Three major corporations are in Cupertino,therefore it would be necessary to take care of the major players so that they continue to stay. David Murphy added that it is important to allow the density to be high enough to get the cost per unit down. It is also important for cities to have a willingness to be flexible and creative and look at projects individually so that something that works for one may not necessarily work for another. Y6lt6Al6iiYi1W IM Page 3 of 6 What density per 4cve and ghat cog per acre? Richard Warren stated that the Housing Authority build 20-30 unitstam at a cost of$600,000-$700,000/acm top dollar. Of the $23 million commitment by Union Bank in California, are those projects construction or permanent financing? Kathy Ormseth stated that Union Bank is a construction lender. The typical process for most development is to go to a bank to get a construction loan and once the project is occupied, they go to a life insurance company to get a permanent loan. If you use o and 60%of HUD Guidelines, what equity do you require for those guidelines? Kathy Ormseth explained that,that is not the way it works. When you do a project, if its 100%affordable; which is usually the case with a non-profit project,you underwrite backwards and look at the underlying value of the real estate and the reversionary value of the real estate. In the event that you foreclose and wipe out the conditions under which it was rented. These types of projects are difficult to appraise correctly and a lot of people don't know how to appraise them. Typically in valuing a project,you figure out how much profit a project will make but with a non- profit it doesn't make any money ever. If it makes a profit one year, rents are decreased, therefore making it difficult to look at the inherent value of the property. In looking at the cost of the project,about 25%needs to be tax credits or equity contributed by the agency. Richard Warren added that there is usually 3 to 5 subordinate lenders or equity partners in a project. A project that was recently completed by the Housing Authority had a letter of credit from Union Bank,a bond issae,the State of California Rental Housing Construction Program,the City of San Joses Redevelopment Agency and low income tax credits. What percentage of BMR is appropriate? Kathy Ormseth stated that non-profit projects may be 100%affordable-, cities with BMR requirements like Palo Alto or San Jose typically required 10°/a When you get rip to 506/6 affordable in a market rate project,that is intimidating from a lender's perspective. They would be happy to do a 1001/6 affordable project next to another project that was 1001/6 all market rate. But a 50%affordable project would be too different to finance. If the two are together,it's a problem;but if you have identical products side by side with one affordable and the other market rate, its more manageable. If the market rate buyers, which are typically where the profit is and what's driving the project are intimidated from buying next to BMR units,it will bring down the perceived value of the product. Should units be affordable in perpetuity or 10 years? Fran Wagstaff stated that it is hard to make ownership housing affordable for a long period of time. Its much easier to do rental housing. The regulatory agreements for rental housing now are typically 55 years. What conditions does the City impose on projects that would create a problem for getting financing? Kathy Ormseth stated that parking in the back of a retail project is a problem Bankers don't like to finance projects with parking in the rear. On the architectural side,sometimes architectural things like all glass in front of the building pose a problem. The percentage of BMR units may be a problem in the costs to a project. Fran Wagstaff added that sometimes cities have affordability restrictions that they don't want to be subordinate to the construction loan. They try to tell cities that construction lenders want the affordability restrictions to be subordinate in the case of a default of the construction loan they want to be able to have unencumbered the sale of the property. That property is the security to the bank and if there are restrictions to keeping it low income,they are probably not going to approve the loan. In addition,if you want to get certain types of financing like FHA or VA insurance,those agencies are very particular about the kinds of resale restrictions. The California Hewing Finance Agency will only allow certain types of male restrictions. AtpardAb B Commi mee MeafthrZaa Augme 1992 Page 4 of 6 John Endicott asked what the chances are for getting financing for low income ho=wng at a regional mall and financing for expansion of a regional mail in general? David Murphy stated that if on land that is already encurribered with existing loans, you will face some issues with existing lenders to sell them on the idea if that property is currently used for collateral. Bankers allow you to do it without their approval. Before a eo>astrintion lender would lend on the project,they would want to be in a first mortgage position. So you would have to get the existing lenders to subordinate to the construction loan. That would be a tough sell. On the second issue of regional mall financing,there are doubts as to whether many lenders are anxious to provide this type of lending. Certainly,they would take major life insurance or pension f and money to do that. Kathy Ormseth added that for the affordable housing portion,you could create a separate parcel and convince your existing lenders to participate with it. As a lender, Union Bank would not be willing to loan$10 million for affordable housing behind a$200 million loan. riemuso in case of foreclosure you would not be able to step in and cure that large a loan to protect the $10 million loan, Don Lopez stated that one option would be to work with a non-profit to get the housing built somewhere else with the$500,000 fee. When there is an income tax credit for building low income hou-ng,who gets it? Fran Wagstaff answered that WHC has three completed projects using tax credits and has six more under construction. The tax credit program catne out of the 1986 tax law and is a credit that goes to whoever owns the development. The way we use it is to form limited partnerships to bring in a tax paying entity,usually a corportation, who buys those tax credits and they in turn give the non-profit developer cash. That casrr goes to build the project. It's a very important source of income for these projects. It amounts to about half the cost of development, not including land. This reduces the amount of mortgage you need to carry,thereby reducing the rents. It is the major subsidy were doing Wday. This is a subsidy that is available to for-profit developers, non-profits,and anyone willing to build affordable housing that is affordable to people under 6O/o of median income. Its only for rental housing and is available on a competitive basis. You must get an allocation from the state. Ms.Wagstaff also stated that if the City wants affordable rental housing,whether it happens on the site of a shopping mall or off site,if there's money available to secure land somewhere and you coi `sine it with tax credit money and it takes a little bit of money beyond thni,you can develop some very affordable rental housing. Ms. Wagstaff stated that you need $1.4 million to build 28 units of low income housing on an acre of land in Cupertino,Does that assume utilization of tax credits? Ms. Wagstaff answered that yes,for it to work,you will need pretty much free land ("free" may mean a deferred loan)and the rest of the financing can come together. Since land is so expensive in Cupertino,if the cost of land were to come from an in-lieu fee or from a developer setting aside some portion of the acreage they are developing for affordable housing,it's possible to put the rest of the financing together from outside sources. The City is entity to sane county CDBG funds. o Was the 28 unit project 100% affordable? Fran Wagstaff stated that yes, it was affordable to under 60% of median income, which is defined as low income. When you by to finance housing above that your available subsidy sources go away. There was mention of low floater bonds to make a project work.Does this indeed help? Fran Wagstaff stated that it doesn't work because that particular program cannot be matched with low income tax credits because it has to be taxable financing. What is used to make it work is the affordable housing program of the Federal Home Loan Bank. Those rates are competitive with tax exempt rates. We're getting mortgages of 7-7 1/2%. It's a 30 year mortgage,but the rate is fixed.for 10 years and then there is a cap on the interest increase. PAW"Housing Committee Madft hfinutes August 20.1992 Pap 5 of 6 How do you guarantee a C*that youll have a period of continual affordability past the yam you're finanood? Ms Wagstaff gated that we're tied up in about 17 knots We have a am regulatory agreement, usually a city regulatory agreement,depending on the sources of financing. We have crass agreements,and we project out that past the 10 years of the lower interest rate that we can carry whatever the maximum interest raft is. The reason this works is that the mortgage is small in rdationship to the whole projea We carry a mortgage as low as 23% of the project costs,so its a small mortgage compared to project costs. How can you guarantee the rents after the mortgage is paid off in 30 years? Nft.Wagstaff stated that at the end of the 30 years it's paid off through amortization. That's the only financing that has to be paid off current. The rest is soft financing like deferred loans,grants and equity from tax credits. So a".we have to worry about is paying off a small mortgage and operating expenses. Can companies restrict the housing they build on their land to their employees? itichard Warren stated that a company that produces housing on their land can restrict it to their employees. It is contract housing for their people. But they can't violate fair housing laws in employee selection. But the difficult problem comes into play when you have more subsidy sources. Fran Wagstaff added that the reality of the situation is you can limit the advertising of the project,and you can give pirle-ence to Cupertino residems. What percentage of affordable housing should be imposed if financing is a problem? Kathy Ormseth stated that bankers are more comfortable with about 10% affordable, but have seen 15% and 20% would not be a no Although bankers would like to finance affordable housing,it's the perception of the mix of the project that affects the overall success. Will the City be able to get enough allocation of tax credits to satisfy 560 units(28 units per 100,000 sq.ft. or 2 million square feet of growth?) Fran Wagstaff stated that this year Mid-Peninsula is building 400 units of tax credits. Although it depends on what the demand is all over me state and you have to keep your eye on what the criteria is,and you have to design projects that are competitive. The Affordable Housing Committee recommended a range of incomes for the mitigation requirement. What has been the experience in other cities with their inciusionaty housing program? Fran Wagstaff aat&-' the City of Sunnyvale's program is a good one to look at Its produced nearly 700 BMR units in 10 yens. Those units are selling at about$90,0004100,000 for an ownership unit and the rental units are at about 5(Y.,Io median. They are targeting family size units. Kathy Ormseth added that the bank is encouraged to do low income and very low income housing. Moderate income is not 2 category that is encouraged by Federal housing policy. To produce the moderate income would be very expensive. Fran Wagstaff interjected that this iz not the mW cost of housing. The real costs is the risk of the unknown. If you're wee:long with the City and the approvals are there, its not as expensive. If the City requires housing at$150,0004200,000 and includes it in the Bl-CZ Program is it a problem finding a buyer? Fran Wagstaff stated the price of a unit is really determined by what people are willing to pay for it and has little to do with what it costs you to build it. If you can build a housing unit for$150,000 and sell it for 300,000 chances are you aren't going to sell it for$150,0004200,000, so that speaks to the City setting same price controls. What&s Sunnyvale offer as incentives? They offer a 15%density bonus and get 10%affordable units. Is 101%affordable low or moderate? Ms. Wagstaff stated that their rental housing is geared to below 50%and ownership housing is geared at 80%so its all low htcome. T7tr. Ate Eiltai etiecftwou" AUP92k IM Pap 6 of 6 In arder to S#md"take we fin ing for modwft nw=housing loss rho money have to COMO Am im land or additional dollars? hft waSoff stated that Olt w years a Mid PeninsuM did a unW devdopmM for senior in Mountain Vww When the pvjM was 010d their weae no tsx c 6ft SO we PMOBW to the Clty fleet it was gomS to be a mired iwrsxo pwjwt The taro cedlit becam svailsbls and it vaWkW$lest. However,Mid4cnmsWa hand 110 even market race unit had.to W subsidies by the Ww4noom units. MPHC agonizes aver how many sate units they could aft to hm in the project. The project ended rep with W/o maiket sate units and WA affordable units because tWs all they could afford to subsidize. In this tee, it was the opposite of the norm.the low ink units sabsidized the market rate units. Chairman Goldman concluded the meeting by saying that the community,lenders and cities need to work together to solve the housing problem. ADJOURN11 Y1'1'JT The meeting was adjourned to September 9, IM2 at 3:30 p m. Respectflilly Submitted By: tu 6-yk P U, Y nne Keft Mministratin Y Approved By. Attest: ll'v Marshall Goldman Core Cny Cleak Chairman, Affordable Housing Committee NRWM OF IOJi'i REGULAR F 'MG OF THE AWOMABLE EOUMg G m$.+'Cor NO 4 IM CALL TO Old= Members Press CW&mnMarshall Goldman,Disc Ste.Sue Mario Phwdo. Itdjert Cowan Staff Present Marilyn Norhait Vera Gil.Yvaime Kelley Also Present John Halley,Na%T Bmw t,Lori Waabu:ton,Pohl Rydd k,Don Wolfe,Chuck S p.*n Phillips.Jim Eller,Iola Hendricstin.Gertraft Welch 03LIL COMWMCATIOM Alone ANNOUNCEMENTS: Chairman Goldman announced Marilye:NodlWs resignation. On behalf of the Cosmmiteee.he thanked her for her effort and cominhownt to the.Affordable Hourlong Committee. APPROVAL OF NUNUTIM Chairman Goldman asked for sppwval of flee minutes of Septa 2.3. With no additions or eonoections. minutes were approved as OLD BUMESS Presentation of staff report was made by Bob Cowan and Vera Gil. I& Cowan talked about the City Council meeting held on October 29. The discussion included the following: o Council voted to allow up to 2,000 limising snits Consider issue of building heights(need more detail) s Housing Mitigation(office and industrial) Council will meet on Monday regarding retail and residential Vera Gil passed out proposal submitted tj companies. She also stator the options the Council weed upon with relation to the comparison of Planning Commission and the Cmpanies=ornmendation& Vera Gil explained the draft pro forma based on assumptions of company figures on cost of building and impact on companies. She explained the three tablet and how they are related. Questions were then taken fmm the audience. r i SWmneu wanted daffadw tqpvft Me is dqob Ibrproposed subuddy and how fty a Chairman Goldman sepW go the companks would be wqunW to pay the ft that allows for a and they would gme 1 to dam cmpby= Lois Waabi M was concerned about the number of maw rM traits being proposed versus the mom needed low income units. It was nitmted that this is stall in draft brm. It was suggested that staff analyze the AffiWable Plousing Committees, 1 amdations and brings those figures to the Bead meeting. Dick Schuster asked for a cost analysis for rat units. He vqdained that it seems unreasonable to build for purchase affordable turns for low inmate residents. Bob Cowan explained that staff does have this information and it will be provided to the committee and Cavil. Chan nan Goldman asked for comments on the opium to not have income guidelines and using maxhmun sales Am as the determmmg Sector on affindability of snits. Bony Muria did not like this ids. Mono Pinedo agreed that those guidelines as recommended by this committee should be used Next aveteng January 13,3:30 p.m. Meetaag rdjourned at 4:30 p.m. h unites Submitted By: Approved By: nL2&Ah. f.-A& loonne Kelley,Admin Secret all difilmmCclailmim Attest: Dorothy Cornelius. Cw? L gJmm/marilyn/ath114 s bENUTES OF IZIE REARTLAR OF THE AFFORDABLE HOUSING CO SEE FEBRUARY 39 1993 CALL TO ORDER Members Pr esuit Chairman Marshall Gddmpianh6 to},,, 3 PPhnikk Ws Doyle,Sue Mitch Cowan,Robert W Dick steer Lois Walbumm Staff Present Vera Gat,Tom Robillard,Yvonne Kelley Also Present Nancy Burnett,Frank Stramaimu%Gleam Surber,John Hanley,Anhia llussam, Gertrude Welch,Jim Morley,W-dhmn Widxwire,Donald Wolfe,Dick Rosemder,Jim Black,Herman W#mans,Geaae Longinettk Beverley Bryant, Fran Wagstaff Oral Communl None Aonouncemenix None Approval of Minutes: Chairman Goldman asked for approval of nib as submitted. There being no corrections,minutes were approved as submitted. New Busloux Chairman Goldman read letters addremod to forma committee members Betty Mann and Michael O'Q= thanking them for their dedication to this committee. Chairman Goldman tweed and welcomed David Doyle,Planning Commission Representative,and Lois Wamburton,Citizens Advocate to the Committee. Old Busk m- Officalindxistrial Housing Mitigation-John Hailey,Tandem Computa presented the companies proposal. M.reinterated that the in==guideline approach was too complex for the companies to remusida. However the two low income Units would be sect to:neome guidelines as specified by the State. Mr. Hanley went through the proposal outlining the Mwences between the companee and the committees reecmmendations. Aifia presentation of the dd&rcnces in both jropmds,Chairman Goldman asked for Committee Comments and/or qumfions. Mario Pinedo asked about four month time period for City's first right of nefhW. Mr.Halley stated that this was a committee proposal and was negotiable. kielIx lYe all I. Ill Pill 111:11, U ETWGMnqUMOFTlGLAR OF THE AMMO ABLE HOUMgG COAMMER a Yb, 19" CALL TO ORDER Members Present Chairman,Mardon Gowman,soon monwmery,Mario Finedo,Say MWO, Bob clawan Staff Prat: Vera Gil,yvonne Kelley N,,7 Bull.inn Fla,John Hailay,Atshm Gene Also Present Loomme,Waada mom Folh Htyahtk John Sobrato,Frank Warburton,Milm Wiley,Don Wolfe orw Commnnasadons: None Announcemeata. None Approval of Mhnutes: Minutes of the November 4, 1992 meeian8 were Mmed as snbn with tine of a"ng BAY Mann to the attendance list. New Business: Commra+ D'ev Vera Gil gave an Overviewsi of the new pwg She added that Ibis will be the firg year the Affordable Hogg be fundingreviews gaCycle. to Council. of all proposais will be at the N sCh reviewing and ma3dng ra o 1 3rd meeting. Deadline far app is February 2.1'393. Homing 14I igalion upd,&-Vern Gil dim an cm of tide noted the only changes wet" n idential mitigation from %1S to 10% and there vO be no p+etailloommeaeial mitigation. atfrrn-Chairman Golder went over the&soon held at the last orwe and Inds How mitigation City Council meeting with City Council decided that mitiption for retail would not be qpprapdate, therefore they*t0d proposal from Committee. AFFORDABLE • COMUTTEE 3 of lY uA 991 DF Residential meitigatiaea was with the won that a 10% mtitotion fee would be requiod GSMlmduM,dMUgatumwo 4pMed with some¢&sagas Thom POW=8906d UPOD ma 1 ft January 6,M staff tgoxe. Tb9Y I'Iousing Mlitigation for o casJi 'el & dopmeat shah apply to 1.0 mom 4 it of umltuflt space in the c&sf*g GP and 2.0 million sq.%abM the cement GP. New oMMAnd= l dvvdOpmCM is to at least IOOA of tha Dem SUOY hag demand creating 28 units per 100,000 sq.0.ofdeMopment. fI'Ms Policy is solibeing Companies may meet a portion of their affordable homing nudgauen requvement by buying and com,,erting eidsting maw rate units within the City or within a two- we radius of their proem An option to pay an in-live fee should be created. The in-lien fee shalt be set at SS.00/sq. & and should be adjusted annually based upon the CPI or another inflator. Park fees and construction tax should be waived for any atffwdable units. A housing develcPIUM bank shall be&Nelop4 allowing office;and imduanal develCIM"without concurrent housing develoPmmd- The public should be involved from the beginning when affordable housing IS phtmned. Locate housing netts on emooyment center sites or m areas that could be designated for higher density housing. Rezone industrial areas at densities appropriate to meet the goals of the GP. Rezone sufficient sites to fulfill the goals of the GP. Chairman Goldman proposed that the Committee listen to the Companies'new proposal and work from there. He also asked Ito write an ordinance addressing thm policies that arc M=Ved now. John Haney, Tamd n Computes, presented his proposal on price cWmg and dM=W&M of affordability for Housing. He gyrated by saying that of the 28 units axPurld for avay 100.000 sq-IL that 12 of those units be price rapped with 2 of the 12 units being low imoomte. Length of aRordabi W will be 10 years for ownership and 30 years UnML This would mean that if a buyer sold their property before the 10 year mark, it world remain price capped It is hopeful that the increments of appreciation will not increase dramatically as is Past history Betty Ma" 9 j whether income qualification;would be taken into account. Mr.Haney said no,there would not be any income guidehines- Chairman GoldmansummarizedMIr. Hailey's proposal as 2E affordable units. 2 low imoome units; 10 years for Ownership,30 years for rental. The Conemittee discussed the proposal and stated that they would like to see ownership units affordable for at least 20 years and rental units affordable for at least 30 years. They would also 100 to see some form of income guidelines used to qualify individuals• atl Js 3._ o ne`I sr'-11 _I: P - t)=r r i y: ' --11 i il s -rt+t iit•-tJ ti.' lit'1- • l i"t:5a rauur.c_ 1<.,.al_ v.r - ...t::a 1." Ij 7 j v 1.1::.7. 1T i:''•t{111:13 if'sl I e CALL TO ORDER Members Prey Chairman Mat"Goldman,Mario Finedo, Sae Minch-Lehmann,Idobest Cowan,Dick Schuster.Lois Warburton,Blame Snyder,Scott Mowgoi ety Stacy Present Vera Gil,Tom Rabillaid,Yvonne Kelley Also Present: Terry 1Swwn,Iola Kendricsen,Icon zielske,Sherman Davis,Janet Stole,Betty Manta,Fran Wagstat Mice Wiley,William Wickwire,Kathryn Bwwn,Polo Itychlik,Donald Wolfe,Wanda Morris,Robert L+mgaro Ord d onamunicadons: William Wickwire asked about single occupancy hotels and:f any consideration is being giving to these types of affordable homing psojects. Vera Gil replied that Baran Swenson had recently appmached the City about consuwtmg SRO housing in the City. She probed to distribute an article on Mr. Swenson's SRO p wje t in Santa Cruz. Announcements: None Approval ofMwl sites. Sue Minch-Kretsclunann asked drat the spelling of her last name be cone red. Chairman Goldman questioned whether the vote on the proposal was unanimous or if Comte member Doyle could abstain as recorded in the minutes. Suggestion was made to defer this until David Doyle could be preseiat. Minutes were appwved with these two correction. Chairman Goldman influmed the committee and audience of the City CounciPB approval of the Housing Mitigation plan on a 4-1 vbc He tbanked ev ayone for their comments and participation New Bkdness. CDBG Bloch Grant F andiog: Vera Gil nre=W the staff report on the proposals as submitted. She explained the paocedum for allocating the funds and the division of the grants. She then asked all the agencies applying to give a short presentation of M6 proposal. 1. Cupertino Community Services: Jan Stephenson, Cupertino Community Services,vMlainei the Rotating Shelter and the Affordable Housing Progn mi. She gave numbers of chews helped and the types of samces given After various questions concerning the clientele and the etpeded turnover,the Comuiaw voted to grant the Rotating Shelter$11,000 and the Affordable Housing Program$11,300. q¢ x Rtabert Taco.Spa*Fadw#amdft need for assisaoe to 19PL'm the md5ft radon an adult Vets Gil that this pfgpw dim not numt the mqwmmg of ymi new housing UVAS v gMn the City,tlserefote she momeaded that MOM from the aehgMa m Inall p W=be and 1,0 peavide a new mof and that the inan be defined until im with a 3%interest rate. Tice Commmttte voted to approve that no grant be given. 3. InnovA rep en HOUIllivc from was no there;Vera Gil explained that the p live fronn lmaovative Hung proposal was w a house and senovate it for 'honsvng horse is is the Ctamllly uni mMolated limits,ant!!be Cdy of Cquatm annex it unto the City limits or use it as new parsing units. Staff remnmends denial of!MOL Committee voted to approve staff rcoammendatim 3. Uonomie and Sotdal OPlmrtunidw 1sind the need for the gram using the fastas Kathryn Bl jddy own,Economic k Social Oppoaorvalion.etc A question was askca why hO to ups hams regead stated heal one stipulation Of the gasat wasyear's fwds have not been used as of this date. KathrynthatallMontyfindshadtobeexpwidedbeforetheCity figs could be used,and as of iast month the County fins had bow spent. Committee vaW W approve Staff Fj=jmmWon that no grant be gn en. Ron Zse" Sinmyview Lutheran,cqbiwd hi$ptmpzd as bang one to provide very low incorme seniors an' ramoittee voted staff s that$250,000 be awarded to Sunnyview Lin. 3. Redid-Peninsdm Housing Win. Flan Wages Mid P eniusula Housing Ca9litio o,Presented OGMcwd housing on one of two sites. She asked,for dedrral for 30 days so that meighb ste can be o and a acre gmditc Flan can be F Ms.Wagstaff asked that Ilse r y be put into the affordable housing fiord unit aftta the 30 day perm is over and a decision is made. Chairrm m Goldman asked the C.omtalttee if ttW had any comma regarding dideradworld be deferred until the Proposal- The Committee was m age that a decision mPfdsng proposal next affordable housing meeting on April 7 6. City of Cuperdino, Rem"of Barriers the proposalBariBlown,City of is to remove physical barriers at thetsperdno,eicplaineri that Community Center for seniors. Committee voted to approve staff' that$4,000 be given to the City for mnsaval of barriers. RMOMMI WINI ^. a Molw Om abW fw the vm an the Hof 1993-94 Adjounmunk The nM oaading will be APA 7,3:3®p.®. Meeting a4loarned at 4:10 p.m. SWMitted B)r Approved By. W_&ha A 14 &:a u-4 tea'+Ash.Seactayo MardiaR Goklman Chainm Anag Y{ i r 9 s f t > x`,.ry $ r x r•v, K A:_ , s w H« ° y.F%r 1 F+v.!+-:*a rir. J -:tl:.>,.sF:::C a a l..l..a I.:.e it t 1 I iL ur:rl . t.-+..1 -:we•[ - .ti jNe[ca J 1d 1 1 l' '$ / .• - :1.1 .1:, L 1 1 at'.il Irru;a[.1,/1.1 1 r,' 11 n J rt:h u l ! 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Cs 4 r1131;• Ilia 1. 1 1• r.11 1.] F.t, a •, y.i' j., r td": ' a 5f " 'Vie' ua • +?r sk ss ' „p h tz•: c a ' , 'n .:' r.r ° q x r 1 CALL TO OftM' Meeting was called to order at 3;30 aid aejmqq4V the-Cousid duartDthe mega turn. Adjourned meeting was called to order at 340 in the Council Chambers Memie n Fre not: Chahman loll Goldinask Marm Pmedo, Loos Wadburton,David Doyle,Bob Cowan, Blau Snyder,Ste UkdWietsclunarm Sty Prat: Vera Ok YvoimeKeft,Tom Robitiartl Also Present; John Vitale, Rebecca Clewett, Hans MwgImm, Fay Chong, W.E. Esselstdn, A.J. lvlozm Carrie Lion, Gerald Mat=A Ann Adger, Yve me dt Roy Vim, Tint Doty, Any Robertson, Lee Kucera, JM Kira, William Hyatt, Arlene Facts, Jan Stephenson, Polli Rychlk Maredle Gallant, Kyle Taylor, Cad"a Thornton, Donna Aw, Carpi F.rptta% Lisa Ridenour William Nagel, Chun Pang-Ng, Demse Wdgmi, Robert Fach; Gem$ a WeeW Pat Ruth Rfo g e% Carol`Iti 00weelll,, SY(.6iine Paid, Linda Roy, Lois':Webbe , 'Ruth Madeira, Mh adl DeVivo, 'Shirlene Kaucia; WRliam ,Sftenemsam.Edle} Cho.,- Jimea gl arn WandaMorris Vine ela Ray Garldn IQPd Cmrmrsudead6msr None Annorurexa uwL- None Approiwl of Mu' rdm Chairman Goldman asked for approval of minutes of the May 5 meeting. Lois Warburton moved to approve minutes,Mario Pinedo seconded eta were with Sae Mirch due to her absence at the meeting Rusksgsw i s Mrd-Aeninsnla HoiLw-M Coalition ram.for Fending- Chairman Goldman asked for staff report. Vera mil stated that Mat4tniasuta.lbuft Coalithin had applied bra grant in the amount of$590,000. Ms.Gil then announced that MPHC had transmitted a letter to the City today revising their or gmd Proposal for review of alternate sites. She also stated that P81,000 CDBG fiords must be allowed with an active work pldn or the money . will be returned to the County. At this tinw,Vera handed to the Committee the CoaWs una Niigated fwad policy tha states"...anything over$100,000 must be returned to the County if the City does not submit an adequate work plan to the County. Chairman Goldman asked that Ms.Gil read into the record the letter from Mid Peninsula. Mid-Peninsula Hoasing Canlition would like to amend ita earlier request for money for an affordable iiouusing development to be built at the Mama Vesta Shopping Center site. At this time,we would like to speaCic. We wotffif to to addition.V ai a t* 1,'llr rt tla t exploring sites Thal 8ao... Bob Cowan reported that Apple Computer did ages to underwrite this particular pro,=and he is unaware if they are still interested in cons ibuting money for anon site. He also pointed out that before any vested rights can be given to Apple, (for their$500,000 contribution)they mug=limit an application for d Cabe ttat $ complexity of a development agreement that would take about 4-6 months. Therefore,MF4W may not have tiosc funds when they are ready to build. Mr.Cowan stated that it is impeaative that the bloadc grant finds be secured and urged that they be allocated to MPHC. Aitanative sates can still be expliiied in the fiaturn. Sue Mirch-Kretschmann asked whether we was allawmg up to one year of banking for the credits. Bob Cowan answered that along with the banking they wanted a certain amount of ware foomp vested. He Wined that youu can only vest with a specific applination. At this time Chairman Goldman opened the meeting for p Aft mot. He asked that each person l ink their comments to three minutes. Fran Wagstaff introduced Susan Russell,ProjM Manama. lots.Russell described the efforts that have been made to try and reach a compromise with the neighbors. Ms.Russell stated that MPHC began this proms by distributing 200 packets to the neighbors describing the project and then meeting with the neighbors and the project arc:hit M Ms.Russell stated that the issues coming out of the mating seem to be concerned with rental horsing,mwwes of residents,and numbers of outs proposed. Ms. Russell explained that APHC tried to provide information about FAR,density,and traffic information i.e.,trips per day. Ms.Russell stated-that MPHC has tried to address the colamns of the neighbsnR,but feel that concerns seem to be related more to rental housing and low income people living in the complex than design. David Doyle asked whether this proposal stands as it did a mouth ago. Ms.Russell stated that this proposal is the same as submitted to the tax credit allocation committee. She explained that until a decision has been made by that agency,there is no point in changing the proposal. Ms.Wagstaff stated that the pre-development money being requested is for feasibility studies on reviewing other sites. Sue Mrch-Kretschmann asked: Is there a 60 ft.setback from neighborhood? Is the project one story bordering on the neighborhood? Is there a 30 ft.height limit overall? Will there be plantings between the project and the neighborhood? Ms.Russell answered yes to Ms s questions. Mario Pinedo asked whether MPHC grad asked for pre-development when this site was found? Fran stated that this money would not be earmarked for finding alternate sites,but costs associated with feasibility of looking at other sites. When this site or another site is seriously being considered,architectural costs,engineering cats will be,. accrued. David Doyle asked how the$50,000 would be spent. Ms.Wagstaff stated that the money would be used for continued efforts on this site and other sites as well. Chairman Goldman asked where the$50,000 would come from. Bob Cowan stated that the money would come from the affordable housing fund. Public Comments: (dare to the large number of people making comments,only the time and position of the person commenting will be put into the minutes amless a significant point is being made) John Vitale-opposed due to increase of school aged children and overcrowding in public schools. Ises in traffic. Carrie Lime-opposed,read lefter frc n Jim Spelticc(neighbor)stag the ft impO upafte*IkWftI4M4ffid ingress and egress will be to significant Suzanne Ford.PresidentiIAWe of Women Vaters, supmorts Gerald Matranga,Cupertino Union School D -Mr.Matrangs sty dim regaziling salary muM class rmS, and recrrrtraeni of feathers. Edwin Brown-opposed due to density Denise Weigel-opted Chun Pong Ng-opposed Charles Pemme-opposed Barbara West-opposed dam to high density rental units,not consistent with adjoining areas Barbara Rogers-supports Pat Rogers-supports William Niegei-opposed Rebecca Clewatt-opposed William Hyatt-opposed Linda Roy-opposed,presented petition from 511 resideM opposing entire project Lee Kucera-opposed,read letter frown co-world a quessing his view after a low income psttject wa placed in his neighborhood P.Klein-opposed Tim Doty-supports James McCullough-supports Carol McDowell-supports Roy Hampton-opposed Ray Garland-opposed Robert Fitch,Development Consultant,hired by neighbors to access site for feadMity of low`inceindmuld. family/high density vs.high incormlow,density single f ly housing. He also swed thm,the prcjm would oat be served by public transit due to reductive in woes. David Doyle questioned Mr.Fitch regarding what type of developer would work on this sits. Mr.Fitch answered that probably multi-family,higher sty,aver o=gwd June Kmjewdd-opposed,but did not speak Nancy Cavien-opposed,felt that there are altemme sites that are more viable Dennis West-opposed to this pion,but suppos arable ling with lowerdwsity Chairman Goldman concluded public comments and asked Mid-Peninsula Housing to clarify comments matte by the neighbors. Fran Wagstaff stated that there is a peieeption that any development that serves low income people is low income/subsidizedfpublic housing. 'here are a to of badly managed!real homing drvelopments-out there. MPHC brings to Cupertino a 32 year track retxrrd of well managed affordable housing psapcs es. Ms. Wagstaff stressed that renters of their properties do have a sense of ownership and MPHC strives to maintain rigoro es guidelines in selecting tenants and ongoing managed of the Chairman Goldman thanked the public for their testimony and those that have stayed to hear the decision. Committee Comments Sue Mu ch-Kretschmann stated that she did not feel this project was out of place for the Monta Vista site. She also stated that C%Verdw has an obligation to prot%tde affordable housing. Ma Kietschmanii stated that County transit does run into Monta Vista to serve the residents because she has used it. David Doyle stated that the role of the Affordable Housing Committee is to support the expansion of affordable housing in Cupertino,ensure that projects meet the governmental requirements placed on the City,facilitate the development of acceptable affordable housing projectr,and to work with the community to identify requirements for the projects to be successful. Mr.Doyle stated on a personal level he is in favor of lower density,various owner occupied affordable housing,and building heights. Mr.Doyle stated IT that this committee must force a compronse of some sort,whether jeing another site or working with issues related of this site Mario Pinedo stated he supports the request for a$30,000 advance to continue working on the lidowa.. Vista site and other sites as well Mr.Pinedo felt that if no action is taken,a project like this might be forever. Lois Warburton stated that she supports the idea that teachers living and working in Cupertino deserve decent,affordable housing. She stated that she wholeheartly supports MPHC building affordable housing on the Morita Vista site. Chairman Goldman stated that he made a compromise with the developer/homeowners two years ago on this site. Unfortunately,the 30 unit,mixed use project that was approved has not been built. Chairman Goldman felt that this project is not viable due to a great amount of Polarisation of this ice. He felt that if the City Council approved this site over the neighbors concerns,possible damage to future projects could occur due to neighbors feeling left out of the process. He felt that there is a need for mediumimoderate income housing projects iL Cupertino not just low income. Chairman Goldman felt that there needs to be conc:ensus among the neighbors and the developers before a project of this nature can be successful. Chairman Goldman commended MPHC on their design of the Par Avenue project. He felt that this project was one of a kind. Chairman Goldman stated that he is not in favor of a loop/*low inccaic proposal.he would like to see a mixed income project. Chairman Goldman also stated that by apprr^ , 3 this proposal,the City aught be losing out on other developers or groups that might have a more innovative plan for affordable housing. Lois Warburton stated that she has not seen any other non-profit developers coming to the City with plans for affordable or mixed housing in Cupertino. Chairman Goldman stated that due to the recent passing of the General Plan and the requirements.for companies developing,there may be some innovative designs coming to the City. David Doyle asked what has to be in place before the June 30 deadline so that money does not disappear. Vera Gil stated that an adwdate work plan mid be in place,not just a commitment to look for affordable housing. Bob Cowan stated that staff did send out a RFP for possible development of affordable housing and that MPHC was the only group that rrsponded. He also stated they have an excellent reputation and this proposal is recommended by staff~ Mr.Doyle was concerned about the ramifications if the City did not go with MPHC's proposal and whether the$381,000 would be loss. Ms.Gil stated that it would be difficult to keep this amount of money without specific plans in place. Sue Mirch-Kretschmann stated that the neighbors speaking against this project were concerned about density,children,etc.,not the looks,design of the project. Chairman Goldman felt that the process thus far has not allowed the nughbors to come to a compromise and by furthering discussions with MPHC exclusively,will not release the deadlfxk. Sue Mirch-Kretschman made a motion to continue researching the Morita Vista site as well as looking into other sites,including the S50,000 funding to offset costs and to commit to MPHC the CDBG finds. Lois Warburton seconded the motion. Chairnan Goldman,oad David Doyle wanted a clarification of the motion. Ms.Kretschman repeated her motion. Chairman Goldman stated that he does not want a situation where N2HC is exclusively given these funds. r. 4 e Plwdo a ifft e z t .t»s at 7Et t 'tbsc i whunao"Onamomofft& Va . ttas ceFne f+ou Sue ICrets bmw ft ttte AYM: Sue NstcharctscbmM Uft WCOW tom.Mm Pmeft Dand D'* NOES,: Mosbatt Cotdmamt at 6:l5 pAL Submitted by: A 4YILZ-,A6min y- ff-T Gufldium Chairm Attest: Dopy Mina,City Clerk giMM&MSWW"993 r CALL TO ORDER Due to the Chairman being absent,Sue Mirch Kretchmann called the meeting to order at 3:30. Members Present:Mario Pmedo,Lois Warburton,Sue Mir+ch-Kretschmann,Dick Schuster,David Doyle Staff Present: Vera Gil,Yvonne Kelley,Ciddy Wordell ORAL COAffd ICATIONS: None Approval of Minutes Minutes were tabled to next meeting. New Business 1. Election of Vice-Chair-Lois Warburton moved to nominate Sue Mirch-Kretschmaan as Vice Chair. Mario Pinedo seconded,vote was called. Vote was 5-0 in favor of the motion. 2. AHC Workplao for!:fiscal Year 1993-94 Vera Gil explained the matrix for the upcoming year's workplan. She explained that she would take discuss each item individually. Sale of 8=Units: The City owns two BMR units,one on Gardenside Terrace and one in Portal Plaza. The Portal Plaza units occupants have given 30 day notice of their intent to vacate. Tl:e Gardenside Terrace unit is three bedrooms occupied by one single parent family. During budget meetings,the City Manager and Finance Director expressed concerns about the amount of staff time and money spent on these properties. They felt that this fiscal year,given budget constraints,would be a good time to possibly sell loth properties and put the money into the affordable housing fund to leverage a larger development serving more families. Questions from Committee: How did the City acquire these units? Under the BMR program,the City has the first option to purchase units before going on the open market. The City chose to purchase the unit so that they could remain affordable. How old are the units? approximately 10-14 years. How large are the units?How many bedrooms? three bedrooms,square footage not sure Have the units been appraised? No,not recently;the value is probably around$200,000-$250,000 Why is the Portal Plaza being rented at market rate? When the City purchased the unit,it was leased to the City Manager,then leased at a market rate by the Public Works Department This was done to get a better return on their investment These rents were put into the affordable housing fiord. Lois Warburton felt that since the unit is going to be vacant that it should be rented at a below market rate. Sue asked whether any monies were outstanding? Vera Gil stated that both units were owned free and clear. Mario asked what type of agreement the City has with the family in the Gardenside unit? Vera Gil stated that the lease is month to month. She also stated that currently only one family occupies the unit Polli Rychlick stated that due to the disclosure of possible sale of the unit they have had problems placing a family in the unit. She also stated that displacement of the occupant would create emotional and possible financial hardships. Vera Gil stated that the options for handling the two units are: 1. Con,mue to lease both units 2. Sell the Portal Plaza unit when it is vacant,putting the money in the affordable housing fiord. 3. Sell Both units conditioned upon placement of the family in the Gardenside Terrace unit. Lois Warburton felt that both units should remain BMR units. She did not want to displace a family nor did she feel that the sale of these properties would help leverage purchasing land in Cupertino. David Doyle stated that if we recommend the sale of these units,we should also be prepared to stand behind an affordable housing project. Lois Warburton asked if the money from the sale of these units could be ea-marked for Mid Peninsula Housing for their project. Vera Gil stated that yes,the fonds from the sale could be earmarked for Mid Pen or any other non-profit agency wanting to build affordable housing. Susan Russell stated that Apple has withdrawn their offer of$500,000 for now due to the economic climate. She stated that any additional money contributed by the City would be most helpful. Sue Mirch-Kretschmann made motion to sell both units with the condition that the family in the Gardenside Terrace unit be placed before final sale of unit Dick Schuster seconded,vote was called. Ayes-Mirch-Kretschmann,Schuster,Doyle,Pinedo Noes-Warburton Vera Gil stated that plans are to famish the housing and residential manual. Earl a on the Committee expressed a desire to put together a panel of w4ma and does the committee desire this? Mario and Scott will meet to disc what can be dose to assist In getting this document completed. Artfele 34 Eketlon: Vera Gil informed the Committee of tips item on the November ballot and stressed the need fcr the Committees education of this item. Sue Mirch-Kretschrnamn stated that maybe a representative horn the League of Women's voters would come and speak regarding this issue. HousingEndowmeW Program: This rrogram was borne from this Committee wanting to set up an endowment progrsm so drat families could will money,property to the bank to be used for construction of affordable housing. The Trust Department of Cupertino National Sank would be the trustee. Vera Gilstated that she will talk with Scott to see if the bank is still interested in doing this. Edition Proeram: Vera Gil explained that this was another goal that the Committee set for 1993- 94. The purpose was to education the public so that wher an affordable housing project comes up,the public would be already know the income levels eligible and who would qualify for affordable housing. Tim Doty,Cupertino Union Church expressed an interest in working with a group to form a subcommittee. Committee members Kretschmann,Warburton,Doyle,Schuster would lice to serve in this capacity. Vera Gil will continue to work on coordinating with other interested affordable housing advocates. Construction of IW210 Very Low and L=income Units: The goal is to construct the units before 1996. Although we have three years to do this,this is something that the Committee should have high on their priority list. Lois Warburton stated that in order to do this,the City Council should be educated so that they too are in favor of affordable housing. Lois Warburton asked that a change of name for this Committee be made. She suggested changing the name to Affordable Housing Commission. Vera Gil stated that she would agendiae this for the next meeting due to the inability to discuss and react today. Sue Mirch-Kretschmann informed the Committee that she will be unable to meet on Wednesdays after September. The Committee agreed to tentatively change the meeting days to Thursday. Dick Schuster moved to adjourn,Mario Pinedo seconded. Vote was unanimous Meeting adjourned at 5:05 p.m. Minutes Submitted by: Approved by: Y nne Kelley,Admin.S Sue Mirch-Kretschmann,Vice Chair Attest: 1 Kim Smith,City Clerk gtmmfhousinglafh8493 MWY CALL TO ORDER Members Present:Mario Pinedo,Lois Warburton,Dick Schuster,Bob Cowan,Scott Montgomery Sue Mirch Kretschman,David Doyle(3:55) Staff Present: Vera Gil,Yvonne Kelley ORAL COMMUNICATIONS: Dick Schuster asked about preparation of agenda for meeting. He was concerned that there was some unfinished business regarding the Mid-peninsula Housing Coalition's request for$50,000 and the education program. Vera Gil explained that Mid-Peninsula was allocated the 50,000 dollars and they are working on other sites. The educational program is ongoing. Approval of Minutes Lois Warburton asked that"arrange"be substituted for"finagle"in the paragraph regarding CCS and financing. With that correction,Lois Warburton moved to accept minutes,David Doyle seconded Vote was 4-0 with Sue Mirch-Ktetschman abstaining. Unfinished Business-Update on sale of townhomes. Vera Gil stated that she continues to work with Scan Montgomery,Mario Pinedo and]an Stephenson. She hopes that CCS will have additional information within the next month. New Business-Speaker from League of Women's Voters on Proposition 169. Roberta Holliman explained that Proposition 168 would make low rent projects easier to build by changing election laws and changes in the definition of what is low vent Chang.?a in ElectionLaw: Currently,an election must be scheduled before you can build a low rent project If Prop 168 passes, elections will not be mandated A public agency must give notice that a potential development is being proposed,and if citizens wanted to circulate a petition against the development,(signatures of 10%of registered vaters at last gubernatorial election)then agency would have to have an election. Changes in Definitions* Present law development for persons of low income qualifies for the election. Under Prop 168,it limits the kinds of developments to 16 or more units in rural areas or 24 or more units in urban areas. It excludes projects that have no negative impact either on revenues to local government or on physical appearance of surrounding area. it exempts projects that were approved before November 3, 1992. Dick Schuster moved that the Affordable Housing Committee support Proposition 168,Sue seconded, Motion failed Vote: 24, Committee members were concerned that the City Attorney had not reviewed the proposition. Consideration of Grant to Children Shelter-Councilmember Barbara Koppel explained that she forwarded this consideration to the Affordable Housing Committee so that they may review her h recommendation of a$5,000 grant to the Children's Shelter from the CDBG famd. She explained that other cities have given monies to help in the effort. Nancy Wiener,Santa Clara County Children's Shelter explained that the Children's Shelter has launched a capital campaign to build a new facility. She gave a brief history of how the shelter operates and sty on the type or children that are taken care of and the communities that are served. Ms.Wiener stated that the formula used to request funds from cities was derived from taking the number of children served front those communities and applying a percentage figure. The figure from Cupertino is 2%,which is comparable to the number of children coming through the facility. She provided donation figures from other cities and stated that some cities are using their CDBG funds to help in this endeavor. Lois Warburton stated that she would like to see the Committee give the shelter the$45,000 from the CDBG funds. Dick Schuster asked why this request was coming to this committee due to the use of CDBG funds. He stated that he had not seen any such requests coming to the County for use of CDBG funds, lids. Wiener stated that Supervisor McKenna decided not to go to the County for funding but instead to talk to each of the cities and ask them if they felt they could fiord this project. Lois Warburton made a motion to contribute$45,000 out of the CDBG fund to the children's shelter. Motion was withdrawn. Dick Schuster stated that he felt this was a worthwhile project and we should contribute fimding,but CDBG funds should not be used Bob Cowan stated that there are no general funds for this project. Council member Koppel stated that she is in favor of handing this project,but that she was not advocating 45,000 to the Committee. She went on to say that Council was not recommending any figure,but wanted some direction as to what the Committee felt they could allocaw. Lois Warburton asked how much money is left in the CDBG account after allocating monies to Mid- Peninsula. Vera Gil stated that approximately$80,000 is left. Vera Gil stated that staff is recommending 10,000 to be given to the project Lois Warburton moved that the Committee allocate$10,000 to the children's shelter. Mario Pinedo seconded. Vote was called Ayes: Lois Warburton,Mario Pinedo,Sue Mirch-Kretschman,David Doyle Noes: Dick Schuster Lois Warburton moved to adjourn meeting,David Doyle seconded,meeting was adjourned at 4:55 p.m. Submitted By: Approved By: V Mfg wkN 0-2- Y4ne Kelley,Admin.Secretdry Sue Mirch-Kretschman,Vice Chair Attest: Kim Smith,City Clerk glmm/housinglath!0693 ji t CALL TO ORDER Members Present:Lois Warburton,Dick Schuster,Bob Cowan,Scott Montgomery, David Doyle Staff Present: Vera Gil,Yvonne Kelley,Tom Robillard David Doyle called meeting to order at 3:35 p.m. Approval of Minutes- David Doyle asked for approval of minutes,Dick Schuster pointed out that the first sentence under"Changes in Definitions"seemed to be missing something. Vera Gil stag that the sentence should read"Under present law,developments for persons of low income requires an election." Scott Montgomery moved that minutes be approved as amended,Lois Warburton seconded. Vote 4-0 ORAL COMMUNICATIONS: Bill Wickwire asked about the developer who made a proposal approximately one year Ego on single occupancy hotels and whether any developments were Ming proposed. Vera Gil stated that Jim Morley, Califomia Real Estate Management,has been in contact with the City but has been unable to purchase land in Cupertino. He is interested and still pursuing the idea,but as of this date,he has not been successful in purchasing land. Unfinished Business- 1. Update on City Owned Townhouses-Vera Gil reported that City Council directed staff to sell the Portal Plaza Townhouse. The proceeds from the sale will be put into the affordable housing Fund. Vera Gil asked Polli Rychlik,CCS to give an update on GCS's proposal for purchasing the other townhouse. Polli Rychlik explained that due to new board members,they have been unable to meet and discuss this issue. She explained that it is on the agenda for the January meeting. Bob Cowan stated that staff will keep in contact with CCS and report in February on progress. Lois Warburton was concerned about whether CCS could manage a property like the one being proposed She asked whether any other non profits such as Innovative Housing would be interested Vera Gil stated that Innovative Housing typically buys single family residences,placing many families in them. Lois Warburton asked how other cities handle property management. Bob Cowan replied that staff will look into this and report back to Committee. 2. Update on Mid Peninsula-Susan Russell,Mid Peninsula,stated that MPHC is continuing their negotiations to secure a site for a project. She stated that the Monta Vista site has been purchased by a for profit developer. 3. Educational Program-Vera Gil stated that Sue Mirch-Kretschman has been unable to meet due to prior commitments. They have tentatively scheduled work to begin on committee until January. At that time Tire Doty and Marcia Fein will be available to meet also. New Busimm 1. Final Draft Of ft=dwW Vem Csil gave the Committee a drag of the manual and asked thattheytakeamonthtomviewandgiveits Bob C4YWM presented the >the Statetlinouing why the City Of C erdno's Housing element didnotmeetStatestandards. He eMbined that the Committee should be aware of what is halrpening and theirroleinrevisingtheelement. Bob Cowan talked to the Committee regarding the composition of the current Affordable HousingCommittee. He stated that the City Council is considering removal of the City Council and PlanningCommissionrepresentativefromtheCommttee. Bob Cowan stated that the Council may change theordinanceinJanuaryorFebruary. With no further business,David Kyle moved to adjourn the meeting at 4:25 p.m. Lois WarbmI nseconded. Submitted By:Approved By: Ye IOAn.Secr David Doyle, ems Attest: Kim 6SMille'City Clerk gJmm/housiog/afh 12993 r`„" K CALL TO ORDER Members Present:Deck Schuster,Bob Cowan,Scott Montgomery,Sue Mirch-KmUchum David Doyle Staff Present: Vera Gil,Yvonne Kelley Sue Mirch-Kretschman called meeting to order at 3:40 p.m. Written Communications: Vera Gil presented letter from CCS stating their desire to pursue proposal to purchase and manage affordable housing units. Oral Communications: Polli Rychlik,CCS and Peter Young,Downey Savings introduced themselves. Approval of Minutes: Dick Schuster moved that the minutes be approved as submitted,Scott seconded. Vote:340-1 (Sue Mirch-Kretschman abstained) Unil Business• 1. Draft of Housing Mitigation Procedure Manual-Vera Gil explained that the manual is in drat:form and the purpose today is to look at the changes being proposed in the housing bank. Vera discussed how the housing bank would work as described by the companies. She explained that a developer could come in and construct 50 units and could make a deal with a company for those 50 units to count towards the company's mitigation requirements. She also explained that a purchase price is not necessary,but a letter from the developer stating that an agreement has been made between company A"and the developer. ]Me other option is that the units can be put in a bank and later on a company could purchase the units from the developer. It is also recommended that the company has only one year to construct or cause to be built those units. Concern from several committee members regarding double counting and monitoring City money was discussed. Vera discussed how the housing development bank was put into the residential mitigation. She explained by saying that a developer could come in and purchase units from the development bank if they chose not to build a BMR unit on their development. Bob explained that this requirement would differ from other cities in that a developer would not have to include BNB units in their development if they purchased from the housing bank and located their units elsewhere. Sue Mirch-Kretschmann felt that she would like to see BMR units spread across the board and not located in just a few areas. It was agreed that this would be discussed after further study by staff. Vern Gil reported on Tom Robillard's housing cost index for determining sale price and rental ream for price capped units. After analyzing several resources,it was recommended that HUD income limit method be used to establish the annind adjustment of sale prices and rental rates of price capped units. It wes agreed to continue discussing the cost index and the residential banking program at the next meeting. Scott motioned to accept industrial housing bank program and to ensure that BMR units not be double counted. Dick seconded Vote:3 yes with David Doyle abstaining New Business: 2. Memorial for Lois Warburton-Sue informed Committee that Lois Warburton,a Committee member had passed away and Vera Gil is proposing a memorial from the Committee in her honor. The Committee agreed that purchasing a tree with a name plaque would be nice. Vera will look into the costs. 3. Composition of Affordable Housing Committee-Vera explained that the City Council is proposing to eliminate the City Council,Planning Commission and Director of Administrative Services Manager representatives from the Committee. They will discuss and vote on this decision at the January 18 meeting. Vera stated that Lois Warburton's position will be filled and the Committee can elect the new Chair and Vice Chair. Sue stated that she can see pros and cons to this decision. Some of those being losing the representation of the City Council and Planning Commission. Vera stated that when the committee was first established it was important that the representation be there,but members of the Council and the Community have since changed their minds regarding whether voting on an issue at both the Council and Committee level posed a conflict of interest. Scott asked whether the members would still attend but be non-voting members or would not even attend the meetings. Vera explained that the Council is considering those two members not even attending. David Doyle explained that while it is important that the representation be there,he felt that staff could adequately keep the Commission and Council informed. He stressed that he also feels it is difficult to vote on an issue at the Committee level then vote on the same issue at the Commission or Council level. Dick Schuster stated that he felt repi esentation from other segments of the Community should be explored,i.e., seniors. Sue Mirch-Kretschman made a motion to receive staffs recommendation terminating the City Council and Planning Commission representative from the Committee but recommend their presence during policy making meetings. Dick seconded. Vote 4-0 4. CDBG Hearing Schedule-Vera explained the schedule of when applications would be accepted and meeting dates of approval. Dick Schuster informed committee of the CDBG Advisory ClDmmittee's role in the distribution of funds to the cities and their feelings regarding cities using Their funds in a MY @diff waj:*=Am dweasiDg ft Aee&a my Ada we A awW fim Cupertbo. SheAA'goad Otat CWrfto is nN at risk tO lose arty$m&. Ali Other Ads am abHVbd tradercoastedBadEatschyhasuaWLune1994toperform. SultmAd By: Appraeed By: I ` A Y ntte Kelley,Aew,Sue ViceCioair .-- Attest: Kim S Clerk g/mm/housing/a&1694 N { d CALL TO ORDER Members Present:Dick Schuster,Bob Cowan,Scutt Montgomery,Mario Pinedo Staff Present: Vera Gil,Yvome Kelley,Ciddy Wordell,Tem Robillard Others Present: Nancy Burnett,William Wolfe,Peter Young,Patrick Noon,Shirelte Kanda Susan Russell,Polli Rychlik Dick Schuster called meeting to order at 3:50 p.m. Written Communisations: None Oral Communications: None Approval of Minutes: Dick Schuster asked for approval of minutes. Yvonne Kelley handed out corm minutes with the appropriate signature block. Dick Schuster asked that reference to the CDBG Committee m the last paragraph on the second page should actually state Citizens Advisory Committee. With those corrections Scott moved to approve minutes,Mario seconded. Vote:3-0 b Unfinished Business: 1. Housing Procedural Manual-Vera Gil stated that staff would like to defer this item until a full committee can be present. 2. Housing Mitigation Plan-Ciddy Wordell asked for comments regarding the housing mitigation plan stating that HCD had denied the housing element based on their assessment that the City did not address the jobs/housing imbalance. Ms.Wordell passed out suggestions that staff has regarding recommendations for complying with the state with regard to the housing element She took each comment with staff's recommendation and explained rationale for recommendation. HCD Comment: There is a 260 wait shortfall ojadequate sites. The 184"undesignated"and 150 Bubb Road potential writs are not recognized After a lengthy discussion,the Committee agreed with staffs recommendation. HCD Comment: The element shouts include program actions to increase the development of 1,103 tarns. The Committee agreed with staffs recommendation. HCD Comment: Pmmote specific plam potential. Plans are not completed early enough:deadlines should be proposed and the type and affordabdiry ofproposed units described The Committee agreed with adPs recommendation. HCD Comment. Describe incentives and programs which encourage development ofhigher density/mined use housing. Tdie City should specifacally commit to land useJsoning changes to allow development to proceed in areas defined in Program 3. (Bandley Drive,Bubb Road and portions ofStevens Creek Blvd The Committee agreed with staffs recommendation. HCD Comment: The program section ofthe element should include more specific program actions and more strongly indicate commitment to implement each program to ensure the City can meet housing element requirements. Dick Schuster asked about education program. Vera stated that the City has been working with numerous groups and churches. Meeting adjourned at 4:55 p.m. Submitted By: Approved By: a al 9,L,dZ A Y de'K1Bellleyy,,Admin.Secretary Dick Schuster, c-,mg Chair Attest: Kim Smith,City Clerk g/mm/housing/ath2394 R u. $-• a `s '1: '` jai}' CALL TO ORDER Members Present:Dick Schuster,Bob Cowan,Scott Montgomery,Mario Pinedo,Sue Mirch- Kretschman,Kathy Robinson Staff Present: Vera Lail,Yvonne Kelley,Tom Robiilard Others Present: Peter Yoe:. Dick Schuster called meeting to order at 3:30 p.m. Written Communications: Dick Schuster submitted a letter requesting educational material for the committee members such as a handbook giving a historical overview of significant procedures,policies,etc. Although this item was not agendized,the Committee discussed the types of information that could be included in a handbook. It was agreed that Dick would review staffs binder of information circulated to Committee and the topic would be agendized for the next meeting. Oral Communications: None Approval of Minutes. Scott Montgomery moved for approval of minutes as submitted. Mario seconded,before vote was called Sue Mirch-Kretschman asked that staff recommendations regarding housing element be attached to the minutes. Vote:3-0-1 abstain Unfinished Business: l. Housing Mitigation Procedural Manual-Dick Schuster was concerned about the Table of Contents, the numbering system,and also the section referring to in-lieu fees. Dick also was concerned about the rationale for the Section 8 Program and why this section should be left in since the program allows for property owners to receive higher rents the unit. A discussion ensued as to the feasbUity of allowing a section 8 recipient to use their certificate in an already affordable unit instead of using it at another property,thus serving two individuals. The committee was also concerned that property owners could potentially profit from the Section 8 program. The Committee felt these two issues were valid enough to delete this policy from the manual. Dick Schuster made a motion to delete sections l.2.13 and 22.13. Mario seconded. Kathy Robinson,the new committee member arrived and was introduced to the group. Vote: 5-0 Sue march-Kretschman wanted to clarify the introduction section pertaining to affordable housing development. Committee agreed to allow staff to reword the introduction so it is cl . Page 4-Mitigation requirement-Sue Mirch-Kretschmaa was concerned about the price capped units and whether these units would not count towards our fair share numbers. Vera Gil and Bob Cowan reiterated that the Council was aware of this and this was a compromise made with the Companies. Who defines"cause to be built"? Scott Montgomery asked that the table showing income levels and household sizes show an annual revision date. Page 9-last paragraph,third line from bottom-change"too"to"to". Page 9-Sue Mirch-Kretschman was unclear of what the density bonus for developers was. Vera Gil explained that the BMR requirement was not being applied to the density bonus. 1.3A Fee Waivers- Can the city collect fees after a unit has been reconverted to a market rate? Vera Gil stated that this had been discussed with this Committee and the Council,but no interest was expressed. Sue Mirch-Kretschman suggested recommending to Council fee retrievals. Bob Cowan explained that his first priority is to get the housing element approved by the State and that the Council did agree to the waivers,but this Committee could come back with an amendment at a later date. Sue wanted it stressed to the Council that this Committee would like to reconsider the fee waivers. Scott Montgomery asked that the word"young'be deleted from the first paragraph under Residential Mitigation. Discussion regarding in-lieu fees and the language contained in this paragraph ensued The committee agreed to allow staff to clear up language and have the committee review before forwarding to Council. Committee agreed to continue adoption of this document until next month after Kathy Robinson has had a chance to look at the document and the committee members also have a chance to step back and look at it again. Committee members are asked to submit any corrections or changes they may have to staff in a reasonable time period before the next packets are sent out. New Business: 2. Election of Officers-Scott Montgomery moved to nominate Dick Schuster for Chairmen and Sue Mirch-Kretschman as Vice Chair,Kathy seconded, Vote: 5-0 3. Permanent Meeting Date-Committee voted to meet on the second Thursday 3:30 p.m. 4. CDBG Grant Requests-Vera Gil explained to staff that the Committee received only two requests this year. One from the Rotating Shelter and the other from the Affordable Placement Program. Sue Mirch-•Kretschman made motion to grant the staffs recommendation of$11,000 for the Rotating Shelter. Dick Schuster seconded Vote: 5-0 S Vera 09 explained that the Placement program awed$11,300 dollars last year for providing placement services for ten units at tit Cupertino and one city owned townhouse. Staff has recommended a decrease in funding,the maximum amount to be$10,000. Bob Cowan has some reservations concerning the casts of service dial are being provide at Chateau Cupertino. The Committee asked whether a representative from CCS was prat. Vera explained that a representative could not make it today. Sue Miracle-Kretschman asked why staff was recommending such a[up amount if they felt this program was not effective. Staff felt that an abrupt decrease might not be appropriate,but a slow weaning period would allow them to seek other fimding. After discussion,a recommendation of$6,000 was agreed upon. Dick Schuster made the motion to grant the Placement Program$6,000. Scott Montgomery seconded. Vote: 5-0 Scott Montgomery made motion to approve staff recommendation of$15,000 and 6,000 and$150,000 to be placed in affordable housing fund. Dick Schuster seconded Vote: 5-0 5. BMR Sub-Leasing-Vera Gil stated that one of the BMR owner is asking for an exemption to allow the sub-leasing of one of her room;.. Vera explained that the owner has experienced a sharp decrease in her income. Staff discussed this with the City Attorney and his recommendation was to instruct the Committee to make a policy on this item. The Committee can adopt the paragraph referencing BMR sub-leasing or choose to review on a case by case basis. Scott Montgomery made motion to accept the policy with the word"sharp"removed. Kathy Robinson seconded. Scott amended his motion by adding"if more than 10%of the units are sub-leased,the policy will come back to Committee for review". Vote: 5-0 6. Sunnyview Lutheran Update- Vera Gil explained that Sunnyview Lutheran felt this was not a good time to develop and would return funds to the City so that CDBG funds are not tied up. Meeting adjourned at 6:00 p.m.. Submitted By: Approved By: Vtc, Y e Kelley,Admin.Secre ue Mireh-Kreischman,Chair Attest: t Kan Smith,City Clerk g/mm/housing/afh3394 CALL'tO ORDP.R Members Present:Dick Schuster,Bob Cowan,Scats Montgomery,Kathy Robinson Staff Present: Yvonne Kelley,Ciddy Wordell Others Present: Peter Young,Tim Doty Dick Schuster called meeting to order at 4:00 p.m. Oral Communisations: None Approval of Minutes: Scott moved to approve minutes with the following corrections: Change"Dick called meeting to order"to"Sue called meeting to order",clarify recommendation on last page of CDBG funding regarding$6,000,$15,000 and$150,000 grant awards. Kathy seconded Vote 3-0 Unfinished Business: 1). Housing Mitigation Manual-Bob informed committee the intention of staff is to complete the manual so that it can be forwarded to the Planning Commission at their next meeting date of April 25. The Committee then went through their comments on the manual. Scott Montgomery: Section 2.2.2 Use"designate"instead of "set-aside",use"sell"instead of"convert" Section 22.3 In Lieu Fee- Kathy Robinson: Section 1.2.11 and 1.3.2-The language in these two paragraphs are inconsistent. Kathy felt that the developer should not be allowed to reduce these units in half compared to the market rate units. Scott asked whether the price of these units was reduced in comparison to the reduction in square footage. Bob Cowan explained that the sale prices are set and cannot be raised or lowered regardless of square footage. Scott Montgomery suggested eliminating the sentence that references lowering square footage and meeting health and safety requirements. The paragraph should read: s i 1.3Z E imination of Certain Amenities in Affordable Units Intemaliy,the affordable units may differ from other units in the project by eliminating chin amenities in order to reduce casts. The exterior design of the unit shall be consistent with other units in the project. Scott Montgomery moved for approval with the above changes,Kathy Robinson seconded Vote: 3-0 Various sections contained information regarding the right of first refusal and the time frame for buying a unit back. Kathy felt that this seems to be really aggressive. Bob Cowan explained that this was not a problem in the past and felt the consultant did not have a problem with the short turn around. New Business: 2). Education Program-Dick Schuster explained that this item has been on the agenda several times and wanted some closure on this issue. Dick stated that the Education Committee wanted demographic information from the various companies so that information can be disseminated to the community. Reverend Doty added that the education committee is seeking only a sampling of the numbers of employees who would Qualify for affordable housing in Cupertino. Dick Schuster agreed to be the 9 alternate member to the Education Committee when Sue Mirch-Kretschman cannot attend. 3). Handbook for Affordable Housing Committee-Dick Schuster informed the committee that information pertaining to this committee,i.e.,minutes,policy,and reports are available in Vera Gil's office whenever needed. 4). Tour of Housing Developments-Ciddy Wordell informed committee of the Planning Commission's desire to designate housing sites for an affordable housing project. She explained that the Committee members and Commissioners would drive through designated sites and look at other affordable sites in the area It was agreed that Dick Schuster and Kathy Robinson would attend the tour. Other Business: Dick Schuster asked that the date of next month's meeting be corrected to May 12,instead of 14. Scott Montgomery asked that Vera make up a schedule of the years meeting dates. Meeting adjourned at 5:05 p.m.. Submitted By: Approved By: UAW a+"4 L' , Y ne Kelley,Admin. Secretarg D ck Schuster,Chair Attest: 4 L Kim Smith,City Clerk C, •LLsF.nr.' NOTICE AND CALL OF A SPECIAL MEETING OF THE CITY OF CUPERTINO AFFORDABLE HOUSING CO TEE TO THE ERS OF THE AFFORDAI3LE DOUSING COYyA 1Irnm OF THE CITY OF CUi.6\i ii\O. NOTICE IS HEREBY GIVEN that a special meeting of the Affordable housing Committee of the City of Cupertino is hereby called to be held on Tuesday, April 26, 1994, commencing at 5:00 p.m. in Conference Rooms C and D, 10300 Torre Avenue,Cupertino,CA. Said special meeting shall be for the purpose of considering a funding request in the amount of$330,800 from Community Dousing Developers, Inc. for the purchase of eight(8) rental units. Dated: all. Robert S.Cowan Director of Community Development AGNU771S Special Meeting of the Affordable Haning Committee of the City of Cupertino Conference Rooms C&D. April 26, 1994 CALL TO ORDER The meeting was called to order by Chairman SdkmW at 5.07 p.m.in Conference Rooms C&D, 10300 Torre Avenue,Cupertino,CA. ROIL CALL Committee Members present: Susan Mirch-Kretsclmarrn, Scow Montgomery, Mario Pinedo, Kathy Robinson and Chairman Richard Schuster. Committee Members absent: None. Staff members present: Community Development Director Bob Cowan and Planner H Vera Gil 1 I'LN COhVVlUNICAT1ONS Chairman Schusi;-;r distributed a letter addressing the conduct of Committee meetings. Chairman Schuster was most concerned about Committee Members na giving staff proper notification when they Alk intend on missing a meeting. In the future all Committee Members are to notify staff in advance of a W meeting if they will be late or absent. This item will be agan&zed for discussion at the next regular meeting ORAL COAUAUNICATIONS None OLD BUSINESS None NEW BUSINESS I. Consideration of Funding Request in the Amount of SM,800 from Community Housing Developers,Inc. Planner H Gil presented the staff report to the Committee. The following individuals spoke in favor of the proposal: Polly Rychlic.. Cupertino Community Services, 10185 North Stelling Boulevard, Cupertino, CA; Peter Young, Downey Savings, 10381 South DeAnza Boulevard, Cupertino,CA. The following individuals spoke against the proposal: None. Kerry Williams of Community Housing Developers gave a brief presentation on Clus funding request. CHD is interested in purchasing eight (8) apment units in the area behind Target. These units, located on Park Circle West,would save six families of low income and two families of very low income. Rents are$695 for the low income units and$595 for the very low income units. e April 26, I 4 Pege 202 It was moved by Committee member cay,by Committee fiber Mirch- Kretschmano and passed 0, unanimmdy to sae of al unity HousingBevel 900 to purchase an 6&unit qwtmew complex on Park Circle West. The lean shall be subject to the following co imas: 1. The terms of the loam will be negodatO with the City of Cupmtino's Loan Committer so that the City shall we repayment begun within twenty(20)yem. On an annual basis,the Committee shall review the cash flow of the complex to see if the payrments may be accelerated. 2. First priority for occupation of the units shall be given to current Cupertino residents, second priority to individuals working cr attending school in Cupertino and third priority to individuals with immediate familial ties to Cuperthw rrrsiden Q.& sans, daughters, parents of Cupertino residents). 3. The first vacancy shall be used to relocate a curreai raident of a City owned townhouse, so that the tenant's rent is more affordable. This edition is subject to qualification of the tenant. ANNOUNCEIVSENTS None COAR TTEE MEMBER REPOR73 None ADJOURNIVI M The meeting was adjourned at 6:12 to the r+Wlariy sheduled meeting of May 12, 1994, 3:30 p.m., Conference Rooms C&D, 10300 Torre Avenue,Cupertino,CA. Submitted by: Approved by: V Y nne Kelley, Admini&aiive Secretary RRhod Chairperzon Attest: Kim Smith,City Clerk q CALL TO ORDER Members Present:Dick Schuster,Bob Cowan,Mario Pinedo,Kathy Robinson Staff Present: Vera Gil,Ciddy Wordell Others Print: Peter Young,Tim Doty,Gertrude Welch,Dan Mountsier Dick Schuster celled meeting to order at 3:30 p.m. Oral Communications: None Approval of Minutes: Minutes from the April 14 meeting will be approved at the June 9 meeting. A discussion ensued regarding changing the way in which the minutes are typed. It was weed that the minutes will be action minutes. Chairman Schuster asked that committee members read minutes thoroughly and contact Yvonne if any additional information should be added to the minutes. New Business: 1. Proposed Housing Element Amendments-Ciddy Wordell explained the changes as submitted to HCD. Action: Committee agreed with staffs recommendations 2. Education Ad Hoc Committee Report-Chairman Schuh informed committee of Education Committee members. Those being: Sharon Blaine,Sally Brennan,Gertrude Welch,Sue Mirch- Kretschman,Dick Schuster,Tim Doty,Marcia Fein. Tun Doty stated that the Education Committee spoke about developing brochure and speaker's program. He also tanked about survey that will be circulated regarding demographic information. 3. City Council.ections on Housing Related Items-Bob Cowan reported on those housing actions taken at the last Council meeting. 1). Council authorized funding for CHD to purchase apartment units behind Target. 2). Authorized Mid-Peninsula Housing to bid on property at Stevens Creek and Miller. 4. Meeting Policy for Affordable Housing Committee-Chairman Schuster asked that all members please make every effort to be on time or call to let staff know if they will not be in attendance. Other Business: Ch*m 1 Schuster OWhined tarty hm on agendg MOMmifte Reporte and said OW this would be thefWumforcommitteememberstom*c MMUMMft Or ask that an k9m bC placed an the next agenda, Mario Pine&made mOtIOU t0 40mn,Kathy Robes seconded Vote:4-0 Meeting adjourned at 428 p.m.. Submitted By: Approved Day: Y nne Kelley,Admin. Disk Schuster,Chair Attest: Kim Smi 3 th,City Clerk gtmm/housing/afl*51 1 x CALL TO ORDER Members Present:Mario Pinedo,Kathy Robinson,Scott Montgomery,Sue Mirch-Kretschmann Staff Present: Vera Gil,Yvonne Kelley Others Present: Susan Russell,William Wickwire,Polli Rychlik Sue Mirch-Kretschmann called meeting to order at 3:35 p.m. Written Communication: William Wickwire submitted a letter requesting information about SRUs and if the Committee was trying to pursue on in Cupertino. Oral Communications: William Wickwire reiterated his concerns about pursuing a SRO in Cupertino. Approval of Minutes: Mario Pinedo moved for approval of minutes from the April 14,April 26,May 12,meetings. Kathy Robinson seconded. Vote was called. April 14, 1994 April 26, 1994 May 12, 1994 34)-1 abstain 4-0 340-1 abstain New Business: 1. Proposal from CHI):Kerri Williams updated committee on Park Circle acquisition. CHD has a written agreement from seller for$675,000. CHD is awaiting for court to approve vacation of the property from bankruptcy. This new proposal is a backup in case the Park Circle does not go through. Larry Noon was introduced as the agent that is working with Kenri in trying to acquire Beardon as an alternative. Beardon is identical to Park Circle. An offer and counter offer have been made. CHD is asking the some price as Park Circle$350,000. n IL Staff Recommendation: Approve Autding of$330,800 to CHD for offer on Beardon and commit funds from CDBG account. Kathy Robinson moved to accept staff recommendation,Mario Finedo seconded. Vote:3-1 Scott Montgomery was the dissenting vote 2. Education Ad Hoc Committee Report: Sue Mirch-Kretschman reported that timeline for art contest on brochure cover will be in the fall. 3. City Council action an Housing Element and Housing Mitigation Manual: Vera Gil reported that the Housing mitigation manual was approved with some language changes regarding the 10%requirement for low and very low housing units. The housing element was also approved with the exception of two properties that were not rezoned for housing as per staffs recommendation. Those properties are at Maxine and Homestead. Scott Montgomery moved to adjourn meeting,Kathy Robinson seconded. Meeting adjourned at: 4:30 p.m. Submitted By: Approved By: Yam. h-L Wl:an,VimeKelley,Admin.S SueM Attest: a Kim Smith,City Clerk k/mm/housing/ath6994 ILY 14,t944 CALL To ORDER Dick Schuster called meeting to order at 3:30 p.m. Members Present:Kathy Robinson,Scott Montgomery,Sue Mirch-Kretscbman,Dick Schuster Bob Cowan Staff Present: Vera Gil,Yvannne Kelley,Tom Robillard Others Present: Donna Austin,Sharon Blaine,Craig McCafferty,Walter Hsu,Jackie Diller Written Communication: Fax from Maxim Properties Oral Communisations: None Approval of Minutes: Action:Under New Business 3rd sentence,change vacation to vacating. 4th sentence,delete entire sentence. last sentence,delete entire sentence. Scott Montgomery made motion to approve with above listed corrections. Kathy Robinson seconded. Vote: 4-0 New Business: 1. Request to pay in-lieu fee for development of BMR units-Maxim Properties Action: Staff will continue to work with developers,agendize for August I 1 meeting. Scott Montgomery made motion,Sue seconded Vote: 4-0 Meeting adjourned at: 4:50 p.m. Submitted By: Approved By: Y nne Kelley,Admin.S Dick Schuster•Chairman Attest: Kim Smith,City Clerk 105 if To il 0 CALL TO ORDER Chairman Schuster called the meeting to order at 3:30'P.M. Members Pit:Kathy Robinson,Scott Montgomery,Sue Mhth-Kretschmann,Dick Schuster, Mario Pinedo Staff Present: Bob Cowan,Tom Robillard Others Present: Donna Austin,Gertrude Welch,Susan Russell,Jackie Diller,Tun may. Ellen Chell Written Communications: None Oral communications: None Approval of Minutes: The Committee members discussed the brevity of the duly 14, 1994 minutes.Ito c4msmittee reache a decision that"action"minutes do not properly convey the rational for decisions.Staff in6imed the Committee that the August minutes would contain more dew. The minutes of July 14 were approved subject to the following corrections: The FAX from Maxim should be dated July 13, 1994 The June 9, 1994 minutes were approved The minutes should have reflected a direction to agendizs the discussion of in-lieu tip. Sue lurch-Kretschmaon's name was incorrectly spefled. OLD Rus»,: 1. Request to Pay fee in-lien of development of BMIR units-Maxim Property Staff presented the staff report and out;med actions and meetings that had occurreded subsequent to the July meeting.The presentation included a staff proposal to enable Maxim to use RMR option 11 to satisfy its obligation.'i'he obligation would have indexed Maxims commitment to the land cost for 12 units for a pending 56 unit affordable housing development sponsored by Community Housing Developers(CMD). The commitment would have been$17,000 to$13,000 per unit with a cap not to exceed$240,006. Committee member Mirch-Kretschmann started the discussion of the staff-proposal by ouuiitft 111M problems. r+ ra'S 1. The uncertainty of City approval of the 56 unit proposal would lords in a$240,000 CAP which would Amok not provide fitrnds to 12 imiti ., , i ._e ck ,,. r. .„ 1ch 8 lit s t +e vettt 'devIp 2. The transfer of the BMR obligation to an off site location is inammistent with the goal of Wwgmft affordable units the 3. Since there a limited munber of buitdabte sites,l3MR units should be spread dmn*outthe City. The applicant wa3 informed by members that there is preference for the developer to incorporate BMR units into the project rather than provide off site units or an in-lieu fee.The applicant indicated that bar proforma was prepared based upon a financial commitment which is limited to the$108,000 in lieu fee and that the commitment of 12 BMR units on site was not feasible.Members Pinedo and Montgomery,, the applicant to explore compromise positions involving a combination of in lien fees and the provision of on-site BMR units. Following additional discussion,the applicant indicated that there is very little room to negotiate a acceptable financial committee over and above that already built into the project proformp. : Motion for denial Committee members Mirch-Kretschmann motioned and Robinson seconded to recommend to the Planning Commission that the applicants request to pay an in-lieu fee be denied.The committee made o; finding that other options should be explored to construct the units on-site and that the resultant in Aeu fee - is to low and therefore would not provide adequate fees to construct 12 units off site. 5. Education Committee Status Report: Tun Doty,Chairperson of the Education Committee provided a status report regarding a brochure to aid a speakers program to educate Cupertino citizens regarding affordable housing.The brochure will provide facts to assist citizens who participate in deliberations concerning housing. 2. Cupertino Scene Feedback Chairman Schuster presented a letter to the Committee as a proposed response to those persons who responded to the questionnaire published in the Cupertino Scene. After considerable discussion,Chairman Schuster tabled this item to the next meeting. MEN BUSLKESS: 3. Proposed Amendments to the Housing Mitigation Prucedu nd Manual The Committee concluded that the BMR manual does not contain adequate standards and procedures to properly evaluate proposals.The committee reatFirmad its decision to amend the manual to provide greater guidance to applicants and commissioners. A revised manual will be reviewed on September 81h. 4. Affordable Housing Committee Role in Annual General Pits Review: Bob Cowan stated that the annual review of the General Plan will be in October of this year. He felt that this Committee should review the Housing Element and forward comments to the Planning Commission and Council during the review period. Bob Cowan will send Committee members a staff report and a copy of the policies in the Housing element before the September meeting. 6. Establishment of Housing Loan Committee: Bob Cowan stated that while working with HCD,it was determined that language referencing loan committee to review final negotiations was incorporated into the terms of the loan. Staff feels that the current rehabilitation loan committee might not be the best possible alternative to these types of negotiations. The Committee appoint Mario Pinedo and Scott Montgomery to serve as members of the lin r elfsit meat. AMOUNCEBONW- y a*ed Ibm mm of MW41 6 M-00 d A Sits'f r amble i• Sum U s=d t it used for a qw2hw ona Site upto&bpoint ADJOURAtMa SUBDUTTED BY: APPROVE®By: YVa e a elky.AdmhL SMMUW S t9 •atrus at A'1'ST: a/ •` _ ill Kim Saefth, cfty [ ehwndoWS&ovsisgmm11 e e h 1 CALL.'I<O ORDER Chairman Schuster called the meeting to order at 3:45 p.m. Members Present:Kathy Robinson,Sue Mirch-Kretschmann,Dick Schuster, Members Absent:Mario Pinedo,Scott Montgomery State Present: Tom Robillard,Ciddy Wordell,Vera Gil,Yvonne Kelley Others Present: Donna Austin,Gertrude Welch,Susan Russell,Tim Doty,Mary Ellen Chell,Kerry Williams,Lisa Sullen,Sally Brennen,Jim Sullivan Approval of Minutes: Dick Schuster wanted to add under Written Communications letters received from: Cupertino City Center Apartments dated August 4, 1994 Letter from Dick Schuster to AHC dated August 4, 1994 Memo from Robert Cowan to AHC dated August 10, 1994 Additional corrections to minutes include: Second page,first paragraph,last line,change"negotiate a acceptable financial committee..."to"negotiate sn acceptable financial commitment." Second page,second paragraph,last line,change"ton to"too." Second page,Item b,change"HCD"to"CHD." With those corrections,Kathy Robinson made motion to approve,with Sue Mirch-Kretschmann seconding. Vote 3-0 Written Communications: Community Housing Developer's letter of 9r,,194 Oral communications: Sally Brennen asked that absent members be listed on the minutes. Kerry Williams asked that a correction be made on the narrative regarding the Tantau project being called an SRO,when in fact it should be called"local use rental housing project,first step housing." s n- as :•,+ M. fry tk d.4 r t" All BUSE= 1. Cupertino Scene IreedbacW This item is a follow-up of the August meeting agenda.item. He stated that 89 rinses were received and a summary of their responses was submitted to the Committee at the last meeting. After discussion,Sue Mirch-Krotschmann made a motion to tern over the follow up of the 89 responses to the Education Committee. Kathy Robinson seconded. VOTE: 3-0 2. Housing Mitigation Procedural Manual: Tom Robillard presented those items that needed clarification and additional changes made. Page 14,last paragraph,Page 14,2.2.1,Regarding In-lieu fee options(which will be discussed under item 4"BMR In-Lieu Fee Options"),Page 15,numbers need to be consistent,Denote that charts are updated annually. The Committee chose to discuss item Number 4-BMR hi-Lieu Fee Options. 3. BMR In-Lieu Fee Options: Vera Gil recommended two options: The fee could be tied directly to the cost of constructing the units,or pattern our program after the Sunnyvale BMR program. There was considerable discussion on the existing fee al and whether it is sufficient The Committee agreed to look at different options for assessing this fee. The Committee recommended that for 10 units or more, 10%of the unfits be built on-site and for units 1-9,an in-lieu fee for 10%of the difference between the fair market price and the below market rate be applied. The option to construct on-site or build off-site still applies. Kathy Robinson made motion for above recommendation,Sue Mirch-Kmtschmaan seconded. Vote: 3-0 4. Annueal Housing Element Evaluation: The Committee agreed to continue this item to the next meeting. ADJOURNMENT SUBMITTED BY: APPROVED BY: nne Kelley,Admire.SecAary Dick uster,C ATTEST: Kim Smith, City Clerk dwindowslhousingtath811 AWL CALL TO ORDER Chairman Schuster called the meeting to order at 3:30 p.m. Members Present:Kathy Robinson,Sue Mirch-Kretschmann,Dick Schuster,Scott Montgomery Mario Pinedo Members Absent:None Staff Present: Vera Gil,Bob Cowan Others Present: Gertrude Welch Approval of Minutes: Kathy Robinson wanted to add language to the minutes that staff would re-calculate an appropriate in-lieu fee for rental units. Dick Schuster wanted to add the date of the August 1 I meeting to the bottom of the page. Dick Schuster,second page,item i "He"should be"Dick Schuster". Item 3,middle of page. 'Me Committee recommended that 10 units or more...."add BMR and built on-site. Kathy Robinson made motion to approve minutes with the above corrections,Dick Schuster seconded Approval of minutes was continued until end of meeting. The minutes were approved with the above corrections. Vote:3-0-2(Scott Montgomer., and Mario Pinedo abstained) Written Communications: Memo from Dick Schuster dated September 22, 1994,to all interestal parties regarding BMR issue. Memo from Dick Schuster dated September 9, 1994,to Affordable dousing Committee regarding AHC composition and function. Oral communications: None OL®BUSIMSS: Annual Housing Element Amendment: Ciddy Wordell asked the Committee to review the Housing Element and give any suggestions regarding proposal to implement housing in the City. The following issues are those that the committee might address. 1. Heart of the City Plan: is underway and will address 500 of the units needed. The Valico District and the North DeAnza District are scheduled for 1994-95 fiscal year. 2. Assess how construction of housing is going: in the last year,the City has had 24 units constructed all single family). 3. Promote property owners m certain areas on process of developing housing units. 4. Bubb Road area as being area to look at regarding potential residential: scheduled for Spring l"S. S. Publicize property owners ability to have second units on property. (Cupertino Scene) 6. Working with local churches,school districts to purchase property for affordable housing,Spring 1995. 7. Convening workshop for non-profit and profit developers letting them know about technical assistance the City can offer regarding local and county bond financing,bank financing,etc. 8. Education committee separate from Affordable Housing Committee 9. Continuing to support Rotating Shelter Program through CCS. Evaluation of Affordable Housing Committee Enabling Ordinance: Dick Schuster asked the Committee's feeling on adding the two additional members that were taken off last year. He suggested adding a community member and a member of a service organization,one that does not necessarily live within the City limits. Bob Cowan suggested that staff be allowed to come back with a staff report detailing the pros and cons of changing the membership number. Housing Mitigation Procedural Manual: Vera Gil stated although the Committee received a partially corrected manual,final corrections have been made. Committee members gave their comments. Scott Montgomery- questions were asked regarding the inconsistency of our numbers versus HUD guidelines. 1.5.1 and I.$.I language used"who lived elsewhere"needs to be changed. Dick Schuster-questioned the percentage of low to very low in the requirements for mitigation. After discussion,it was decided that the!anguage remain the some with emphasis being put on very low units. The language regarding options for paying in-lieu fee needs to be changed to reflect the Committees consensus at the last meeting. Vera questioned what if developer chose not to build units on site,but would divide section of property and donate to affordable housing developer to construct units. What is the Committee's position? The Committee felt this was an acceptable option. Vera also asked the committee's position on in-lieu fee for multi-family rental units Dick Schuster asked about putting revision dates on the tables. Vera said that this could be shown on all tables. ADJOURNMENT SUBMITTED BY: APPROVED BY: IV Vhq_LauL,, Z24—zu_ VvVne Kelley,Admin.Secretary b7ic-US—choster,Chairman ATTEST: 0 Kim Smith, City Clerk dwindows/housingtaMMITr CALL TO ORDER Chairman Schuster called the meeting to order at 3:30 p.m. Members Present:Kathy Robinson,Sue Mirch-Kreischmann,Dick Schuster,Mario Pinedo Members Absent:Scott Montgomery Staff Present: Vera Gil,Bob Cowan vrhers Presents Donna Austin,Nancy Burnett,Nancy Hendee Approvd of Minutes: Will be tabled to the December 8, 1994 meeting Written Communications: None(Vera handed out newspaper articles) Oral communications: Nancy Burnett asked about CHD proposal with Barry Swenson project and whether it would be on today's agenda. Chairman Schuster informed group that it had been tabled. OLD BUSINESS: 1. Housing Mitigation Procedural Manual Amendment- Vera Gil stated that this item had been continued from the last meeting. Changes recommended at the last meeting have been made and the manual is ready to be forwarded to Council. Dick Schuster found some typographical errors that need changing. He also felt that the paragraph relating to priortization of residents,employees for affordable housing needed to be re-worded. After discussion,Vera stated that she would put information regarding company employees and their housing needs in the office section of the manual. Maio Pinedo made motion to approve manual,Sue Mirch-Kretschmann seconded. Vote: 4-0 NEW BUSINESS: 1. Council action on City Center Associates-Vera stated that a proposal with seven options was prepared and presented to the Council. The City Council chose an option that was not included in the seven options. ]trey approved 4 low income one-bedroom units,and a$108,000 in-lieu fee. 2. Council action on Rehab Loan Committee-The Rehab Loan Committee recommended an increase in the maximum loan amount from$30,000 to$50,000. 3. Council action on Annual renewal of CDBG Grant from Santa Clara County-This is an annual agreement prepared and presented to Council. 4. Recommendation to expand AHC to seven members- There was discussion on the pros and cons of expanding to seven member Committee. At this tune,staff has not studied this proposal. r x fir" tea.,' r s # G ny 7 r 5• Seta of Date and rtt123:fir muff of MC CommftWo to&MMCM WojM an ftvm Creek and Thnow-Vera sMod than staff did M w$at this prajed to come befim the City C wwHbefbrefileZOniagWficefivehadbeenheardbythePleadCommbam7b=fM it is felt by staff that both the fim ft WPYisadw and the use peemWzm big appmvW be presmod to City Canacil Shnuftmemly. A serial mee iag is set for Wednesday,November 29 at 3:30 p.m. ADJOURN NIENT SU®NOT ED BY: APPROVED BY: Yibnne Kelley,AdmhL Secrebw DIcTi Sehuster Chairman AT IIST- Kim Smith, City Clerk dwindowsMoushWatbi 110 ig NOTICE AND CALL OF SPEC1AL N=MG OF THE CITY OF CZTMTINO AFF MABLE HOUSMG CONDffn= TO THE MEMBERS OF THE AFFORDABLE HOUSL*40 COMMITTEE OF THE CITY OF CUPERTINO NOTICE IS .TEIBEBY GIVEN than a special meeting of the Affordable Housing Committee of the City of Cupertino is hereby called to be held on Tuesday, November 29, 1994 commencing at 3:30 p.m. in Conference Rooms C and D, City Hall, 10300 Torre Avenue,Cupertino, C.A. Said special meeting shall be for the purpose of considering a handing request from Community Housing Developers to complete the purchase of two four-plexes on Beardon Drive. Dated: k, Director of Community Development Riii AWN i IVIIt3tl Op'TIC SPECL I.1,,,ET>tNG:. , OF TM AFFORDABLE MUSING C66 T7Cf lw 1 79,;1994 CALL TO ORDER Chairman Schuster called the meeting to order at 3:30 p.m. Members Present:Kathy Robinson, Dick Schuster,Mario Pinedo Members Absent:Scott Montgomery,Sue Mirch-Kretschmann Staff Present: Vera Gil,Bob Cowan,Yvonne Kelley Others Present: Kerry Williams ORAL COMMUNICATIONS: None WRITTEN COMMUNICATIONS: None NEW BUSINESS: R&.qust from C n4 Housing Developers for additional funding for Bea donAcauisitiun- Vera Gil presented staff report recommending approval of additional 57,000 from City to Community Housing Developers to cover shortfall costs associated with purchase of 8 units on Beardon Circle. The additional money is needed to make up the difference between the original bid price of$650,000 and the selling price of$690,000 and also costs not covered by their conventional lender. Dick Schuster questioned what the rents currently are and an estimate of what they will be after completion of project. Kerry Williams stated that the rents currently run in the high 800's and will be substantially reduced once the project is finalized. Kerry also added that the current residents should qualify for the units,thus no relocation is necessary. Mario Pinedo moved to approve staffs recommendation of authorizing additional$57,000 to Community Housing Developers. Kathy Robinson seconded Vote 3-0 ADJOURNMENT: 4:00 p.m. SUBMITTED BY: APPROVED BY: Y ne ISeOey,Admin,Secr rY Dkk Schuster,Chairman ATTEST: lCim Smith, City Clerk c/win dows/housing/afh I l 29 CALL TO ORDER Chairman Schuster called the meeting to order at 3:40 pm. Members Present:Kathy Robinson,Sue Mirch-Kretschmann,Dick Schuster Members Absent:Mario Pinedo Staff Present: Vera Gil,Bob Cowan,Yvonne Kelley Others Present: Donna Austin,Nancy Burnett,Nancy Hendee,William Wickwire,Gertrude Welch,Tim Doty,Mary EllenChen,Lisa Budlen Approval of Minutes: The minutes were not available,the minutes for October 6,November 29,and December S will be presented at the January meeting Written Communications: A letter from Bill Wickwire regarding SRO's will be given to Committee members Oral communications. Nancy congratulated Dick Schuster as a Cupertino Volunteer of the Year Tim Doty gave an update on the drift brochure from the Affordable Housing Education Committee and status of the educational brochure that will be published. OLD Busuffm 1. Funding Request for CHD/Barry Swenson development on Tantau: Vera stated that CHD and Barry Swenson ar.-requesting$700,000 for the acquisition of the property. The original plan was for 56 units,but was decreased to 44 units due to neighborhood opposition. This was a compromise that was acceptable to staff Nancy Hendee gave an explanation of why the units were lowered from 56 to 44. This was based upon density that the neighbors fought against. Questions regarding balance of affordable housing find were discussed. Vera stated that thane is approximately 12 million in the fund and there are other sources that can be used if necessary. After discussion regarding casts per unit,income levels,and occupants per unit,a motion by Kathy Robinson to approve loan to CHD/Barry Swenson in the amount of$700,000 for land acquisition was made. Sue Mirch- Kretschmann seconded. Vote 3-0 Flick S&usM and Maw PmedO will serve as eOmmittee rePwgRMM On the LM C determining terms for efl'Orftle HOIItw*Fund kkum ADJOURPMENT SUBMI7"M BY: APPROVED BY: Yv ne Kelley,Admin.Seca ry Schuster,Chairman ATTEST- Kim Smith, City Clerk etwindOwslhOusing/nth 12S AFFORDABLE HOUSING CJONMITTEE 4 of 4 MINUTES MAY 11 1994-DEC. 14 19Q5 r CALL TO ORDER Chairman Schuster called the meeting to order at 3:30 p.m. Members Present: Dick Schuster,Mario Pinedo,Kathy Robinson, Steve Smith Members Absent: Sue Mirch-Kretschmann Staff Present: Vera Gil,Bob Cowan, Yvonne Kelley Others Present: William Wickwire,Gertrude Welch Dick Schuster introduced Steve Smith of Cupertino National Bank as the new member of the Committee. He fills the vacancy left by Scott Montgomery. Approval of Minutes: Kathy Robinson made a motion to approve the minutes of: October b,November 10, November 29,December S. Dick Schuster seconded Vote: 3-0 Oral Communications: William Wickwire spoke about the SRO's in the surrounding cities and encouraged the City to develop SRO's. Old Business: Nominations were opened for Chair and Vice Chair. Kathy made a motion to nominate Sue Mirch-Kretschmann as Chair and Mario Pinedo as Vice Chair. Mario seconded the nomination for Chair and Dick seconded the nomination for Vice Chair. Vote: 4-0 New.Business: Consideration of funding request from County of Santa Clara IWt a _71,WIMP Vera fail Presented the ste>f twat outlining the name of the reguesL She explained that the County of Santa Clara has approached Santa Clara County citie.i to ask for their assistance in handing a homeless cowmL 'Phis count would assist m o.btamn its and also provide essential information on each ei y's homeless population. Mv,,amount requested from the city is$638.36. Staff recommends approval of contributing S638.36fromtheBMRin-lieu fees. Kathy Robinson asked what the contributions would be used for, Vera stated that the monies would help cover the costs of hiring personnel to do the actual homeless count. Dario motioned to approve funding,Kathy seconded. Vote: 4-0 SUBMITTED BY:APPROVED BY: Yv nne Kelley, Dick Schuster,Chairman Admin.Secretary ATTEST: Kim Smith, City Clerk c/windows/housing/ath219 s s L e Ali l C•` 5....r..wur.ru.r..uu.rw....u....uu....uu.... u.w..«.. ...w rw...wr..uuwr.wrwu.uu.wu..uuu. CALL.TO ORDER Chairman Kretschmann called the meeting to order at 3:30 p.m. Members Present: Dick Schuster,Mario Pmedo,Kathy Robinson,Sue Mirch- Kretschmann Members Absent: Steve Smith Staff Present: Vera Gil,Yvonne Kelley Others Present: William Wickwire,Gertrude Welch,Liz Auton,Marlene Zelko, Sandy Reischer,Mary Ellen Chell Approval of Minutes: l. Mario made motion to approve minutes of February 9,Kathy seconded Vote: 4-0 Written Communications: Bill Wickwire spoke about letter he presented to Committee regarding supporting and promoting SRUs in Cupertino. Vera Gil stated that the problem is locating appropriate sites for an SR®. New Business: 2. CDBG Recommendations for 1995-96: Vera presented the staff report summarizing each proposal and the grant request. She briefly discussed each application and gave staffs recommendation. The Committee agreed to hear all proposals and vote at the end of the presentation. Cupertino Community Services Rotating Shelter($17,000)-This program is an excellent program in that it prepares its participants to become self-sufficient by establishing themselves back into the workforce. Mary Ellen Chell informed Committee of three new congregations in Saratoga that will be participating in this program. Staff recommendation: $15,000 Cupertino COmmUnity Services Placement Program($14,065) -This program places individuals and families in affordable housing. This program will now be responsible for placement of clients in our BMR units. Staff recommendation: 11,250 Committee members Schuster and Kretschmann had concerns that the Board of Directors of CCS failed to approve a request for CCS to host an informal group that provides positive,educational information about affordable housing in the City of Cupertino. Mary Ellen Chell,Director of CCS explained that the Board member in question voiced concerns over insurance liability concerning the brochure and volunteers potentially injuring themselves while working. After discussion of this issue,Chairperson Kretschmann made motion to submit letter on behalf of the Affordable(lousing Committee to Board of Directors at CCS outlining their unhappiness with the Board's action. Kathy Robinson seconded the motion. Vote 3-1 (Mario Pinedo voting no) Pacific Autism Center for Education(PACE): ($100,000)-Vera Gil explained that PACE has occupied this house for several years and have come before this committee requesting funds in the past. They were denied due to the Committae's feeling that the owner was ultimately responsible for repairing the roof. The Committee also suggested that PACE try and purchase the property. In the past two years PACE has worked very hard trying to purchase the home,therefore they are asking for a loan. They have also applied to the County of Santa Clara and various other agencies. Staff recommendation$100,000,secured loan with promissory note. Sandy Reischer,Director,PACE explained that they have received for this project a 50,000 match grant from Valley Foundation,$100,000 from Santa Clara County, fund raisers. Several parents are donating time and materials to repair home. Emergency housing Consortium EHC($5,000)-Vera Gil explained that this request is to for EHC to rehabilitate their recu-ntly acquired property. This property is a SRO that serves 95 people. Staff recommendation$5,000 loan from program income. Liz Auton,EHC representative explained that there are two existing deeds of trust on the property,therefore their agency cannot secure any other loans on the property. If the Committee approves the loan it must be unsecured. Vera will confer with the loan committee regarding approving an unsecured loan for EHC. Vera Gil stated that the final portiGn of approvals consists of staff time and equipment purchases to oversee the various program:,. Dick Schuster made motion to approve staffs recommendations on the proposals before this committee. Kathy seconded Vote: 4-0 v x k, Dick Srhu star asked that a report in summary format be given to the Comminee detailing the hinds available in the rehab loan and the CDBG accounts. Vera MI stated that the COMMUM would rive a summary in May when the accountant responsible for the CDBG accounts returned from maternity leave. 3. Revised Meeting Schedule for Remainder of 1995-Continued to next meeting. knnouncements: Chau—y..rson Kretschmann submitted handout to committee regarding new senate bills spors'red by'Tom Campbell and Jackie Speiers. She also wanted to know if there is anysspportforputtingonalegislativepanelregardingaffordablehousing. Adjournment SUBMITTED BY:APPROVED BY: V Y nue Kelley, Sue rdirch,`jvtsehm, Admin.Secretary Chairperson ATTEST: Kim Smith, City Clerk c/windows/housing/afli39 x a r RA M"mcro{ { C G jy th CALL TO ORDER Chairman y vucchmann called the meeting to order at 3:50 p.m. Members Present: Dick Schuster,Sue Hirch-Kretschmann,Steve Smith Members Absent: Mario P'inedo,Kathy Robinson Staff Present: Vera Gil,Yvonne Kelley Others Present: William Wickwire,Sandy Reischer,Mary Ellen Chell, Eloise Rosenberg,Dick Weaver,Susan Russeti,Lisa Bullen L Approval of Minutes: Dick Schuster presented text that would mom accurately express concerns with the Board of Directors at CCS. Approval of minutes were continued to next meeting due to lack of quorum for approval. Written Communications: None Oral Communication: None Old Business: 2. Revised Meeting Schedule for Remainder of 1995: Will discuss item 2 at the end. New Business: 3. Rvquest by PACE to assume SPARK Emdabon CDBG Loan: Vera Gil presented staff report stating the SPARK Foundation has closed their home on Drake Drive where they served autisitic clients. PACE would like to assume their loans of$132,700 and Vera stated this ffdls within CDBG regulations. Staff is also interested in maintaining all groups homes that currently exist. Chairperson Kretschmann questioned their financial status in the previous loan for 100,000 approved last month and also their ability to assume this loan. Vera stated that PACE is currently working with Cupertino National Bank. Dick Schuster moved to approve the request for PACE to assume SPA11K's current loan,Steve Smith seconded. Vote: 3-0 4. Lc9isIA iye Conference on Housing ages: Vera stated this item was agendized due to Chairperson Kretschmann's desire to host a forum whereas legislative issues and affordable housing education could be presented to the community. This could be a panel type discussion that would ansv rr questions regarding state and federal regulations related to affordable housing development in Cupertino. Vera will work with Sue to find potential speakers,location,etc. Vera"I work on staff report for the May meeting and work with Sue so that a target date can be decided upon. Chairperson Kretschmann moved to approve the Committee hosting a forum,Dick Schuster seconded Vote: 3-0 5. Policy decision on re-sai_e of BMR.units: Vera presented staff report explaining that one unit had been put on the market a few months ago and did not sell. It was stairs opinion that the Affordable Housing Committee should make a decision as to what should be done with the units we currently have. There are two units that are currently empty. The Committee's concerns were: 1. If we sold the units at market rate we would lose our BMR housing stuck. 2. If we sold as a BMR unit,the units would revert to owner after the 30 yw BMR limit.The owner could then sell on the market and possibly make a windfall. An analysis would need to be made regarding the life of the 30 years on each unit and what is the difference between current market rate and a possible selling price. Vera stated that the units at Portal are very small and did not de.well when they were on the market. The market value versus the BMR rate is not signigicand. Whereas difference for the unit on Gardenview maybe significantly more. The Committee discussed whether the policy should be changed to reflect 1)if units have over a certain dollar amount in equity to be determined)they would be sold at market rate,2)if units are at least into their 20th year of BMR life,they should be sold at market rate,3)if units are within the first 10-1 S years of BMR life and the equity is low,they would be maintained as BMR unit. Dick Schuster made motion to sell the two Portal Plaza units at BMR rate and to postpone disposition of unit at Gardenview until the next meeting. Steve Smith seconded. Vote: 3-0 TMI 2. Revised Meeting fie: Vera asked if the Committee could wavene a special meeting to bear a proposal from Lisa Builen,Barry Swenson for a funding wrest. The meeting is set for April 2'. at 4:00 p.m. The City NlanaW had suggested that the Affordable Housing Committee look at cutting back on dicir monthly meetings due to their current workload. Chairperson Kretschmann stated that she prefisred to meet,at least every other month so that the meetings are not longer due to the time between meetings. Dick Schuster said his preference would be to continue monthly meetings. Steve Smith felt monthly meetings would be good and also agreed that meeting with other committees, i.e., Planning Commission,City Council is necessary. Dick Schuster made motion to continue meeting monthly,Sue seconded. Vote: 3-0 Adjournment SUBMITTED BY:APPROVED BY: Yv nne Kelley, Sue b- Admin.Secrdwy Chairperson ATTEST: Kim Smith, City Cleric c/windows/housing/ath413 TIM C-4U TO ORDER Kathy Robinson called the meeting to order at 3:44 p.m. Members Present: Dick Schuster, Steve Smith,Kathy Robinson Members Sue Minch-Kretschmann&Mario Pinedo(arrived at 4:54 p.m.) Staff Present: Vera Gil,Yvonne Kelley Others Present: Lisa Bullen,Nancy Hendee,Marlene Zelko Approval of Minutes: Approval of minutes was postponed to end of meeting. Dick moved that approval of minutes for March 9 and April 13, be approved as submitted, Mario seconded Tote: March 9,4-1 (Steve Smith abstained) April 13,3-2(Mario Pinedo dt Kathy Robinson abstained) Written Communications: None Oral Communication: None New Business: Education Committee Brochures - Tim Doty: Brochures were passed out to committee meanbers. Tnn informed the committee that Cupertino Community Services is now hosting the education committee by allowing the committee to use CCS's mailing address and use of office space for volunteers. The Committee's goals are to solicit an affordable housing coalition advocating and educating citizens in Cupertino regarding affordable housing. S 2J3 hest from CHD. for Additional funds - Vera Gil presented staff report outlining CH°S request for additional funding. Nancy Hendee and Use 13ullen explained that a deacased amount of funding from Santa Clara County (famding request was for $800,000, only $O,000 was recommended for approval)was expected and that CHD is strug&ft to mstre up the difference between the requested amount and the approved amount project costs are also higher due to the Cupertino City Council approving less units than originally proposed(40 units rather than 44). Mario Pinedo questioned staffs recommendation of only $100,000 instead of the total $121,000 request. Vera Gil stated that staff felt CHD should pursue other avenues for the $21,000 more aggressively. Kathy Robinson asked why the reduction of 4 units increased the costs by 200,000. Nancy Hendee explained that the costs actually went down, but the subsidy needed for the project went up. Dick Schuster was concerned about possible profits in the next 20-30 yea,.;. He felt that appropriate language should be written into the loan documents regarding profits and what should be done with the proceeds. Nancy stated that historically there are no profits in this type of construction, but any profits made from a project must be put back into an affordable housing development. This language is written into the bylaws and is a CDBG regulation. Discussion regarding the additional funding request ensued. The concerns expressed were; 1) is this the type of project the Committee really wants to invest in? 2) are the rents really affordable? The Committee was in agreement with conditions of the loan to include: 1. Independent construction audit 2. Any leftover monies would be rep6d to City 3. Any profits made must be used towards paying down the City loan. 4. Need land appraisal 5. Need final proforma Rick made motion to-zpprove staffs recommendation with above amendments. Due to lack of second,motion died. Mario amended motion by recommending funding of $121,000 with above amendments, Steve secanded. Vote: 3-2(Dick Schuster,Kathy Robinson noes) Adjournment 2 30 SUBmnmM i VERB i Y ottne Kelaty, vicechet AdmhL Secretary ATTEST: Kim Smith, City Clerk cAvindovvhowingtafb 413 3 J A&' ; 1+ ;a r:-.., S"u kw v 2.., s a x ' t'. tiu' +a 3., i i 1 r 2 J CALL,TO ORDER Sue Mimh-Kretschmann called the meeting to order at 3:30 p.m. Members Present: Dick Schuster,Sue Mirch-Kretschnann,Mario Pinedo Kathy Robinson arrived after meeting was called to order Staff Present: Vera Gil,Yvonne Kelley Others Present:Marlene Zelko Approval of Minutes: Dick Schuster made motion to approve minutes as submitted,Mario seconded Vote 3-0 Written Communications: None Oral Communication: None New Business: 2. t< of Financial_State*MU: Vera Gil presented staff report and detailed financial reports from CDBG,General Fund,and Rehab program income. Dick Schuster asked for clarification on a few accounts and their balances. The Committee agreed that they would like a copy of the 2nd quarter reports(Apr.-Jun.). 3. Reduction of S aff Lim as igaW to Committee: Vera Gil presented staff report outlining the resignation of a Planner H and the increased workload that it creates for the remaining staff.due to the position not being replaced. There were questions from the committee as to how they could re-structure so that staff would not be required to attend each meeting. Vera explained that the recording of the minutes and staff reports are not the only time consuming responsibility. The Committee would have to prepare the notices,do mailings,etc. The agendas would have to be ready a month and a half before the meeting date in order for staff to Bend out the mailing list. 4 t h,f Dirk Schuster made a motion that the Committee;appreciates the staffing problems associted with the housing/planning department,but that they are : lling to take on the addifional wok associated with meeting monthly. This includes front end work necessmy for aftematee months. Kathy Robinson second. Vote: 4-0 4. Loan Commiam Dick Schuster stated he and Mario Pinedo have been representatives from this Committee to the Loan Committee and was concerned if Steve Smith should be representative since he is the financial representative, Dick Schuster stated that he would like whomever is the representative to report back to this Committee. Vera Gil suggested that maybe the loan committee did not need two representatives from the Bank.,The Committee agreed that Dick would continue to serve on the Loan Committee. Chairperson Kretschmann asked that the agenda reflect that this meeting is adjourned to July instead of August as stated. Adjoununent SUBNHTTED BY:APPROVED BY: U v m4q, 4Atin U AW'4 Yv ne Kelley, rio Piro ,Vice Chun Admin.Secretary ATTEST: Kim Smith, City Clerk c/windows/housing/aflh6895 x-£ S 1 r iy."' t ^ri .' "r„.r ` y"U ky 3§s y C1 e 0. S CALL TO ORDER Sue Mirch-Kretschmann called the meeting to order at 3:30 p.m. Members Present: Dick Schuster,Sue Mirch-Kretschmann,Mario pinedo Kathy Robinson,Steve Smith arrived aver meeting was called to order Staff Present: Vera Gil,Yvonne Kelley,Bob Cowan Others Present: Donna Austin Approval of Minutes: Dick Schuster made motion to approve minutes 2s submitted,Mario seconded Vote 4-0 Written Communications: None Oral Communication: None Old Business: Reduction of Minas: Discussion was opened regarding the Commit`ee's desire not to reduce meetings to every other month. The Committee felt that every other meeting could be an information meeting only and staff would not have to be present where minutes had to be taken. Dick Schuster inquired if the Committee recommendations were taken to City Council,Vera Gil stated that the committee made no recommendation and that we are here to discuss and finalize issues surrounding alternate meetings,etc. She also stated that after speaking to Bob Cowan and Don Brown their concerns were related to meeting without staff and maybe making policy without staffs knowledge or input. The Committee stated that issues not on the agenda could not be voted on,therefore a recommendation could not go to the City Council. Dick Schuster suggested that an independent consultant come in and identify what this committee has accomplished since the nexus study and if this Committee is successful in what its goals were. nP Bob Cowan stated that Committees are often disbanded ailer their goals and objectives are met. Chairperson Kretschmann added that the Committee's goals are to continue to educate themselves and the public regarding affordable housing. In order to reduce staff time.the Committee could meet every oar month for business related items and the months between for informational type meetings. There was a suggestion that Committee members decide what their work program will be and meet accordingly. Each member will prepare a list of goals and objectives they would like to accomplish in the next year and bring them to the next meeting. The Committee voted to meet in August and hear from the Education Committee. Committee Reports: Dick Schuster reported that the Loan Committee approved the loan from HCD with the loan terms of 40 years at 3%simple interest. Annual payments equal to the residual receipts subject to audit with no deferral. Total funding for the project is$600,000 from County CDHG,an additional$100,000 from.the County Trust Fund,$821,000 from this Committee. Adjournment SUBMITTED BY:APPROVED BY: v `s Yv nne Kelley, Sue Mircb-Kretschmann,AhXai Admin.Secretary ATTEST: Za Kimberly Smi , City Clerk Uwindows/housing/ath71395 a h y CALL TO ORDER Sue Mirch-Kretschmann called the meeting order at 3:30 pan. Members Present: Dick Schuster,Sue Mirch-Kretschmann and,Kathy Robinson Members Absent: Mario Pinedo and,Steve Smith Staff Present: Vera Gil,Nancy Souders Others Present: Sharon Blaine,Gertrude Welch,William Wickwire,Mary Ellen Chell,and Marlene Zelko APPROVAL OF MINUTES: Dick Schuster requested the following changes to be made to the minutes of July 13, 1995: Dick Schuster suggested that an independent consultant come in and identify what the City has accomplished since the nexus study and if the City is successful in what its goals were." Total funding for the project is$600,000 from county CDEG,an addition$100,000 from the County Trust Fund,$821,000 from the City." Kathy Robinson moved for an approval of the minutes with the above mentioned changes. Dick Schuster seconded the motion. Vote 3-0. WRITTEN COMMUNICATIONS: Letter from Dick Schuster to the City Council. ORAL COMMUNICATIONS: Gertrude Welch mentioned that the City of San Jose waived the park fees for just the affordable units. She also stated that the only units that she is aware of that are being developed for affordable housing are locate on TarftL Ms. Welch mendored her fiustration that affordable hou.@ing in Cupertino is not pro William Wickwire spoke about the fact that the City of Cupertino does not have any single room occupancy hotels. He also questioned if the new apartments being built by Citation would include any homes.for affordable housing. Sharon Blaine asked the Committee about the Housing Mitigation Manual that went to the Planning Commission. Ms. Blaine asked if the Cemmittee's job was to report the Planning Commission or to the City Council. Her opinion is that the Committee should be reporting directly to the City Council. Mary Ellen Chell advised that Christine Moreland is no longer the Shelter Case Manager. The CCS Board of Directors have agreed to house the Affordable Housing Education Committee. Members of the Education Committee and CCS feel this is a good working relationship.and asked if the Affordable Housing Committee would need to approve further meetings. OLD BUSINESS: 1. Upd=from Affordable_Hm ng_E-ducation Commi=- Mr. Doty was unable to attend the meeting. This item was cancelled. 2. Gpal,Set 'n isson-Each member gave his/her recommendations. Kathy Robinson: 1. Suggested the Affordable Housing Committee re-evaluate the role of the Committee and revisit the Housing Mitigation Manual. 2. Ms. Robinson suggested that the Committee bring in other people involved in affordable housing. This would bring in different ideas to discuss all types of affordable housing needs and possibly assist in defining how people needing affordable housing such as senior citizens can be served more efficiently. 3. Ms. Robinson suggested that representatives from surrounding banks come and speak to the group for ideas on creative financing that could be offered to developers of affordable housing. Dick Schuster. 1. Ordinance Review - An annual review of the policy that establishes the Affordable Housing Committee. 2. Self Education - VAR include the annual ordinance review. The Committee should invite people to participate in the Committee's process. Solicit opinions frown non- profit developers. This could be included in community meetings. 3. Survey - Request input from City Staff,Commissions,City Council,Affordable Housing Education Committee,and Cupertino Community Services by surveys in order to fend information relevant to the affordable housing. 4. Evaluation - Complete evaluations at the time of the annual review of the Housing and Land Use Element of the City's General flan. To study the positivetnegative affect that the City's policies have on affordable housing. Sue Mireh-Kretschmann 1. Better communication with the City Council 2. Accessibility to the community. 3. Evening Informational Meetings. 4. Educate the community and the City Council. This would be by having regular meetings and each member of the committee be responsible for a council member, including attending the Mayor breakfasts. 3. Joint mccting with QV CQunsl-An inquiry has been made w%h the City Clerk. Staff suggested that the committee come up with some specific examples as to how their goals will be met. ADJOURNMENT SUBMITTED BY: APPROVED BY: Nancy ouders,Clerk Typist Chairperson, Sere Kretschrnann ATTEST: Kim Smith,City Clerk gro0nin&1bs10 s ITT zrf Y r r f .. F r r CALL TO ORDER Mario Pinedo called the meeting to order at 3:45 p.m. Members Present: Dick Schuster,Mario Pinedo,Kathy Robinson,Steve Smith Staff'Present:Vera Gil, Yvonne Keiley Others Present: Marlene Zelko Approval of Minutes: Approval of minutes was tabled until next meeting due to lack of quorum of members present at last meeting. Written Communications: None Oral Communications: None: Old Business: 1. Joint Meeting and h QUCent i©ctober 16_1q9-5-Vera Gil informed Committee members that a joint meeting was scheduled with City Council to discuss goals and objectives of Committee. This meeting should be informative as to the direction that City Council wishes the Committee to take. 2. S'o i elfin Session-It was agreed that the Committee would continue this item until October 5,at the joint meeting. Mario Pinedo was not present at August meeting and wanted to share his goals of the Committee. He felt that the Committe should be pro-active in seeking out apartment owners&developers who may be willing to contribute to affordable housing goals. Kathy Robinson added that clarification as to who the Committee is advisory to should be addressed. 3. SuubicaU and Responsibilities for Meeting.Dates-It was agreed that this should be tabled until after the joint meeting. AWL Announcements: Vera circulated copies of the Affordable Housing Cotninitt+x Ordinance so that members are aware of changes that Couatil imfiaited at September 5 miming. The minimum meeting times am now quarterly instead i:fmonthly and manbers can now be reimbursed for expenses directly related to performing their duties as Affordable Housing Committee member. Mck Schuster informed committee members that Le Beaulieu is having their birthday party on September 29. Committee members are invited. Adjournment: 4:10 SURAUTTED BY:APPROVED BY: L, oune Kelley, Sere Nfirch-Kretschmann, Admin.Secretary Chairperson ATTEST: Kimberly S . , City Cleric c/windows/housing/a&9 Z 495 WIWI-WlTRIP CALL TO ORDER Sue Mirch-Kretschmann called the meeting order at 3:30 p.m. Members Present: Dick Schuster,Sue Mirch-Kretschmann,Kathy Robinson,Mario Pinedo,and Steve Smith Members Absent: None Staff Present:Vera Gil,Nancy Souders Others Present: None APPROVAL.OF MINUTES: Dick Schuster moved for an approval of the minutes for August 10, 1995. Kathy Robinson seconded the motion. Vote 3-0. Kathy Robinson requested the following changes to be made to the minutes of September 14, 1995: Goal Setting Session-It was agreed that the Committee would continue this item until October 5,199S. Dick Schuster moved for an approval of the minutes N%ith the above mentioned changes. !Kathy Robinson seconded the motion. Vote 4-0. WRYffEN COMN UMCA'TIONS: None ORAL COMMUNICATIONS: Dick Schuster mentioned that the library and City Hall no longer had the Affordable Housing Coalition Brochure displayed for the public. Sue Mirch-iCretschmann agreed to obtain more for the City. OLD BUSINESS: 1. Joint Meeting. th City Council-October 16. 1926 at 6eOO p•m.- Vera Gil confirmed with the City Clerk's office that the meeting is scheduled for October 16, 1995. She also stated that the committee needed to complete their goals and agree upon an agenda. [sick Schuster suggested the Sue Mirch Kretschmann be the representative for the Affordable Housing Committee. Sue Mirch-Kretschmann stated that she felt that the meeting should be opened with asking the City Co1mcil how they perceive the Affordable Housing Committee. The committee agreed the following items would be included with the agenda for the meeting: Continue encouraging the participation of local churches,service organizations, and school districts in the development of Affordable Housing,including long- term leases of property from school districts. Offer technical assistance to developers such as investigating various financing strategies. Examples include local and county bonding, permanent financing for mixed use projects, and pension fiends as sources of construction financing. Creating a Housing Endowment Program for affordable housing. Develop Educational programs regarding Affordable Housing. Including forming a housing advocacy group to educate residents about affordable housing needs and benefits. Zo Goal Setting Session-Vera Gil explained this session is to clarify what goals would be presented to the City Council on October 16, 1995. Sue Mirch-Kretschmann suggested that committee inform the City Council that they see their goals as on going,and not completed in respect to housing advocacy,education and provisions. She also suggested asking the City Council their feelings on the committees goal of wanting to go out into the communities and educating the residents of Cupertino on Affordable Housing. Sue- Mirch-Kretschmann stated that she would attempt to mention each members goals that were discussed in previous Affordable Housing Committee meetings. y TOTTMIM NEW Di>S.ilWM: 3. Apool Hgng;= F CM _Review: Versa Gil reviewed the Annual dousing Element Review with die committee. The committee requested that items 28 and 30 be amended from completed to ongoing. The committee also agreed that items 21,25,26,28,and 30 are a priority to this committee. Vote 4-®, ANNOUNCEMENTS: None COMMITTEE MEMBER REPORTS: Dick Schuster shared that he is the Cupertino representative on the County CDBG Citizen Advisory Committee. Dick stated that the County CDBG Council is meeting on October 5th. ADJOURNMENT SUBMITTED BY: APPROVED BY: Nancy Sodders,Clerk Typist Chairpera®®, Sue Mirch-Kretachmma ATTEST: Kim Smith,City Clerk gxplanniff&D10593 Y IM t r 1 NOTICE AND CALL OF A SPECIAL METING OF THE CUPERTINO AFFORDABLE HOUSING COMUTTEE TO THE AI MBERS OF THE AFFORDABLE HOUSING COwnTEE OF THE CITY OF CUPERTINO AND TO THE CITY CLERK: NOTICE IS HEREBY GIVEN that a special meeting of the City of Cupertino Affordable Housing Committee is hereby calf to be held on Thursday, November 16, 1995, commencing at 3:30 p.m. in Conference Rooms C & D, City Fall, 10300 Torre Avenue,Cupertino,California. Said special meeting shall be for the purpose of considering regular business. Dated: 1 A g Chairperson NOTICE IS HEREBY GIVEN that a special meeting of the City of Cupertino Affordable Housing Committee is hereby called to be held on Thursday, November 16, 1995, commencing at 3:30 p.m. in Conference Rooms C & D, City Hall, 10300 Torre Avenue, Cupertino, California. Said special meeting shall be for the purpose of considering regular business as specified in the call for special meeting above. Dated: „ dt Vr L V mV' W ' Cr Rec g Secretary s t CALL TO ORDER Sue Mirch-Kretschmann called the meeting to order at 3:40 p.m. Members Present: Dick Schuster,Kathy Robinson,Sue Mirch-Kretschmann Members Absent: Steve Smith,Mario Pinedo Staff Present: Vera Gil,Yvonne Kelley,Bob Cowan Others Present: Mary Ellen Chell,Gertrude Welch,MartinBishop Approval of Minutes: Dick moved to strike wording from Committee Member reports: ...The County CDBG Council Committee is meeting on October 5. Kathy moved to approve minutes with corrections as noted. Dick seconded Vote: 3-0 Written Communications: Letter from City Clerk to members of Affordable Housing Committee regarding action taken on Housing Mitigation Manual. Dick Schuster had questions to ask and wanted to agendize this for the next meeting. Oral Communications: None Old Business: 1. Joint Meeting with City Council October 16, 1995-Dick Schuster and Sue Mirch- Kretschmann summarized their opinions of how the joint Council/Committee meeting went. The outcome of the meeting was the Council changed the name of the Committee,they had no opposition to educating the community. There was a lengthy discussion regarding how to provide more affordable housing and also encourage developers to designate affordable units instead of paying in-lieu fees. r r 7 Dick Scher suggest changjng the mYeedng tiros. He felt that more community involved could be achieved if the Committee met during the evening hours. Of course,this could impact the staff sum we already have several night meetings. It was then suggested that the committee meet on a quarterly basis for night meetings. 2. Proposal for Transitional housing from CCS: Vera Gil presented staff report stating that CCS, after looking at unit suggested using it as a transitional home for graduates of the rotating shelter. Staffs concerns were that this unit would not generate any income when used in this capacity. Vera stated that if this unit were sold with the remaining BMR units,the Comm:ttee could leverage the money to buy a small four-plea that could serve more low income persons. Mary Ellen Chell explained the proposal for the house budget detailing that approximately 1,400 would left over. Mary Ellen also stated that the income generated should go back to CCS. Several committee members felt that the funds charged the clients was high compared to market rate room rents. They also felt this unit would not serve many clients as opposed to seeking a larger house and multi-family structure that could serve more clients and at the same time reducing the rents. Rick Schuster stated that he would like to see the Committee support CCS at least on a trial basis. Sue Mirch-Kretschmann stated she would like to see the units being sold and leveraged against purchasing affordable housing. Kathy Robinson was in favor of providing some type of transitional housing,but felt this location was not appropriate. The Committee was in favor of continuing this item until the next meeting so that further information exploring all the options can be gathered. Committee Member Reports: Dick Schuster gave staff a written copy of his committee report to be distributed to Committee Members. Ad jourmment: 5:45 SUBMITTED BY:APPROVED BY: Y onne Kelley, Sue March-Kretschrmann, Admin.Secretary Chairperson ATTEST: Kimberly Smith, City Clerk INE:I 11MM 4 AML AMUM OF THE REGULAR MMTMG OF IVE 110UNNG COA9drr= DECEMBER 14,19" CALL TO ORDER Sue Mirch-Kretschmann called the meeting to order at 3:40 p.m. Members Present: Dick Schuster,Kathy Robinson, Sue Mirch-Kretschmann Members Absent: Steve Smith, Mario Pinedo Staff Present: Vera Gil, Yvonne Kelley, Bob Cowan Others Present: Mary Ellen Chell,Andrew Estigon Approval of Minutes: Dick Schuster wanted to correct the minutes to accurately reflect his statements when approving the minutes of October 12. Mr. Schuster said A minutes stated "Dick Schuster shared that he is the Cupertino representative on the County CDBG Citizens Advisory Committee. Dick stated that the County CDBG Council Committee is having their own meeting on October 5 and the adjoining cities..." Mr. Schuster moved that it be revised to state"The County CDBG Council Committee is meeting on October 5. Sue Mirch-Kretschmann suggested that"It was then suggested that the Committee meet on a quarterly basis for night meetings." be added to last sentence of first paragraph on page two. Dick Schuster wanted to clarify that the figure 1,400 referenced in paragraph 3,second page was dollars. Kathy moved to approved the minutes as corrected above,Dick seconded. Vote:3-0 Written Communications: Letters from Dick Schuster dated November 14th and 16th regarding the Housing Mitigation Manual and Committee Report submitted at the November 16th meeting. Oral Communications: None Old Business: 1. Housing Mitigation Manual as approved by City Council(Dick Schuster)- Vera Gil addressed the list of concerns Mr.Schuster had. Dick also commented on the Housing Mitigation'Manual,those concerns consisted of:• the City Attorney's name to the credit list on the introduction page of the manual the rationale for the V per square foot fee. Clarify why retail is not assessed an in lieu fee. Paragraph 2.2.1 -needs to be updated to reflect fee imposed on all new residential developments. Mitigation Requirement-clarify the ratio for"for sale" versus"rental". Paragraph 2.2.6-qualification for affordable units:clarify what"as necessary" means. Paragraph 2.3.1 -Density Bonus:clarify what"reasonable"and"city standards" are. Paragraph 2.2.33 -Financial Systems: Paragraph 2.43 - Solicitation of Applicants: Prioritizing applicants for affordable housing. Exhibit A-Median income is close to the moderate income range. Vera will incorporate these suggestions into the housing manual as these do not include policy changes,just clarifications. 2. Sale of City-owned Townhomes- Mary Ellen Chell spoke about the meeting held with Mario Pinedo, Steve Smith,and the President of the Board of CCS. Ms.Chell shared her surprised at the comparable prices of the units reviewed. Ms. Chell reported that Steve Smith was confident that Cupertino National could help with financing. If the BMR units were sold and the City loaned CCS an additional$100,000,(money left in housing fund)Cl could purchase something that would serve a greater number of clients. Kathy Robinson made a motion to sell Garden Terrace at market rate and direct those funds towards purchasing a fourplex to be used for transitional living. Dick se(;onded. Vote: 3-0 3. Proposal from Judy Chen for affordable units-Vera Gil presented letter from Judy Chen and explained Ms. Chen asked this item to be continued as she is out of town. The committee discussed several issues regarding the proposal. The Committee will discuss these concerns when Ms. Chen is available at the next meeting. 4. Duties for January Meeting- Vera questioned the committee on their desires to begin the alternative meeting schedule. Agenda items scheduled are the Judy Chen request and CCS proposal(if information is received). February may be a good month for planning an evening informational meeting. Some speakers might include: Charlie Chew, Santa Clara HCD, Planning Commissioners,Councilmembers,and Tim Doty. Staff will check with Quinlan for meeting room,Kathy will speak to Chadic Clow about pardcqating day a panel discuion and also CH. Sue will call CCS about aftuling also and geWing the hAnnation to Donna Krey+to put in the Cupertino Scene. Committee Member Rapo:b: None Adjournment: 5:15 SUBMITTED BY:APPROVED BY: 3l nne Kelley, Sue h-Kretschmann, Admin. Secretary Chairperson ATTEST: 44.7t,t5 Kimberly Smi City Clerk c/windows/housing/ath 1214