Item F-1 Agenda Report — Beverly Hills City Council, October 10, 2024 (part 2 of 3)

Meeting Date: September 10, 2019
being available the notice states the income that is required to qualify for the given units. These income levels are established by the State of California and depend on the level of affordability that was determined at the time of project approval (such as very low income, low income, or moderate income). When all applications have been received, the first step is to determine which complete applications meet the overall income requirements for the given units. Once that pool of applicants has been determined, the eligible applicants will be placed into one of the six tiers outlined above. If more than one household falls into each tier, then a lottery system will be used within each tier to rank eligible applicants.

The application materials released for each unit will ask appropriate questions to help identify what tier an applicant should be assigned to. For example, the application will ask if an applicant has recently been displaced from a building in the City, or if an applicant is more than 62 years of age or older. Further, staff will work with developers when a project with affordable units is filed for entitlement review to ensure that the tenants living in the property at the time of filing are identified so that they can be properly notified when the affordable units are constructed.

PUBLIC OUTREACH AND NOTIFICATION
Notice of this hearing was published in the Beverly Hills Courier on August 16, 2019, and the Beverly Hills Weekly on August 29, 2019, and courtesy notices were emailed to interested parties.

To date, staff has not received comments from the public regarding this draft ordinance. Public comments received throughout the process are included in Attachment 4.

ENVIRONMENTAL ASSESSMENT
This Ordinance has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. The adoption and implementation of the Ordinance appears to be eligible for a class 5 categorical exemption for minor changes in land use limitations and the Ordinance could be found to not have a significant environmental impact. Further, it can be seen with certainty that there is no possibility that the adoption and implementation of the Ordinance could have a significant effect on the environment. Staff recommends that the City Council find that this Ordinance is exempt from the environmental review requirements of CEQA pursuant to Section 15305 of Title 14 of the California Code of Regulations and Section 15061 (b)(3) of Title 14 of the California Code of Regulations.

FISCAL IMPACTS
There are no fiscal impacts associated with the adoption or implementation of this Ordinance.

Page6of7
Meeting Date: September 10, 2019

RECOMMENDATION
Pursuant to the Planning Commission’s review and recommendations, staff recommends that the City Council move to waive the full reading of the ordinance and that the ordinance entitled “AN

ORDINANCE OF THE CITY OF BEVERLY HILLS AMENDING BEVERLY HILLS MUNICIPAL CODE §10-3-1528 PERTAINING TO THE OCCUPANCY PRIORITY FOR AFFORDABLE HOUSING UNITS BUILT IN THE CITY PURSUANT TO THE CITY’S RESIDENTIAL DENSITY BONUS REGULATIONS” be introduced and read by title only.

Susan Healy Keene, AICP
Director of Community Development
proved By
Page7of7
Attachment I
Ordinance
ORDNANCE NO. 19-0-
AN ORDINANCE Of THE CITY Of BEVERLY HILLS

AMENDING BEVERLY HILLS MUNICIPAL CODE SECTION
10-3-1528 PERTAINING TO THE OCCUPANCY PRIORITY

FOR AFFORDABLE HOUSING UNITS BUILT IN THE CITY
PURSUANT TO THE CITY’S RESIDENTIAL DENSITY
BONUS REGULATIONS.

THE CITY COUNCIL Of THE CITY OF BEVERLY HILLS HEREBY ORDAINS AS FOLLOWS:

Section 1. On October 12, 2017, the Planning Commission held a duly noticed public hearing after which it adopted Resolution No. 1824, recommending that the City Council amend portions of Title 10 (Planning and Zoning) of the Beverly Hills Municipal Code to refine the occupancy priority list for affordable housing units built in the City pursuant to the City’s Density Bonus regulations (collectively, the “Amendments”). On September 10, 2019, the City Council held a duly noticed public hearing, received public testimony, and thereafter introduced this Ordinance.

Section 3. The Amendments are consistent with the objectives, principles, and standards of the General Plan. General Plan Policy H3 “fair Housing and Special Needs Residents” calls for the promotion of equal housing opportunities for all residents including Beverly Hills’ special needs populations. Included in this Goal is Policy H3.2 “Senior Housing” that calls for support of a provision of a variety of housing options for seniors to foster independence and the ability of seniors to remain in the community as they age.

Section 4. The City Council hereby amends Section 10-3-1528 of Article 15.2 of Chapter 3 of Title 10 of the Beverly Hills Municipal Code to read as follows:
“10-3-1528: OCCUPANCY PRIORITY:

Occupancy priority for eligible units shall conform to the following six tiers.

A. Tier I - Senior Tenants Displaced from the Project Site: First priority shall go to income qualified households in which at least one member is a senior (62 years and older) and that are or will be required to vacate existing dwelling units on the site of development so that an owner or developer may perform any construction, renovation or addition pursuant to a density bonus permit. Ifthe number ofqualified applicants in this tier exceeds the number of available units, then a lottery shall be held within this tier to determine the order in which the units are offered to the displaced qualified senior household applicants.

B. Tier 2 —Tenants Displaced from the Project Site: Second priority shall go to income qualified households that are or will be required to vacate existing dwelling units on the site of development so that an owner or developer may perform any construction, -7-
BO785OOQ1\2332878v3.doc
renovation or addition pursuant to a density bonus permit. If the number of qualified applicants in this tier exceeds the number of available units, then a lottery shall be held within this tier to determine the order in which the units are offered to the displaced qualified tenant household applicants.

C. Tier 3 — Displaced Senior Households: Income qualified households in which at least one member is a senior (62 years and older) and that have been displaced from any multi-family building in the City that was demolished within the past two years from the date on which applications for the affordable housing units are dtie or that are living in a multi-family property in the City that has received all entitlements, excluding building permits, to redevelop the site in a maimer that requires all residents to vacate the site, provided that such entitlements remain valid and have not expired on the date the applications for the affordable housing units are due. Ifthe number of qualified applicants in this tier exceed the number of available units, then a lottery shall be held within this tier to determine the order in which the units are offered to the qualified displaced senior household applicants.

D. Tier 4 — Displaced Households: Income qualified households displaced from a multi-family building in the City that was demolished within the past two years from the date on which the applications for the affordable housing units are due or that are living in a multi-family property in the City that has received all entitlements, excluding building pemits, to redevelop the site in a manner that requires all residents to vacate the site, provided that the entitlements remain valid and have not expired on the date applications for the affordable housing units are due, If the number of qualified applicants in this tier exceeds the number of available units, then a lottery shall be held within this tier to -3-
80785-0001\2332878v3Uoc
determine the order in which the units are offered to the qualified displaced household applicants.

E. Tier 5 — Senior Households: Income qualified households with at least one member who is a senior (62 years and older). If the number of qualified applicants in this tier exceeds the number of available units, then a lottery shall be held within this tier to determine the order in which the units are offered to the qualified senior household applicants.

F. Tier 6 — Other Income Qualified Households: Income qualified households that do not meet the requirements of Tiers 1-5. If the number of qualified applicants in this tier exceeds the number of available units, then a lottery shall be held within this tier to determine the order in which the units are offered to the qualified household applicants.

G. Exceptions:
1, In the event that a density bonus is granted for specific tenants pursuant to State Density Bonus Law (California Government Code § 65915 (b)(l)(E)) then the tiered list provided in this section shall not be used to fill the affordable housing units.

2. In the implementation of these priorities, the City shall in no way discriminate against any person or family due to disability.”
Section 5. Severability. If any section. subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance or the application thereof to any person or place, is for any reason held to be invalid or unconstitutional by the final decision of any court of competent jurisdiction, the remainder of this Ordinance shall be and remain in full force and effect. -4-
B0785-0001\2332878v3.doc
Section 6. Publication. The City Clerk shall cause this Ordinance to be published at least once in a newspaper of general circulation published and circulated in the City within fifteen (15) days after its passage in accordance with Section 36933 ofthe Government Code, shall certify to the adoption of this Ordinance, and shall cause this Ordinance and his certification, together with proof of publication, to be entered in the Book of Ordinances of the Council of this City.

Section 7. Effective Date. This Ordinance shall go into effect and be in full force and effect at 12:01 am. on the thirty-first (3 1st) day after its passage.

Adopted:

Effective:

JOHN A. MIRISCH
Mayor ofthe City of
Beverly Hills. California
ATTEST:

HUMA AHMED
City Clerk
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
1JD7’hL (s
LAURENCE S. WIENER GEORGE CHAVEZ
City Attorney City Manager
3Mi
9SAN HEALY KEE
Director of Community Development
-5-
BO785OOO1\2332878v3doc
Attachment 2
Planning Commission Resolution
RESOLUTION NO. 1824
A RESOLUTION Of THE PLANNING COMMISSION OF THE
CITY OF BEVERLY HILLS RECOMMENDING TO THE CiTY

COUNCIL AMENDMENTS TO BEVERLY HILLS
MUNICIPAL CODE SECTION 10-3-1528 PERTAINING TO

THE OCCUPANCY PRIORITY FOR AFFORDABLE HOUSING
UNITS BUILT IN THE CITY PURSUANT TO THE CITY’S
RESIDENTIAL DENSITY BONUS REGULATIONS.

WHEREAS, the Planning Commission has considered the proposed amendment to the City of Beverly Hills Municipal Code, as set forth and attached hereto as Exhibit A and more fully described below (the “Amendment”); and
WHEREAS, the Planning Commission conducted a duly noticed public hearing on October 12, 2017 at which time it received oral and documentary evidence relative to the proposed Amendment; and
WHEREAS, the Planning Commission finds that the proposed Amendments are required for the public health, safety, and general welfare, and that such Amendments are consistent with the general objectives, principles, and standards of the General Plan; NOW, THEREFORE, the Planning Commission of the City of Beverly Hills does resolve as follows:

Section 1. The Amendments have been environmentally reviewed pursuant to the provisions of the California Environmental Quality Act (Public Resources Code Sections 21000, Ct seq.(”CEQA”), the State CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000, et seq.), and the City’s Local CEQA Guidelines (hereafter the “Guidelines”). The adoption and implementation of the Ordinance represents minor changes in land use limitations and it can be seen with certainty that there is no possibility that the adoption and implementation of the Ordinance could have a significant effect on the environment. Therefore, the Planning Commission finds that the Ordinance is eligible for a class 5 categorical exemption for minor changes in land use limitations pursuant to Section 15305 of Title 14 of the California Code of Regulations and the Ordinance is exempt from the environmental review requirements of CEQA pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations.

Section 2. As proposed, the Amendments to the Beverly Hills Municipal Code in Exhibit A would establish six tiers of prioritization for occupancy priority for affordable units built pursuant to the City’s residential density bonus regulations. The tiers prioritize households in the follow order: displaced seniors from the project site, displaced individuals or households from the project site, seniors displaced from any multi-family site due to redevelopment within the past two years, displaced individuals or households from any multi-family site because of redevelopment within the past two years, seniors (not displaced by a project), and income qualified individuals or households.

Section 3. The Amendments are consistent with the objectives, principles, and standards of the General Plan. General Plan Policies “H3 “Fair Housing and Special Needs Residents” call for the promotion of equal housing opportunities for alt residents so residents have a choice of appropriate housing. Included in this goal are Policy H3.2 “Senior Housing” that calls for support of a provision of a variety of housing options for seniors to foster independence and the ability of seniors to remain in the community as they age.

Section 4. The Planning Commission does hereby recommend to the City Council the adoption of an ordinance approving and enacting the proposed Amendments substantially as set forth in Exhibit A, which is attached hereto and incorporated herein by reference.

Section 5. The Secretary of the Planning Commission shall certify to the passage, approval, and adoption of this resolution, and shall cause this resolution and his/her Certification to be entered in the Book of Resolutions of the Planning Commission of the City.

Attest:

Adopted: October 12, 2017
Se retary of the Planning Commission
(7
Approved As To Form:

Assistant City Attorney
Exhibit:

A. Draft Ordinance
Approved As To Content:

Ryayh1ich, AICP
Assiant Director I City Planner
Community Development Department
ordop’
Chair of the1Planning Commission
of the City of Beverly Hills
3 EXHIBiT A
4 [DRAFT] ORDINANCE NO. 17-0-

AN ORDINANCE AMENDING BEVERLY HILLS
MUNICIPAL CODE SECTION 10-3-1528 PERTAINING TO

THE OCCUPANCY PRIORITY FOR AFFORDABLE HOUSING
UNITS BUILT IN THE CITY PURSUANT TO THE CITY’S
RESIDENTIAL DENSITY BONUS REGULATIONS.

THE CITY COUNCIL Of THE CITY Of BEVERLY HILLS HEREBY ORDAINS AS FOLLOWS:

Section 1. On October 12, 2017, the Planning Commission held a duly noticed public hearing after which it adopted Resolution No.
recommending that the City Council
amend portions of Title 10 (Planning and Zoning) of the Beverly Hills Municipal Code to refine the occupancy priority list for affordable housing units built in the City pursuant to the City’s Density Bonus regulations (coLlectively, the “Amendments”). On 2017, the City
Council held a duly noticed public hearing, received public testimony, and thereafter introduced this Ordinance.

Section 3. The adoption and implementation of the Ordinance represents minor changes in land use limitations and it can be seen with certainty that there is no possibility that the adoption and implementation of the Ordinance could have a significant effect on the environment. Therefore, the City Council finds that the Ordinance is eligible for a class 5 categorical exemption for minor changes in land use limitations pursuant to Section 15305 of Title 14 of the California Code of Regulations and the Ordinance is exempt from the —1—
environmental review requirements of CEQA pursuant to Section 1506 1(b)(3) of Title 14 of the California Code of Regulations.

Section 4. The Amendments are consistent with the objectives, principles, and standards of the General Plan. General Plan Policy H3 “fair Housing and Special Needs Residents” calls for the promotion of equal housing opportunities for all residents including Beverly Hills’ special needs populations. Included in this Goal is Policy H3.2 “Senior Housing” that calls for support of a provision of a variety of housing options for seniors to foster independence and the ability of seniors to remain in the community as they age.

Section 5. The City Council hereby amends Section 10-3-1528 of Article 15.2 of Chapter 3 of Title 10 of the Beverly Hills Municipal Code to read as follows:
“10-3-1528: OCCUPANCY PRIORITY:

A. Occupancy priority for eligible units shall conform to the following six tiers.

B. Tier 1 - Senior Tenants Displaced from the Project Site: first priority shall go to income qualified households in which at least one member is a senior (62 years and older) that are or will be required to vacate existing dwelling units on the site of development so that an owner or developer may perform any construction, renovation or addition pursuant to a density bonus permit. if the number of qualified applicants in this tier exceeds the number of available units, then a lottery shall be held within this tier to determine the order in which the units are offered to the displaced qualified senior applicants.

C. Tier 2 —Tenants Displaced from the Project Site: Second priority shall go to income qualified households that are or will be required to vacate existing dwelling units -2-
on the site of development so that an owner or developer may perform any construction, renovation or addition pursuant to a density bonus permit. If the number of qualified applicants in this group exceeds the number of available units, then a lottery shall be held within this group to determine the order in which the units are offered to the displaced qualified applicants.

D. Tier 3 — Displaced Senior Households: Income qualified households in which at least one member is a senior (62 years and older) that have been displaced from any multi-family building in the City that was demolished within the past two years from the date on which the affordable housing units become available or that are living in a multi family property in the City that has received all entitlements, excluding building permits, to redevelop the site in a manner that all residents must vacate the site which entitlements remain valid and have not expired. if the number of qualified applicants in this tier exceed the number of available units, then a lottery shall be held within this tier to determine the order in which the units are offered to the qualified displaced senior applicants.

E. Tier 4 — Displaced Households: Income qualified households displaced from a multi-family building in the City that was demolished within the past two years from the date on which the affordable housing units become available or that are living in a multi family property in the City that has received all entitlements, excluding building permits, to redevelop the site in a manner that all residents must vacate the site which entitlements remain valid and have not expired. if the number of qualified applicants in this tier exceeds the number of available units, then a lottery shall be held within this tier to determine the order in which the units are offered to the qualified applicants. -3-
F. Tier 5 — Senior Households: Income qualified households with at least one member who is a senior (62 years and older). If the number of qualified applicants in this tier exceeds the number of available units, then a lottery shall be held within this tier to determine the order in which the units are offered to the qualified senior applicants.

G. Tier 6 — Other Income Qualified Households: Income qualified households that do not meet the requirements of Tiers 1-5. If the number of qualified applicants in this tier exceeds the number of available units, then a lottery shall be held within this tier to determine the order in which the units are offered to the qualified applicants.

H. Exceptions:

1. In the event that a density bonus is granted for specific tenants pursuant to State Density Bonus Law (California Government Code § 65915 (b)(l)(E) then the tiered list provided in this section shall not be used to fill the affordable housing units. 2, In the implementation of these priorities, the City shall in no way discriminate against any person or family due to disability.

Section 6. Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance or the application thereof to any person or place, is for any reason held to be invalid or unconstitutional by the final decision of any court of competent jurisdiction, the remainder of this Ordinance shall be and remain in full force and effect.

Section 7. Publication. The City Clerk shall cause this Ordinance to be published at least once in a newspaper of general circulation published and circulated in the City within fifteen (15) days after its passage in accordance with Section 36933 of the Government Code, shall certify to the adoption of this Ordinance, and shall cause this Ordinance and his certification, together with proof of publication, to be entered in the Book of Ordinances of the Council of this City.

Section 8. Effective Date. This Ordinance shall go into effect and be in full force and effect at 12:01 a.m. on the thirty-first (3 1st) day after its passage.

Adopted:

Effective:

LiLT BOSSE
Mayor of the City of
Beverly Hills, California
ATTEST:

BYRON POPE
City Clerk
APPROVED AS TO FORM: APPROVED AS TO CONTENT:

LAURENCE S. WIENER MAHDI ALUZRI
City Attorney City Manager

SUSAN HEALY KEENE
Director of Community Development
STATE Of CALIFORNIA )
COUNTY OF LOS ANGELES ) 55.

CITY Of BEVERLY HILLS )
I, KAREN MYRON, Recording Secretary of the Planning Commission of the City of Beverly Hills, California, do hereby certify that the foregoing is a true and correct copy of Resolution No. 1824 duly passed, approved and adopted by the Planning Commission of said City at a meeting of said Commission on October 12, 2017, and thereafter duly signed by the Secretary of the Planning Commission, as indicated; and that the Planning Commission of the City consists of five (5) members and said Resolution was passed by the following vote of said Commission, to wit:

AYES: Commissioners Corman, Shooshani, Block, Vice Chair Licht, Chair Gordon
NOES: None
ABSTAIN: None
ABSENT: None
KA ON
Recording Secretary of the
Planning Commission
City of Beverly Hills, California
Attachment 3
October 12, 2017 Planning Commission
Staff Report

BEVERLY
HILLS
-�
Meeting Date:

Subject:

City of Beverly Hills
Planning Division
455 N. Rexford Drive Beverly HIiis, CA 90210
TEL. (310) 265·1141 FAX. (310) BSEl-5966
Planning Commission Report
October 12, 2017

AFFORDABLE HOUSING OCCUPANCY PRIORITY

ORDINANCE
An Ordinance amending Beverly Hills Municipal Code § 10-3- 1528 pertaining to the occupancy priority for affordable housing units built in the city pursuant to the City's residential density bonus regulations.

Project Applicant: City Initiated
Recommendation: Adopt the attached resolution recommending to the City Council an ordinance amending the priority list for affordable housing units in the City.

REPORT SUMMARY
The Beverly Hills Municipal Code (BHMC) outlines the order in which individuals are prioritized for consideration for affordable housing units in the City that are built pursuant to residential density bonus regulations authorized by State of California Government Code Sections 65915 and 65915.5. Staff has found that the existing priority list is unclear and may not accurately represent the priorities of the City. On May 25, 2017, the Planning Commission considered changes to the priority list at a study session and provided staff with comments. This report includes a summary of the comments received, analysis of potential changes to the City's Code language, and an explanation of the recommended changes that staff has integrated into the attached draft Ordinance.

BACKGROUND
In 2005 the City Council adopted Ordinance No. 05-0-2482 establishing regulations for residential Density Bonus projects in the City of Beverly Hills, consistent with a mandate to implement State Density Bonus law. The language in Ordinance 05-0-2482 also established an occupancy priority methodology for individuals and families to be placed in affordable housing units that are built in the City pursuant to Residential Density Bonus regulations (BHMC Article

15.2). The existing priority list is codified in the Municipal Code in § 10-3-1528 as follows:
10-3-1528: OCCUPANCY PRIORITY:

A. Displaced Tenants: If tenants are required to vacate existing dwelling units so that an owner or developer may perform any construction, renovation or addition pursuant to a density bonus permit, then each tenant Attachment(s):

A. Resolution and Draft Ordinance
B. Public Comment
Report Author and Contact Information:

Simi Aliu, Community Development Intern
[email protected]
Timothea Tway, Senior Planner
[email protected]
(310) 285-1122
Planning Commission Report
Affordable Housing Priority List
October 12, 2017

Page 2 of 9 ends

shall be given a right of first refusal to occupy any unit for which the tenant qualifies in the newly constructed or renovated building. Tenants shall be offered the units in the following priority:

1. Households in which at least one member is sixty two (62) years of age or older;

2. Households with the lowest annual income.

B. Lower And Very Low Income Households: After accommodating displaced tenants as provided in subsection A of this section, during the affordability period described in section 10-3-1529 of this article for rental units designated for lower and very low income households, and subject to any limitations imposed by federal or state law, the owner or developer shall offer the designated affordable units in the following priority:
1 . Qualified households in which at least one member is:
a. Employed by the Beverly Hills Unified School District as a state certified classroom teacher; or
b. Employed by the Beverly Hills police department as a sworn law enforcement officer; or
c. Employed by the Beverly Hills fire department as a sworn firefighter;

2. Households with the lowest annual income;

3. All other qualified households.

C. Moderate Income Households: During the initial sale of units designated for sale to moderate income households, and subject to any limitations imposed by federal or state law, the owner or developer shall offer the designated units in the following priority:

1. Qualified households in which at least one member is:
a. Employed by the Beverly Hills Unified School District as a state certified classroom teacher; or
b. Employed by the Beverly Hills police department as a sworn law enforcement officer; or
c. Employed by the Beverly Hills fire department as a sworn firefighter;

2. Households with the lowest annual income;

3. All other qualified households

DISCUSSION
Planning Commission Report
Affordable Housing Priority List
October 12, 2017

Page 3 of 9 ends

During the May 25 Planning Commission study session on the topic, staff identified a number of deficiencies in the current priority list including:
• The priority list is not clearly written and can be confusing. • The priority list unnecessarily separates low/ very low income units and moderate income units and defines low/very low income units as being for rent only, with moderate income units as being for sale only, which does not accurately capture the situations that can occur and does not align with current State law.
• Some groups included in the list, such as sworn firefighters, law enforcement officers, and certified teachers, would be unlikely to meet the State mandated income limits for placement in affordable housing in the City.
• As currently written the list results in the individual/family with the lowest income in any particular qualifying category as automatically receiving occupancy priority. A more equitable way of structuring the list would be for qualifying individuals within any qualifying category to be eligible for a lottery within that category. Addressing this issue could be more equitable and may disincentivize manipulation of applications. • Several Councilmembers and Commissioners have expressed interest in incentivizing affordable housing for seniors and addressing the need to provide housing options for those that may be displaced during the development of a new housing project. The current list does not adequately address these priorities.

In order to clarify the occupancy priority list, and bring it in line with priorities expressed by Councilmembers and Commissioners, staff recommended that the list be changed to the following:

1. First priority - Seniors (62 years and older) who are/or will be displaced from the site of development;

2. Second priority - Anyone else who is or will be displaced from the site of development;

3. Third priority - Seniors (62 years and older) displaced from any recently (within the past 2 years) demolished multi-family building in the City or are living in a multi-family property in the City that has recently (within the past 2 years) received entitlements for redevelopment;

4. Fourth priority - Anyone displaced from a recently (within the past 2 years) demolished multi-family building in the City or living in a multi-family property in the City that has recently (within past 2 years) received entitlements for redevelopment;

5. Fifth priority - Seniors that have not been displaced by a project; Planning Commission Report
Affordable Housing Priority List
October 12, 2017

Page 4 of 9 ends

6. Sixth priority • Permanently disabled individuals

7. Seventh priority- Income qualified individuals that do not fit into the above categories.

May 25, 2017 Planning Commission Discussion
During the May 25, 2017 Planning Commission meeting both the Planning Commission and members of the public provided staff with comments related to the revised priority list.

These comments included the following:
• General support for the suggested changes to the priority list; • Request to staff to research the possibility of changing the qualifying age of senior citizen status from 62 to 65;
• Support for the change to implement a lottery system within each tier; • Request to staff to research the prioritization of exclusively senior households as opposed to multi-generational households;
• Discuss whether equal priority should be given to single households and family households;
• Request to research the addition of an additional priority level that prioritizes individuals displaced due to financial hardship/foreclosure;
• Request to staff to research limiting the definition of disability to only include physical constraints; and
• Support for the removal of City of Beverly Hills and Beverly Hills Unified School District employees as a prioritized class on the list.

In order to address the comments made by the Commission and public, staff conducted research on the relevant topic areas by consulting Federal, State, and other municipality regulations. Staff also consulted with the City Attorney regarding the legality of suggested revisions.

Several of the comments provided during the May 25, 2017 Planning Commission meeting resulted in changes that are represented in the draft Ordinance (Attachment A). Several required additional research or consultation with the City Attorney's Office and are described below.

Planning Commission Report
Affordable Housing Priority List
October 12, 2017

Page 5 of 9 ends

Request to staff to research the possibility of changing the qualifying age of senior citizen status from 62 to 65.

Staff has conducted research both at the Federal and State level and has reviewed other city definitions of "senior citizen". The definitions are included in the table below:

Agency/Jurisdiction Definition of "senior citizen" for the purposes of housing Housing and Urban Under federal law, senior housing is regulated by the Housing for Older Persons Act (HOPA) Development (HUD) Under HOPA, there are two types of senior housing, one for individuals 62+ and one for individuals 55+. A property is entitled to the 62 and older exemption if all residents (except disability-related caregivers) are 62 years or older. In order for a property to qualify for the "55 or older" housing exemption, a facility or community must satisfy each of the following requirements:
• At least 80 percent of the units must have at least one occupant who is 55 years of age or older; and
• The facility or community must publish and adhere to policies and procedures that demonstrate the intent to operate as "55 or older" housing; and • The facility or community must comply with HUD's regulatory requirements for age verification of residents.

Santa Monica Depending on the property senior housing is restricted to persons 62 years of age or older, or 55 years of age or older in a senior citizen housing development.

West Hollywood Senior citizen is defined as an adult 60 years or older.

Culver City Senior housing reserved for people over the age of 62.

Inglewood Senior citizen is defined as a person 62 years or older.

State Law "Qualifying resident" or "senior citizen" means a person 62 years of age or older, or 55 years of age or older in a designated senior citizen housing development.

As illustrated in the table above, several agencies and municipalities use 62 and/or 55 as the age for senior citizen status for the purpose of housing. None of the agencies or jurisdictions use an age higher than 62 for the purposes of defining seniors. Based on this information, as well as consultation with the City Attorney, staff recommends retaining the current age of 62 for the purposes of defining a senior citizen for affordable housing in the City.

Support for the change to implement a lottery system in each tier.

During Commission deliberation at the May 25, 2017 hearing there was general agreement that using a lottery system within each priority category is the most equitable method of allocating affordable housing units in the City. The use of a lottery system has been included in the text of the draft Ordinance.

Planning Commission Report
Affordable Housing Priority List
October 12, 2017

Page 6 of 9 ends

Request to staff to research the prioritization of exclusively senior households as opposed to multi:9enerational households.

Commission members discussed the possibility of limiting units to exclusively senior households, where all members of the household would be required to be at or above the minimum age to qualify as a senior. Staff has identified several concerns regarding this potential change. First, the prioritization of exclusively senior households could impact households where one spouse qualifies as a senior and one does· not (for example, a couple where one member is 65 and the other is 61). Further, the prioritization of exclusively senior households over households with at least one senior member could impact a senior household where a younger caretaker lives with a senior in order to provide care and/or companionship.

Several Commissioners expressed concern that an individual could take advantage of the availability of affordable units by moving in with a senior relative to benefit from the affordability of that unit. It is important to consider that regardless of the age of the occupants of the unit, the combined income and assets of all household members would be considered to qualify a household as low income. Because of this, it is unlikely that an individual with an income above the qualification thresholds could use a senior to obtain affordable housing and abuse the system. Staff recommends that the Planning Commission retain the proposed language, which allows a household with at least one senior member to qualify as a senior household.

Discuss whether equal priority should be given to single households and family households.

Staff recommends that the draft ordinance offer equal priority to single households and family households and not prioritize one over another. A household with multiple members is equally deserving of housing as an individual and there is no rational argument that a single individual is more deserving of a unit than a household with multiple members. Further, the combined income of all adult household members will be considered as part of the household income for the purposes of qualification, which ensures that only deserving households are considered for placement in affordable units. Additionally, establishing equal priority for both single and family household ensures that senior citizens who require extra assistance will have the option to live with their caretakers.

Request to research the addition of an additional priority level that prioritizes individuals displaced due to financial hardship/foreclosure.

The Commission requested that staff explore the addition of a priority level for those that have been recently displaced from housing in the City due to foreclosure or similar financial hardship.

Staff explored this request, taking into consideration the feasibility and legality of the request.

Ultimately, staff recommends against adding this tier to the priority list, due to the fact that it would be difficult to create an acceptable definition of "financial hardship" (as this term could mean different things to different people) and it would also be difficult for staff to verify financial hardship in a satisfactory manner. After consultation with the City Attorney, staff was advised not to include a tier specifically for households that have experienced foreclosure or financial hardship.

Planning Commission Report
Affordable Housing Priority List
October 12, 2017

Page 7 of 9 ends

Request to staff to research limiting the definition of disability to only include physical constraints.

After reviewing potential methods and metrics that could be used to evaluate eligibility, staff recommends completely removing individuals with disabilities from the list largely on the basis that Community Development staff does not have the training and resources to consistently and objectively determine whether an individual's disability meets the requirement outlined in the priority list. Evaluating an individual for a disability involves the handling and investigation of very sensitive personal information. Including this consideration leaves the City vulnerable to potential legal issues and liability. Although individuals with disabilities will not be explicitly mentioned in the priority list, this population will have an equal chance of being selected during the process.

Support for the removal of City of Beverly Hills and Beverly Hills Unified School District employees from the list.

Commission members collectively agreed with the staff recommendation to remove City of Beverly Hills and Beverly Hills Unified School District employees from the priority list because it is very unlikely that these individuals would meet the income requirements for the affordable units, and the inclusion of City and school employees on the list does not further the community goals of providing housing for those with the most need.

Draft Ordinance
The draft ordinance provides six clearly defined tiers of households that should be prioritized for affordable housing built pursuant to the City's Density Bonus regulations. The goal of the revised priority list is to remove ambiguity or misinterpretation over who qualifies as eligible for Density Bonus affordable housing units. Staff also believes that the proposed list captures a more accurate pool of income qualified individuals and prioritizes households that reflect the goals of the community by placing displaced households and senior households as higher priority groups on the priority list. Additionally, the proposed list is not an income based ranking system and would instead operate as a lottery system within each tier. This change is recommended as a more equitable method of distributing affordable housing that would have less potential to be manipulated in the application process.

As proposed the draft ordinance helps meet General Plan Policy H3.2 "Senior Housing" that calls for support of a provision of a variety of housing options for seniors to foster independence and the ability of seniors to remain in the community as they age and Policy H3.4 "Housing Accessibility," which encourages the addressing of housing for persons with disabilities.

It is important to note that individuals/families in each tier would still need to be income qualified to be eligible for placement in an affordable unit. Under the new priority list, individuals/families qualifying in any tier listed above would be eligible to be randomly selected through a lottery for occupancy priority within the tier. The proposed tiered system outlined in the draft ordinance achieves several goals that are in line with policies included in the City of Beverly Hills General Plan and is more consistent with comments that have been made recently about housing needs in the City.

Planning Commission Report
Affordable Housing Priority List
October 12, 2017

Page 8 of 9 ends

The Tiers recommended in the attached draft ordinance are as follows:

1. Income qualified households in which at least one member is a senior (62 years and older) who are/or will be displaced from the site of development;

2. Income qualified household that is or will be displaced from the site of development;

3. Income qualified household in which at least one member is a senior (62 years and older) displaced from any recently (within the past 2 years) demolished multi-family building in the City or are living in a multi-family property in the City that has recently (within the past 2 years) received entitlements for redevelopment;

4. Income qualified household displaced from a recently (within the past 2 years) demolished multi-family building in the City or living in a multi-family property in the City that has recently (within past 2 years) received entitlements for redevelopment;

5. Income qualified household with at least one member who is a senior that do not fit the above categories;

6. Income qualified individuals/households that do not fit into the above categories.

ENWRONMENTALASSESSMENT
This Ordinance has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEOA Guidelines, and the environmental regulations of the City. The adoption and implementation of the Ordinance appears to be eligible for a class 5 categorical exemption for minor changes in land use limitations and the Ordinance could be found to not have a significant environmental impact.

Further, it can be seen with certainty that there is no possibility that the adoption and implementation of the Ordinance could have a significant effect on the environment. Staff recommends that the Planning Commission find that this Ordinance is exempt from the environmental review requirements of CEQA pursuant to Section 15305 of Title 14 of the California Code of Regulations and Section 15061 (b)(3) of Title 14 of the California Code of Regulations.

PUBLIC NOT ICE AND COMMENT
Notice of this hearing was published in the Beverly Hills Courier on September 29, 2017 and the Beverly Hills Weekly on October 5, 2017 and courtesy notices were emailed to interested parties. To date, staff has not received comments from the public regarding this draft ordinance.

Public comment that was received prior to the Planning Commission Study Session held in May have been included in Attachment 8.

RECOMMENDATION
Planning Commission Report
Affordable Housing Priority List
October 12, 2017

Page 9 of 9 ends

Staff recommends that the Planning Commission adopt the attached resolution recommending to the City Council an ordinance amending Beverly Hills Municipal Code § 10-3-1528 pertaining to the occupancy priority for affordable housing units built in the city pursuant to the City's residential density bonus regulations. Pursuant to the provisions set forth in the California Environmental Quality Act, the Commission will also consider adoption of a Categorical Exemption for the amendment.

Report Reviewed By:
lich, AICP, Assi tant Director of Community
ment / City Planner
Attachment A
Planning Commission Report
Affordable Housing Priority List
October 12, 2017
Resolution and Draft Ordinance
RESOLUTION NO.

A RESOLUTION OF THE PLANNING COMMISSION OF THE

CITY OF BEYERL Y HILLS RECOMMENDING TO THE CITY

COUNCIL AMENDMENTS TO BEYERL Y HILLS
MUNICIPAL CODE SECTION 10-3-1528 PERTAINING TO

THE OCCUPANCY PRIORITY FOR AFFORDABLE HOUSING

UNITS BUILT IN THE CITY PURSUANT TO THE CITY'S
RESIDENTIAL DENSITY BONUS REGULATIONS.

WHEREAS, the Planning Commission has considered the proposed amendment to the City of Beverly Hills Municipal Code, as set forth and attached hereto as Exhibit A and more fully described below (the "Amendment"); and
WHEREAS, the Planning Commission conducted a duly noticed public hearing on October 12, 2017 at which time it received oral and documentary evidence relative to the proposed Amendment; and
WHEREAS, the Planning Commission finds that the proposed Amendments are required for the public health, safety, and general welfare, and that such Amendments are consistent with the general objectives, principles, and standards of the General Plan; NOW, THEREFORE, the Planning Commission of the City of Beverly Hills does resolve as follows:

Section 1. The Amendments have been environmentally reviewed pursuant to the provisions of the California Environmental Quality Act (Public Resources Code Sections 21000, et seq.("CEQA"), the State CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000, et seq.), and the City's Local CEQA Guidelines (hereafter the "Guidelines"). The adoption and implementation of the Ordinance represents minor changes in land use limitations and it can be seen with certainty that there is no possibility that the adoption and implementation of the Ordinance could have a significant effect on the environment. Therefore, the Planning Commission finds that the Ordinance is eligible for a class 5 categorical exemption for minor changes in land use limitations pursuant to Section 15305 of Title 14 of the California Code of Regulations and the Ordinance is exempt from the environmental review requirements of CEQA pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations.

Section 2. As proposed, the Amendments to the Beverly Hills Municipal Code in Exhibit A would establish six tiers of prioritization for occupancy priority for affordable units built pursuant to the City's residential density bonus regulations. The tiers prioritize households in the follow order: displaced seniors from the project site, displaced individuals or households from the project site, seniors displaced from any multi-family site due to redevelopment within the past two years, displaced individuals or households from any multi-family site because of redevelopment within the past two years, seniors (not displaced by a project), and income qualified individuals or households.

Section 3. The Amendments are consistent with the objectives, principles, and standards of the General Plan. General Plan Policies "H3 "Fair Housing and Special Needs Residents" call for the promotion of equal housing opportunities for all residents so residents have a choice of appropriate housing. Included in this goal are Policy H3.2 "Senior Housing" that calls for support of a provision of a variety of housing options for seniors to foster independence and the ability of seniors to remain in the community as they age. 2 Section 4. The Planning Commission does hereby recommend to the City Council the adoption of an ordinance approving and enacting the proposed Amendments substantially as set forth in Exhibit A, which is attached hereto and incorporated herein by reference.

Adopted: October 12, 2017
Attest:

Ryan Gohlich, AICP
Secretary of the Planning Commission
Approved As To Form:

David M. Snow
Assistant City Attorney
3 Lori Greene Gordon
Chair of the Planning Commission
of the City of Beverly Hills
Approved As To Content:

Ryan Gohlich, AICP
Assistant Director / City Planner
Community Development Department

EXHIBIT A
[DRAFT] ORDINANCE NO. 17-0-__ _

AN ORDINANCE AMENDING BEYERL Y HILLS
MUNICIPAL CODE SECTION 10-3-1528 PERTAINING TO

THE OCCUPANCY PRIORITY FOR AFFORDABLE HOUSING

UNITS BUILT IN THE CITY PURSUANT TO THE CITY'S
RESIDENTIAL DENSITY BONUS REGULATIONS.

THE CITY COUNCIL OF THE CITY OF BEVERLY HILLS HEREBY ORDAINS AS FOLLOWS:

Section 1. On October 12, 2017, the Planning Commission held a duly noticed public hearing after which it adopted Resolution No. ___ , recommending that the City Council amend portions of Title 10 (Planning and Zoning) of the Beverly Hills Municipal Code to refine the occupancy priority list for affordable housing units built in the City pursuant to the City's Density Bonus regulations (collectively, the "Amendments"). On ____ , 2017, the City Council held a duly noticed public hearing, received public testimony, and thereafter introduced this Ordinance.

Section 3. The adoption and implementation of the Ordinance represents minor changes in land use limitations and it can be seen with certainty that there is no possibility that the adoption and implementation of the Ordinance could have a significant effect on the environment. Therefore, the City Council finds that the Ordinance is eligible for a class 5 categorical exemption for minor changes in land use limitations pursuant to Section 15305 of Title 14 of the California Code of Regulations and the Ordinance is exempt from the -1-
environmental review requirements of CEQA pursuant to Section 1506l(b)(3) of Title 14 of the California Code of Regulations.

Section 4. The Amendments are consistent with the objectives, principles, and standards of the General Plan. General Plan Policy H3 "Fair Housing and Special Needs Residents" calls for the promotion of equal housing opportunities for all residents including Beverly Hills' special needs populations. Included in this Goal is Policy H3.2 "Senior Housing" that calls for support of a provision of a variety of housing options for seniors to foster independence and the ability of seniors to remain in the community as they age.

Section 5. The City Council hereby amends Section 10-3-1528 of Article 15.2 of Chapter 3 of Title 10 of the Beverly Hills Municipal Code to read as follows:
"10-3-1528: OCCUPANCY PRIORITY:

A. Occupancy priority for eligible units shall conform to the following six tiers.

B. Tier 1 - Senior Tenants Displaced from the Project Site: First priority shall go to income qualified households in which at least one member is a senior (62 years and older) that are or will be required to vacate existing dwelling units on the site of development so that an owner or developer may perform any construction, renovation or addition pursuant to a density bonus permit. If the number of qualified applicants in this tier exceeds the number of available units, then a lottery shall be held within this tier to determine the order in which the units are offered to the displaced qualified senior applicants.

C. Tier 2 -Tenants Displaced from the Project Site: Second priority shall go to income qualified households that are or will be required to vacate existing dwelling units -2-
on the site of development so that an owner or developer may perform any construction, renovation or addition pursuant to a density bonus permit. If the number of qualified applicants in this group exceeds the number of available units, then a lottery shall be held within this group to determine the order in which the units are offered to the displaced qualified applicants.

D. Tier 3 - Displaced Senior Households: Income qualified households in which at least one member is a senior (62 years and older) that have been displaced from any multi-family building in the City that was demolished within the past two years from the date on which the affordable housing units become available or that are living in a multifamily property in the City that has received all entitlements, excluding building permits, to redevelop the site in a manner that all residents must vacate the site which entitlements remain valid and have not expired. If the number of qualified applicants in this tier exceed the number of available units, then a lottery shall be held within this tier to determine the order in which the units are offered to the qualified displaced senior applicants.

E. Tier 4 - Displaced Households: Income qualified households displaced from a multi-family building in the City that was demolished within the past two years from the date on which the affordable housing units become available or that are living in a multifamily property in the City that has received all entitlements, excluding building permits, to redevelop the site in a manner that all residents must vacate the site which entitlements remain valid and have not expired. If the number of qualified applicants in th.is tier exceeds the number of available units, then a lottery shall be held within this tier to determine the order in which the units are offered to the qualified applicants. -3-
F. Tier 5 - Senior Households: Income qualified households with at least one member who is a senior (62 years and older). If the number of qualified applicants in this tier exceeds the number of available units, then a lottery shall be held within this tier to determine the order in which the units are offered to the qualified senior applicants.

G. Tier 6 - Other Income Qualified Households: Income qualified households that do not meet the requirements of Tiers 1-5. If the number of qualified applicants in this tier exceeds the number of available units, then a lottery shall be held within this tier to determine the order in which the units are offered to the qualified applicants.

H. Exceptions:

2. In the implementation of these priorities, the City shall in no way discriminate against any person or family due to disability.

Section 7. Publication. The City Clerk shall cause this Ordinance to be published at least once in a newspaper of general circulation published and circulated in the City within fifteen (15) days after its passage in accordance with Section 36933 of the Government Code, -4-
shall certify to the adoption of this Ordinance, and shall cause this Ordinance and his certification, together with proof of publication, to be entered in the Book of Ordinances of the Council of this City.

Section 8. Effective Date. This Ordinance shall go into effect and be in full force and effect at 12:01 a.m. on the thirty-first (31st) day after its passage.

Adopted:

Effective:

ATTEST:
__________ (SEAL)

BYRON POPE
City Clerk
APPROVED AS TO FORM:

LAURENCE S. WIENER
City Attorney
-5-

LILI BOSSE
Mayor of the City of
Beverly Hills, California
APPROVED AS TO CONTENT:

MAHDI ALUZRI
City Manager

SUSAN HEALY KEENE
Director of Community Development
Attachment 8
Public Comment
Planning Commission Report
Affordable Housing Priority List
May 25, 2017
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To: The Planning Commission
Re: Affordable Units
My name is Julia Gelb and I am a resident in the city since 2010. As a resident of Beverly Hills the city I call home and deeply care about, I propose to address the following issues:
► To make the priority based on the genuine need of the qualifying individuals.

The need is always based on very low income and the level of hardship. For example, elderly, people with very low income and disability should have the biggest priority. People who can demonstrate the most dire need are the ones that should be considered first. For example, single mothers who are struggling to make ends meet every month for a prolonged period of time. ► Those who struggle financially and otherwise are on the verge of getting displaced due to either financial or health hardship. For example, people who already live in the city for a while and would like to remain living in the city but due to the rental increases and financial hardship cannot maintain the current residence. Those who struggle usually cannot keep up with rental increases and tap into their emergency saving for example to pay rent! ► Also, in this category could be included for people with disabilities, health issues or the elderly over 62 years old. Those who need to remain in the city with children, stay at home moms who lost their husbands for example or those who are going through divorce, without a job, without retirement, having depleted all their assets and about to go insolvent. Any individuals who can prove this kind of hardship need to have the highest priority. ► It is for those people who struggle day-to-day, experienced some kind of life changing event or a loss and are on the verge of losing roof over their head. It is for those people that getting this roof over the head will provide a muchneeded break and respite. It is for those people whom the city would be literally saving from homelessness and devastation that is associated with it.

People who were laid off from work, unemployed or those who cannot find a job for quite some time, events that is out of people's control. One thing is to choose to move and another is to be told to leave! More than million homes have been lost to foreclosure. There are many displaced families who were traumatized by that experience and probably exhausted all their resourced in hopes ofrecovery. Those people should be a priority. Clinical psychologists define having a roof as a potent symbol of one's place in the social universe, of "how you see yourself and how you want to be portrayed in the world.

When people lose it, it is like their planet blew up. I think the job of the city in this circumstance is to rescue those individuals. They may not even be very vocal but those are the ones that need saving the most. Those people that experience loss and haven't been able to recover from it, mothers with children ... Those people should be given priority.
► People with jobs are lucky to have a job. If someone has been employed like a teacher, firefighter or police officer they are lucky to have a job, they do not have a threat-hanging overhead of loosing a place to live like those who are currently experience Joss or had already once Jost the roof over the head in the past due to hardship!
► I would make a priority for disabled individuals, the elderly and single mothers with children.

Perhaps even on a case by case basis, because hardship is an extremely sensitive to each individual.

They have to demonstrate genuine need and city has to be vigilant about those who are going to try to take advantage of the less fortunate ones. Usually the less fortunate do not have this ability to make a lot of noise for him or herself and the city has to step up and protect those in real genuine need! Perhaps the city could build much more of those units so there is no shortage. No one should ever have the experience of being left behind and have to go through losing a home without any recompense. If someone got displaced due to construction, I am sure they got some recourse for it, it is people who were dealt an unfair hand in life and suffered tremendously, survived or barely surviving a life changing event that was out of his/her control like losing a home to foreclosure or those who are on the verge of despair with no help in sight and $20 to their name ... Those are the ones that are in desperate need and need help the most! I have always admired my city of Beverly Hills and it is proud acclaim to be a health city. In this regard the city has to step in like a doctor and prevent what could bring plaque and despair on the streets of our beautiful city. Saving some individuals who are in desperate need, can only serve as a good reflection and assurance in the years to come for the well being of the city itself!
Regards,
Julia Gelb (resident of Beverly Hills)
May 25, 2017
Attachment 4
Public Comments
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To: The Planning Commission
Re: Affordable Units
My name is Julia Gelb and I am a resident in the city since 2010. As a resident of Beverly Hills the city I call home and deeply care about, I propose to address the following issues:
► To make the priority based on the genuine need of the qualifying individuals.

People who were laid off from work, unemployed or those who cannot find a job for quite some time, events that is out of people's control. One thing is to choose to move and another is to be told to leave! More than million homes have been lost to foreclosure. There are many displaced families who were traumatized by that experience and probably exhausted all their resourced in hopes of recovery. Those people should be a priority. Clinical psychologists define having a roof as a potent symbol of one's place in the social universe, of "how you see yourself and how you want to be portrayed in the world.

When people lose it, it is like their planet blew up. I think the job of the city in this circumstance is to rescue those individuals. They may not even be very vocal but those are the ones that need saving the most. Those people that experience loss and haven't been able to recover from it, mothers with children ... Those people should be given priority.
► People with jobs are lucky to have a job. If someone has been employed like a teacher, firefighter or police officer they are lucky to have a job, they do not have a threat-hanging overhead of loosing a place to live like those who are currently experience loss or had already once lost the roof over the head in the past due to hardship!
► I would make a priority for disabled individuals, the elderly and single mothers with children.

Perhaps even on a case by case basis, because hardship is an extremely sensitive to each individual.

OCCUPANCY PRIORITY FOR AFFORDABLE HOUSING
UNITS BUILT IN THE CITY PURSUANT TO THE CITY’S
RESIDENTIAL DENSITY BONUS REGULATIONS.

THE CITY COUNCIL OF THE CITY OF BEVERLY HILLS HEREBY ORDAINS AS FOLLOWS:

Section 1. On October 12, 2017, the Planning Commission held a duly noticed public hearing after which it adopted Resolution No. 1 824, recommending that the City Council amend portions of Title 10 (Planning and Zoning) of the Beverly Hills Municipal Code to refine the occupancy priority list for affordable housing units built in the City pursuant to the City’s DensityBonus regulations (collectively, the ‘Amendments”). On September 10. 2019, the City Council held a duly noticed public hearing, received public testimony, and thereafter introduced this Ordinance.

Section 2. This Ordinance and the Amendments were assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. The adoption and implementation of the Ordinance replesents minor changes in land use limitation and it can be seen with cellaint\ that there is no possihilit that the adoption and implementation of the Ordinance could have a si!mificant effect on the environment. Therefore. the Cit\ Council finds that the Ordinance is eligible thr a class 5 categorical exemption for minor changes in land use limitations pursuant to Section 1 5305 of Title 14 of the California Code of Regulations and the Ordinance is exempt from the environmental review retuirments of CEQA pursuant to Section 15061(bfl3) of Title 14 of the Catifomia Code of Regulahons. 4 --w4ti4.
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Section 3. The Amendments are consistent with the objectives, principles, and standards of the General Plan. General Plan Policy H3 “Fair Housing and Special Needs Residents” calls for the promotion of equal housing opportunities for all residents including Beverly Hills’ special needs populations. Included in this Goal is Policy H3.2 “Senior Housing” that calls for support of a provision of a variety of housing options for seniors to foster independence and the ability of seniors to remain in the community as they age.

Section 4. The City Council hereby amends Section 10-3-1528 of Article 15.2 of Chapter 3 of Title 10 of the Beverly Hills Municipal Code to read as follows:
“10-3-1528: OCCUPANCY PRIORITY:

A. Occupancy priority for eligible units shall conform to the following six tiers. 13A. Tier 1 - Senior Tenants Displaced from the Project Site: First priority shall go to income qualified households in which at least one member is a senior (62 years and older) -7-
and that are or will be required to vacate existing dwelling units on the site of development so that an owner or developer may perform any construction, renovation or addition pursuant to a density bonus permit. Ifthe number of qualified applicants in this tier exceeds the number of available units, then a lottery shall be held within this tier to determine the order in which the units are offered to the displaced qualified senior household applicants.

B. Tier 2—Tenants Displaced from the Project Site: Second priority shall go to income qualified households that are or will be required to vacate existing dwelling units on the site of development so that an owner or developer may perform any construction, renovation or addition pursuant to a density bonus permit. If the number of qualified applicants in this tier exceeds the number of available units, then a lottery shall be held within this group tier to determine the order in which the units are offered to the disp]aced qualified tenant household applicants.

DC. Tier 3 Displaced Senior Households: Income qualified households in which at least one member is a senior (62 years and older) I that have been displaced from any multi-family building in the City that was demolished within the past two years from the date on which applications for the affordable housing units lweo-tne ii%ab1e are due or that are living in a multi-family property in the City that has received all entitlements, excluding building permits, to redevelop the site in a manner that requires all residents must to vacate the site. provided that such which entitlements remain valid and have not expired on the date the applications for the affordable housing units are due. If the number of qualified applicants in this tier exceed the number of available units, then a lottery shall be held within this tier to determine the order in which the units are offered to the qualified displaced senior household applicants.
-3-
gD. Tier 4 — Displaced Households: Income qualified households displaced from a multi-family building in the City that was demolished within the past two years from the date on which the applications for the affordable housing units are due become available or that are living in a multi-family property in the City that has received all entitlements, excluding building permits, to redevelop the site in a manner that requires all residents must to vacate the site, pros ided that the which entitlements remain valid and have not expired on the date applications for the affordable housing units are due. If the number of qualified applicants in this tier exceeds the number of available units, then a lottery shall be held within this tier to determine the order in which the units are offered to the qualified displaced household applicants.
fE. Tier 5 Senior Households: Income qualified households with at least one member who is a senior (62 years and older). If the number of qualified applicants in this tier exceeds the number of available units, then a lottery shall be held within this tier to determine the order in which the units are offered to the qualified senior household applicants.

GF. Tier 6 Other Income Qualified Households: Income qualified households that do not meet the requirements of Tiers 1-5. If the number of qualified applicants in this tier exceeds the number of available units, then a lottery shall be held within this tier to determine the order in which the units are offered to the qualified household applicants. 14G. Exceptions:
-4-
I. In the event that a density bonus is granted for specific tenants pursuant to State Density Bonus Law (California Government Code § 65915 (b)(l)(E) then the tiered list provided in this section shall not be used to fill the affordable housing units.

2. In the implementation of these priorities, the City shalt in no way discriminate against any person or family due to disability.

Section 5. Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance or the application thereof to any person or place, is for anyreason held to be invalid or unconstitutional by the final decision of any court of competent jurisdiction, the remainder of this Ordinance shall be and remain in full force and effect.

Section 6. Publication. The City Clerk shall cause this Ordinance to be published at least once in a newspaper of general circulation published and circulated in the City within fifteen (I 5) days after its passage in accordance with Section 36933 ofthe Government Code, shall certify to the adoption of this Ordinance, and shall cause this Ordinance and his certification, together with proof of publication, to be entered in the Book of Ordinances of the Council of this City.

Section 7. Effective Date. This Ordinance shall go into effect and be in full force and effect at 12:01 a.m. on the thirty-first (31st) day after its passage. -5-
Adopted:

Effective:

JOHN A. MIRISCH
Mayor of the City of
Beverly Hills, California
ATTEST:

HUMA AHMED
City Clerk
APPROVED AS TO FORM: APPROVED AS TO CONTENT:

LAURENCE S. WIENER GEORGE CHAVEZ
City Attorney City Manager

SUSAN HEALY KEENE
Director of Community Development
-6-
Planning Commission Report
Affordable Housing Occupancy Priority Ordinance
September 12, 2024

ATTACHMENT E
BHMC § 10-3-1528 – Occupancy Priority
10-3-1528: OCCUPANCY PRIORITY:

Occupancy priority for eligible units shall conform to the following eight (8) tiers.

A. Tier 1 - Senior Tenants Displaced From The Project Site: First priority shall go to income qualified households in which at least one member is a senior (62 years and older) and that have been or will be required to vacate existing dwelling units on the site of development so that an owner or developer may perform any construction, renovation or addition pursuant to a density bonus permit. If the number of qualified applicants in this tier exceeds the number of available units, then the order in which the units are offered to Tier 1 applicants shall be based on the period of time that the longest tenured member of the household resided at the project site, from longest to shortest, and a lottery shall be held within this tier to determine the order in which the units are offered to any Tier 1 applicants having the same period of residency at the project site.

B. Tier 2 - Tenants With Beverly Hills Unified School District Students Displaced From The Project Site:

Second priority shall go to income qualified households that include as part of the household a legal guardian of one or more students currently enrolled in and attending the Beverly Hills Unified School District in grade 10 or lower, and that have been or will be required to vacate existing dwelling units on the site of development so that an owner or developer may perform any construction, renovation or addition pursuant to a density bonus permit. If the number of qualified applicants in this tier exceeds the number of available units, the order in which the units are offered to Tier 2 applicants shall be based on the period of time that the longest tenured member of the household resided at the project site, from longest to shortest, and a lottery shall be held within this tier to determine the order in which the units are offered to any Tier 2 applicants having the same period of residency at the project site.

C. Tier 3 -Tenants Displaced From The Project Site: Third priority shall go to income qualified households that have been or will be required to vacate existing dwelling units on the site of development so that an owner or developer may perform any construction, renovation or addition pursuant to a density bonus permit. If the number of qualified applicants in this tier exceeds the number of available units the order in which the units are offered to Tier 3 applicants shall be based on the period of time that longest tenured member of the household resided at the project site, from longest to shortest, and a lottery shall be held within this tier to determine the order in which the units are offered to Tier 3 applicants having the same period of residency at the project site.

D. Tier 4 - Displaced Senior Households: Fourth priority shall go to income qualified households in which at least one member is a senior (62 years and older) and that have or will be displaced or evicted from a multifamily building in the City other than the project site for the purpose of redevelopment if either: (1) the multifamily building was demolished for redevelopment within the two years immediately preceding the date on which applications for the affordable housing units are due; or (2) the multi-family property to be redeveloped has received all entitlements, excluding building permits, and such redevelopment requires all residents to vacate the site, provided that such entitlements, or subsequent entitlements remain valid and have not expired on the date the applications for the affordable housing units are due. If the number of qualified applicants in this tier exceed the number of available units, the order in which the units are offered to Tier 4 applicants shall be based on the period of time that the longest tenured members of the household resided at the multi-family building to be redeveloped, from longest to shortest, and a lottery shall be held within this tier to determine the order in which the units are offered to the Tier 4 applicants having the same period of residency at the project site.

E. Tier 5 - Displaced Tenants With Beverly Hills Unified School District Students: Fifth priority shall go to income qualified households that include as part of the household a legal guardian of one or more students currently enrolled in and attending the Beverly Hills Unified School District in grade 10 or lower, and that have or will be displaced or evicted from a multi-family building in the City other than the project site for the purpose of redevelopment if either: (1) the multi-family building was demolished for redevelopment within the two (2) years immediately preceding the date on which applications for the affordable housing units are due; or (2) the multifamily property to be redeveloped has received all entitlements, excluding building permits, and such redevelopment requires all residents to vacate the site, provided that such entitlements, or subsequent entitlements, remain valid and have not expired on the date the applications for the affordable housing units are due. If the number of qualified applicants in this tier exceed the number of available units, the order in which the units are offered to Tier 5 applicants shall be based on the period of time that the longest tenured member of the household resided at the multi-family building to be redeveloped, from longest to shortest, and a lottery shall be held within this tier to determine the order in which the units are offered to the Tier 5 applicants having the same period of residency at the project site.

F. Tier 6 - Displaced Households: Sixth priority shall go to income qualified households displaced from a multi-family building in the City that have or will be displaced or evicted from a multi-family building in the City other than the project site for the purpose of redevelopment if either: (1) the multi-family building was demolished for redevelopment within the two (2) years immediately preceding the date on which applications for the affordable housing units are due; or (2) the multi-family property to be redeveloped has received all entitlements, excluding building permits, and such redevelopment requires all residents to vacate the site, provided that such entitlements, or subsequent entitlements, remain valid and have not expired on the date the 6/11/24, 11:50 AM export.amlegal.com/api/export-requests/e80e8712-5fc5-49b4-beb7-6f5ba1525e13/download/ https://export.amlegal.com/api/export-requests/e80e8712-5fc5-49b4-beb7-6f5ba1525e13/download/ 1/2 applications for the affordable housing units are due. If the number of qualified applicants in this tier exceed the number of available units, the order in which the units are offered to Tier 6 applicants shall be based on the period of time that the longest tenured member of the household resided at the multi-family building to be redeveloped, from longest to shortest, and a lottery shall be held within this tier to determine the order in which the units are offered to the Tier 6 applicants having the same period of residency at the project site.

G. Tier 7 - Senior Households: Income qualified households with at least one member who is a senior (62 years and older). If the number of qualified applicants in this tier exceeds the number of available units, then a lottery shall be held within this tier to determine the order in which the units are offered to the Tier 7 applicants.

H. Tier 8 - Other Income Qualified Households: Income qualified households that do not meet the requirements of Tiers 1-7. If the number of qualified applicants in this tier exceeds the number of available units, then a lottery shall be held within this tier to determine the order in which the units are offered to the Tier 8 applicants.

I. Exceptions:

1. In the event that a density bonus is granted for specific tenants pursuant to State Density Bonus Law (California Government Code § 65915 (b)(1)(E)) then the tiered list provided in this section shall not be used to fill the affordable housing units.

2. In the implementation of these priorities, the City shall in no way discriminate against any person or family due to disability. (Ord. 05-O-2482, eff. 9-16-2005; amd. Ord. 19-O-2791, 10-22-2019) 6/11/24, 11:50 AM export.amlegal.com/api/export-requests/e80e8712-5fc5-49b4-beb7-6f5ba1525e13/download/ https://export.amlegal.com/api/export-requests/e80e8712-5fc5-49b4-beb7-6f5ba1525e13/download/ 2/2 Planning Commission Report
Affordable Housing Occupancy Priority Ordinance
September 12, 2024

ATTACHMENT F
July 11, 2024 Planning Commission Staff Report
Study Session
City of Beverly Hills
Planning Division
455 N. Rexford Drive Beverly Hills, CA 90210
TEL. (310) 285-1141 FAX. (310) 858-5966
Planning Commission Report
Attachments:

A. Revised Affordable Housing Guidelines: Guidelines for Developers – Rental Units; Guidelines for Applicants – Rental Units; Exceptions and Appeals; and Appendices
B. 2016 Affordable Housing Guidelines
C. General Plan and Housing Element Goals and Policies
D. 2016 City Council Staff Report – Affordable Guidelines E. 2019 City Council Staff Report – Revised Priority List F. HCD – 2024 State Income Limits
G. BHMC §10-3-1528 – Occupancy Priority
H. West Hollywood Resolution (Priority List)
I. Pasadena Local Preference and Priority System Guidelines J. Santa Monica Below Market Housing User Guide for Applicants K. Fair Housing Certification Training Manual – Housing Rights Center L. Public Comment
Report Author and Contact Information:

Christine Delostrinos, Associate Planner
(310) 285-1125
[email protected]
Meeting Date: July 11, 2024
Subject: STUDY SESSION – REVISIONS TO AFFORDABLE HOUSING

GUIDELINES
An informational report on the revisions to the existing Affordable Housing Guidelines for deed-restricted rental units and a discussion of the occupancy priority list for placement into deed-restricted rental units. (Continued from the June 26, 2024, Planning Commission meeting)
Location: Citywide
Project Applicant: City-Initiated
Recommendation: Conduct a study session to: 1) review revisions to the City’s Affordable Housing Guidelines to provide input and direction to staff regarding these revisions. 2) review potential changes to the occupancy priority list for affordable units

REPORT SUMMARY
The following report provides information regarding the City’s Affordable Housing Guidelines (“guidelines”) revisions. The rental unit sections of these guidelines are being revised to improve the City’s administration of affordable housing units. Due to changes in state law, the production of affordable housing units that the City is responsible for administering is increasing. The City has recently entered a contract with an affordable housing program administrator, Housekeys, Inc. (“Housekeys”) to assist with the affordable housing program implementation. These revisions aim to guide City staff, Housekeys staff, developers, tenants, and the general public regarding the monitoring and management of deed-restricted affordable housing units for rent. The guideline revisions will occur in two phases: Phase one, the current phase, will concentrate on refining guidelines relating to developers and applicants of deed-restricted affordable housing rental units.

Phase two will take place at a future date and will delve into revisions of the portion of the guidelines concerning developers and applicants of deed-restricted affordable housing for-sale Planning Commission Report
Affordable Housing Guidelines Study Session
July 11, 2024

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units (e.g. condominium units). The City has taken this two phase approach in updating the guidelines because the deed-restricted affordable units that have been produced in the City are exclusively rental units rather than for-sale units. The purpose of this study session is to review these revisions and provide staff with feedback and guidance, which can be incorporated into the guidelines that will be reviewed and adopted by the City Council. The study session is also seeking Commission comment on the current affordable housing occupancy priority list codified in BHMC §10-3-1528 (Attachment G). The Planning Commission will adopt no new regulations during this study session.

BACKGROUND
Guidelines
In 2016, the City Council adopted Affordable Housing Program Guidelines in response to the development of affordable housing units within housing developments and in anticipation of the future development of affordable housing units in the city (Attachment D). The guidelines serve as a roadmap for developers and property owners outlining requirements to ensure projects with affordable housing units are appropriately managed and designed. The guidelines also provide valuable guidance to applicants interested in renting or purchasing an affordable housing unit, offering insight on the application process, eligibility requirements, and tenant obligations.

However, over the course of implementing the guidelines for several affordable housing units, certain issues have been raised during the affordable housing placement process. Most often, the issue would be raised because the guidelines do not explicitly address certain topics, for example, whether or not a developer can require payment for renter’s insurance. This has demonstrated a need for clarification and the addition of further information within the existing guidelines. Since all of the affordable housing units currently existing in the City are rental units rather than for-sale units, an expansive discussion of revisions to the guidelines for rental units is being prioritized at this time.

Occupancy Priority
In 2005, the City Council adopted regulations consistent with state Density Bonus law, which established an occupancy priority list for affordable housing units. This list provides tiers to rank applicants who meet the criteria in each tier for priority of placement into an available affordable housing unit. The ranking of applicants then provides the order by which the unit is offered to qualified applicants: for example, if two applicants are both qualified by income, but one applicant falls into a higher priority tier, the unit would be offered to that applicant first. In 2019, the City Council adopted an amendment to the occupancy priority list (Attachment E). The amendment revised the occupancy priority list tiers to prioritize households that were forced to vacate a building in the City due to redevelopment (in other words, displaced households) for placement into new affordable housing units developed on the site from which they were displaced. The revisions added tiers to give priority to specific types of displaced households, with senior tenants provided first priority and displaced families with students in the Beverly Hills Unified School District (BHUSD) provided second priority, The revisions also clarify that displaced households shall be ranked within each priority level by length of residency in the building from which the household is being/was displaced. The amended occupancy priority list has been implemented throughout the process of placing individuals in affordable housing units since its adoption in Planning Commission Report
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2019. During implementation, it has become evident that affordable housing rental unit applicants have only qualified as tier 7 (Senior Households) and tier 8 (Other Income Qualified Households), while there were no applicants qualified for tier 1 through tier 6. Staff has received comments from the public sharing concerns, such as the current priority list is too limited with regard to how a displaced household is defined. The Planning Commission will review the current occupancy priority list and discuss whether it should be revised, including further clarifying the definition of displacement, or make no changes.

Affordable Housing Program Process
The Affordable Housing Program facilitates the management and monitoring of existing and new affordable housing units. The program involves placement of qualified tenants into deedrestricted affordable housing units that are set aside for specific income categories (very low, low, or moderate income) within privately owned developments. Affordable housing units are provided in new developments to meet regulatory requirements including: the City’s local inclusionary housing ordinance, state density bonus law, and state replacement unit requirements (SB 8).

Applicants for these units must qualify for the specific income category, which is based upon the area median income (AMI) for Los Angeles County and provided by the Department of Housing and Community Development (HCD) each year. (Attachment F). Upon review of their application, the applicants are also ranked according to the occupancy priority list in Beverly Hills Municipal Code (“BHMC”) §10-3-1528 (Attachment G). The income calculation looks at monthly income from employment, as well as other factors such as assets, investments, and retirement accounts.

Figure 1 illustrates and outlines the affordable housing program process for placement of tenants in the units. Since contracting with Housekeys, staff has worked with the consultant’s team to draft revisions to the guidelines that integrate affordable housing administration best practices.

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July 11, 2024

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The placement process relies on collaboration and participation from the developer, staff, and Housekeys.

Existing and Pipeline Affordable Housing Units
Currently, the City manages eight affordable housing units inclusive of very-low, low, and moderate income households. As reported in the 2023 General Plan Annual Report, a large number of multi-family housing units are currently in the construction pipeline, either with an approved entitlement or currently under review. In 2023, a total of 140 housing units were approved through project entitlements, which included 14 deed-restricted units for very lowincome households and one deed-restricted unit for a low-income household (See “Approved in 2023” in Table 1 below). Additionally, the projects submitted for review in 2023 and/or are currently under review propose a total of 342 units, which includes 28 deed-restricted units for very lowincome households and one deed-restricted unit for a low-income household (see “Submitted/Under Review in 2023” in Table 2). The number of affordable housing units has been generally increasing year over year and the City anticipates continued increases in the development of affordable housing units due to state housing law. As a result, there is a need for the City to continue to improve its administration of these deed-restricted affordable housing units.

LAND ENTITLEMENTS REVIEW

AND APPROVAL PER STATE

AND LOCAL LAW

DEVELOPER COLLABORATION

WITH CITY STAFF AND
HOUSEKEYS, INC. TO PREPARE

MARKETING PLAN FOR UNIT(S)

AND ONBOARDING CHECKLIST

ADVERTISE UNIT(S) FOR

APPLICATION SUBMITTAL

APPLICANTS SUBMIT

APPLICATION TO HOUSEKEYS,
INC. PORTAL

REVIEW APPLICATIONS FOR

COMPLETION AND

PREPARATION OF LOTTERY

CONDUCT LOTTERY AND

NOTIFY APPLICANTS OF FINAL

RANKING
HOUSEKEYS, INC. REVIEWS

APPLICANTS FOR ELIGIBILITY,

BEGINNING AT THE TOP OF THE

FINAL RANKING LIST PER

INCOME QUALIFICATIONS AND

OCCUPANCY PRIORITY

STAFF INSPECTS UNIT TO

ENSURE ITS HABITABILITY

REVIEW DEVELOPERS LEASE

AND PROVIDE CITY'S LEASE

AGREEMENT ADDENDUM TO

DEVELOPER

ONCE AN APPLICANT IS

ELIGIBLE, A SITE VISIT WILL BE

CONDUCTED BY THE

PROSPECTIVE TENANT

IF APPLICANT ACCEPTS THE

UNIT, THE LEASE AND THE

LEASE AGREEMENT WILL BE

COMPLETED

CONDUCT ANNUAL

RECERTIFICATION OF

ELIGIBILITY
Figure 1. Affordable Housing Placement Process
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July 11, 2024

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TABLE 1 – MULTI-FAMILY RESIDENTIAL PLANNING ENTITLEMENTS

ADDRESS PROJECT
TYPE

PROPOSED
UNITS
VERY

LOW LOW MARKET RATE

DENSITY
BONUS
APPROVED IN 2023
457 N. Oakhurst
Dr. MFR 6 0 1 5 N
332 S. Doheny Dr. MFR 9 1 0 8 Y
55 La Cienega
Blvd. Mixed-use 105 11 0 94 Y
227 Tower Dr. MFR 10 1 0 9 Y
208 N. Crescent
Dr. MFR 10 1 0 9 Y
TOTAL 140 14 1 125 -
TABLE 2 – MULTI-FAMILY RESIDENTIAL PLANNING ENTITLEMENTS

ADDRESS PROJECT
TYPE

PROPOSED
UNITS
VERY

LOW LOW MARKET RATE

DENSITY
BONUS
SUBMITTED/UNDER REVIEW IN 2023
244-256 N. Clark
Dr. Senior Living 55 0 0 55 N
412 N. Oakhurst
Dr. MFR 9 2 1 6 Y
8800 Burton Way Mixed-use 25 3 0 22 Y
232 S. Doheny Dr. MFR 8 1 0 7 Y
177 S. Robertson
Blvd. Mixed-use 59 9 0 50 Y
227-231 N. Swall
Dr. MFR 18 2 0 16 Y
8811 Wilshire
Blvd. Mixed-use 42 5 0 37 Y
9229 Wilshire
Blvd. Mixed-use 56 6 0 50 Y
9600 Wilshire
Blvd. Specific Plan 70 0 0 70 N
TOTAL 342 28 1 313 -
Housing Element Implementation
The 2021-2029 Housing Element outlines goals, policies, and programs to meet current and projected housing needs in the city. It aligns with state legislative directives such as SB 330/SB 8, density bonus law, and the City's inclusionary housing ordinance by encouraging the accommodation of diverse housing needs, including housing for all income levels and special housing needs. To this end, the Housing Element implementation programs also require the City to continue the administration of an affordable housing program to maintain and monitor existing and new deed-restricted affordable housing units, with the Affordable Housing Guidelines serving as a tool for program management.

Implementation program 10.2 of the Housing Element calls for the maintenance of a contract with an affordable housing program administrator to assist with placing households into affordable Planning Commission Report
Affordable Housing Guidelines Study Session
July 11, 2024

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housing units. The City retained Housekeys in 2023 and the first task for Housekeys under its contract is a review of the affordable housing guidelines to improve management of the affordable housing program.

DISCUSSION
This section will provide an overview of the revisions made to the sections of the guidelines in this phase, which focuses on the sections pertaining to affordable rental units. The revised guidelines are provided in Attachment A. The revisions address issues that have arisen from staff's experience administering the affordable housing guidelines, and additionally, the revisions include provisions that leverage the expertise of the Housekeys, to integrate their best practices and recommendations. In addition, the revisions are guided by compliance with fair housing laws (SB 267, Civil Rights Act of 1866, Civil Rights Act of 1968 Title VIII, Fair Employment and Housing Act, and Unruh Civil Rights Act), a summary of which is provided in Attachment K. The guidelines have been modified as follows:

1. Overall Document Reorganization
The existing guidelines include six sections outlined in Table 3 below (Attachment B). The revised guidelines are now reorganized into seven sections which include dedicated guideline sections for developers and applicants of for-sale and rental affordable housing units (Attachment A).

Whereas the current guidelines are intended for developer use only and provide minimal standards for rental units. The additional sections will make the guidelines user-friendly for developers, applicants, staff, and the housing administrator.

Additionally, the occupancy priority list is removed from both “Guidelines for Developers – Rental Units” and “Guidelines for Applicants – Rental Units” and instead refers to the applicable BHMC section (BHMC §10-3-1528). There is also a revision to both sections which further clarifies the definition of displacement independent of the tiers shall include displacement by voluntary vacation of the unit (such as accepting cash for keys payment to move out) in relation to a * Guidelines for Developers – Rental Units and Guidelines for Applicants – Rental units for review.

TABLE 3. AFFORDABLE HOUSING GUIDELINES SECTION COMPARISON

EXISTING REVISED
Introduction Introduction
Definition of Terms Definition of Terms
Guidelines for Developers Guidelines for Developers – For Sale Units Affordable Unit Buyer and Renter
Qualifications
Guidelines for Developers – Rental Units*
Requirements for Buyers and Owners of
Affordable Units
Guidelines for Applicants – For Sale Units
Exceptions and Appeals Guidelines for Applicants – Rental Units* - Exceptions and Appeals
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proposed development project on the site or if the unit is vacated pursuant to the Ellis Act1. The clarification aligns with staff practice and guidance from Housekeys. No other changes are proposed to the definition of displacement at this time.

2. Revisions to Guidelines for Developers of Rental Units The guidelines revisions incorporated into the “Guidelines for Developers – Rental Units” section focus on refining the sections previously outlined in the existing guidelines through the addition of clarifications and further detailed information. These items include referencing state and local laws, adhering to federal regulations for the calculation of total household income assets, clarifying permissible fees and charges in addition to rent, establishing design standards for units, outlining procedures for the application and screening process, and recertification procedures.

Furthermore, the revisions transfer processing and recertification responsibilities from developers to Housekeys, and more clearly outlines the responsibilities of the City, developers, and Housekeys throughout the placement process. A summary comparing the proposed revisions with the existing guidelines is provided in Table 4.
1 Ellis Act is a “no-fault” eviction law, due to the units being removed from the rental market.

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TABLE 4. GUIDELINES FOR DEVELOPERS – RENTAL UNITS (ATTACHMENT A)

TOPIC OBJECTIVE EXISTING REVISIONS
Units for
Rent
Overview,
PG. 1
Provide legislative
requirements for deed
restricted affordable
housing units, including: SB
330, SB 8, Density Bonus,
and Inclusionary Housing
Placed in the
introduction of
guidelines
Moved to “Guidelines for
Developers – Rental Units”.

Revised language to include
additional state and local law
explanations
Application
Process for
Developers,
PG. 2
Provide general entitlement
procedure
Outlined
application
process
Added discussion of Replacement
Unit Determination process and
appropriate land entitlement
approvals; added standard
requiring affordable units to be
comparable to market rate units
Housing
Agreements,
PG. 2
Require the Developer to
execute a Housing
Agreement
Outlined
requirements
Added the requirement that
Housing Agreement must also
describe how the project satisfies
the City’s Inclusionary Housing
requirement and other state law
requirements
Procedures
for Initial
Rent, PG. 4
Provide maximum monthly
rent, including fees and
charges in addition to rent
Does not include
discussion on
maximum monthly
rent, additional
fees and charges
Added maximum monthly rent
calculation, rent increase protocol,
pet fee and deposits, parking
fees/assignment, renter’s
insurance, utility allowance
(required to update annually), and
security deposit
Marketing
Plan, PG. 7
Provide requirement and
procedure to execute the
marketing plan
Outlined
management plan
requirements
Added requirement outline for
marketing plan (narrative
summary, application process
explanation, selection process
explanation, leasing training
timelines, opportunity drawing
timeline, marketing materials, and
application packet) and onboarding
checklist for developers; clarifies
that developer will work with
Housekeys to complete
Application
and
Screening
Process,
PG. 8
Describe responsibilities of
the property
owner/developer for the
application and screening
process
Placed the
responsibility of
the application
and screening
process, including
lottery upon the
property
owner/developer;
does not include
expansive
definition of
displacement
Added detailed description of the
application and screening process,
as executed by Housekeys;
includes discussion of occupancy
standards, priority list, and
responsibility of the property
owner/developer to pre-screen
applications for initial eligibility;
provides additional clarity on the
definition of displacement
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3. Revisions to Guidelines for Applicants of Rental Units The current Affordable Housing Guidelines do not have a dedicated section offering applicants information on rental unit requirements. While the existing guidelines contained some of this information in various sections, the proposed revisions will address this gap by introducing comprehensive guidelines specifically for rental unit applicants. This section will provide an overview of the rental unit application process, including application requirements, qualifications, household income calculation methods, credit score standards, tenant obligations, and details on the appeals procedure. Furthermore, the revisions will integrate the best practices and recommendations from Housekeys to enhance clarity and effectiveness. For a summary and overview of these revisions, please refer to Table 5 below.

Persons
Ineligible to
Occupy an
Affordable
Unit, PG. 11
Describe individuals who
are disqualified from
occupancy of an affordable
unit
Outlined two
categories of
disqualified
applicants
Added disqualification for
applicants who are convicted of a
felony and procedure for
background check
Annual
Report and
Monitoring,
PG. 11
Describe responsibility of
the property
owner/developer to provide
annual report on the
affordable housing unit and
that City will conduct site
visits and review household
income for verification
Outlined annual
reporting and
monitoring
requirements
Added procedures for Housekeys
as the responsible party for
conducting annual report with the
property owner/developer. and the
annual recertification process
TABLE 5. GUIDELINES FOR APPLICANTS – RENTAL UNITS (ATTACHMENT A)

TOPIC OBJECTIVE EXISTING REVISIONS
Process for
Renting an
Affordable
Unit, PG. 14
Provide applicant
information on the
procedures and
requirements
Outlined only in the
Guidelines for
Developers
Added detailed overview on
Housekeys procedures and
information for
applicant/application intake
Application
Requirements,
PG. 16
Outline application
requirements
Placed the
responsibility of the
application and
screening process,
including lottery upon
the property
owner/developer,
outlined in the
Guidelines for
Developers
Added discussion on
household composition and
places the responsibility for
the application process and
lottery process on
Housekeys
Description of
Qualification
Requirements,
PG. 17
Provide requirements
for eligibility of the
rental unit
Described qualification
requirements
Removed requirement for
citizenship
Household
Income. PG.
17 Provide calculation on
total household income,
Outlined a minimum
and a maximum total
Removed minimum and
maximum asset total, and
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4. BHMC Occupancy Priority List Revision Recommendations The occupancy priority list for the placement of income-qualified applicants into deed-restricted affordable housing units was developed in 2005. In 2019, City Council amended the occupancy priority list. The current priority list was intended to give the highest priority to those who are displaced from existing multi-family housing units located in the city and provides priority to specific groups such as senior citizens and families with students enrolled in the Beverly Hills Unified School District (BHUSD). In the placement process, applicants are randomly ranked in a lottery, and then sorted based on their income qualification and their qualification for a specific tier on the occupancy priority list. As shown in Attachment G, the priority tiers 1 through 6 prioritize applicants that have experienced some type of displacement due to redevelopment, whether this is from the project site, or from another multi-family property located in the city. When filling affordable units, it has been the City’s experience thus far that while there have been applicants who stated they are qualified for tiers 1 through 6, upon review, there have been none that have qualified for these tiers. As such, applicants from tiers 7 (seniors) and 8 (only income qualified) 2 SB 267 states any applicant receiving a government rent subsidy, is not subject to the use of standard financial or income assessments as part of the rental housing application process, including a credit check.

The applicant may provide alternative evidence of financial responsibility and ability to pay, this includes but not limited to the following: government benefit payments, pay records, and bank statements, in instances in which there is a government rent subsidy.
and provides valid
income documentation
asset, with percentage
calculations for each
only applies 10% asset
calculation per state law
Credit Score,
PG. 21
Provide credit score
protocol
Described minimum
credit score required
Added SB 2672 explanation,
applicants receiving
government rent subsidy are
not subject to credit check
and can provide alternative
evidence of financial
responsibility
Occupancy
Priority, PG.
22 Identify household
prioritized by the City
Described adopted
City Occupancy
Priority List
Removed occupancy priority
list and referred to BHMC
Persons
Ineligible to
Occupy
Affordable
Housing Unit,
PG. 22
Describe individuals
who are disqualified
from occupancy
Outlined two
categories of
disqualified applicants
Added description on the
disqualification for applicants
who are convicted of a
felony
Tenant
Obligations,
PG. 22
Describe
responsibilities of
tenant
discussed in
developer annual
report and monitoring
Added annual tenant
recertification requirement
and protocol for tenants
maintaining or exceeding
allowed household income
Exceptions
and Appeals,
PG. 24
Provide appeals
process
City is responsible in
managing the appeal
process
Revised the appeal process
to be managed by
Housekeys, and then
referred to City for review,
and arbitration as a final step
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have been the only type of applicants placed into the current inventory of affordable housing units in the city. While the current priority list is not functioning as it was originally intended, it is possible that there will be more applicants who meet the criteria for tiers 1 through 6 as more development takes place in the city that requires the demolition and displacement of existing tenants in multifamily housing. One change to the priority list that the City may want to consider to give priority to a larger number of people would be to change the definition of “displacement” that is applicable to the priority list.

Definition of Displacement in Current BHMC Occupancy Priority List Displacement is currently defined within each occupancy priority list tier as “income-qualified households displaced from a multi-family building in the city that have or will be displaced or evicted from a multi-family building tied to a redevelopment site.” The language in certain tiers (4, 5, and 6) places a time limit for whether a household is considered eligible as a displaced household. The first-time limit in these tiers applies if an applicant was displaced from a multifamily building that has been demolished for redevelopment within the last two years from the date the affordable housing unit becomes available for application. The second time limit from these tiers applies if the new development has received entitlements that are still active (not yet expired). In practice, entitlements are generally granted for an initial three-year period before they expire, and typically have the option to extend for an additional two years, for a total of up to five years during which the entitlements could be active. In the event that the demolition of the building at the project site and an active entitlement are successive, this would potentially result in a sevenyear period during which the displaced applicant is eligible to qualify for these tiers. However, given that the typical development timeline for a new building could exceed the time limits set for qualification as a displaced household, there could be households in tiers 4 through 6 who would initially qualify for higher priority into newly developed affordable housing units, but no longer qualify once these time limits expire.

Tiers 1, 2, and 3 apply to tenants who are displaced from a specific redevelopment site and these three tiers do not contain time limits. However these tiers may be somewhat redundant with the implementation of state law requirements under SB 8. SB 8 requires that all household occupants of protected units are entitled to a right of first refusal (Right to Return) to a comparable unit in the new housing development, whereas tiers 1, 2, and 3 provide priority to specific household groups for placement in a new development, with seniors and families with students in BHUSD being given additional preference for placement. Though SB 8 supersedes the City’s occupancy priority list, and would be implemented in practice, tiers 1, 2, and 3 could be interpreted as conflicting with SB 8 because they specify types of displaced households.

The City’s current approach to occupancy priority also does not apply any additional weighting to an application where an applicant meets more than one tier on the priority list. The City currently does not maintain an overall general waitlist for all affordable units. Instead, the City accepts applications on a project-by-project basis and generates a list that is randomly ordered and then ranked according to the occupancy priority list to fill available unit(s).

Public Comment regarding Occupancy Priority
Members of the public that have commented on the City’s existing priority list have consistently requested the City redefine “displacement”, as the concern is the current definition is too limited.

These parties have expressed a desire to prioritize Beverly Hills residents who have vacated their homes due to household damages or harmful conditions, to revise tier 1 of the priority list to Planning Commission Report
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include seniors generally displaced from the city (not just seniors who are displaced from the specific project site), to advocate for the establishment of a “waiting list” for affordable housing units, and to suggest an expansion of the definition of displacement to include periods exceeding two or five years. In addition, the parties have expressed concern that the current priority list does not provide enough opportunity for all who are interested in the affordable housing program.

Review of Priority Lists and Displacement in Other Cities In response to these concerns, staff surveyed three cities to compare their priority lists, the definition of displacement, and the priority list application processes as outlined in Table 6. The comparative analysis intends to provide an understanding of how the City’s current priority list and practices compare with those of similar jurisdictions. Please note revisions to the City’s priority list and the redefinition of the term “displacement” in the City’s code will require a zone text amendment, and a draft ordinance to address any changes could be brought to a future Planning Commission meeting for review if such direction is provided to staff. As presented in Table 6, the City of West Hollywood prioritizes current residents, while the City of Pasadena prioritizes current residents in deed-restricted affordable rental housing and is considered “overhoused.” Pasadena also prioritizes former residents, provided the household meets the established requirements. West Hollywood is the only city surveyed that prioritizes senior and disabled households as a higher priority. Additionally, all three cities prioritize individuals who work in these cities. Regarding the definition of displacement, all three cities do not include a term limiting displacement. Rather, displacement is defined with criteria for what the City considers as displacement. Lastly, Pasadena maintains an affordable housing waitlist by housing development but not overall cumulative affordable housing waitlist whereas Santa Monica and West Hollywood maintain one cumulative waitlist for all affordable housing units. At this time, the City maintains a waitlist for each affordable housing development based on the final lottery list of the housing development. More details on the survey are in Table 6, and the researched documents from the surveyed cities are attached to this report (Attachments H, I, and J). As shown in this summary, cities may choose to prioritize specific populations; staff requests the Planning Commission provide further direction regarding if they would recommend any changes to the priority list to provide greater opportunities for certain groups. These changes could address the concerns raised by certain interested parties, such as broadening the definition of displacement applicable to the priority list.

TABLE 6. CITY COMPARISON – PRIORITY LIST AND DISPLACEMENT

PRIORITY
RANK

BEVERLY
HILLS

WEST HOLLYWOOD SANTA MONICA PASADENA
1 Senior
Tenants
displaced from
project site
within BH (new
project)
Current residents 1A) Households who
have been displaced
from their homes within
12 months due to a
natural disaster,
government ordered
eviction, demolition of
the building,
owner/relative
occupancy of your
apartment, or eviction
due to the Ellis Act or
Mobile Home closure
Current residents in
City deed-restricted
affordable rental
housing and are
considered “overhoused”
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1B) Emergency
Housing Voucher (EHV)
holder issued by SMHA
1C) Historically
Displaced Households
Pilot (approved
applicants)
2 BHUSD
students
displaced from
project site
(new project)
Senior disabled
households, including
those with HIV/AIDS
All others who either
live in the City or work
at least 25 hours per
week in SMC. Includes
job training programs
with a City employer or
who previously worked
in the City and now
receives retirement
benefits, workers
compensation,
unemployment benefits,
disability benefits, or
vocational rehabilitation
benefits from the City
Former residents,
provided the
household
maintained a
primary in the City
within 10 years of
application date and
lived in the City for a
minimum 5 years
3 Other tenants
displaced from
project site
within BH (new
project)
Persons who have been
displaced by removal of
the unit from the rental
market
By date and time that
the applicant is
submitted
City residents and
work within the City
4 Displaced
seniors from
MFR within BH
Households that are rentburdened, defined as
being more than 50% of
gross household income
- City residents but do
not work within the
City
5 Displaced
tenants from
MFR within BH
with BHUSD
students
People living in overcrowded quarters, defined
as more than two persons
a bedroom
- Applicants who work
but do not reside
within the City
6 Other
Displaced
households
within BH
Persons currently working
within the City
- Applicants displaced
from their residence
in Pasadena by City
government action
7 Senior
households
Households whose
current rent significantly
exceeds inclusionary rent
and who have declined
units on no more than one
occasion
- -
8 Other incomequalified
households
- - -
Displacement
Definition
Income
qualified
households
displaced from
a multi-family
building in the
City that have
Does not have a
definition. However
footnote under
“Application Priority”
mentions “ "residents who
have been served with
notice to vacate for a noPersons who have
been permanently
displaced or face
permanent
displacement from their
housing residences in
Santa Monica as a
Involuntary
displacement
definition include:
disaster or
government action,
termination of
tenancy, domestic
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or will be
displaced or
evicted from a
multi-family
building in the
City other than
the project
site. Only Tier
6 places a
displacement
term limit of
two years.
fault reason under West
Hollywood Municipal
Code Section 17.52.010
(e.g., Ellis Act eviction)"
result of any of the
following: a) Ellis Act,
owner-occupancy, or
removal permit eviction;
b) Earthquake, fire,
flood, or other natural
disaster; c) Funding
reductions in Santa
Monica housing
voucher assistance
programs; d)
Governmental Action,
such as Code
enforcement; e)
Closure of a mobile
home park
violence, witness
protection program,
hate crimes,
inaccessibility of
unit, substandard
housing, and
homelessness
Cumulative
Priority
N/A Priorities are cumulative
based on the individual’s
number of qualifying
priority categories.

Therefore, an applicant
with the highest number
of priority categories met
will be ranked higher.

The City maintains one
priority list and if an
applicant has multiple
priorities they would be
placed higher
depending on which
priority they qualify for.

For example, priority is
given to applicants that
live/work in the City
(Second Priority) but if
the applicant also
suffered displacement
in the City they would
be considered to be at
the First Priority level.

No, the priorities are
not cumulative.

Selection of an
applicant is based
on the highest
priority level for
which an applicant
qualifies.

Application To all
affordable/incl
usionary
housing
program units.

Applies to Inclusionary
Housing Program units.

The priority list applies
to
affordable/inclusionary
housing built by private
developers and below
market housing
operated by non-profit
partners in city-owned
properties (with few
exceptions).

It applies to all
housing units that
are subject to a
recorded City
affordable housing
regulatory
agreement.

WAITLIST NO Yes, cumulative waitlist
for all housing
developments
Yes, cumulative waitlist
for all housing
developments
Yes, per housing
development
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SUMMARY OF CONSIDERATIONS
In summary, staff recommends the Planning Commission consider the following questions and topics in this preliminary discussion:
• Guidelines for Developers and Applicants – Rental Units o Are the revisions appropriate? If not, what items should be further clarified or omitted?
• Occupancy Priority List and Displacement
o To date, in practice, applicants within tiers 1 through 6 have not been utilized, as all applicants who have been placed into affordable housing units are in tier 7 or tier 8. The Commission may want to consider the following potential questions:
▪ Does the current occupancy priority list meet the City’s goals for providing housing for diverse needs and populations that is compliant fair housing law?
▪ Should the occupancy priority list prioritize individuals who are existing or previous residents of the city?
▪ Should the occupancy priority list be revised to prioritize other special needs or groups, such as disabled individuals, veterans, or those who work in the city (pursuant to Fair Housing Laws)?
o Although the guidelines include a clarification to the definition of “displacement” to include the voluntary vacation of a unit, should the definition be further refined in the code to address the following:
▪ Should displacement include individuals who are evicted? ▪ Should the displacement period be extended to seven years across the board, or should the time limit be removed altogether?
• Currently, displaced households are limited to between two or seven years for certain priority tiers. However, the redevelopment process, which includes demolition, entitlement, and construction phases, may sometimes exceed these time limits. Removing or extending the time limit further may help qualify persons displaced from existing multi-family housing that has been demolished due to redevelopment for more than two or seven years.
▪ Should the definition of displacement be revised to include individuals who have vacated a unit due to habitability issues in the unit (i.e. mold, etc.)? GENERAL PLAN AND HOUSING ELEMENT GOALS AND POLICIES3
The General Plan and Housing Element provides goals and policies to help guide development in the city. The policies relevant to this Planning commission study session relating to the Affordable Housing Guidelines are summarized as Attachment C. 3 Available online at www.beverlyhills.org/generalplan
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PUBLIC OUTREACH AND NOTIFICATION
A study session meeting does not require public notification beyond publication of the meeting agenda. However, a courtesy public notice for the June 26, 2024, study session was published in all local newspapers, and a 20-day courtesy email notification was sent to the interested parties list for this topic. Staff has only received two written public comments for the June 26, 2024 study session, addressing concerns for the City’s current occupancy priority list and utility allowance for affordable housing rental units (Attachment L). The study session was continued to a date certain (July 11, 2024) from the June 26th meeting. A courtesy email notification was sent to the interested parties list to inform them of the continuance.

NEXT STEPS
Staff recommends the Planning Commission conduct the study session to provide input and to provide the public the opportunity to comment on the proposed revisions to the existing Affordable Housing Guidelines and provide input on potential revisions to the occupancy priority list for deed restricted affordable housing units. The City Council will consider the amended Affordable Housing Guidelines at a future date. In addition, if the Planning Commission directs staff to draft revisions to the occupancy priority list or the definition of displacement, staff will return at a future hearing with a draft ordinance for review and recommendation by the Planning Commission to City Council.

Report Reviewed By:

Masa Alkire, AICP
Assistant Director / City Planner
Community Development Department
Planning Commission Report
Affordable Housing Guidelines Study Session
July 11, 2024

ATTACHMENT A
Revised Affordable Housing Guidelines:

Guidelines for Developers – Rental Units;
Guidelines for Applicants – Rental Units; Exceptions
and Appeals; and Appendices
Affordable Units Program Guidelines-City of Beverly Hills

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SAMPLE
Planning Commission Report
Affordable Housing Guidelines Study Session
July 11, 2024

ATTACHMENT B
2016 Affordable Housing Guidelines
January 2016
Prepared by:

City of
Beverly Hills
Affordable Housing
Program Guidelines

Affordable Units Program Guidelines City of Beverly Hills i

TABLE OF CONTENTS

1. Introduction

2. Definition of Terms

3. Guidelines for Developers

3.1 Overview of Affordable Housing Program Requirements ........................................................................ 3‐1

3.2 Application Process and Agreement....................................................................................................... 3‐1

3.3 Fractional Units....................................................................................................................................... 3‐1

3.4 Housing Agreements .............................................................................................................................. 3‐1

3.5 Procedures for Initial Sale of Affordable Units......................................................................................... 3‐2

3.5.1 Maximum Sale Prices of Affordable Units...................................................................................... 3‐2

3.5.2 The Marketing Plan for Affordable Ownership Units ..................................................................... 3‐4

3.5.3 Application and Screening Process................................................................................................ 3‐5

3.6 Procedures for Rental Affordable Units...................................................................................................... 3‐7

3.6.1 The Management Plan for Rental Affordable Units ....................................................................... 3‐7

3.6.2 Application and Screening Process ............................................................................................... 3‐7

3.6.3 Annual Report and Monitoring...................................................................................................... 3‐8

4. Affordable Unit Buyer and Renter Qualifications

4.1 Household Qualifications........................................................................................................................ 4‐1

4.1.1 Affordable Unit Buyers.................................................................................................................. 4‐1

4.1.2 Affordable Unit Renters ................................................................................................................4‐2

4.2 Description of Qualification Requirements .............................................................................................4‐2

4.2.1 Household Income ........................................................................................................................4‐2

4.2.2 Credit Score..................................................................................................................................4‐6

4.2.3 Occupancy Priority .......................................................................................................................4‐6

5. Requirements for Buyers and Owners of Affordable Units

5.1 Affordable Unit Application and Purchase Procedures ............................................................................ 5‐1

5.1.1 Application Procedures ................................................................................................................. 5‐1

5.1.2 In‐Person Consultation.................................................................................................................. 5‐1

5.1.3 Homebuyer Education Program....................................................................................................5‐2

5.1.4 Title and Loan Requirements ........................................................................................................5‐2

5.1.5 Financing Requirements................................................................................................................5‐2

5.2 Ownership Requirements ....................................................................................................................... 5‐3

5.2.1 Owner Occupancy Requirement ................................................................................................... 5‐3 1 INTRODUCTION
City of Beverly Hills Affordable Units Program Guidelines ii

5.2.2 Refinance Requirements...............................................................................................................5‐4

5.2.3 Refinance Procedure.....................................................................................................................5‐4

5.2.4 Maintenance of Affordable Unit....................................................................................................5‐4

5.3 Resale of Affordable Unit........................................................................................................................ 5‐4

5.3.1 Resale Procedure ..........................................................................................................................5‐4

5.3.2 Resale Price Calculation ................................................................................................................ 5‐5

5.3.3 Equity Recapture........................................................................................................................... 5‐5

6. Exceptions and Appeals

6.1 Exception Requests ................................................................................................................................ 6‐1

6.2 Appeals Procedure ................................................................................................................................. 6‐1 Tables
Table 3.1 Household Size Assumptions for Maximum Sale Price Calculations.................................................. 3‐3 Table 3.2 Required Marketing Plan Contents................................................................................................... 3‐4 Table 4.1 Ownership Affordable Unit Household Qualifications ...................................................................... 4‐1 Table 4.2 Rental Affordable Unit Household Qualifications .............................................................................4‐2 Table 4.3 Los Angeles County Income Limits Per Income Category (2015).......................................................4‐3 Table 4.5 Annual Income Calculations By Pay Frequency.................................................................................4‐5 Affordable Units Program Guidelines City of Beverly Hills 1‐1

1. INTRODUCTION
This document constitutes the Guidelines (“these Guidelines”) for the City’s Affordable Housing Units Program for units produced either as a result of the City’s density bonus ordinance as set forth in Article 15.2 of the City’s Zoning Code or of other agreements to provide affordable units as part of a development project in the City. The City Council’s purpose in adopting these Guidelines is to help implement ordinances and agreements that call for an increase in the diversity of housing prices/rents in the community and ensure that the range of prices/rents continues over time. Developments of five or more units that receive a density bonus per Article 15.2 must adhere to the guidelines contained in this document.

These Guidelines are intended to:
 Assist developers early in the development process to ensure that Affordable projects are sensitively designed from the beginning in compliance with the requirements of the density bonus ordinance;  Inform developers, management firms, and owners of Affordable Units of the procedures for selling and renting Affordable Units; and
 Provide households interested in renting or purchasing an Affordable Unit with an overview of the eligibility requirements, the application and screening process, the restrictions on ownership, and the procedures for reselling an Affordable Unit.

These Guidelines should be read in conjunction with the density bonus ordinance. While every effort has been made to ensure that these Guidelines are consistent with the Ordinance, if there is any conflict between these Guidelines and the Ordinance, the terms of the Ordinance shall prevail. In addition, the provisions of a Housing Agreement or Resale Restriction Agreement (or like Agreement) recorded against an Affordable Unit shall prevail over any general requirements of these Guidelines.

Section 2 of these Guidelines includes Definitions of Terms. Section 3 provides information about the number of affordable units required and requirements for entering an Affordable agreement and assumptions used. The remaining sections expand upon the Affordable Units Program and provide additional requirements regarding qualifications for buyers and renters of Affordable Units (Section 4), requirements for ownership and resale (Section 5), and the process for exceptions and appeals (Section 6).

The effective date of these Guidelines is February 16, 2016. The City will review and, to the extent necessary, update these Guidelines as needed. The Director of Community Development may make interim revisions, interpretations, or clarifications to these Guidelines, provided that he or she considers the revision, interpretation, or clarification to be minor and consistent with the purposes of the City’s housing policies and ordinances, including but not limited to its density bonus ordinance and these Guidelines. Any such revision, interpretation, or clarification shall not become effective until adopted by the City Council.

Users of these Guidelines are encouraged to seek their own legal counsel to aid in understanding the requirements of the City’s density bonus ordinance or agreements in place to build Affordable Units. Questions about how a particular multifamily project applicant shall satisfy the affordable housing obligation should be directed to the City’s Planning Division at (310) 285‐1141 or at the Planning Counter in City Hall. 1 INTRODUCTION
City of Beverly Hills Affordable Units Program Guidelines 1‐2
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Affordable Units Program Guidelines City of Beverly Hills 2‐1
2 DEFINITION OF TERMS
As used in these Guidelines, the following terms shall be defined as follows:

Administration Fees: Fees charged to the developer, Affordable Unit owner, or applicant as set in the City’s Schedule of Fees and Taxes.

Affordable Housing Agreement: An agreement between the developer and the City for an ownership Residential Development project which is recorded against the property containing the Affordable Units; sets forth the developer’s Affordable Obligation and the method by which the developer will comply with the requirements of the Ordinance or development approval. Density bonus projects approved prior to January 1, 2015 shall require purchasers of Affordable Units to execute and record a Resale Restriction Agreement and Performance Deed of Trust ensuring that the ownership units remain affordable to the income category sold to for not less than 30 years. Very low, low and moderate Affordable Housing density bonus projects approved January 1, 2015 or later shall require an equity sharing agreement be made between the City and the purchaser of the ownership unit (Government Code 65915(c)(2)). Affordable ownership units approved in another manner than a density bonus may have a term of affordability as determined through the process of negotiating the affordable housing agreement. This type of affordable ownership unit could result from a development agreement of another type of enforceable agreement to produce affordable units.

Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants: An agreement between the developer and the City for a rental Residential Development project which is recorded against the property containing the Affordable Units; sets forth the developer’s Affordable Obligation and the method by which the developer will comply with the requirements of the Ordinance; and requires, among other things, that the Affordable Units are reserved for occupancy by displaced tenants; or Very Low‐, Low‐, or Moderate‐Income households at rents affordable to such households for a period of not less than 55 years.

Area Median Income (AMI): The Area Median Income adjusted for household size as published annually by the California Department of Housing and Community Development (HCD).

Affordable Units: A unit that is reserved for rent or for sale to displaced tenants; or Very Low‐, Low‐, or Moderate‐Income households. Rental Affordable Units have restrictions recorded against them to ensure they remain affordable for a period as set forth in the Housing Agreement. Owner‐occupied units are deemed affordable if the sales price results in annual Housing Expenses that do not exceed the maximum income for each income category as specified in Health and Safety Code Section 50052.5.

Affordable Obligation: The number of Affordable Units a developer is required to construct in a Residential Development project and period of time the units must remain affordable to comply with the density bonus ordinance or other agreement to provide Affordable units. For all very low, low‐, and moderate‐income ownership units, an equity sharing agreement shall be made between the City and buyer.

Affordable Unit Owner: A household that owns an Affordable Unit.

CalHFA: The California Housing Finance Agency.

City: The City of Beverly Hills.

City Council: The legislative body of the City of Beverly Hills.

City Staff: An employee or designee of the City of Beverly Hills responsible for actions related to the Ordinance or these Guidelines.
2 DEFINITION OF TERMS
City of Beverly Hills Affordable Units Program Guidelines 2‐2
Consent Agreement: An agreement between the City and a Qualified Household which authorizes the City to access and review the Qualified Household’s credit reports or other personal or financial information to verify a Qualified Household’s compliance with City Ordinances and these Guidelines. This agreement must be executed by purchasers of ownership Affordable Units prior to the close of escrow.

Density Bonus: Shall have the same meaning ascribed to that term by California Government Code section 65915, or its successor statute.

Density Bonus‐Eligible Households: Includes lower‐income households, persons and families of low or moderate income, qualifying senior residents, and very low‐income households.

Density Bonus‐Eligible Units: Dwelling units that are restricted to occupancy by eligible households.

Density Bonus Ordinance: Article 15.2 of the Beverly Hills Zoning Ordinance. Authorized under California Government Code section 65915 et seq.

First‐Time Homebuyer: A person who has not owned any interest in real property during the three‐year period1 prior to the date of the household’s application to qualify for purchase of an Affordable Unit, including without limitation, real property in which a household member’s name appears on the title regardless of whether the member’s interest in such property results in a financial gain, such property is located in another state or country, or the member has occupied such property as his or her primary residence. If any person has had his or her name on the title of a property, but the property was sold more than three years ago from the date of application, the person is considered a First‐Time Homebuyer. Exceptions to this definition include:
 An individual who owned a home with a former spouse during their marriage.  A displaced homemaker who has only owned a home with a spouse.  An individual who has owned a Principal Residence that was not permanently affixed to a permanent foundation (trailer or manufactured home), according to applicable regulations.  An individual who has owned a property that was not in compliance with state or local building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure.

Gross Household Income: All income, from whatever source derived, of all adult household members (18 years of age and older), whether or not such income is exempt from federal income tax. Refer to Section 4.2.1 for a list of income sources and exceptions.
(These) Guidelines: These Guidelines to the Affordable Unit Program.

HCD: The California Department of Housing and Community Development.

HOA: Homeowners Association.

Homebuyer Education Workshop for Affordable Unit Buyers: A HUD‐approved eight‐hour course designed to provide basic education specific to Affordable Unit homebuyers. Refer to the City’s website (www.XXXXXXX) [web link to be included after guidelines are approved and guidelines are uploaded to the City’s website] for organizations that may offer this course. The date on the completion certificate for the class must be within six months of the date of application for purchase of an Affordable Unit. 1 Real estate ownership valued at $30,000 or less is exempt. 2 DEFINITION OF TERMS
Affordable Units Program Guidelines City of Beverly Hills 2‐3
Housing Agreement: An Affordable Housing Agreement, an Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants, or other agreement that relates to housing that may be adopted by the City.

Housing Expenses: Principal, interest, private mortgage insurance, taxes, insurances, and HOA dues.

HUD: The United States Department of Housing and Urban Development.

Immediate Family Member: A mother, father, brother, sister, child, grandparent, or grandchild.

Legal Resident: A citizen or other national of the United States or a qualified alien as defined by the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA).

Low Income: Total Household Income that is 51% to 80% of AMI, adjusted for actual household size.

Lower‐Income Households: Shall have the same meaning ascribed to that term by California Health and Safety Code section 50079.5, or its successor statute.

Management Plan: A plan required for rental Residential Developments that contains the information set forth in Section 3.6.1 of these Guidelines.

Marketing Plan: A plan required for ownership Residential Developments that contains the information set forth in Section 3.5.2 of these Guidelines.

Maximum Income: The maximum income for an income category (Very Low, Low, or Moderate Income) determined periodically by HCD based on AMI. See Section 4.2.1 of these Guidelines for Maximum Incomes.

Moderate Income: Total Household Income that is 81% to 120% of AMI, adjusted for actual household size.

Persons and Families of Low or Moderate Income: Shall have the same meaning ascribed to those terms by California Health and Safety Code section 50093, or its successor statute.

Principal Residence: The place where a person resides on a substantially full‐time basis during not less than 10 months per year. Children attending college and not living at home as their Principal Residence may not be counted as a household member.

Program: Activities related to the development, rental, sale, and occupation of Affordable Units developed under the City’s density bonus ordinance or other agreement to provide Affordable Units.

Qualified Household: Can include any group of persons, so long as such persons, when viewed as a whole, satisfy the eligibility requirements for a household. For an ownership Affordable Unit or for a rental Affordable Unit, a Qualified Household means a household that satisfies the requirements listed in Section 4 of these Guidelines.

Qualifying Senior Resident: Shall have the same meaning ascribed to the term "Qualifying Resident" by section

51.3 of the California Civil Code, or its successor statute.

Residential Development: Includes, without limitation, detached single‐family dwellings, multiple‐dwelling structures, groups of dwellings, condominium or townhouse developments, condominium conversions, cooperative developments, mixed‐use developments that include housing units, and residential land subdivisions intended to be sold to the general public.

Senior: A person 62 years of age or older for the purpose of occupancy priority ranking. 2 DEFINITION OF TERMS
City of Beverly Hills Affordable Units Program Guidelines 2‐4
Senior Citizen Housing Development: Shall have the same meaning ascribed to that term by section 51.3 of the California Civil Code, or its successor statute.

Special Assessment: A proportional fee charged to the Affordable Unit Owner by an HOA to cover the cost of physical improvements to the entire building or common areas.

Total Household Income: All Gross Household Income and assets received (as calculated pursuant to Section

4.2.1).

Very Low Income: Total Household Income that is 50% or less of AMI, adjusted for actual household size.

Very Low‐Income Households: Shall have the same meaning ascribed to that term by California Health and Safety Code section 50105, or its successor. (Ordinance 05‐O‐2482, eff. 9‐16‐2005) Affordable Units Program Guidelines City of Beverly Hills 3‐1
3 GUIDELINES FORDEVELOPERS

3.1 OVERVIEW OF AFFORDABLEHOUSINGPROGRAM REQUIREMENTS
Residential Developments containing Affordable Units produced as a result of the City’s density bonus ordinance or as a result of other agreements to provide affordable units as part of a development project in the City shall comply with these Guidelines. Developers applying for a density bonus are required to apply for and receive a density bonus permit approval. In addition, the level of discretionary review required for the Residential Development containing Affordable Units shall be the same as that required in the zone where the project is located for the type of use sought. The amount of bonus received is calculated based on the type of project, number of housing units, and the income levels to which the Affordable Units are affordable.

3.2 APPLICATIONPROCESS ANDAGREEMENT
The number of Affordable Units, their levels of affordability, and the type of project will be submitted in the Developer’s application. City staff is available to discuss options under the density bonus ordinance with developers. The Residential Development application shall be submitted to the Community Development Department prior to project submittal and review. If a Development Plan Review is required for the project, the Planning Commission shall hold a hearing and review the application. Criteria for approval of the request for a density bonus permit are included in Article 15.2 of the City Zoning Ordinance. City staff will work with the developer as needed prior to the Planning Commission hearing to assist with the application process and respond to questions about the program guidelines.

The developer’s final Affordable Obligation will be formalized in an Affordable Housing Agreement between the City and the developer, prior to the recordation of the first final map or the issuance of the first building permit, whichever occurs first, for the development.

3.3 FRACTIONALUNITS
For the purposes of these Guidelines, all density calculations resulting in fractional units shall be rounded up to the next whole number.

3.4HOUSINGAGREEMENTS
The developer must execute one of the following Housing Agreements with the City:
 Affordable Housing Agreement or Affordable Housing Covenant and Regulatory Agreement. An agreement between the developer and the City for a Residential Development project that includes ownership Affordable Units. Such agreements are recorded against the property on which the Residential Development is being constructed; set forth the developer’s Affordable Obligation and the method by which the developer will comply with the requirements of the density bonus ordinance (if applicable). The Affordable Housing Agreement is effective until all of the Affordable Units are constructed and sold.
 Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants. An agreement between the developer and the City for a Residential Development project that includes rental Affordable Units. Such agreements are recorded against the property containing the Affordable Units; set forth the developer’s Affordable Obligation; and require, among other things, that the Affordable Units are reserved for occupancy by Very Low‐, Low‐, and/or Moderate‐Income households at rents affordable to such households for a period of not less than 55 years. Projects approved prior to the effective date of these guidelines shall not be subject to the 55 year term of affordability. 3 GUIDELINES FOR DEVELOPERS
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The two Housing Agreements described above set forth the legal requirements for certain Residential Development projects for compliance with the density bonus ordinance (if applicable) and these Guidelines. The Housing Agreements are recorded against the property on which the Residential Development is being constructed, run with the land, and survive transfer or sale of the land. If a developer executes a Housing Agreement for a particular Residential Development project but the project is not built and new entitlements are sought for the applicable property, the developer must execute a new Housing Agreement, which would replace the existing Housing Agreement.

Among other things, the Housing Agreements must contain the following information:
1) Whether the Affordable Units will be ownership or rental units. 2) The number of Affordable Units the developer will construct for each income category. 3) The size of the Affordable Units the developer must construct for each income category. 4) Term of affordability for the units (if applicable). 5) If the development proposes ownership Affordable Units, a requirement that the developer prepare and obtain City approval of a Marketing Plan, prior to issuance of any building permits in the Residential Development, indicating how the developer plans to sell the Affordable Units. This requirement is discussed in additional detail in Section 3.5.2 below. Projects approved prior to the effective date of these guidelines shall not be required to prepare a Marketing Plan prior to issuance of building permits but will prepare one before units are marketed to prospective buyers. 6) If the development proposes rental Affordable Units, the developer is required to provide a Management Plan as described in Section 3.6.1 to the City for its approval and prepare the Annual Report described in Section 3.6.3. Projects approved prior to the effective date of these guidelines shall not be required to prepare a Management Plan prior to issuance of building permits but will prepare one before units are marketed to prospective tenants.

3.5 PROCEDURES FOR INITIAL SALE OF AFFORDABLEUNITS

3.5.1 Maximum Sale Prices of Affordable Units
Owner‐occupied units are deemed affordable units if the sales price results in annual housing expenses that do not exceed 30% of the specified income level for Very Low‐ and Low‐Income Households and 35% of the specified income level for Moderate‐Income households, adjusted for household size. In most cases the maximum sale price will be determined based upon the then‐current Housing Affordability Table as approved by the City Council of the City of Beverly Hills. The maximum sale price is based on several factors, including the applicable State of California Income Limits for Los Angeles County in effect at the time the unit is put on the market, homeowners associations dues for the unit, and assumptions regarding mortgage interest rates, down payment, property taxes, utilities/maintenance, insurance, and private mortgage insurance (if applicable). The assumptions and calculations are detailed below.

The maximum sale price for Affordable for‐sale units is based on a designated income percentage that is intended to be affordable to a greater range of households in each applicable income category.  For Very Low‐Income households (household income between 31% and 50% of Area Median Income), the maximum sale price is determined based on a total monthly housing payment equivalent to 30% of one‐twelfth of 50% of the AMI for Los Angeles County.
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 For Low‐Income households (household income of between 51% and 80% of Area Median Income), the maximum sale price is determined based on a total monthly housing payment equivalent to 30% of one‐ twelfth of 70% of the AMI for Los Angeles County.
 For Moderate‐Income households (household income of between 81% and 120% of Area Median Income), the maximum sale price is determined based on a total monthly housing payment equivalent to 35% of one‐twelfth of 110% of the AMI for Los Angeles County.

In addition, the maximum sale price is based on the number of bedrooms in the home instead of the number of persons in the particular household as household/family size can change over time. For example, if a developer is selling a two‐bedroom unit, the sales price would be calculated under a “number of bedrooms, plus one” rule for the assumed household size. The assumed household size is based on the size of the residential unit, as shown in Table 3.1.

TABLE 3.1

HOUSEHOLDSIZEASSUMPTIONS FOR MAXIMUM SALE PRICE CALCULATIONS Unit Size (Number of
Bedrooms)
Assumed Household Size
(Number of Persons)
Studio 1
1 2
2 3
3 4
The following assumptions are used to calculate the maximum sale price for Affordable Units. Note, however, that a Qualified Household’s actual Housing Expenses may differ from these assumptions. At the time a project is proposed the mix of unit affordability will be determined. When construction of a project nears completion maximum sales price for units at each income level will be calculated based on current numbers adopted by the City. Details of current numbers and rates may be requested from the City.  Interest – Prevailing rate (fixed rate for 30 years), secondary market fixed rate, Fannie Mae or Freddie Mac, as determined by staff, on the date that is 30 days prior to the applicable application deadline.  Mortgage Term – fixed rate for up to 30 years.
 Taxes
 Insurance – homeowners insurance. The cost of homeowners insurance may be calculated based on an estimate provided by the developer. (If the homeowners insurance is covered by an HOA structure, homeowners insurance need not be included, but it must be documented that the HOA will provide adequate insurance.)
 PMI – private mortgage insurance. Because most Affordable Unit buyers will have a down payment of less than 20%, they will be subject to private mortgage insurance.  Other – may include special assessments or fees for special assessment districts.  HOA dues, if any.
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3.5.2 The Marketing Plan for Affordable Ownership Units Prior to the issuance of building permits for any ownership Affordable Units, the developer must submit a Marketing Plan to the City for approval. The Marketing Plan must contain the components described in Table 3.2.

TABLE 3.2

REQUIRED MARKETINGPLAN CONTENTS
Component Description
Narrative Summary
A one‐page narrative summary suitable for advertising the availability of the Affordable Units on the City web page and other locations. The summary must include:
 A description of the total number of Affordable Units and market‐rate units in the Residential Development;
 The HOA dues for each Affordable Unit;
 The amenities included in the unit; and
 Contact information for sales representatives (including a name, telephone number, address, and e‐mail address).

Application Process
Explanation
An explanation of the application process and the deadline for submitting applications.

If the development is phased, the developer must establish deadlines and unit numbers for each phase of the development that include Affordable Units in each phase.

Selection Process Explanation An explanation of how the developer will implement the occupancy prioritization system.

Sales Training Timelines
Timeline for the developer’s sales staff to meet with City staff to receive training on the buyer selection and application process. This training shall occur before City staff approval of the marketing plan.

Application Timelines
Timelines for application submittals for buyer selection. A minimum of two weeks shall be allowed by the developer to receive applications. If the development is a phased project, information must be provided on the number of phases and the timelines for those phases.

Marketing Materials
Copies of materials that will be used to market the Affordable Units. Marketing plans should include an outreach strategy. Outreach to potential buyers will occur for at least 30 days prior to the application submittal period.

Application Packet
The application packet must include:
 Application for Affordable Unit
 Income and asset documentation
 Tax returns and income verification
 Documentation of address, number of bedrooms, and sales price  Loan preapproval documents
 Credit authorization and release and credit report
 Evidence of funds to be used as a down payment
No marketing of the Affordable Units shall begin until the developer has received written approval of the Marketing Plan from the City and the developer’s sales staff has met with City staff for training so that the sales staff understands and can explain the application process. 3 GUIDELINES FOR DEVELOPERS
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3.5.3 Application and Screening Process
The developer must require each applicant to complete the City application and to provide the required supporting documentation by the deadline set forth in the Marketing Plan. The developer should plan accordingly to ensure that applicants are not qualified more than six months before the move‐in date for the unit.

Complete application packets should include at a minimum:
1) Complete application including name and address of proposed purchaser as well as the number of persons comprising their household and their names and ages; 2) Income and asset documentation set forth in Section 4.2.1; 3) Federal and state income tax returns of the proposed purchases and all other members of their household for the preceding two calendar years, as well as verification of the proposed owner’s salary or wages from their employer;
4) Documentation of address, number of bedrooms, and sales price; 5) A loan preapproval letter with a Good Faith Estimate and Truth in Lending Statement or equivalent documents after October 2015;
6) A signed credit report authorization and release or other consent and verification letter; 7) Evidence of funds to be used as a down payment.

The developer must comply with the following process to sell the Affordable Units:
1) Application Collection. Developer collects applications for the period of time set forth in the approved Marketing Plan (at a minimum, two weeks). The developer shall accept all applications submitted during the period of time set forth in the Marketing plan and shall be categorized in the appropriate priority level as set forth in Section 4.2.3.
a. Priority Level 1 applications will be accepted on the first day of the application period, Priority Level 2 on the second day, Priority Level 3 on the third day, and Priority Level 4 on the fourth day, then all categories during the remaining application time period. 2) Occupancy Priority List. Once the application period has closed, the Developer uses a lottery system to numerically rank all applications within each Priority Level except for priority levels that require ranking by lowest annual income, in which case the developer’s agent shall rank applications based on lowest annual income. The developer reviews applicants to determine whether they satisfy the requirements for Qualified Households set forth in Section 4.1.1 starting with the top ranked application in priority level one and moving down the list.
a. The developer will review up to at least five times the number of available Affordable units (e.g. 50 applications for 10 units).
3) Priority List and Application Packets Submittal. Developer completes the priority list within 30 days of the application deadline. Developer submits complete application packets of Qualified Households (including supporting documentation) to the City within 45 days of the planned close of escrow. a. The initial submittal to the City will include the 5 top ranked qualified application packets for each unit being applied for. If those top‐ranked applicants are not successfully placed in an 3 GUIDELINES FOR DEVELOPERS
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Affordable unit, the developer will provide the City with the next highest ranked application(s) until all of the Affordable units are occupied.
4) City Review and Verification. The City reviews the application packets to verify the applicants are Qualified Households. The City will make every effort to review the applications within 15 days of receiving a complete application packet.
5) Qualification/Disqualification. Once the City has verified that the applicant is a Qualified Household, the City will send the developer a conditional qualification letter (or similar document) indicating the applicant’s name and income level, the maximum sale price of the unit (see Section 3.5.1 for more detail on establishing the sale price), and any requirements that must be met before moving forward with the applicant. A copy of the application packet, along with income verification for the household, will be retained by the City as proof of the buyer’s qualification to purchase the Affordable Unit. If the City determines that the applicant is not a Qualified Household, the City will send the developer an ineligibility letter.

The developer bears the responsibility of ensuring that applicants are not qualified more than six months before a unit becomes available and closes escrow. Applicants must be requalified if occupancy is to take place more than six months from the date of the conditional qualification letter. Applicants may or may not qualify to purchase an Affordable Unit upon requalification. In addition, the price of the Affordable Unit may change upon requalification. If, upon requalification, an applicant does not qualify, it is the responsibility of the developer to notify the applicant.

Conditional approvals are based on information supplied to the City by the developer or their agent. If any material changes to the financial conditions, marital status, employment status, or other information are made known prior to loan closing, the developer, their agent, or the lender must notify the City of Beverly Hills in writing of these changes. The City expressly reserves the right to reverify the applicant(s) and may void or cancel any conditional approval at any time prior to the loan closing if material changes affect the qualification status of the buyer(s).

Qualification determinations may be appealed in accordance with the procedures described in Section

6.2. The sale cannot proceed until all required documents are provided to the City and the developer receives a written qualification letter from the City.
6) Offer to Purchase/Purchase Agreement. The developer will offer the unit to Qualified Households based on the priority list, offering the Affordable Unit first to those applicants with the highest priority ranking, then to other applicants in descending order (see Section 4.2.3 Occupancy Priority). The developer and applicant will enter into a purchase agreement. A copy of the signed agreement must be provided to the City.
7) Escrow Instructions. The developer will provide the City with the name and address of the title company closing the sale and the name of the escrow officer. The City will prepare and send escrow instructions and closing documents to the escrow officer.
8) Prepare and Record Documents. When all documents have been received and are deemed to be in compliance with program requirements, the City will prepare the Request for Notice of Default for each of the buyer’s loans and secure the signature of the Director of Community Development or his/her designee on the necessary documents.

If at any time during the application, screening, or sale process, an applicant requires translation services, the developer shall provide such services at the developer’s sole cost and expense. 3 GUIDELINES FOR DEVELOPERS
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3.6 PROCEDURES FOR RENTAL AFFORDABLEUNITS
After the Housing Agreement is executed, and prior to the issuance of any building permits, the developer of a project that includes rental Affordable Units must prepare and submit a Management Plan to the City of Beverly Hills Planning Division for approval. After the Management Plan has been approved by the City, and prior to the rental of any units, the developer must screen, rank, and qualify eligible tenants and send a priority list to the City of Beverly Hills’s Planning Division. This should happen within 30 days, if possible.

3.6.1 The Management Plan for Rental Affordable Units
Prior to the issuance of building permits, the developer must submit a Management Plan to the City for its approval. The Management Plan must contain the following information:
 A plan outlining how the management firm will market and maintain the rental Affordable Units;  How the management firm will maintain a waiting list for the Affordable Units;  How the management firm will verify applicants’ Total Household Income, both initially and annually;  Information on the units to be made available for publication on the City’s website;  A contact telephone number; and
 The names of those individuals responsible for contact and communication with the City.

3.6.2 Application and Screening Process
The management firm (which could be the owner or builder) is the entity that will be responsible for occupant selection and documentation of rental Affordable Units. The management firm’s leasing staff should be trained so the staff understands and can explain the rental application process to applicants.

The management firm must require each applicant to complete and return to the management company a Rental Affordable Unit Application packet.

Complete application packets should include at a minimum:
1) Complete application including name and address of tenant as well as the number of persons comprising their household and their names and ages;
2) Income and asset documentation set forth in Section 4.2.1; 3) Federal and state income tax returns of the tenant and all other members of the tenant’s household for the preceding two calendar years, as well as verification of the proposed tenant’s salary or wages from their employer;
4) Documentation of the address, number of bedrooms, and proposed rent and other charges; 5) Amount of deposit;
6) A signed credit report authorization and release or other consent and verification letter; 3 GUIDELINES FOR DEVELOPERS
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7) A copy of the proposed lease, and any other agreements between the developer/management company/property owner, as applicable, and the proposed tenant; and, 8) A written statement signed by the proposed tenant that the Affordable Unit will be occupied by the tenant and used as his or her primary residence and that the lease will not be assigned and the Affordable Unit will not be sublet.

To lease the Affordable Units, the developer/management company must do the following:
1) Collect applications for a given time period (at least two weeks). 2) Screen applicants to determine whether they satisfy the requirements for Qualified Households set forth in Section 4.1.2.
3) Within 30 days of the application deadline sort and rank the applications of Qualified Households based on the priority ranking and produce a priority list with those applicants with the highest priority ranking at the top, followed by all other applicants in descending order based on priority ranking (see Section

4.2.3 Occupancy Priority). Priority Level 1 applications will be accepted on the first day of the application period, Priority Level 2 on the second day, Priority Level 3 on the third day, and Priority Level 4 on the fourth day, then all categories during the remaining application time period. The developer will review up to at least five times the number of available Affordable units (e.g. 50 applications for 10 units). If more than one applicant receives the same level of priority or if some applicants receive no priority ranking, the developer will use a lottery to break ties and to prioritize applicants. 4) Complete the priority list within 30 days of the application deadline and submit to the City for approval. 5) Offer the Affordable Units to applicants based on the priority list, offering first to those applicants with the highest priority ranking, then to other applicants in descending order. 6) Execute a Rental Agreement with the tenant that includes a notification to the tenant that he or she may not sublease the unit and that annual certification is required. 7) Maintain applications with income verification and recertification for the City to review at annual on‐site monitoring.

If the Director of Community Development notifies the developer/management company that the proposed lease is authorized and approved, the developer/management company shall complete the lease of the Affordable Units within 10 days after the date of lease approval by the City and shall send a copy of the fully executed lease to the City. Qualification determinations may be appealed by the developer in accordance with the procedures described in Section 6.2.

3.6.3 Annual Report and Monitoring
The management entity for the development must provide the City an annual report. The annual report must include the following information:
 Total Household Income for the prior year for each Affordable Unit;  Number of people residing in each Affordable Unit;
 Monthly rents charged for the prior year and proposed to be charged for the coming year for each Affordable Unit; and
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 Vacancy of Affordable Units during the prior year, including which unit(s) and for how long.

The management firm must submit the report annually by October 31. The Annual Report form is available on the City’s website at XXXXXXX [web link to be included after guidelines are approved and associated information is uploaded to the City’s website].

The City may perform an annual site visit to monitor the records of all Affordable Units. The City will provide at least two weeks’ notice to the developer / management firm / property owner as to the date of the site visit. Files for all Affordable Units must be made available for review at the request of the City. The purpose of the monitoring is to ensure compliance with these Guidelines and the City‐approved Management Plan.

The tenants’ household income will be recorded during the annual monitoring. If a household’s income rises more than 10 percent above the income limit for their unit, they will no longer be considered qualified for an Affordable unit and will be required to vacate. The tenant shall have up to six months to vacate the Affordable unit.

If a Residential Development is financed through a government program that has stricter occupant selection or occupant documentation requirements than the City, the City may elect to rely on those requirements and associated documentation and not require additional documentation. The City will require tenant income verification and restriction of the Affordable Units for 55 years; however, the management firm may send to the City copies of the documentation that is required and produced for other monitoring agencies. 3 GUIDELINES FOR DEVELOPERS
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4 AFFORDABLE UNIT BUYER AND RENTER QUALIFICATIONS

4.1HOUSEHOLD QUALIFICATIONS

4.1.1 Affordable Unit Buyers
A household is qualified to purchase an Affordable Unit if it satisfies the requirements stated in Table 4.1. Section

4.2 provides additional detail on certain requirements.

TABLE 4.1

OWNERSHIPAFFORDABLE UNITHOUSEHOLD QUALIFICATIONS
Qualification Requirement Description
Income
The household’s Total Household Income must not exceed the applicable Maximum Income set forth in Section 4.2.1.

First‐Time Homebuyer
No member of the household may have owned any interest in real property during the three‐year period1 prior to the household’s Affordable Unit application date.

Exceptions to this definition include:
 An individual who owned a home with a former spouse during their marriage.
 A displaced homemaker who has only owned a home with a spouse.  An individual who has owned a Principal Residence that was not permanently affixed to a permanent foundation (trailer or manufactured home), according to applicable regulations.
 An individual who has owned a property that was not in compliance with state or local building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure.

Owner Occupancy The household will occupy the unit as its Principal Residence within 30 days of the close of escrow on the unit.

Homebuyer Education
All proposed title holders of the property must take a HUD‐approved or City‐ approved eight‐hour homebuyer education workshop and receive a certificate of completion. The certificate of completion must be dated within six months of the date of application.

Credit Score All applicants have a minimum FICO credit score of 620 (see Section 4.2.2).

Residency/Citizenship
The City will require all household members to be either a citizen or national of the United States or a qualified alien defined by the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA).

Loan Preapproval Homebuyers must be preapproved for a home loan that conforms to the requirements established in Section 5.1.5.

Debt to Income Ratio
Homebuyers’ proposed debt (based on current liabilities and proposed housing payment) may not exceed a certain percentage (contact the City for the current maximum percentage).

Qualification determinations may be appealed. Refer to Section 6.2 for appeal procedures. 1 Real estate ownership valued at $30,000 or less is exempt. 4 AFFORDABLE UNIT BUYER AND RENTER QUALIFICATIONS
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Qualified Households in the three levels of priority will receive priority over other Qualified Households (see Section 4.2.3 Occupancy Priority). For information on the application and screening process, see Section 3.5.3.

Qualified Households are subject to specific requirements and restrictions regarding Affordable Unit financing and title and loan structure. Refer to Section 5 for procedures and regulations relating to ownership Affordable Units.

4.1.2 Affordable Unit Renters
A household is qualified to rent an Affordable Unit if it satisfies the requirements shown in Table 4.2. Section 4.2 provides additional detail on certain requirements.

TABLE 4.2

RENTALAFFORDABLE UNITHOUSEHOLD QUALIFICATIONS
Qualification Requirement Description
Income
The household’s Total Household Income must not exceed the applicable Maximum Income set forth in Section 4.2.1.

Residency/Citizenship All members of the household must be Legal Residents of the United States.

Occupancy The household must occupy the unit as its Principal Residence within 30 days of executing the lease.

Real Property Interest (not allowed)
No member of the Qualified Household must own any interest in any real property, including but not limited to, any dwelling unit, commercial real estate, or land.

The names of all non‐dependent household members must appear on the lease for the Affordable Unit.

Qualified Households in the three levels of priority will receive priority over other Qualified Households. For information on the application and screening process, see Section 3.6.2. Qualification determinations may be appealed. Refer to Section 6.2 for appeal procedures.

4.2DESCRIPTION OF QUALIFICATIONREQUIREMENTS

4.2.1 Household Income

4.2.1.1 Maximum Total Household Income
To be eligible for an Affordable Unit, the applicant’s Total Household Income must not exceed the applicable Maximum Income. Total Household Income means the household’s Gross Household Income (see Section 4.2.1.2) plus assets calculated pursuant to Section 4.2.1.4. Maximum Income is determined annually by HCD based on Area Median Income. Table 4.3 shows the Maximum Incomes for Los Angeles County for 2015. 4 AFFORDABLE UNIT BUYER AND RENTER QUALIFICATIONS
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TABLE 4.3
LOSANGELES COUNTY INCOME LIMITS PER INCOME CATEGORY (2015) Income
Category
Household Size (Number of Persons)
1 2 3 4 5 6 7 8
Extremely Low $17,950 $20,500 $23,050 $25,600 $28,410 $32,570 $36,730 $40,890 Very Low $29,900 $34,200 $38,450 $42,700 $46,150 $49,550 $52,950 $56,400 Low $47,850 $54,650 $61,500 $68,300 $73,800 $79,250 $84,700 $90,200 Moderate $54,450 $62,200 $70,000 $77,750 $83,950 $90,200 $96,400 $102,650 Source: HCD Income Limits 2015

4.2.1.2 Gross Household Income
Gross Household Income means all income from all adult household members (18 years of age and older) derived from all sources as provided in the Internal Revenue Code (Title 26, Subtitle A, Chapter 1, Subchapter B, Part I, Section 61), whether or not such income is exempt from federal income tax. Such income includes, but is not limited to, the following:
 Compensation received from an employer.
 Compensation includes, but is not limited to, salary, overtime pay, and other pay  Other pay can include, but is not limited to, compensation for special working conditions or one‐time payout of unused vacation and sick leave
 Alimony or spousal and child support
 Cash
 Pensions, if at an age where pension is being received as income  Public benefits including, but not limited to, CalWorks, SSI, and disability income  All interest, dividends, and royalties
 Income derived from private businesses
 Rental income
 Income from pensions
 Compensation for services rendered including fees, fringe benefits, commissions, tips, and bonuses  Stipend received for participation in a mentor, learning, or education opportunity  Gains from dealings in private and/or commercial property  Gambling winnings
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 Annuities, life insurance, and endowment contracts
 Income from discharge of indebtedness
 Gross partnership contributions or distributions
 Income from an interest in an estate or trust

4.2.1.2.1 Exceptions
1) Gross Household Income does not include income earned by a household member who is between the ages of 18 and 26 and meets both of the following criteria:
 Is claimed as a dependent of a household member on such member’s federal income taxes; and  Is a full‐time student (12+ units; school transcript must be provided). 2) Gross Household Income does not include payments to a household member from a governmental fund if all of the following requirements are satisfied:
 The payments are based on the recipient’s or the recipient’s family’s financial need;  The payments do not represent compensation for services rendered; and  The payments are part of a governmental housing subsidy program including, but not limited to, so‐ called Section 8 federal housing assistance payments.

For purposes of determining Gross Household Income, each person 18 years of age or older must present the following:
 A complete set of federal and state income tax returns for the past three years, including all schedules (signed and dated) and W‐2 forms (in the case where taxes have not been filed for any of the past three years, a letter of verification of non‐filing from the Internal Revenue Service is required);  Four most recent and consecutive pay stubs; and
 Three recent and consecutive statements for all financial accounts, including, but not limited to, savings accounts, checking accounts, retirement accounts, 401(k) accounts, stock accounts, and another accounts held in the applicant(s) name(s), whether held individually or together.

If a household member is self‐employed, in addition to the information above, the member must submit profit and loss statements for the past three years (if applicable), and a current profit and loss statement for the year.

4.2.1.3 Income Calculation
1) Wage and Salary. If an applicant is a full‐time employee (usually 30 to 40 hours per week) or an employee with consistent regular hours or income, or income with overtime or adjustments as a regular part of their job, one of the formulas listed in Table 4.5 will be used to determine the applicant’s salary. Bonuses, commissions, and limited overtime may be calculated into the annual income calculation. In the case of unclear income or income that is somewhat difficult to calculate, please contact the City. The City will make the final determination as to which income calculation formula to use. 4 AFFORDABLE UNIT BUYER AND RENTER QUALIFICATIONS
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TABLE 4.5

ANNUAL INCOME CALCULATIONS BY PAY FREQUENCY
Pay Frequency Annual Income Calculation
Monthly Monthly income amount x 12
Twice Monthly Monthly income amount x 24
Biweekly Biweekly income amount x 26
Weekly Weekly income amount x 52
Hourly Hourly income x 40 (or other normal amount of weekly hours) x 52 2) Variable Income. For applicants who are part‐time employees or employees with variable hours every pay period (or variable hours less than 40 hours per week), inconsistent income or hours, frequent overtime, bonuses and commissions, etc., their annual salary will be calculated using year‐ to‐date income, plus the previous year’s income (from same income source or employer), divided by the number of months reviewed (up to but not exceeding 12 months) times 12 to arrive at their annual income. If there is no previous year income from the same employer, or the job was started mid‐year, the current income year to date using the calculation explained in (1) above will be used. If an applicant works consistently 40 hours per week and has occasional or regular overtime, the calculation listed in (a) above will be used to calculate income. 3) Inconsistent or Temporary Change in Income Due to a Temporary Circumstance. If an applicant has a temporary situation (seven months or less) that makes income calculation difficult, a Verification of Employment may be used to calculate the applicant’s income based on a normal annual time period.

Alternatively, the income may be calculated based on the person’s hourly rate times their normal working hours (as shown in item (a) above).
4) Self‐Employed or Non‐Corporation. A self‐employed applicant is also considered to have variable income. Gross annual income calculations will be based on the previous two years’ net income shown on Schedule C of the federal income tax returns, plus net income before taxes from the applicant’s signed, year‐to‐date Profit and Loss Statement, divided by the appropriate number of months (not to exceed 12 months) times 12 to arrive at the annual income.

4.2.1.4 Assets
An asset test will be applied to all applicants to determine whether they satisfy the income requirements. If an applicant has assets that exceed $30,000, the following amounts will be added to the applicant’s Gross Household Income to determine the household’s Total Household Income:
 10% of all assets valued at between $30,001 and $130,000  30% of all assets valued over $130,000
The maximum assets allowed are $250,000. Households with assets in excess of $250,000 will be disqualified.

Assets include, but are not limited to, cash, all savings and checking accounts, stocks, bonds, real estate, gifts, and other sources of money. Pensions and federally approved retirement savings accounts, such as IRAs, Roth IRAs, and 401(k)s, are excluded; however, retired applicants who receive income from their retirement account must include such income as Gross Household Income on their application. For first‐time homebuyers of for‐sale units real estate ownership may be allowed under certain circumstances as detailed in Table 4.1 4 AFFORDABLE UNIT BUYER AND RENTER QUALIFICATIONS
City of Beverly Hills Affordable Units Program Guidelines 4‐6

4.2.2 Credit Score
For ownership Affordable Units, a credit check will be conducted on all adults (other than dependents) in the household. Applicants must have sufficient creditworthiness to qualify. Creditworthiness means that:
1) All household individuals shall have a minimum of three years since Chapter 7 or Chapter 13 bankruptcy discharge date and/or foreclosure/short sale and evidence of reestablished credit is provided; and 2) All persons appearing on the mortgage shall have a minimum FICO credit rating of 620 points from all three credit agencies.

4.2.2.1 Alternative Credit History Parameters
Alternative credit history is permitted with satisfactory references from a minimum of four trade lines and 12 months of consistent payment records. One of the trade lines must be a 12‐month verification of rent history.

4.2.3 Occupancy Priority
Applicants for Affordable Units will be screened by the developer or their designated party for initial eligibility based on the requirements set forth in Section 4.1.1 (for ownership units) or Section 4.1.2 (for rental units).

Qualified Households will then be ranked based on their level of priority based on the occupancy priority regulations below.

The occupancy priority regulations set out below provide priority to certain households who are deemed to have a priority need for housing in Beverly Hills.

4.2.3.1 Priority Households
In establishing the list of households eligible to occupy affordable units, the developer shall adhere to the following priorities:
1) First Priority
a. Displaced Tenants: If tenants are required to vacate existing dwelling units where they have resided for at least five years so that an owner or developer may perform any construction, renovation, or addition pursuant to a density bonus permit or other affordable housing agreement, then each displaced tenant shall be given a right of first refusal to occupy any Affordable unit for which the tenant qualifies in the newly constructed or renovated building. Tenants shall be offered the units in the following priority:
i. Households in which at least one member is 62 years of age or older; ii. Households with the lowest annual income.
2) Second Priority
i. Qualified households in which at least one member is:

1. Employed by the Beverly Hills Unified School District as a state‐certified classroom teacher; or

2. Employed by the Beverly Hills police department as a sworn law enforcement officer; or 4 AFFORDABLE UNIT BUYER AND RENTER QUALIFICATIONS
Affordable Units Program Guidelines City of Beverly Hills 4‐7

3. Employed by the Beverly Hills fire department as a sworn firefighter; 3) Third Priority
i. Households with the lowest annual income;
4) Fourth Priority
i. All other qualified households.

4.2.3.2 Eligibility Guarantees
The following eligibility guarantees are required for Affordable Units per the state Government Code Sections 65916 et seq. (density bonus provisions).2

1) Prior to the construction of a development project pursuant to these Guidelines, the developer shall ensure continued affordability of units designated for lower and very low income households to the satisfaction of the city attorney and as required by California Government Code section 65915 or its successor statute.
2) Also prior to the construction of a development project pursuant to a density bonus permit or other affordable housing agreement, with regard to dwelling units designated for qualifying senior residents, the developer shall ensure continued restriction of those units to qualifying senior residents and qualified permanent residents to the satisfaction of the city attorney and as provided in California Civil Code section 51.3 or its successor statute. 3) Additionally, prior to the issuance of a density bonus permit or other affordable housing agreement for a development in which the units will be sold to very low, low and/or moderate income households, the developer shall ensure that the initial occupants of such units meet the applicable income limits to the satisfaction of the city attorney and as required by California Government Code section 65915 or its successor statute. The City is entitled to retain the value of any investment in the units such as down payment assistance as well as a proportionate share of appreciation per Government Code Section 65915(c)(2).

4.2.3.3 Persons Ineligible to Occupy an Affordable Unit The following categories of persons shall be disqualified from occupying Affordable Units:
1) All employees and officials of the City or its agencies, authorities, or commissions who have, by virtue of their position, policy‐making authority or influence over the implementation of the Affordable Housing Program, as well as the immediate relatives of employees of such City employees and officials. 2) The immediate relatives of the applicant or owner, including spouse, child, parent, grandparent, brother, sister, father‐in‐law, mother‐in‐law, son‐in‐law, daughter‐in‐law, aunt, uncle, niece, nephew, sister‐in‐ law, and brother‐in‐law.
2 Amendments to City Code Article 15.2 Section 10‐3‐1529 are forthcoming.

Affordable Units Program Guidelines City of Beverly Hills 5‐1
5 REQUIREMENTS FOR BUYERS AND OWNERS OFAFFORDABLE UNITS

5.1 AFFORDABLEUNIT APPLICATION AND PURCHASE PROCEDURES

5.1.1 Application Procedures
The following are the general steps for qualifying for and purchasing an Affordable Unit:
1) Review qualification requirements. Potential Affordable Unit buyers should review these Guidelines and confirm that they meet established qualification requirements (see Section 4). 2) Pre‐qualify with a lender. Potential Affordable Unit buyers should work with a lender of their choosing to get pre‐qualified to purchase a home. Potential financing must meet the requirements described in Section 5.1.5. This will be necessary for preparing a complete application and will give the buyers a clear understanding of the amount of money they are eligible to borrow for a home purchase. 3) Homebuyer education. Potential Affordable Unit buyers must complete an eight‐hour homebuyer education course (see Section 5.1.3).
4) Identify an Affordable Unit. If eligible, potential buyers should identify and view Affordable Units available for sale (most available Affordable Units are listed on the City’s website). 5) Prepare application package. When the Affordable buyers find an Affordable Unit that they would like to purchase, the potential buyers should work with the real estate agent or developer’s sales staff to confirm eligibility, complete the application, and compile qualification materials. The complete application must be submitted to the real estate agent or developer’s sales office. 6) Developer review and qualification determination. The Developer will make every effort to review the application and qualification materials and determine program eligibility within 15 working days of receipt of a complete application. Applicants who are determined to be ineligible will receive an ineligibility letter.
7) City review of selected application packages. The City will make every effort to review the application and qualification materials within 15 working days of receipt of a complete application. If approved, the City will send the developer or agent and applicant a conditional qualification letter (or similar document). Applicants who are determined to be ineligible will receive an ineligibility letter. 8) In‐person consultation. Potential Affordable buyers must schedule and complete an in‐person consultation with City staff to ensure that the Potential Affordable buyer understands City on‐going requirements (see Section 5.1.2).
9) Execute contract. The developer or Affordable owner will enter into a purchase contract with the buyers and submit the escrow information to the City. The City will prepare escrow instructions and submit them to the escrow officer.
10) Monitoring and correspondence. The Affordable Unit Owner must complete annual surveys to the City and should contact City staff with any questions. The Affordable Unit buyer must contact the City when considering a refinance and to notify the City of intent to sell. 5 REQUIREMENTS
City of Beverly Hills Affordable Units Program Guidelines 5‐2

5.1.2 In‐Person Consultation
All adult household members must attend an in‐person meeting with City staff to discuss ongoing requirements.

City staff will work with the buyers to determine a mutually convenient meeting time.

5.1.3 Homebuyer Education Program
Homebuyer(s) must successfully complete a City‐approved Affordable eight‐hour homebuyer education class prior to the close of escrow and must provide the City with evidence of completion.

5.1.4 Title and Loan Requirements
All adult household members must appear as an owner or co‐owner on the Affordable Unit title and must co‐sign for any purchase loan for the Affordable Unit.

5.1.5 Financing Requirements
All Affordable Unit buyers must be able to secure a loan through a lending institution for an Affordable Unit. For new Affordable Units, the developer may require that all applicants get preapproval from the developer’s preferred lender at the time of application. However, once an applicant receives approval to purchase a unit, applicants may use a lender of their choice, provided that the lender adheres to the City’s Guidelines for acceptable loan products.

The City reserves the right to reject loan products if the City believes in its sole discretion that there is a stronger likelihood that the loan product would potentially result in loss of the Affordable Unit due to the purchasers’ inability to comply with the terms of the loan.

Prohibited Loan Products and Unacceptable Mortgage Features  Interest‐only loans
 Negative amortizing loans
 Adjustable rate loans
 Balloon payment loans
 Lines of credit that exceed the sale price of the unit  Stated income loans
 Excessive points and fees (more than what is typical of the market at the time) Down Payment
The applicant(s) is required to make a minimum down payment of at least 3% of the sales price. Funds must be placed into escrow prior to the close of escrow and must come from acceptable sources and be verified and properly documented per Federal Housing Administration guidelines. The 3% down payment may not be used toward closing costs.
5 REQUIREMENTS
Affordable Units Program Guidelines City of Beverly Hills 5‐3
Debit‐to‐Income Ratios
The applicant(s) is required to have a maximum front end ratio of 38% and back end ratio of 41%.

Front end ratio is the ratio of total monthly housing costs (including mortgage principal and interest, property taxes, property insurance, homeowners association dues, and mortgage insurance, if applicable) to total gross household income.

Back end ratio is the ratio of total monthly housing costs (including mortgage principal and interest, property taxes, property insurance, homeowners association dues, and mortgage insurance, if applicable) plus other monthly payments on long‐term household debt to gross household income.

Closing Costs and Deposits
The buyer is responsible for all closing costs related to the purchase of the Affordable Unit, including, but not limited to, title fees, escrow fees, and loan origination fees (approximately 2% to 3% of the purchase price). The buyer may be “gifted” funds to pay for closing costs.

The buyer may take advantage of other down payment assistance programs to assist with closing costs with approval from the City.

5.2 OWNERSHIP REQUIREMENTS

5.2.1 Owner Occupancy Requirement
The Affordable Unit must be owner‐occupied and shall not be used as an investment or rental property.

Affordable Unit Owners are required to occupy the Affordable Unit as their Principal Residence at least 10 months of the year. Affordable Owners are prohibited from renting their unit without prior written approval from the City.

Owner Occupancy Exception
Ownership Affordable Units are subject to an owner occupancy requirement. However, under the following circumstances, an Affordable Unit Owner may be permitted to temporarily rent his or her unit to a Qualified Household (see Section 4.1.2 for renter qualifications) to alleviate one or more of the following specified hardships:
 The Affordable Unit Owner must temporarily relocate for employment purposes; or  The Affordable Unit Owner must attend to personal health problems or the health problems of an immediate family member.

The Affordable Unit Owner must request and obtain advance written permission from the City to rent the Affordable Unit before advertising the unit and selecting a qualified tenant. Once the request is approved and a qualified tenant is selected, the Affordable Unit Owner must execute a rental agreement that clearly states:
1) That the term of the rental is for a limited period of time (not to exceed 12 months); 2) The monthly rental payment (set in accordance with the maximum monthly rent calculated in accordance with the Ordinance and published annually or the Affordable Unit Owner’s total monthly housing costs, whichever is less).
5 REQUIREMENTS
City of Beverly Hills Affordable Units Program Guidelines 5‐4
Annual Survey/Monitoring
Each year, the City of Beverly Hills will monitor and require occupancy certification for all Affordable Units. An annual survey will be mailed to the owner(s) of each Affordable Unit, usually around the anniversary date of the purchase of the unit. Each owner must complete and return the survey along with qualifying documentation.

Failure to return the survey and documentation could place the owner(s) in default of the Equity Sharing Agreement.

5.2.2 Refinance Requirements
Affordable Owners may refinance their units; however, financing terms are subject to the restrictions noted in Section 5.1.5 above, and the terms stated in the Equity Sharing Agreement. In addition, the following requirements will apply to any refinance:
 The principal amount for the new first mortgage is for the amount equal to or less than the original first mortgage plus closing costs.
 The interest rate for the new first mortgage is less than the interest rate on the original first mortgage.

Affordable Unit refinances are subject to an administrative fee. Affordable Owners should contact City staff for the current fee schedule.

5.2.3 Refinance Procedure
Affordable Unit Owners must comply with the following procedures when refinancing an ownership Affordable Unit:
1) Submit Subordination Application. The Affordable Owner must complete and submit a subordination application to the City.
2) City Review. The City will review the refinance request to verify that the proposed loan terms are in keeping with City requirements and terms outlined in the Equity Sharing Agreement. If the loan is found acceptable, the City will issue a conditional authorization letter to the Affordable Owner. 3) Document Preparation and Closing. Once all requested documents are received and deemed acceptable, City staff will issue escrow instructions to the title company. The instructions will outline the final documents the City needs to prepare closing paperwork. Once received, the City will prepare and submit a subordination agreement to the title company to be reviewed and signed by the Affordable Owner and recorded.

5.2.4 Maintenance of Affordable Unit
The Affordable Unit Owner is required to maintain the unit throughout the ownership period. All appliances shall be in good and working order, and the unit must be sanitary and free of code violations as well as in compliance with all the health and safety laws of the City of Beverly Hills. Ordinary wear and tear are not excepted. 5 REQUIREMENTS
Affordable Units Program Guidelines City of Beverly Hills 5‐5

5.3 RESALE OF AFFORDABLEUNIT

5.3.1 Resale Procedure
Affordable Unit Owners for ownership units approved prior to January 1, 2015 (and any other units subject to this section per the terms of their specific Affordable Housing Agreement) must comply with the following procedures when reselling an ownership Affordable Unit:
1) Inform the City. The owner must inform the City of his or her intent to sell the unit by notifying the City in writing. The City will send the Affordable Unit Owner a packet of information on the resale process, income limits, and maximum resale price.
2) Schedule an Inspection. The Affordable Unit Owner or agent must schedule an Affordable Housing unit inspection with the City.
3) Marketing. The Affordable Unit Owner must market the unit and pay all fees associated with the sale of the unit. The seller must use a licensed real estate agent, and the agent must contact the City to learn the requirements for listing the property.
4) Potential Buyer Application. At least 30 days prior to the anticipated date of the close of escrow, the Owner must submit the potential buyer(s) application and supporting documentation to City staff for review and approval.
5) Execute Purchase Contract. The Affordable Unit Owner executes a purchase contract with the potential buyer(s) and open escrow. The agent must provide a copy of the contract to the City along with the name, address, and phone number of the title company handling the transaction and the name of the escrow officer.
6) Potential Buyer Qualification. The City shall notify the owner within 15 working days of receipt of complete packet of documentation of its approval or disapproval of the prospective buyer.

5.3.2 Resale Price Calculation
In most cases, the maximum sales price will be determined based upon the then‐current Housing Affordability Table as approved by the City Council of the City of Beverly Hills. The maximum sales price is based on several factors, including the applicable State of California Income Limits for Los Angeles County in effect at the time the unit is put on the market, homeowners associations dues for the unit, and assumptions regarding mortgage interest rates, down payment, property taxes, utilities/maintenance, insurance, and private mortgage insurance (if applicable). Refer to Section 3.5.1 for more details.

5.3.3 Equity Recapture
Affordable unit owners for ownership units approved after January 1, 2015 must comply with an equity sharing agreement with the City approved upon initial sale of the unit as specified in Section 4.2.3.2. 5 REQUIREMENTS
City of Beverly Hills Affordable Units Program Guidelines 5‐6
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Affordable Units Program Guidelines City of Beverly Hills 6‐1
6 EXCEPTIONS AND APPEALS

6.1 EXCEPTION REQUESTS
Any applicant believing that his/her situation warrants an exception to any part of these Guidelines due to circumstances outside of his/her household’s control, such as refugee status, special needs, or other hardships or special circumstances, may request an exception by submitting a written letter to the City prior to submitting an application of any kind.

The exception request must specify which particular guideline or requirement the household cannot meet for reasons beyond their control or other valid reasons, and/or describe the household’s unique circumstances which warrant one or more specific exceptions to be identified in the letter, referencing the page(s) and section(s) of these Guidelines and/or application form related to the request.

If the need for an exception arises while an application is being reviewed, a request may be submitted at such time. If the need for an exception arises only after receipt of a determination letter issued by City staff, an exception request shall be submitted as an appeal of such determination, according to the appeal process described in Section 6.2.

Exceptions related to disabilities (reasonable accommodations) may be requested according to this procedure, with a brief description of the exception(s) needed due to the applicant’s disability. Such requests will be handled in accordance with the City’s reasonable accommodations policy and these Guidelines.

The City will consider the requested exception and will provide a letter response within 10 calendar days, stating whether the requested exception can be granted in full or part and the reason for such decision. If denied, applicants may submit an appeal, as explained in Section 6.2.

6.2 APPEALS PROCEDURE
Applicants may appeal any determination letter, including denial of a requested exception, by providing a written explanation of the reasons for their appeal, and any supporting evidence they wish to provide.

City staff is not authorized to assist applicants in drafting appeal letters, nor in determining appropriate grounds for appeal or appropriate forms of supporting evidence, beyond advising them of the contents of these Guidelines, application forms, and other published program materials. Applicants may refer to these Guidelines and application forms and/or seek their own advisors/counsel for guidance in determining what types of documentation would be reasonable.

The appeal shall be heard by the Director of Community Development. The appeal letter must be delivered by mail, e‐mail, or personal delivery within 10 calendar days of issuance of the determination letter being appealed.

The Director of Community Development will review the appeal and make a determination within 10 calendar days.

If denied, the applicant may submit an appeal letter to the City Manager. The City Manager will review the appeal and issue a determination within 10 calendar days or less of receipt. Determinations by the City Manager shall be final.

Unless the appellant opened escrow to purchase an Affordable Unit prior to submittal of an appeal letter, no Affordable Unit will be held or reserved for the applicant while an appeal is being considered, and offers from other prospective buyers may be accepted by the seller(s) of Affordable Unit(s) during this time. If the appellant is in escrow to purchase an Affordable Unit, the City shall not issue any escrow instructions until a final determination regarding the appeal has been made, other than to inform the escrow officer that he/she may not close until further written notice from the City.
6 EXCEPTIONS AND APPEALS
City of Beverly Hills Affordable Units Program Guidelines 6‐2
The City is not responsible for any actions of seller, lender, or other parties regarding the escrow during the appeal period which may jeopardize buyer’s ability to purchase the Affordable Unit.

Planning Commission Report
Affordable Housing Guidelines Study Session
July 11, 2024

ATTACHMENT C
General Plan and Housing Element Goals and
Policies

GENERAL PLAN AND HOUSING ELEMENT GOALS AND POLICIES

PLANNING COMMISSION STUDY SESSION

REVISIONS TO AFFORDABLE HOUSING GUIDELINES
JUNE 26, 2024
• H2 Housing Supply and Diversity. Provide a variety of housing types and adequate affordable housing supply
• H 2.2 Inclusionary Housing. Continue to implement an inclusionary housing program to integrate affordable units within market rate developments, and increase the availability of affordable housing throughout the community. (Imp. 10.2) • H 2.8 Transit-Oriented Housing. Promote access, where feasible, from residential neighborhoods and new residential development to existing transit stops and to the anticipated subway stations. (Imp. 12.1)
• H 2.9 Jobs-Housing Balance. Promote programs seeking to provide housing opportunities for people who work in the City as a means of reducing long commutes, easing local traffic, improving air quality and helping to achieve a balanced regional jobs-housing distribution for the western portion of Los Angeles County. (Imp. 10.6)
• H 2.10 Workforce Housing. Study and develop programs to increase the amount of rental and ownership housing affordable to the local workforce. (Imp. 10.3, 10.4) • H 3 Fair Housing and Special Needs Residents. Promote equal housing opportunities for all residents; including Beverly Hills’ special needs populations, so residents have a choice of appropriate housing.
• H 3.1 Affirmatively Further Fair Housing Practices. Promote fair housing and nondiscrimination in the sale and rental of housing by coordinating with organizations that provide information, counseling and mediation on fair housing laws and landlord-tenant disputes. (Imp. 11.1)
• Imp 9.7 Monitoring Affordable Housing. Continue to implement the Affordable Housing Guidelines to monitor and manage deed-restricted units.

Planning Commission Report
Affordable Housing Guidelines Study Session
July 11, 2024

ATTACHMENT D
2016 City Council Staff Report – Affordable
Guidelines (No Attachments Included)
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AGENDA REPORT
Meeting Date: February 16, 2016
Item Number: G—3
To: Honorable Mayor & City Council
From: Susan Healy Keene, AICP, Director of Community Development Ryan Gohlich, AICP, Assistant Director of Community Development — City Planner
Subject: Affordable Housing Program Guidelines
Consider and adopt the attached Affordable Housing Program Guidelines
Attachments: 1. Draft Affordable Housing Program Guidelines

2. January 14, 2016 Planning Commission Staff Report (no attachments included)

3. December 10,2015 Planning Commission Staff Report (no attachments included)

RECOMMENDATION
Staff recommends that the City Council consider and adopt the attached Affordable Housing Program Guidelines.

INTRODUCTION
In response to development of affordable housing units in current development projects, as well as any future affordable units that may be approved in the City, Draft Affordable Housing Program Guidelines (Guidelines) have been developed to facilitate management and administration of the units. The program applies to units produced either as a result of the City’s Density Bonus Ordinance as set forth in Article 15.2 of the City’s Zoning Code or of other agreements to provide affordable units as part of a development project in the City. The Planning Commission discussed the Guidelines at a study session on December 10, 2015. At this meeting the Commission provided comments and directed staff to make specific edits to the Guidelines and also recommended that further discussion of the Guidelines occur at their next meeting. Staff returned with updated Guidelines to the Planning Commission meeting of January 14,

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Meeting Date: February 16, 2016
Affordable Housing Guidelines
2016. At this meeting, the Planning Commission voted to forward the Guidelines to the City Council.

This report provides information on the key aspects of the attached Affordable Housing Guidelines (Attachment 1). This report also identifies broader housing issues identified for further discussion by the Planning Commission in the future.

BACKGROUND
Affordable Housing Units in Beverly Hills
Several housing projects approved in the past ten years include affordable housing units that are reserved for households that meet certain maximum income requirements.

Approximately 10 affordable units have been entitled but not yet constructed. A number of these housing units were approved under the state Density Bonus Law program. One such project, the Elm Project (located at 309 South Elm Drive), is under construction and will provide three affordable ownership units for low-income households. Additional affordable housing units are anticipated to be entitled and developed in the future. At this time it is necessary for the City to establish a program and guidelines to administer and manage the affordable housing units in the City.

Once approved, the Guidelines will direct the process of marketing and renting/selling all affordable housing units developed in the City.

Additional Affordable Housing Discussions
The City’s Housing Element of the General Plan includes a number of programs that relate directly to affordable housing. City staff anticipates a broader discussion of these programs and other affordable housing issues in the City, and resulting policy direction will occur later in 2016. Some of the issues staff anticipates for future discussion were discussed at the Planning Commission meetings and include:
• The potential establishment of an inclusionary housing program • Assessing occupancy priority for affordable units
• Updates to Article 15.2 (density bonus ordinance) due to changes in State law • Maintaining affordability in for-sale units given recent changes in State law (this item was brought up at the Study Session in December)
• Incentivizing rental affordable units over ownership units (this item was brought up at the Study Session in December)
• Addressing renter’s rights issues
These topics will be brought to the Planning Commission at a later date. At this time, the City Council is being asked to discuss only the attached Guidelines.

DISCUSSION
The Affordable Housing Guidelines document will facilitate the management of affordable housing units in the City and the implementation of the Affordable Housing Program. The Guidelines address both ownership units and rental units that are

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Affordable Housing Guidelines
affordable. The Guidelines are consistent with the codified language in Article 15.2 (the existing municipal code language that pertains to affordable housing units built under the density bonus law) except where updates to state density bonus law (Government Code 65915 et seq.) requires updated language and where staff determined additional clarification was needed to interpret Article 15.2.

This section provides a summary of the key aspects of the attached Guidelines.

Key Steps in Process to Develop Affordable Units
The Guidelines provide a step-by-step process for the development and implementation of affordable housing units in the City including the following steps:
• Developer applies for a project
o Application will include the number of Affordable Units, their levels of affordability (moderate, low, or very low income), and the type of project (ownership or rental), among other things.
• City issues approval of requested entitlements (if project is approved) • Agreement and final affordability obligation is formalized in an Affordable Housing Agreement between the City and the developer.
o Agreement is recorded against the property, runs with the land, and survives transfer or sale of the land.
• Developer prepares and obtains City approval of:
o Marketing Plan (if ownership units are proposed)
o Management Plan (if rental units are proposed)
o Projects approved prior to the effective date of the Guidelines shall not be required to prepare a Marketing Plan or Management Plan prior to issuance of building permits but will prepare one before units are marketed to prospective tenants/buyers.
• Final Tract Map is recorded (if applicable)
• First building permit is issued
• Eligibility Guarantees are ensured. Developers must ensure to the satisfaction of the city attorney:
o Continued affordability of rental units designated for lower and very low income households;
o Continued restriction of units designated for qualifying seniors; o Initial occupants of ownership units meet applicable income limits; and

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Affordable Housing Guidelines
o That upon resale of an affordable unit the City will recapture its proportionate share of equity and appreciation.
• Construction
• Owner/renter applicant qualification and selection
Calculation of Maximum Affordable Sales Price or Rent
The Guidelines outline the required process for calculating the maximum sales price for affordable for-sale units and the maximum monthly rent for affordable rental units.

Maximum incomes for very low, low, and moderate income households are based on the California Department of Housing and Community Development (HCD) income limits for Los Angeles County. These income limits are updated annually by HCD. The maximum sales price and rent affordable to each income category are based on these income limits and other variables. Owner-occupied units are deemed affordable units if the sales price results in annual housing expenses that do not exceed 30% of the specified income level for Very Low- and Low-Income Households and 35% of the specified income level for Moderate-Income households, adjusted for household size. Potential purchasers must be income-qualified and meet the required income level for the unit they are applying to purchase.

Maximum affordable sales price is based on:
• Number of bedrooms;
• Applicable HCD income limits for Los Angeles County;
• Homeowners association (HOA) dues for the unit;
• Assumptions regarding mortgage interest rates, down payment, property taxes, utilities/ maintenance, insurance, and private mortgage insurance (if applicable).

Maximum affordable monthly rent is based on:
• 30% of the maximum monthly income for each income category based on the HCD income limits for Los Angeles County
Application and Screening Process
When crafting the Guidelines staff and the Planning Commission discussed several alternatives for the application and screening process in an attempt to find a solution that would balance staff time and resources as well as City control over these processes. In the currently proposed Guidelines, the majority of the application collection, screening and prioritization process is delegated to the developer or management firm, with oversight by the City. The application and screening processes proposed in the Guidelines are as follows:

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Affordable Housing Guidelines
Ownership Units
After the Marketing Plan has been approved by the City, and prior to the sale of any units, the developer must screen, rank, and qualify eligible buyers and send a priority list to the City. The following steps make up the application and screening process:
• Developer’s sales staff meet with City for training
• Developer conducts application collection. Applications shall be on a Cityprepared application. • Developer conducts application screening including applying the occupancy priority list in order to rank applicants.
• Developer submits the top ranked applications for the number of units available for City review and verification
• Finalize approved purchasers
• Prepare and record documents
Rental Units
Prior to the rental of any units, the developer must screen, rank, and qualify eligible tenants and send a priority list to the City. The following steps make up the application and screening process:
• Management firm’s leasing staff complete training with City staff • Management firm conducts application collection
• Management firm conducts application screening
• Management firm develops priority list based on occupancy priority list • Developer submits the top ranked applications for the number of units available for City review and verification
• Management firm makes offer to lease to selected applicants • Management firm executes rental agreement
Staff proposes reassessment of the City role in the future to potentially expand City responsibilities and management should a more substantial number of units be built in the City.

Prioritization of households
Existing language in the Municipal Code (Article 15.2) outlines a priority list for affordable units built in the City. The Guidelines reflect the list that is established in Article 15.2.

The Planning Commission expressed interest in revisiting this list later this year.

Revisions to the list will require amendment of the Municipal Code.

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First Priority
Displaced Tenants: If tenants are required to vacate existing dwelling units where they have resided for at least five years so that an owner or developer may perform any construction, renovation, or addition pursuant to a density bonus permit or other affordable housing agreement, then each displaced tenant shall be given a right of first refusal to occupy any Affordable unit for which the tenant qualifies in the newly constructed or renovated building. Tenants shall be offered the units in the following priority:
o Households in which at least one member is 62 years of age or older; o Households with the lowest annual income.
• Second Priority
Income Qualified households in which at least one member is:
o Employed by the Beverly Hills Unified School District as a state-certified classroom teacher; or
o Employed by the Beverly Hills police department as a sworn law enforcement officer; or
o Employed by the Beverly Hills fire department as a sworn firefighter; • Third Priority
Households with the lowest annual income;
• Fourth Priority
All other qualified households
Process for accepting and vetting applications
The Guidelines outline a process for accepting and vetting applications that are submitted for available affordable units. Under the proposed Guidelines the following shall apply:
1- When accepting applications, Priority Level 1 applications will be accepted on the first day of the application period, Priority Level 2 on the second day, Priority Level 3 on the third day, and Priority Level 4 on the fourth day. All categories will be accepted during the remaining application time period. 2- All applications submitted during the application period shall be accepted and categorized in the appropriate priority level.
3- Once the application period has closed, the developer’s agent shall use a lottery system to numerically rank all applications within each Priority Level except for priority levels that require ranking by lowest annual income, in which case the

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Meeting Date: February 16, 2016
Affordable Housing Guidelines
developer’s agent shall rank applications based on lowest annual income. 4- Once applications have been numerically ranked the developer’s agent shall vet and deem qualified a minimum number of applications starting with the top ranked application in priority level one and moving down the list. A minimum number of applications of five times the number of available units shall be deemed qualified by the developer (e.g. 50 applications for 10 units). 5- The developer shall provide the City with the complete applications for a minimum number of qualified applicants for City vetting. This minimum number shall be five times the number of available units.

The following hypothetical example has been created to provide a better understanding of how the proposed process would work.
10 units available — a minimum of 50 applications must be deemed qualified # Applications Priority Level # Applications reviewed for qualification Received 1 3 3 (minimum of 50 not yet met)
2 33 33 (minimum of 50 not yet met)
3 221 14 (Determined by lottery out of the 221 received — minimum of 50 now met)
4 347 None — 50 required application limit reached
Resale of Ownership Units or Change in Tenant for Rental Units:

The Guidelines outline the process that must be undertaken when a designated affordable unit is vacated (rental unit) or when the owner of an affordable unit would like to sell the unit.

Ownership Units
For affordable units that are approved with a minimum period of affordability (such as 30 years), and the owner wishes to sell the unit while it is still in the term of affordability, the owner of the unit shall work with the City to find a buyer that meets the qualifications to purchase the unit.

For affordable ownership units that are not subject to a minimum period of affordability, an equity sharing agreement between the seller and City shall be required. This agreement allows fair recapture of investment for all parties when the unit sells. No term of affordability is required for ownership units approved under the density bonus law after January 1, 2015 pursuant to Assembly Bill 2222; however, the City does share in any profits derived from the future sale of an affordable unit, with such profits to be deposited into the City’s Affordable Housing Trust Fund for future use in implementing affordable housing.

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Meeting Date: February 16, 2016
Affordable Housing Guidelines
Rental Units
Upon annual review, if a household’s income has risen more than 10 percent above the income limit for their affordable rental unit, they will no longer be considered qualified for the affordable rental unit and will be required to vacate. The tenant shall have up to six months to vacate the affordable rental unit.

Very low and low-income rental units shall remain affordable to the income category they are designated for a minimum of 55 years. Tenants shall be chosen from a valid interest list created pursuant to the regulations set forth in the Guidelines.

GENERAL PLAN CONSISTENCY
The Housing Element of the General Plan contains language including Goal H2 “Housing Supply and Diversity! which calls for “provid[ing] a variety of housing types and adequate affordable housing supply to meet the existing and future needs of the community and Policy H 2.1 “Affordable Housing Incentives” which calls for the City to “Offer incentives, including density bonuses, where feasible, to offset or reduce the costs of developing affordable housing. Proactively seek out new approaches in the provision of affordable housing.” Adopting Affordable Housing Program Guidelines will encourage development of affordable units in the City by educating potential developers about the City’s regulations and required process and clarifying the responsibilities of the City and the developer when affordable units are proposed.

FISCAL IMPACT
There are staffing costs associated with the implementation of the affordable housing units built in the City, regardless of the approval of the attached Guidelines. Staff resources will be needed to carry out many of the provisions of the Guidelines and ensure that the guidelines are being followed; however, the Guidelines place as much of the burden as possible on the developer, with City staff serving primarily in an oversight capacity.

Susan Healy Keene, AICP
Approved By

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Planning Commission Report
Affordable Housing Guidelines Study Session
July 11, 2024

ATTACHMENT E
2019 City Council Staff Report – Revised Priority List
(No Attachments Included)
Meeting Date: September 17, 2019
Item Number: F—3
To: Honorable Mayor & City Council
From: Susan Healy Keene, AICP, Director of Community Development Timothea Tway, AICP, Senior Planner
Subject: AN ORDINANCE OF THE CITY OF BEVERLY HILLS AMENDING BEVERLY HILLS MUNICIPAL CODE SECTION 10-3-1528

PERTAINING TO THE OCCUPANCY PRIORITY FOR AFFORDABLE
HOUSING UNITS BUILT IN THE CITY PURSUANT TO THE CITY’S
RESIDENTIAL DENSITY BONUS REGULATIONS.

Attachments: 1. Ordinance

2. Redlined Ordinance Showing Changes since September 10, 2019 City Council Meeting

3. September 10, 2019 City Council Staff Report

ORDINANCE OF THE CITY OF BEVERLY HILLS AMENDING BEVERLY HILLS MUNICIPAL CODE § 10-3-1528 PERTAINING TO THE OCCUPANCY PRIORITY FOR AFFORDABLE HOUSING UNITS BUILT IN THE CITY PURSUANT TO THE CITY’S RESIDENTIAL DENSITY BONUS REGULATIONS” be introduced and read by title only.

BACKGROUND
On September 10, 2019 the City Council considered an ordinance amending the Beverly Hills Municipal Code (BHMC) to change the occupancy priority list for affordable housing units built in the City. The staff report from the September 10 meeting is included as Attachment 3 to this report. At this meeting, the City Council received a staff report, considered public comment, and

AGENDA REPORT

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Meeting Date: September 17, 2019
discussed the proposed ordinance. As a result of the discussion, the City Council directed staff to make several changes to the ordinance and return to the September 17, 2019 City Council meeting. This report summarizes the changes that have been made in response to the City Council comments received on September 10.

DISCUSSION
On September 10, 2019, staff presented an ordinance to the City Council that would create six distinct tiers to prioritize occupants for affordable housing units developed in the City. The tiers were as follows:

1. Income qualified households in which at least one member is a senior (62 years and older) who are/or will be displaced from the site of development;

2. Income qualified households that are or will be displaced from the site of development;

3. Income qualified households in which at least one member is a senior (62 years and older) displaced from any recently (within the past 2 years) demolished multi-family building in the City or are living in a multi-family property in the City that has recently (within the past 2 years) received entitlements for redevelopment;

4. Income qualified households displaced from a recently (within the past 2 years) demolished multi-family building in the City or living in a multi-family property in the City that has recently (within past 2 years) received entitlements for redevelopment;

5. Income qualified households with at least one member who is a senior that does not fit the above categories;

6. Income qualified households that do not fit into the above categories.

More detailed information about the tiers and the process for renting the affordable units is provided in Attachment 3.

At the September 10 public hearing, the City Council directed staff to make the following changes to the ordinance language:

1. Amend the language related to displaced households (Tier 3 and Tier 4) to ensure that households that were forced to vacate a building in the City due to redevelopment are eligible “displaced households” even if the building has not yet been demolished (at the time that affordable housing applications are due), and/or the household is not currently living in the building that will be demolished.

2. Add two tiers to prioritize displaced families with students in the Beverly Hills Unified School District. The City Council requested that displaced households with students be prioritized after senior displaced households in the occupancy list. The City Council also requested that the priority clarify that the student must be a sophomore or younger.

3. Include language in the ordinance to clarify that displaced households shall be ranked within each priority level by longevity in the building from which the household is being/was Page2ofs
Meeting Date: September 17, 2019
displaced. This change would mean that if there are two senior households displaced from the site of the development, the senior household that has lived at that site for the longer period of time would be ranked higher than the other senior household.

As a result of these comments staff has amended the ordinance language. The new priority list is reflected in the attached ordinance (Attachment 1) and is as follows:

1. Income qualified households in which at least one member is a senior (62 years and older) who are/or will be displaced from the site of development. If more than one household falls into this category, such households shall be ranked in order based on the amount of time that the household has resided at the site of development. The highest ranking shall go to the household that has been residing at the site the longest period of time and so forth;

2. Income qualified households that include a legal guardian of a student(s) in the Beverly Hills Unified School District and the guardian that is/or will be displaced from the site of development. The youngest Beverly Hills Unified School District student in the household must be in grade 10 or below at the time that the affordable housing application is due. If more than one household falls into this category, such households shall be ranked in order based on the amount of time that the household has resided at the site of development.

The highest tanking shall go to the household that has been residing at the site the longest period of time and so forth;

3. Income qualified households that are or will be displaced from the site of development. If more than one household falls into this category, such households shall be ranked in order based on the amount of time that the household has resided at the site of development.

The highest ranking shall go to the household that has been residing at the site the longest period of time and so forth;

4. Income qualified households in which at least one member is a senior (62 years and older) displaced from any recently (within the past 2 years) demolished multi-family building in the City or households that are living in and will be displaced or evicted for the purpose of redevelopment of the property in a multi-family property in the City that has recently (within the past 2 years) received entitlements for redevelopment. If more than one household falls into this category, such households shall be ranked in order based on the amount of time that the household has resided at the site of redevelopment. The highest ranking shall go to the household that has been residing at the site the longest period of time and so forth;

5. Income qualified households that include a legal guardian of a student(s) in the Beverly Hills Unified School District and the guardian has been displaced from any recently (within the past 2 years) demolished multi-family building in the City or households that are living in and will be displaced or evicted for the purpose of redevelopment of the property in a multi-family property in the City that has recently (within the past 2 years) received entitlements for redevelopment. The youngest Beverly Hills Unified School District student in the household must be in grade 10 or below at the time that the affordable housing application is due. If more than one household falls into this category, such households shall be ranked in order based on the amount of time that the household has resided at the site of redevelopment. The highest ranking shall go to the household that has been residing at the site the longest period of time and so forth;

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Meeting Date: September 17, 2019

6. Income qualified households displaced from any recently (within the past 2 years) demolished multi-family building in the City or households that are living in and will be displaced or evicted for the purpose of redevelopment of the property in a multi-family property in the City that has recently (within the past 2 years) received entitlements for redevelopment. If more than one household falls into this category, such households shall be ranked in order based on the amount of time that the household has resided at the site of redevelopment. The highest ranking shall go to the household that has been residing at the site the longest period of time;

7. Income qualified households with at least one member who is a senior that does not fit the above categories;

8. Income qualified households that do not fit into the above categories.

PUBLIC OUTREACH AND NOTIFICATION
Notice of this hearing was published in the Beverly Hills Courier on August 16, 2019, and the Beverly Hills Weekly on August 29, 201 9, and courtesy notices were emailed to interested parties.

ENVIRONMENTAL ASSESSMENT
This Ordinance has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. The adoption and implementation of the Ordinance appears to be eligible for a class 5 categorical exemption for minor changes in land use limitations and the Ordinance could be found to not have a significant environmental impact. Further, it can be seen with certainty that there is no possibility that the adoption and implementation of the Ordinance could have a significant effect on the environment. Staff recommends that the City Council find that this Ordinance is exempt from the environmental review requirements of CEQA pursuant to Section 15305 of Title 14 of the California Code of Regulations and Section 15061(b)(3) of Title 14 of the California Code of Regulations.

FISCAL IMPACTS
There are no fiscal impacts associated with the adoption or implementation of this Ordinance.

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Meeting Date: September 17, 2019

Susan Healy Keene, AICP
Director of Community Development

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Planning Commission Report
Affordable Housing Guidelines Study Session
July 11, 2024

ATTACHMENT F
HCD – 2024 State Income Limits
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
May 9, 2024
MEMORANDUM FOR: Interested Parties
FROM: Megan Kirkeby, Deputy Director
Division of Housing Policy Development
SUBJECT: 2024 State Income Limits
Attached are briefing materials and 2024 State Income Limits that are now in effect, replacing the previous 2023 State Income Limits. Income limits reflect updated median income and household income levels for acutely low -, extremely low-, very low-, low-, and moderate-income households for California’s 58 counties. The 2024 State Income Limits are on the Department of Housing and Community Development (HCD) website at https://www.hcd.ca.gov/grants-andfunding/income-limits/state-and-federal-income-rent-and-loan-value-limits.

State Income Limits apply to designated programs, are used to determine applicant eligibility (based on the level of household income) and may be used to calculate affordable housing costs for applicable housing assistance programs. Use of State Income Limits are subject to a particular program’s definition of income, family, family size, effective dates, and other factors. In addition, definitions applicable to income categories, criteria, and geographic areas sometimes differ depending on the funding source and program, resulting in some programs using other income limits.

The attached briefing materials detail California’s 2024 State Income Limits and were updated based on: (1) changes to income limits the U.S. Department of Housing and Urban Development (HUD) released on April 1, 2024, for its Public Housing, Section 8, Section 202, and Section 811 programs; and (2) adjustments HCD made based on State statutory provisions and its 2013 Hold Harmless (HH) Policy.

For questions concerning State Income Limits, please see the Questions and Answers on page 5 or contact [email protected].
2024 State Income Limits Briefing Materials
California Code of Regulations, Title 25, Section 6932

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Overview
The Department of Housing and Community Development (HCD), pursuant to Health & Safety Code Section 50093(c), must file updates to its State Income Limits with the Office of Administrative Law.

HCD annually updates these income limits based on U.S. Department of Housing and Urban Development (HUD) revisions to the Public Housing and Section 8 Income Limits that HUD most recently released on April 1, 2024.

HUD annually updates its Public Housing and Section 8 Income Limits to reflect changes in median family income levels for different size households and income limits for extremely low-, very low-, and low-income households. HCD, pursuant to statutory provisions, makes the following additional revisions:
(1) if necessary, increases a county’s area median income to equal California’s non-metropolitan median income, (2) adjusts Area Median Income (AMI) and household income category levels to not result in any year-over-year decrease for any year after 2009 pursuant to HCD’s February 2013 Hold Harmless (HH) Policy. (HCD’s HH Policy was implemented to replace HUD’s HH Policy, discontinued in 2009, to ensure income limits and area median income levels do not fall below a prior year’s highest level), and (3) determines income limits for California’s acutely low-income and moderate-income categories.

Following are brief summaries of technical methodologies used by HUD and HCD in updating income limits for different household income categories. For additional information, please refer to HUD’s briefing materials at https://www.huduser.gov/portal/datasets/il//il24/IncomeLimitsMethodologyFY24.pdf.

HUD Methodology
HUD Public Housing and Section 8 Income Limits begin with the production of median family incomes.

HUD uses the Section 8 program’s Fair Market Rent (FMR) area definitions in developing median incomes, which means developing median incomes for each metropolitan area, parts of some metropolitan areas, and each non-metropolitan county. The 2024 FMR area definitions for California are unchanged from last year. HUD calculates Income Limits for every FMR area with adjustments for family size and for areas with unusually high or low family income or housing-cost-to-income relationships.

Extremely Low-Income
In determining the extremely low-income limit, HUD uses the Federal Poverty Guidelines, published by the Department of Health and Human Services. The Federal Poverty Guidelines are a simplified version of the Federal Poverty Thresholds used for administrative purposes — for instance, determining financial eligibility for certain federal programs. HUD compares the appropriate poverty guideline with 60% of the very low-income limit and chooses the greater of the two as the extremely low-income limit.

The value may not exceed the very low-income level.

Very Low-Income
The very low-income limits are the basis for the extremely low- and low-income limits. The very lowincome limit typically reflects 50 percent of median family income (MFI), and HUD's MFI figure generally equals two times HUD's 4-person very low-income limit. However, HUD may adjust the very low-income limit for an area or county to account for conditions that warrant special considerations. As such, the very low-income limit may not always equal 50% MFI.

Low-Income
In general, most low-income limits represent the higher level of: (1) 80 percent of MFI or, (2) 80 percent of state non-metropolitan median family income. However, due to adjustments that HUD sometimes makes to the very low-income limit, strictly calculating low-income limits as 80 percent of MFI could 2024 State Income Limits Briefing Materials
California Code of Regulations, Title 25, Section 6932

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produce unintended anomalies inconsistent with statutory intent (e.g., very low-income limits being higher than low-income limits). Therefore, HUD’s briefing materials specify that, with some exceptions, the low-income limit reflect 160 percent of the very low-income limit. HUD may apply additional adjustments to areas with unusually high or low housing-costs-to-income relationships and for other reasons. This can result in low-income limits exceeding MFI in certain counties.

Median Family Income/Area Median Income
HUD references and estimates the MFI in calculating the income limits. California law and State Income Limits reference AMI that, pursuant to Health & Safety Code section 50093(c), means the MFI of a geographic area of the State, as estimated annually by HUD for its Section 8 Program.

In estimating FY 2024 median family incomes, HUD uses median family income data (as opposed to median household income data) from the 2022 American Community Survey (ACS) as calculated by the Census Bureau. The Census Bureau produces two types of ACS estimates: the “one-year” data, which represent estimates as of 2022; and the “five-year” data, which represent estimates as of 2018-2022 (but are inflated to 2022 dollars). HUD requires special tabulations of the ACS to match its custom HMFA definitions described above.

HUD uses the 2022 ACS median family income data (as opposed to household income data) as the basis of FY 2024 Income Limits for all areas of California. HUD uses an inflation forecast from the Congressional Budget Office (CBO) in updating ACS estimates. For FY 2024, CBO has produced a forecast CPI of 310.683, which divided by annual 2022 of 292.613 is 1.062 (an increase of 6.2 percent).

For additional information on MFI’s please see HUD’s briefing materials at https://www.huduser.gov/portal/datasets/il/il24/Medians-Methodology-FY24.pdf.

Adjustment Calculations
HUD may apply adjustments to areas with unusually high or low family income, uneven housing-cost-toincome relationship, or other reasons. For example, HUD applies an increase if the four-person very low-income limit would otherwise be less than the amount at which 35 percent of it equals 85 percent of the annualized two-bedroom Section 8 FMR (or 40th percentile rent in 50th percentile FMR areas). The purpose is to increase the income limit for areas where rental-housing costs are unusually high in relation to the median income. In certain cases, HUD also applies an adjustment to the income limits based on the state non-metropolitan median family income level.

In addition, HUD restricts adjustments, so income limits do not increase more than five percent of the previous year's very low-income figure OR twice the increase in the national MFI as measured by the ACS with an absolute cap of 10 percent, whichever is greater. For 2024, the annualized change is measured by the ACS from 2021 to 2022. Twice this change is approximately 14.8 percent, which is greater than the 10 percent absolute cap. So, for FY 2024, the income limits “cap” is 10 percent. HUD first announced this methodology on January 10, 2024 in a Federal Register Notice. The cap and floor rules do not apply to the extremely low-income limits.

Please refer to HUD briefing materials for additional information on the adjustment calculations.

Income Limit Calculations for Household Sizes Other Than 4-Persons The income limit statute requires adjustments for family size. The legislative history and conference committee report indicates that Congress intended that income limits should be higher for larger families and lower for smaller families. The same family size adjustments apply to all income limits, except extremely low-income limits, which are set at the poverty income threshold. They are as follows:

Number of Persons in Household: 1 2 3 4 5 6 7 8
Adjustments: 70% 80% 90% Base 108% 116% 124% 132%
2024 State Income Limits Briefing Materials
California Code of Regulations, Title 25, Section 6932

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Income Limit Calculations for Household Sizes Greater Than 8-Persons For households of more than eight persons, refer to the formula at the end of the table for 2024 Income Limits. Due to the adjustments HUD can make to income limits in a given county, table data should be the only method used to determine program eligibility. Arithmetic calculations are applicable only when a household has more than eight members. New for FY 2024, family size-adjusted income limits are retested for compliance with the cap and floor rules. Please refer to HUD’s briefing material for additional information on family size adjustments.

HCD Methodology
State law (see, e.g., Health & Safety Code section 50093) prescribes the methodology HCD uses to update the State Income Limits. HCD utilizes HUD’s Public Housing and Section 8 Income Limits.

HCD’s methodology involves: (1) if necessary, increasing a county’s median income established by HUD to equal California’s non-metropolitan county median income determined by HUD, (2) applying HCD’s HH Policy, in effect since 2013, to not allow decreases in AMI levels and household income category levels, (3) applying to the median income the same family size adjustments HUD applies to the income limits, (4) determining income limit levels applicable to California’s acutely low-income households defined by law as household income not exceeding 15 percent of county AMI, and (5) determining income limit levels applicable to California’s moderate-income households defined by law as household income not exceeding 120 percent of county AMI.

Area Median Income and Income Category Levels
HCD, pursuant to federal and State law, adjusts median income levels for all counties so they are not less than the non-metropolitan county median income established by HUD ($87,900 for 2024). Next, HCD applies its HH Policy to ensure AMI and income limits for all household income categories do not fall below any level achieved in the prior year. Health and Safety Code section 50093 requires HCD to adjust the AMI for family size in accordance with adjustment factors adopted by HUD and illustrated on the previous page. This establishes that the MFI published by HUD equals the four-person AMI for California counties.

Acutely low-Income Levels
Beginning in 2022, Health and Safety Code section 50063.5 established California’s acutely low-income household levels. After calculating the 4-person area median income (AMI) level as previously described, HCD sets the maximum acutely low-income limit to equal 15 percent of the county’s AMI, adjusted for family size.

Moderate-Income Levels
HCD is responsible for establishing California’s moderate-income limit levels. After calculating the 4- person AMI level as previously described, HCD sets the maximum moderate-income limit to equal 120 percent of the county’s AMI, adjusted for family size.

Applicability of California’s Official State Income Limits Applicability of the State Income Limits are subject to particular programs as program definitions of factors such as income, family, and household size vary. Some programs, such as Multifamily Tax Subsidy Projects (MTSPs), use different income limits. For MTSPs, separate income limits apply per provisions of the Housing and Economic Recovery Act (HERA) of 2008 (Public Law 110-289). Income limits for MTSPs are used to determine qualification levels as well as set maximum rental rates for projects funded with tax credits authorized under Section 42 of the Internal Revenue Code (Code). In addition, MTSP income limits apply to projects financed with tax-exempt housing bonds issued to provide qualified residential rental development under Section 142 of the Code. These income limits are available at http://www.huduser.org/datasets/mtsp.html. 2024 State Income Limits Briefing Materials
California Code of Regulations, Title 25, Section 6932

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Questions and Answers
In Los Angeles, as well as several other counties in the state, why does the very low-income limit not equal 50% of AMI (or the low-income limit not equal 80% of AMI)? There are many exceptions to the arithmetic calculation of income limits. These include adjustments for high housing cost relative to income, the application of state nonmetropolitan income limits in low-income areas, and national maximums in high-income areas. In Los Angeles County, as well as several others, the magnitude of these adjustments results in the low-income limit exceeding AMI. These exceptions are detailed in the FY 2024 Income Limits Methodology Document, https://www.huduser.gov/portal/datasets/il/il24/Medians-Methodology-FY24.pdf.

For further information on the exact adjustments made to an individual area of the country, please see HUD’s FY 2024 Income Limits Documentation System. The documentation system is available at https://www.huduser.gov/portal/datasets/il/il2024/select_Geography.odn. Once the area in question is selected, a summary of the area’s median income, Very Low-Income, Extremely Low-Income, and LowIncome Limits are displayed. Detailed calculations are obtained by selecting the relevant links.

Why don’t the income limits for my area reflect recent gains? Although HUD uses the most recent data available concerning local area incomes, there is still a lag between when the data are collected and when the data are available for use. For example, FY 2024 Income Limits are calculated using 2018-2022 5-year American Community Survey (ACS) data, and oneyear 2022 data where possible. This is a two-year lag, so more current trends in median family income levels are not available.

HUD estimates Median Family Income (MFI) annually for each metropolitan area and non-metropolitan county. The basis for HUD’s median family incomes is data from the ACS, table B19113 - MEDIAN FAMILY INCOME IN THE PAST 12 MONTHS. A Consumer Price Index (CPI) forecast as published by the Bureau of Labor Statistics is used in the trend factor calculation to bring the 2021 ACS data forward to FY 2023.

For additional details concerning the use of the ACS in HUD’s calculations of MFI, please see HUD’s FY 2024 Median Family Income methodology document,
at https://www.huduser.gov/portal/datasets/il/il23/Medians-Methodology-FY24.pdf Additionally, full documentation of all calculations for MFIs is available in the FY 2024 Median Family Income and the FY 2024 Income Limits Documentation System. These systems are available at https://www.huduser.gov/portal/datasets/il/il2024/select_Geography.odn Why didn’t the income limits for my county change from last year? HCD’s 2013 Hold Harmless Policy likely prevented the income limits from decreasing from last year’s levels and has maintained them despite a decrease in median income and/or income limits published by HUD.

Why do the income limits or area median income for my county not match what was published by HUD?
HCD adjusts each county’s AMI to at least equal the state non-metropolitan county median income, as published by HUD. Further, HCD’s 2013 Hold Harmless Policy prevents any decrease in income limits or median family income published by HUD to be applied to State Income Limits.

Section 6932. 2024 Income Limits
Number of Persons in Household: 1 2 3 4 5 6 7 8
Last page instructs how to use income limits to determine applicant eligibility and calculate affordable housing cost and rent
Alameda County
Area Median Income:
$155,700
Acutely Low 16350 18700 21000 23350 25200 27100 28950 30800 Extremely Low 32700 37400 42050 46700 50450 54200 57950 61650 Very Low Income 54500 62300 70100 77850 84100 90350 96550 102800 Low Income 84600 96650 108750 120800 130500 140150 149800 159500 Median Income 109000 124550 140150 155700 168150 180600 193050 205500 Moderate Income 130800 149500 168150 186850 201800 216750 231700 246650 Alpine County
Area Median Income:
$119,300
Acutely Low 12550 14300 16100 17900 19350 20750 22200 23650 Extremely Low 22200 25400 28550 31700 36580 41960 47340 52720 Very Low Income 37000 42250 47550 52850 57050 61300 65550 69750 Low Income 59200 67650 76100 84550 91350 98100 104850 111650 Median Income 83500 95450 107350 119300 128850 138400 147950 157500 Moderate Income 100200 114500 128850 143150 154600 166050 177500 188950 Amador County
Area Median Income:
$101,900
Acutely Low 10700 12250 13750 15300 16500 17750 18950 20200 Extremely Low 21200 24200 27250 31200 36580 41960 47340 52720 Very Low Income 35300 40350 45400 50400 54450 58500 62500 66550 Low Income 56450 64550 72600 80650 87150 93600 100050 106500 Median Income 71350 81500 91700 101900 110050 118200 126350 134500 Moderate Income 85600 97850 110050 122300 132100 141850 151650 161450 Butte County
Area Median Income:
$96,600
Acutely Low 10150 11600 13050 14500 15650 16800 18000 19150 Extremely Low 19050 21800 25820 31200 36580 41960 47340 52720 Very Low Income 31750 36300 40850 45350 49000 52600 56250 59850 Low Income 50750 58000 65250 72500 78300 84100 89900 95700 Median Income 67600 77300 86950 96600 104350 112050 119800 127500 Moderate Income 81150 92700 104300 115900 125150 134450 143700 153000 Calaveras County
Area Median Income:
$96,200
Acutely Low 10100 11550 13000 14450 15600 16750 17900 19050 Extremely Low 20050 22900 25820 31200 36580 41960 47340 52720 Very Low Income 33400 38150 42900 47650 51500 55300 59100 62900 Low Income 53400 61000 68650 76250 82350 88450 94550 100650 Median Income 67350 76950 86600 96200 103900 111600 119300 127000 Moderate Income 80800 92350 103900 115450 124700 133900 143150 152400 Colusa County
Area Median Income:
$87,900
Acutely Low 9250 10550 11900 13200 14250 15300 16350 17400 Extremely Low 18450 21100 25820 31200 36580 41960 47340 52720 Very Low Income 30800 35200 39600 43950 47500 51000 54500 58050 Low Income 49250 56250 63300 70300 75950 81550 87200 92800 Median Income 61550 70300 79100 87900 94950 101950 109000 116050 Moderate Income 73850 84400 94950 105500 113950 122400 130800 139250 Contra Costa County
Area Median Income:
$155,700
Acutely Low 16350 18700 21000 23350 25200 27100 28950 30800 Extremely Low 32700 37400 42050 46700 50450 54200 57950 61650 Very Low Income 54500 62300 70100 77850 84100 90350 96550 102800 Low Income 84600 96650 108750 120800 130500 140150 149800 159500 Median Income 109000 124550 140150 155700 168150 180600 193050 205500 Moderate Income 130800 149500 168150 186850 201800 216750 231700 246650 Number of Persons in Household: 1 2 3 4 5 6 7 8
Del Norte County
Area Median Income:
$87,900
Acutely Low 9250 10550 11900 13200 14250 15300 16350 17400 Extremely Low 18450 21100 25820 31200 36580 41960 47340 52720 Very Low Income 30800 35200 39600 43950 47500 51000 54500 58050 Low Income 49250 56250 63300 70300 75950 81550 87200 92800 Median Income 61550 70300 79100 87900 94950 101950 109000 116050 Moderate Income 73850 84400 94950 105500 113950 122400 130800 139250 El Dorado County
Area Median Income:
$113,900
Acutely Low 11950 13700 15400 17100 18450 19850 21200 22550 Extremely Low 24750 28300 31850 35350 38200 41960 47340 52720 Very Low Income 41300 47150 53050 58950 63650 68400 73100 77850 Low Income 66050 75450 84900 94300 101850 109400 116950 124500 Median Income 79750 91100 102500 113900 123000 132100 141250 150350 Moderate Income 95700 109350 123050 136700 147650 158550 169500 180450 Fresno County
Area Median Income:
$87,900
Acutely Low 9250 10550 11900 13200 14250 15300 16350 17400 Extremely Low 18450 21100 25820 31200 36580 41960 47340 52720 Very Low Income 30800 35200 39600 43950 47500 51000 54500 58050 Low Income 49250 56250 63300 70300 75950 81550 87200 92800 Median Income 61550 70300 79100 87900 94950 101950 109000 116050 Moderate Income 73850 84400 94950 105500 113950 122400 130800 139250 Glenn County
Area Median Income:
$87,900
Acutely Low 9250 10550 11900 13200 14250 15300 16350 17400 Extremely Low 18450 21100 25820 31200 36580 41960 47340 52720 Very Low Income 30800 35200 39600 43950 47500 51000 54500 58050 Low Income 49250 56250 63300 70300 75950 81550 87200 92800 Median Income 61550 70300 79100 87900 94950 101950 109000 116050 Moderate Income 73850 84400 94950 105500 113950 122400 130800 139250 Humboldt County
Area Median Income:
$88,300
Acutely Low 9300 10600 11950 13250 14300 15350 16450 17500 Extremely Low 18550 21200 25820 31200 36580 41960 47340 52720 Very Low Income 30950 35350 39750 44150 47700 51250 54750 58300 Low Income 49500 56550 63600 70650 76350 82000 87650 93300 Median Income 61800 70650 79450 88300 95350 102450 109500 116550 Moderate Income 74150 84750 95350 105950 114450 122900 131400 139850 Imperial County
Area Median Income:
$87,900
Acutely Low 9250 10550 11900 13200 14250 15300 16350 17400 Extremely Low 18450 21100 25820 31200 36580 41960 47340 52720 Very Low Income 30800 35200 39600 43950 47500 51000 54500 58050 Low Income 49250 56250 63300 70300 75950 81550 87200 92800 Median Income 61550 70300 79100 87900 94950 101950 109000 116050 Moderate Income 73850 84400 94950 105500 113950 122400 130800 139250 Inyo County
Area Median Income:
$87,900
Acutely Low 9250 10550 11900 13200 14250 15300 16350 17400 Extremely Low 18450 21100 25820 31200 36580 41960 47340 52720 Very Low Income 30800 35200 39600 43950 47500 51000 54500 58050 Low Income 49250 56250 63300 70300 75950 81550 87200 92800 Median Income 61550 70300 79100 87900 94950 101950 109000 116050 Moderate Income 73850 84400 94950 105500 113950 122400 130800 139250 Number of Persons in Household: 1 2 3 4 5 6 7 8
Kern County
Area Median Income:
$87,900
Acutely Low 9250 10550 11900 13200 14250 15300 16350 17400 Extremely Low 18450 21100 25820 31200 36580 41960 47340 52720 Very Low Income 30800 35200 39600 43950 47500 51000 54500 58050 Low Income 49250 56250 63300 70300 75950 81550 87200 92800 Median Income 61550 70300 79100 87900 94950 101950 109000 116050 Moderate Income 73850 84400 94950 105500 113950 122400 130800 139250 Kings County
Area Median Income:
$87,900
Acutely Low 9250 10550 11900 13200 14250 15300 16350 17400 Extremely Low 18450 21100 25820 31200 36580 41960 47340 52720 Very Low Income 30800 35200 39600 43950 47500 51000 54500 58050 Low Income 49250 56250 63300 70300 75950 81550 87200 92800 Median Income 61550 70300 79100 87900 94950 101950 109000 116050 Moderate Income 73850 84400 94950 105500 113950 122400 130800 139250 Lake County
Area Median Income:
$87,900
Acutely Low 9250 10550 11900 13200 14250 15300 16350 17400 Extremely Low 18450 21100 25820 31200 36580 41960 47340 52720 Very Low Income 30800 35200 39600 43950 47500 51000 54500 58050 Low Income 49250 56250 63300 70300 75950 81550 87200 92800 Median Income 61550 70300 79100 87900 94950 101950 109000 116050 Moderate Income 73850 84400 94950 105500 113950 122400 130800 139250 Lassen County
Area Median Income:
$87,900
Acutely Low 9250 10550 11900 13200 14250 15300 16350 17400 Extremely Low 18450 21100 25820 31200 36580 41960 47340 52720 Very Low Income 30800 35200 39600 43950 47500 51000 54500 58050 Low Income 49250 56250 63300 70300 75950 81550 87200 92800 Median Income 61550 70300 79100 87900 94950 101950 109000 116050 Moderate Income 73850 84400 94950 105500 113950 122400 130800 139250 Los Angeles County
Area Median Income:
$98,200
Acutely Low 10350 11800 13300 14750 15950 17100 18300 19450 Extremely Low 29150 33300 37450 41600 44950 48300 51600 54950 Very Low Income 48550 55450 62400 69350 74900 80450 86000 91550 Low Income 77700 88800 99900 110950 119850 128750 137600 146500 Median Income 68750 78550 88400 98200 106050 113900 121750 129600 Moderate Income 82500 94300 106050 117850 127300 136700 146150 155550 Madera County
Area Median Income:
$87,900
Acutely Low 9250 10550 11900 13200 14250 15300 16350 17400 Extremely Low 18450 21100 25820 31200 36580 41960 47340 52720 Very Low Income 30800 35200 39600 43950 47500 51000 54500 58050 Low Income 49250 56250 63300 70300 75950 81550 87200 92800 Median Income 61550 70300 79100 87900 94950 101950 109000 116050 Moderate Income 73850 84400 94950 105500 113950 122400 130800 139250 Marin County
Area Median Income:
$186,600
Acutely Low 19600 22400 25200 28000 30250 32500 34700 36950 Extremely Low 41150 47000 52900 58750 63450 68150 72850 77550 Very Low Income 68550 78350 88150 97900 105750 113600 121400 129250 Low Income 109700 125350 141000 156650 169200 181750 194250 206800 Median Income 130600 149300 167950 186600 201550 216450 231400 246300 Moderate Income 156750 179100 201500 223900 241800 259700 277650 295550 Number of Persons in Household: 1 2 3 4 5 6 7 8
Mariposa County
Area Median Income:
$87,900
Acutely Low 9250 10550 11900 13200 14250 15300 16350 17400 Extremely Low 18450 21100 25820 31200 36580 41960 47340 52720 Very Low Income 30800 35200 39600 43950 47500 51000 54500 58050 Low Income 49250 56250 63300 70300 75950 81550 87200 92800 Median Income 61550 70300 79100 87900 94950 101950 109000 116050 Moderate Income 73850 84400 94950 105500 113950 122400 130800 139250 Mendocino County
Area Median Income:
$90,400
Acutely Low 9500 10850 12200 13550 14650 15700 16800 17900 Extremely Low 19000 21700 25820 31200 36580 41960 47340 52720 Very Low Income 31650 36200 40700 45200 48850 52450 56050 59700 Low Income 50650 57850 65100 72300 78100 83900 89700 95450 Median Income 63300 72300 81350 90400 97650 104850 112100 119350 Moderate Income 75950 86800 97650 108500 117200 125850 134550 143200 Merced County
Area Median Income:
$87,900
Acutely Low 9250 10550 11900 13200 14250 15300 16350 17400 Extremely Low 18450 21100 25820 31200 36580 41960 47340 52720 Very Low Income 30800 35200 39600 43950 47500 51000 54500 58050 Low Income 49250 56250 63300 70300 75950 81550 87200 92800 Median Income 61550 70300 79100 87900 94950 101950 109000 116050 Moderate Income 73850 84400 94950 105500 113950 122400 130800 139250 Modoc County
Area Median Income:
$87,900
Acutely Low 9250 10550 11900 13200 14250 15300 16350 17400 Extremely Low 18450 21100 25820 31200 36580 41960 47340 52720 Very Low Income 30800 35200 39600 43950 47500 51000 54500 58050 Low Income 49250 56250 63300 70300 75950 81550 87200 92800 Median Income 61550 70300 79100 87900 94950 101950 109000 116050 Moderate Income 73850 84400 94950 105500 113950 122400 130800 139250 Mono County
Area Median Income:
$105,900
Acutely Low 11150 12700 14300 15900 17150 18450 19700 21000 Extremely Low 19650 22450 25820 31200 36580 41960 47340 52720 Very Low Income 32700 37400 42050 46750 50450 54200 57950 61700 Low Income 52350 59800 67300 74800 80750 86750 92750 98750 Median Income 74150 84700 95300 105900 114350 122850 131300 139800 Moderate Income 88950 101700 114400 127100 137250 147450 157600 167750 Monterey County
Area Median Income:
$103,200
Acutely Low 10850 12400 13950 15500 16750 18000 19200 20450 Extremely Low 27800 31800 35750 39700 42900 46100 49250 52720 Very Low Income 46350 53000 59600 66200 71500 76800 82100 87400 Low Income 74150 84800 95400 105950 114450 122950 131400 139900 Median Income 72250 82550 92900 103200 111450 119700 127950 136200 Moderate Income 86700 99100 111450 123850 133750 143650 153550 163500 Napa County
Area Median Income:
$129,600
Acutely Low 13600 15550 17500 19450 21000 22550 24100 25650 Extremely Low 30850 35250 39650 44050 47600 51100 54650 58150 Very Low Income 51400 58700 66100 73400 79300 85150 91050 96900 Low Income 82150 93900 105650 117350 126750 136150 145550 154900 Median Income 90700 103700 116650 129600 139950 150350 160700 171050 Moderate Income 108850 124400 139950 155500 167950 180400 192800 205250 Number of Persons in Household: 1 2 3 4 5 6 7 8
Nevada County
Area Median Income:
$112,500
Acutely Low 11850 13500 15200 16900 18250 19600 20950 22300 Extremely Low 21900 25000 28150 31250 36580 41960 47340 52720 Very Low Income 36500 41700 46900 52100 56300 60450 64650 68800 Low Income 58350 66700 75050 83350 90050 96700 103400 110050 Median Income 78750 90000 101250 112500 121500 130500 139500 148500 Moderate Income 94500 108000 121500 135000 145800 156600 167400 178200 Orange County
Area Median Income:
$129,000
Acutely Low 13550 15500 17400 19350 20900 22450 24000 25550 Extremely Low 33150 37900 42650 47350 51150 54950 58750 62550 Very Low Income 55250 63100 71050 78900 85250 91550 97850 104150 Low Income 88400 101000 113650 126250 136350 146450 156550 166650 Median Income 90300 103200 116100 129000 139300 149650 159950 170300 Moderate Income 108350 123850 139300 154800 167200 179550 191950 204350 Placer County
Area Median Income:
$113,900
Acutely Low 11950 13700 15400 17100 18450 19850 21200 22550 Extremely Low 24750 28300 31850 35350 38200 41960 47340 52720 Very Low Income 41300 47150 53050 58950 63650 68400 73100 77850 Low Income 66050 75450 84900 94300 101850 109400 116950 124500 Median Income 79750 91100 102500 113900 123000 132100 141250 150350 Moderate Income 95700 109350 123050 136700 147650 158550 169500 180450 Plumas County
Area Median Income:
$92,400
Acutely Low 9700 11100 12450 13850 14950 16050 17150 18300 Extremely Low 19400 22150 25820 31200 36580 41960 47340 52720 Very Low Income 32250 36850 41450 46050 49750 53450 57150 60800 Low Income 51600 59000 66350 73700 79600 85500 91400 97300 Median Income 64700 73900 83150 92400 99800 107200 114600 121950 Moderate Income 77650 88700 99800 110900 119750 128650 137500 146400 Riverside County
Area Median Income:
$97,500
Acutely Low 10250 11700 13200 14650 15800 17000 18150 19350 Extremely Low 21550 24600 27700 31200 36580 41960 47340 52720 Very Low Income 35900 41000 46100 51250 55350 59450 63550 67650 Low Income 57400 65600 73800 82000 88600 95150 101650 108250 Median Income 68250 78000 87750 97500 105300 113100 120900 128700 Moderate Income 81900 93600 105300 117000 126350 135700 145100 154450 Sacramento County
Area Median Income:
$113,900
Acutely Low 11950 13700 15400 17100 18450 19850 21200 22550 Extremely Low 24750 28300 31850 35350 38200 41960 47340 52720 Very Low Income 41300 47150 53050 58950 63650 68400 73100 77850 Low Income 66050 75450 84900 94300 101850 109400 116950 124500 Median Income 79750 91100 102500 113900 123000 132100 141250 150350 Moderate Income 95700 109350 123050 136700 147650 158550 169500 180450 San Benito County
Area Median Income:
$140,200
Acutely Low 14750 16850 18950 21050 22750 24400 26100 27800 Extremely Low 25700 29400 33050 36700 39650 42600 47340 52720 Very Low Income 42850 49000 55100 61200 66100 71000 75900 80800 Low Income 68550 78350 88150 97950 105800 113600 121450 129300 Median Income 98150 112150 126200 140200 151400 162650 173850 185050 Moderate Income 117750 134600 151450 168250 181700 195150 208650 222100 Number of Persons in Household: 1 2 3 4 5 6 7 8
San Bernardino
County
Area Median Income:
$97,500
Acutely Low 10250 11700 13200 14650 15800 17000 18150 19350 Extremely Low 21550 24600 27700 31200 36580 41960 47340 52720 Very Low Income 35900 41000 46100 51250 55350 59450 63550 67650 Low Income 57400 65600 73800 82000 88600 95150 101650 108250 Median Income 68250 78000 87750 97500 105300 113100 120900 128700 Moderate Income 81900 93600 105300 117000 126350 135700 145100 154450 San Diego County
Area Median Income:
$119,500
Acutely Low 12550 14350 16150 17950 19400 20800 22250 23700 Extremely Low 31850 36400 40950 45450 49100 52750 56400 60000 Very Low Income 53050 60600 68200 75750 81850 87900 93950 100000 Low Income 84900 97000 109150 121250 130950 140650 150350 160050 Median Income 83650 95600 107550 119500 129050 138600 148200 157750 Moderate Income 100400 114700 129050 143400 154850 166350 177800 189300 San Francisco County
Area Median Income:
$186,600
Acutely Low 19600 22400 25200 28000 30250 32500 34700 36950 Extremely Low 41150 47000 52900 58750 63450 68150 72850 77550 Very Low Income 68550 78350 88150 97900 105750 113600 121400 129250 Low Income 109700 125350 141000 156650 169200 181750 194250 206800 Median Income 130600 149300 167950 186600 201550 216450 231400 246300 Moderate Income 156750 179100 201500 223900 241800 259700 277650 295550 San Joaquin County
Area Median Income:
$103,800
Acutely Low 10900 12450 14000 15550 16800 18050 19300 20550 Extremely Low 20250 23150 26050 31200 36580 41960 47340 52720 Very Low Income 33750 38600 43400 48200 52100 55950 59800 63650 Low Income 54000 61700 69400 77100 83300 89450 95600 101800 Median Income 72650 83050 93400 103800 112100 120400 128700 137000 Moderate Income 87200 99650 112100 124550 134500 144500 154450 164400 San Luis Obispo
County
Area Median Income:
$125,600
Acutely Low 13200 15100 16950 18850 20350 21850 23350 24900 Extremely Low 26750 30600 34400 38200 41300 44350 47400 52720 Very Low Income 44600 50950 57300 63650 68750 73850 78950 84050 Low Income 71350 81550 91700 101900 110100 118250 126350 134500 Median Income 87900 100500 113050 125600 135650 145700 155750 165800 Moderate Income 105500 120550 135650 150700 162750 174800 186850 198900 San Mateo County
Area Median Income:
$186,600
Acutely Low 19600 22400 25200 28000 30250 32500 34700 36950 Extremely Low 41150 47000 52900 58750 63450 68150 72850 77550 Very Low Income 68550 78350 88150 97900 105750 113600 121400 129250 Low Income 109700 125350 141000 156650 169200 181750 194250 206800 Median Income 130600 149300 167950 186600 201550 216450 231400 246300 Moderate Income 156750 179100 201500 223900 241800 259700 277650 295550 Santa Barbara County
Area Median Income:
$119,100
Acutely Low 12500 14300 16050 17850 19300 20700 22150 23550 Extremely Low 34200 39050 43950 48800 52750 56650 60550 64450 Very Low Income 56950 65050 73200 81300 87850 94350 100850 107350 Low Income 91200 104250 117300 130350 140800 151250 161600 172050 Median Income 83350 95300 107200 119100 128650 138150 147700 157200 Moderate Income 100050 114300 128600 142900 154350 165750 177200 188650 Number of Persons in Household: 1 2 3 4 5 6 7 8
Santa Clara County
Area Median Income:
$184,300
Acutely Low 19350 22100 24900 27650 29850 32050 34300 36500 Extremely Low 38750 44250 49800 55300 59750 64150 68600 73000 Very Low Income 64550 73750 82950 92150 99550 106900 114300 121650 Low Income 102300 116900 131500 146100 157800 169500 181200 192900 Median Income 129000 147450 165850 184300 199050 213800 228550 243300 Moderate Income 154800 176900 199050 221150 238850 256550 274250 291900 Santa Cruz County
Area Median Income:
$132,800
Acutely Low 13950 15900 17900 19900 21500 23100 24700 26250 Extremely Low 38050 43500 48950 54350 58700 63050 67400 71750 Very Low Income 63400 72450 81500 90550 97800 105050 112300 119550 Low Income 101750 116250 130750 145300 156950 168550 180200 191800 Median Income 92950 106250 119500 132800 143400 154050 164650 175300 Moderate Income 111550 127500 143400 159350 172100 184850 197600 210350 Shasta County
Area Median Income:
$89,800
Acutely Low 9400 10750 12100 13450 14550 15600 16700 17750 Extremely Low 18750 21400 25820 31200 36580 41960 47340 52720 Very Low Income 31200 35650 40100 44550 48150 51700 55250 58850 Low Income 49950 57050 64200 71300 77050 82750 88450 94150 Median Income 62850 71850 80800 89800 97000 104150 111350 118550 Moderate Income 75450 86200 97000 107750 116350 125000 133600 142250 Sierra County
Area Median Income:
$90,000
Acutely Low 9450 10800 12150 13500 14600 15650 16750 17800 Extremely Low 18900 21600 25820 31200 36580 41960 47340 52720 Very Low Income 31500 36000 40500 45000 48600 52200 55800 59400 Low Income 50400 57600 64800 72000 77800 83550 89300 95050 Median Income 63000 72000 81000 90000 97200 104400 111600 118800 Moderate Income 75600 86400 97200 108000 116650 125300 133900 142550 Siskiyou County
Area Median Income:
$87,900
Acutely Low 9250 10550 11900 13200 14250 15300 16350 17400 Extremely Low 18450 21100 25820 31200 36580 41960 47340 52720 Very Low Income 30800 35200 39600 43950 47500 51000 54500 58050 Low Income 49250 56250 63300 70300 75950 81550 87200 92800 Median Income 61550 70300 79100 87900 94950 101950 109000 116050 Moderate Income 73850 84400 94950 105500 113950 122400 130800 139250 Solano County
Area Median Income:
$113,200
Acutely Low 11900 13600 15300 17000 18350 19700 21100 22450 Extremely Low 26450 30200 34000 37750 40800 43800 47340 52720 Very Low Income 44050 50350 56650 62900 67950 73000 78000 83050 Low Income 70450 80500 90550 100650 108700 116750 124850 132850 Median Income 79250 90550 101900 113200 122250 131300 140350 149400 Moderate Income 95100 108700 122250 135850 146700 157600 168450 179300 Sonoma County
Area Median Income:
$128,400
Acutely Low 13500 15400 17350 19250 20800 22350 23850 25400 Extremely Low 29050 33200 37350 41500 44850 48150 51500 54800 Very Low Income 48450 55350 62250 69150 74700 80250 85750 91300 Low Income 77500 88600 99650 110700 119600 128450 137300 146150 Median Income 89900 102700 115550 128400 138650 148950 159200 169500 Moderate Income 107850 123300 138700 154100 166450 178750 191100 203400 Number of Persons in Household: 1 2 3 4 5 6 7 8
Stanislaus County
Area Median Income:
$92,600
Acutely Low 9750 11100 12500 13900 15000 16100 17250 18350 Extremely Low 19150 21900 25820 31200 36580 41960 47340 52720 Very Low Income 31900 36450 41000 45550 49200 52850 56500 60150 Low Income 51050 58350 65650 72900 78750 84600 90400 96250 Median Income 64800 74100 83350 92600 100000 107400 114800 122250 Moderate Income 77750 88900 100000 111100 120000 128900 137750 146650 Sutter County
Area Median Income:
$87,900
Acutely Low 9250 10550 11900 13200 14250 15300 16350 17400 Extremely Low 18450 21100 25820 31200 36580 41960 47340 52720 Very Low Income 30800 35200 39600 43950 47500 51000 54500 58050 Low Income 49250 56250 63300 70300 75950 81550 87200 92800 Median Income 61550 70300 79100 87900 94950 101950 109000 116050 Moderate Income 73850 84400 94950 105500 113950 122400 130800 139250 Tehama County
Area Median Income:
$87,900
Acutely Low 9250 10550 11900 13200 14250 15300 16350 17400 Extremely Low 18450 21100 25820 31200 36580 41960 47340 52720 Very Low Income 30800 35200 39600 43950 47500 51000 54500 58050 Low Income 49250 56250 63300 70300 75950 81550 87200 92800 Median Income 61550 70300 79100 87900 94950 101950 109000 116050 Moderate Income 73850 84400 94950 105500 113950 122400 130800 139250 Trinity County
Area Median Income:
$87,900
Acutely Low 9250 10550 11900 13200 14250 15300 16350 17400 Extremely Low 18450 21100 25820 31200 36580 41960 47340 52720 Very Low Income 30800 35200 39600 43950 47500 51000 54500 58050 Low Income 49250 56250 63300 70300 75950 81550 87200 92800 Median Income 61550 70300 79100 87900 94950 101950 109000 116050 Moderate Income 73850 84400 94950 105500 113950 122400 130800 139250 Tulare County
Area Median Income:
$87,900
Acutely Low 9250 10550 11900 13200 14250 15300 16350 17400 Extremely Low 18450 21100 25820 31200 36580 41960 47340 52720 Very Low Income 30800 35200 39600 43950 47500 51000 54500 58050 Low Income 49250 56250 63300 70300 75950 81550 87200 92800 Median Income 61550 70300 79100 87900 94950 101950 109000 116050 Moderate Income 73850 84400 94950 105500 113950 122400 130800 139250 Tuolumne County
Area Median Income:
$97,700
Acutely Low 10250 11700 13200 14650 15800 17000 18150 19350 Extremely Low 20350 23250 26150 31200 36580 41960 47340 52720 Very Low Income 33900 38750 43600 48450 52350 56200 60100 63950 Low Income 54250 62000 69750 77450 83650 89850 96050 102250 Median Income 68400 78150 87950 97700 105500 113350 121150 128950 Moderate Income 82100 93800 105550 117250 126650 136000 145400 154750 Ventura County
Area Median Income:
$125,600
Acutely Low 13200 15100 16950 18850 20350 21850 23350 24900 Extremely Low 29550 33800 38000 42200 45600 49000 52350 55750 Very Low Income 49250 56300 63350 70350 76000 81650 87250 92900 Low Income 78800 90050 101300 112550 121600 130600 139600 148600 Median Income 87900 100500 113050 125600 135650 145700 155750 165800 Moderate Income 105500 120550 135650 150700 162750 174800 186850 198900 Number of Persons in Household: 1 2 3 4 5 6 7 8
Yolo County
Area Median Income:
$117,000
Acutely Low 12300 14050 15800 17550 18950 20350 21750 23150 Extremely Low 24250 27700 31150 34600 37400 41960 47340 52720 Very Low Income 40400 46150 51900 57650 62300 66900 71500 76100 Low Income 64600 73800 83050 92250 99650 107050 114400 121800 Median Income 81900 93600 105300 117000 126350 135700 145100 154450 Moderate Income 98300 112300 126350 140400 151650 162850 174100 185350 Yuba County
Area Median Income:
$87,900
Acutely Low 9250 10550 11900 13200 14250 15300 16350 17400 Extremely Low 18450 21100 25820 31200 36580 41960 47340 52720 Very Low Income 30800 35200 39600 43950 47500 51000 54500 58050 Low Income 49250 56250 63300 70300 75950 81550 87200 92800 Median Income 61550 70300 79100 87900 94950 101950 109000 116050 Moderate Income 73850 84400 94950 105500 113950 122400 130800 139250 Instructions:

Eligibility Determination:

Use household size income category figures in this chart.

Determine eligibililty based on actual number of persons in household and total of gross income for all persons.

Determination of Income Limit for Households Larger than Eight Persons:

Per person (PP) adjustment above 8: (1) multiply 4-person income limit by eight percent (8%), (2) multiply result by number of persons in excess of eight, (3) add the amount to the 8-person income limit, and (4) round to the nearest $50.

Nine Person Calculation - Example County Ten Person Calculation - Example County E X A + 8 =10 E X A M P L E 4 persons 8% PP Adj persons =9 persons M P L 4 persons 8 person + 8% Adj x 2 persons Acutely Low Income 13,200 1056 17,400 18,450 13,200 17,400 2112 19,500 Extremely Low Income 31,200 2496 52,720 55,200 Extremely 31,200 52,720 4992 57,700 Very Low Income 43,950 3516 58,050 61,550 Very Low I 43,950 58,050 7032 65,100 Lower Income 70,300 5624 92,800 98,400 Lower Inco 70,300 92,800 11248 104,050 Moderate Income 105,500 8440 139,250 147,700 Moderate I 105,500 139,250 16880 156,150 Calculation of Housing Cost and Rent:

Refer to Heath & Safety Code Sections 50052.5 and 50053. Use benchmark household size and multiply against applicable percentages defined in H&SC using Area Median Income identified in this chart.

Determination of Household Size:

For projects with no federal assistance, household size is set at number of bedrooms in unit plus one.

For projects with federal assistance, household size may be set by multiplying 1.5 by the number of bedrooms in unit.

HUD Income Limits release: 4/1/2024
HUD FY 2024 California median incomes:

State median income: $111,300
Metropolitan county median income: $111,900
Non-metropolitan county median income: $87,900
Note: Authority cited: Section 50093, Health and Safety Code. Reference: Sections 50063.5, 50079.5, 50093, 50105 and 50106, Health and Safety Code.

Planning Commission Report
Affordable Housing Guidelines Study Session
July 11, 2024

ATTACHMENT G
BHMC §10-3-1528 – Occupancy Priority
10-3-1528: OCCUPANCY PRIORITY:

Occupancy priority for eligible units shall conform to the following eight (8) tiers.

B. Tier 2 - Tenants With Beverly Hills Unified School District Students Displaced From The Project Site:

ATTACHMENT H
West Hollywood Resolution (Priority List)
RESOLUTION NO. 08- 3711

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF WEST HOLLYWOOD AMENDING THE

AFFORDABLE HOUSING SCHEDULES AND

ADMINISTRATIVE CHANGES TO THE

INCLUSIONARY HOUSING PROGRAM
WHEREAS, in order to maintain affordability of the inclusionary units as defined in Chapter 19. 22 of the West Hollywood Municipal Code, the City Council requires that the rental rates be adjusted annually to reflect seventy five percent 75 %) of the change in the Consumer Price Index for all Urban Consumers in the Los Angeles- Riverside - Orange County area and income requirements be adjusted to reflect one hundred percent ( 100 %) of the change in the CPI. These adjustments are set forth in Exhibit A and B; and
WHEREAS, the City Council adopted an Inclusionary Housing Program, including eligibility requirements, rent level, income guidelines, and other factors by Resolution No. 184 on April 17, 1986 and amendments to the program by Resolution No. 05 -3299 on September 6, 2005; and
WHEREAS, changing market conditions and experience with the Inclusionary Housing Program have indicated that certain aspects of the Program be clarified and adjusted to address these changing conditions,

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST
HOLLYWOOD DOES HEREBY RESOLVE AS FOLLOWS::

SECTION 1: The rent levels and income guidelines set forth in Exhibit A, attached hereto and incorporated by reference, will serve as the 2008 -2009 Inclusionary Housing Program Affordable Housing Schedule for all tenants and property owners who have entered into an Inclusionary Housing Lease Agreement on or after July 1, 2002.

SECTION 2: The rent levels and income guidelines set forth in Exhibit B, attached hereto and incorporated by reference, will serve as the 2008 -2009 Inclusionary Housing Program Affordable Housing Schedule for all tenants and property owners who have entered into an Inclusionary Housing Lease Agreement prior to July 1, 2002.

SECTION 3: The applicants for the Inclusionary Housing Program are selected on the basis of the following priorities, with the addition of priority No. 7.

1. Current West Hollywood residents

2. Senior and disabled households, including those with HIV /AIDS Resolution No. 08 -3711

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Beverly Hills City CouncilOctober 10, 2024

Beverly Hills City Council
October 10, 2024