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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.