CC Resolution No. 6595 RESOLUTION NO. 6595
A kESOLUTION OF THE CITY CDUNCIL OF THE CITY OF CUPERTINO
, ADOPTING A POLICY WHICH STATES THE HELOW MAftKET
RATE H~USIN6 RE~uIkEMENTS FOR
RETIREMENT FACILITIES
WNE~EflS~ the General Plan requires that all residential
projects participate in the City's Below-Market Rate (BMR)
Housing Programg and
WHEREAS, the City currently does not have a policy which
states how retirement facilities should comply with th~ above bMR
participation requirement.
NOW, THEkEFORE, HE IT RESOLVED, thzt the City Council
hereby adopts the attached policy, labeled Er.hibit A, which
outlines the BMR requirements for retirement facilities.
PA5SED AND ADOFTED at a regular meeting o4 the City
Council of the City of Cupertino this 3rd day of September, 1985,
6y the following vote:
Vote Members_of_the_City_Council
AYES: Gatto, Plungy, Rogers, Sparks, Johnson
NOES: None
ABSE~T: None
ABSTAIN: ~ Nane
ATTEST: APPkOVED:
/s/ Allison Villarante /s/ Phil N. Johnson
City Clerk Mayor, City of Cupertino
Deputy
' EXHIBI'f A
BMk PROGRAM
' ' RETIREMENT FACILITIES
~ A. If the developer of ~ retirement facility participates in the
County's Ptulti-Family Mortg~ge Revenue Hond (MRH> Program,
his BMR commitment for the City's HMR Program shall be as
follows:
- Twenty percent of the ~~nits shall be rented at affordable
rates for a minimum of ten years. At the end of this
period, continued pzrticipativn in the PMR Proqram shall
be re-evaluated, based upon the requiremente for
retirement facilities which is then in effect. The
intent is that re-evaluation 4ocus er,clusively on whether
continued participatio~ in the BMR Program is required.
If continued particip~tion is required, a maximum of 10%
of the units shali 6e su6ject to the BMR Program and a
minimum rent consistertt, with the MRB Program shall be
mai~tained.
- The rent fvr h~lf the affordable units shall equal the
"Fair Market Rent" as determined 6y HUD. The rent for
the other half of the affordabie units shall be based o~
30% of 8d% of the County's median income. The above
rental rents are 4or the room only. Tney do not include
meals, transportation, or other services av~ila6le to
residents paying market rate rents. MRB residents shall
have tha option of purchasing these services for an
additional fee(s) to be determined 6y the developer.
- Persons living in the City of Cupertino shall receive
first priority for obtaining an af4ordable unit.
- A resident(s> occupying an affordable unit at the end of
ten years or the required participation period, whichever
is greater, shall be permitted to continue renting said
unit at the above affordable rates until said resident(s)
is not able to care for him/herself o~ until said
residentis) voluntarily vacates the unit. At this time,
the unit shall no longer 6e subject to the requirements
of the BMR Program and may be rented at a market rate. A
resident shall be considered to be able to care for
him/herself if his/her spouse will care for said
resident.
B. If the developer of a retirement facility uses conventional
financing, his BMR commitment shall be the same as is
described above, except that only 10% of the,units must be
priced at affordable rates for the first ten years.