Agenda packet — Foster City City Council, December 18, 2023 (part 1 of 4)

CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
FOSTER CITY COUNCIL CHAMBERS
620 FOSTER CITY BOULEVARD
FOSTER CITY, CALIFORNIA
MEMBERS OF THE PUBLIC THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY JOINING THE ZOOM MEETING HTTPS://FOSTERCITY ORG.ZOOM.US/J/82592136594 PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND VIA ZOOM MEETING. ANY EMAILS SENT TO [email protected] WILL BE PROVIDED TO THE CITY COUNCIL PRIOR TO THE MEETING.

To Attend the Meeting in Person:

Location: 620 Foster City Blvd, Foster City, California, 94404 To Provide Public Comment in Person:

Members of the public wishing to speak will be asked to fill out a Request to Speak Form. Forms will be accepted until the staff presentation on an agenda item ends, or until the public comment period on non agenda items is closed. For special meetings, public comment is limited to item(s) on the agenda only.

To Observe the Meeting via Teleconference/Video Conference:

To access the meeting by computer / smartphone, go to: https://fostercityorg.zoom.us/j/82592136594 To dialin via phone:
16694449171 or
14086380968
And enter Webinar ID: 825 9213 6594
To Participate in the Meeting by Providing Public Comment via Teleconference/Video Conference:

During the Meeting: Live verbal public comments may be made by members of the public joining the meeting via Zoom. Zoom access information is provided above. Use the “raise hand” feature (for those joining by phone, press *9 to “raise hand”) during the public comment period for the agenda item you wish to address. The Zoom Host will call on people to speak by name provided or last 4 digits of phone number for dialin attendees. Please clearly state your full name for the record at the start of your public comment.

Before the Meeting: Written public comments for the record may be submitted in advance by 4:00 p.m. the day of the meeting by email to: [email protected] and will be made part of the written record but will not be read verbally at the meeting. Written public comments submitted by email should adhere to the following:

Clearly indicate the Agenda Item No. or specify “Public” in the Subject Line for items not on the agenda Include the submitter’s full name (Recommended but not required) Written public comments received by 4:00 p.m. the day of the meeting will be provided in their entirety to the City Council prior to the meeting and will be made part of the written record but will not be read verbally at the meeting.

Written public comments will be posted to the City’s website for review prior to the meeting.

AGENDA
Monday, December 18, 2023 6:30 PM
REGULAR MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL
Councilmembers/ex officio EMID Directors Jon Froomin, Sam Hindi, Stacy Jimenez, Art Kiesel, and Mayor/President Patrick Sullivan

4. SPECIAL PRESENTATIONS

4.1. Presentation of Certificate to Grayson T. as Part of the 2024 HIP Housing Foster City Calendar Contest

5. PUBLIC
Government Code Section 54954.2 E (3) precludes the City Council from discussing or acting upon any topic initially presented during the “Public” portion of the agenda.

Information may be received, placed on a future agenda, or referred to the appropriate City staff. FCMC 2.08.240 Addressing the Council. "...Each person desiring to address the Council shall step up to the public rostrum after being recognized to speak by the presiding officer, shall state his/her name and address for the record, state the subject he/she wishes to discuss, state who he/she is representing if he/she represents an organization or other persons and, unless further time is granted by majority vote of the Council, shall limit his/her remarks to three minutes. The City Council may vary the time limit for any speaker, if it deems this necessary." Speakers may join the Zoom meeting via the meeting link and using the “raise hand” feature and the Zoom host will call on people.

6. CITY/EMID CONSENT CALENDAR
All matters listed under Consent Calendar are considered to be routine by the City Council/EMID Board of Directors and will be enacted by one motion unless removed by a member of the Council/Board, staff, or public. There will be no separate discussion on these items unless a citizen or a Council/Board member so requests.

This section includes minutes, ordinances for adoption, resolutions for adoption, and other business as needed. If discussion is required, that item will be removed from the Consent Calendar and will be considered separately after approval of the remaining items on the Consent Calendar. Vote may be by roll call.

6.1. City/EMID Regular Meeting Minutes of November 20, 2023

6.2. City/EMID Regular Meeting Minutes of December 4, 2023

6.3. An Ordinance of the City of Foster City Making Text Amendments to Title 17, “Zoning” of the Foster City Municipal Code Chapter 17.90, “Below Market Inclusionary Housing Program” and Finding the Amendments Exempt from the California Environmental Quality Act Pursuant to CEQA Guideline Section 15061(B)(3) – RZ20230008 (First Reading November 20, 2023) a) Adopt Ordinance

6.4. An Uncodified Ordinance of the City of Foster City Approving Solid Waste Rates for a Fouryear Period of Calendar Years 2025 Through 2028, Increasing the Monthly Residential Collection Rates by No More Than $4.47 in Rate Year 2025, $4.98 in Rate Year 2026, $4.19 in Rate Year 2027, and $4.35 in Rate Year 2028 and Increasing Fees for Unscheduled Services Up to 6.0% Per Year From Rate Years 2025 Through 2028 (First Reading on November 20, 2023)
a) Adopt Ordinance

6.5. A Resolution of the City Council of the City of Foster City Recommending City Council Approving Revisions to BMR Administrative Procedures and Guidelines (BMR Guidelines) and Finding the Amendments Exempt from the California Environmental Quality Act Pursuant to CEQA Guideline Section 15061(B)(3) RZ20230008
a) Staff Report
b) Adopt Resolution

6.6. A Resolution of the City Council of the City of Foster City Authorizing the City Manager to Issue a Request for Proposal/Qualifications for the Development of a Parks Master Plan (CIP 301682)
a) Staff Report
b) Adopt Resolution

6.7. A Resolution of the City Council of the City of Foster City Authorizing the Mayor to Execute Contract Amendment No. 1 in the Amount of $21,300 with Cagwin and Dorward Inc. for Expanded Scope of Work for Restoration of Gateshead Park and Finding the project categorically exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15304
a) Staff Report
b) Adopt Resolution

6.8. A Resolution of the City Council of the City of Foster City Approving a Supplemental Appropriation of $123,286 to Account Number 0030534451 4251 in FY 20232024 for Youth Camps Contract Services
a) Staff Report
b) Adopt Resolution

6.9. A Resolution of the City Council of the City of Foster City Accepting and Adopting the Speed Limits in the 2023 Engineering and Traffic Survey (E&TS or ‘Speed Survey’) and Directing Staff to File the 2023 E&TS with the Traffic Commission
a) Staff Report
b) Adopt Resolution

6.10. A Resolution of the City Council of the City of Foster City Appropriating $573,629.00 to Account No. 30109106354251 and Appropriating $1,549,000.00 to Account No. 30109106374251 for the Construction of Median ModificationsFoster City Blvd. at Chess Drive MP#3 (CIP 301 635) and Road Improvements at Foster City Blvd at Chess Drive – MP #4, #7, And #8 (CIP 301637) and Finding the Approval Exempt from the California Environmental Quality Act (CEQA) Pursuant to CEQA Guidelines 15301(B)
a) Staff Report
b) Adopt Resolution

6.11. a) A Resolution of the City Council of the City of Foster City Accepting the Work by California Roofing Company, Inc. For the Roof Replacements at City Buildings Project (CIP 301693) and Directing the City Clerk to File the Notice of Completion; and Finding the Project Exempt from CEQA Under Section 15061(B)(3) and 15301(C) – Existing Facilities; and b) A Resolution of the Board of Directors of the Estero Municipal Improvement District Accepting the Work by California Roofing Company, Inc. For the Roof Replacements at City Buildings Project (CIP 301693) and Directing the City Clerk to File the Notice of Completion; and Finding the Project Exempt from CEQA Under Section 15061(B)(3) and 15301(C) – Existing Facilities
c) Staff Report
d) Adopt Resolutions

6.12. a) A Resolution of the City Council of the City of Foster City Adding the Job Classifications of Parks Maintenance Supervisor and Fleet Supervisor and Approving and Adopting the Amended FY 20232024 Pay Plan Effective July 1, 2023; and
b) A Resolution of the Board of Directors of the Estero Municipal Improvement District Adding the Job Classifications of Parks Maintenance Supervisor and Fleet Supervisor and Approving and Adopting the Amended FY 20232024 Pay Plan Effective July 1, 2023
c) Staff Report
d) Adopt Resolutions

6.13. a) A Resolution of the City council of the City of Foster City Accepting the Annual Development Impact Fee and Capacity Fee Report for Fiscal Year 20222023; and
b) A Resolution of the Board of Directors of the Estero Municipal Improvement District Accepting the Annual Development Impact Fee and Capacity Fee Report for Fiscal Year 20222023
c) Staff Report
d) Adopt Resolutions

6.14. Update on Progress on Amending the Business License Tax Ordinance and Potential Business License Tax Ballot Measure
a) Staff Report
b) By Minute Order, Receive and Accept the Report

7. PUBLIC HEARINGS

7.1. A Public Hearing to Hear and Consider Comments Regarding Amendments to Title 17, “Zoning”, Adding Chapter 17.96 Multifamily and Residential Mixed Use Objective Design and Development Standards, and Making Revisions to Various Chapters to Support Multifamily and Residential Mixed Use Objective Design and Development Standards (RZ20210001) and Finding the Amendments Exempt from the California Environmental Quality Act (CEQA) Pursuant to CEQA Guideline Section 15061(B)(3)
a) Staff Report
b) Open Public Hearing
c) Receive Public Testimony
d) Close Public Hearing
e) Action – An Ordinance of the City of Foster City Amending Title 17, “Zoning” Adding a New Chapter 17.96 Multifamily and Residential Mixed Use Objective Design and Development Standards and Finding That the Proposed Amendments to Title 17 Are Exempt Under California Environmental Quality Act (CEQA) Guidelines Section 15061(B)(3) Rz2021 0001
i) Introduce Ordinance by title only, by motion waive further reading ii) By motion pass ordinance to second reading
f) Action An Ordinance of the City of Foster City Amending Title 17, “Zoning” Making Revisions to Various Chapters Including 17.12 R1 Single Family Residence District; 17.04 Definitions; 17.14 R2 Two Family Residence District; 17.16 Rt Townhouse Residence District; 17.18 R3 Medium Density Multiplefamily Residence District; 17.20 R4 High Density Multiplefamily Residence District; 17.26, C2 General Business District; 17.28 Cm Commercial Mix District; 17.36 Pd Planned Development Combining District;

17.58 Architectural Control and Supervision; and 17.62 Offstreet Parking Regulations and Finding That the Proposed Amendments to Title 17 Are Exempt Under California Environmental Quality Act (CEQA) Guidelines Section 15061(B)(3) Rz20210001
i) Introduce Ordinance by title only, by motion waive further reading ii) By motion pass ordinance to second reading

8. REPORTS

8.1. Recreation Center Rebuild Project (CIP 301678) – Design Development Project Update
a) Staff Report
b) Action – By Minute Order, Receive and Accept Report

9. RESOLUTIONS FOR ADOPTION

9.1. Consideration of the Audited Fiscal Year 202223 Annual Comprehensive Financial Report (ACFR) and Other Audit Compliance Reports and the Fiscal Year 202223 Warrant Registers in the Form of That ACFR a) Staff Report
b) Action A Resolution of the City Council of the City of Foster City Ratifying and Approving the Audited Fiscal Year 202223 Annual Comprehensive Financial Report (ACFR) and Other Audit Compliance Reports and the Fiscal Year 202223 Warrant Registers in the Form of That ACFR; and c) Action A Resolution of the Board of Directors of the Estero Municipal Improvement District Ratifying and Approving the Audited Fiscal Year 2022 23 Annual Comprehensive Financial Report (ACFR) and Other Audit Compliance Reports and the Fiscal Year 202223 Warrant Registers in the Form of That ACFR

10. OLD BUSINESS

10.1. Consideration of 2024 State Legislative Platform and Policy a) Staff Report
b) Action – By Minute Order, Provide Policy Direction

11. COMMUNICATIONS

11.1. City/District Warrants of Demands were Processed and Issued on November 15, 2023, November 30, 2023, and December 5, 2023, and ACH were processed on December 5, 2023
a) Information Item Only
b) No Action Required

12. CITY/DISTRICT MANAGER REPORTS, COUNCIL/BOARD STATEMENTS AND REQUESTS, AND COUNCIL LIAISON REPORTS
City/District Manager and Council/EMID Board Members report on their various assignments and liaison roles and Council/EMID Board requests for scheduling future items.

12.1. Request to Place an Item on a Future Agenda by Councilmember Sam Hindi Regarding Resolution for Ceasefire in Gaza and Release of Hostages

13. ADJOURNMENT
The public is invited to attend.

Any attendee wishing special accommodations at the meeting should contact the City Clerk’s Department at (650) 2863250 or [email protected] at least 48 hours in advance of the meeting. The City has a procedure for receiving and swiftly resolving requests for reasonable accommodation for individuals with disabilities, consistent with the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and resolving any doubt in favor of accessibility.

That procedure for receiving and resolving requests for accommodation is available at the City Clerk’s Office. All meetings are conducted in a manner consistent with applicable civil rights and nondiscrimination laws.

Any writings or documents provided to a majority of the City Council or EMID Board regarding any item on this agenda after the agenda packet was distributed will be made available for public inspection in the City Clerk Department at City Hall located at 610 Foster City Boulevard during normal business hours and at the meeting.

City Council meetings on FCTV on Comcast Channel 27 and AT&T Channel 99:

LIVE every 1st and 3rd Monday of the month
REPLAY next day at 1:00 pm (that week only)
REPLAY Saturday at 5:00 pm (only on Saturday the week the actual meeting occurs) City Council meetings on https://www.fostercity.org/community/page/fctvlivestream:

STREAMED LIVE every 1st and 3rd Monday of the month
City Council meetings ondemand:
https://www.fostercity.org/agendasandminutes

1 CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
FOSTER CITY COUNCIL CHAMBERS
620 FOSTER CITY BOULEVARD
FOSTER CITY, CALIFORNIA
MEMBERS OF THE PUBLIC THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY JOINING THE ZOOM MEETING HTTPS://FOSTERCITY ORG.ZOOM.US/J/82592136594 PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND VIA ZOOM MEETING. ANY EMAILS SENT TO [email protected] WILL BE PROVIDED TO THE CITY COUNCIL PRIOR TO THE MEETING.

To Attend the Meeting in Person:

Location: 620 Foster City Blvd, Foster City, California, 94404 To Provide Public Comment in Person:

To Observe the Meeting via Teleconference/Video Conference:

Written public comments will be posted to the City’s website for review prior to the meeting.

AGENDA
Monday, December 18, 2023 6:30 PM
REGULAR MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL
Councilmembers/ex officio EMID Directors Jon Froomin, Sam Hindi, Stacy Jimenez, Art Kiesel, and Mayor/President Patrick Sullivan

4. SPECIAL PRESENTATIONS

4.1. Presentation of Certificate to Grayson T. as Part of the 2024 HIP Housing Foster City Calendar Contest

5. PUBLIC
Government Code Section 54954.2 E (3) precludes the City Council from discussing or acting upon any topic initially presented during the “Public” portion of the agenda.

6.1. City/EMID Regular Meeting Minutes of November 20, 2023

6.2. City/EMID Regular Meeting Minutes of December 4, 2023

6.14. Update on Progress on Amending the Business License Tax Ordinance and Potential Business License Tax Ballot Measure
a) Staff Report
b) By Minute Order, Receive and Accept the Report

7. PUBLIC HEARINGS

8. REPORTS

8.1. Recreation Center Rebuild Project (CIP 301678) – Design Development Project Update
a) Staff Report
b) Action – By Minute Order, Receive and Accept Report

9. RESOLUTIONS FOR ADOPTION

10. OLD BUSINESS

10.1. Consideration of 2024 State Legislative Platform and Policy a) Staff Report
b) Action – By Minute Order, Provide Policy Direction

11. COMMUNICATIONS

12.1. Request to Place an Item on a Future Agenda by Councilmember Sam Hindi Regarding Resolution for Ceasefire in Gaza and Release of Hostages

13. ADJOURNMENT
The public is invited to attend.

City Council meetings on FCTV on Comcast Channel 27 and AT&T Channel 99:

STREAMED LIVE every 1st and 3rd Monday of the month
City Council meetings ondemand:
https://www.fostercity.org/agendasandminutes

2 CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
FOSTER CITY COUNCIL CHAMBERS
620 FOSTER CITY BOULEVARD
FOSTER CITY, CALIFORNIA
MEMBERS OF THE PUBLIC THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY JOINING THE ZOOM MEETING HTTPS://FOSTERCITY ORG.ZOOM.US/J/82592136594 PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND VIA ZOOM MEETING. ANY EMAILS SENT TO [email protected] WILL BE PROVIDED TO THE CITY COUNCIL PRIOR TO THE MEETING.

To Attend the Meeting in Person:

Location: 620 Foster City Blvd, Foster City, California, 94404 To Provide Public Comment in Person:

To Observe the Meeting via Teleconference/Video Conference:

Written public comments will be posted to the City’s website for review prior to the meeting.

AGENDA
Monday, December 18, 2023 6:30 PM
REGULAR MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL
Councilmembers/ex officio EMID Directors Jon Froomin, Sam Hindi, Stacy Jimenez, Art Kiesel, and Mayor/President Patrick Sullivan

4. SPECIAL PRESENTATIONS

4.1. Presentation of Certificate to Grayson T. as Part of the 2024 HIP Housing Foster City Calendar Contest

5. PUBLIC
Government Code Section 54954.2 E (3) precludes the City Council from discussing or acting upon any topic initially presented during the “Public” portion of the agenda.

6.1. City/EMID Regular Meeting Minutes of November 20, 2023

6.2. City/EMID Regular Meeting Minutes of December 4, 2023

6.14. Update on Progress on Amending the Business License Tax Ordinance and Potential Business License Tax Ballot Measure
a) Staff Report
b) By Minute Order, Receive and Accept the Report

7. PUBLIC HEARINGS

8. REPORTS

8.1. Recreation Center Rebuild Project (CIP 301678) – Design Development Project Update
a) Staff Report
b) Action – By Minute Order, Receive and Accept Report

9. RESOLUTIONS FOR ADOPTION

10. OLD BUSINESS

10.1. Consideration of 2024 State Legislative Platform and Policy a) Staff Report
b) Action – By Minute Order, Provide Policy Direction

11. COMMUNICATIONS

12.1. Request to Place an Item on a Future Agenda by Councilmember Sam Hindi Regarding Resolution for Ceasefire in Gaza and Release of Hostages

13. ADJOURNMENT
The public is invited to attend.

City Council meetings on FCTV on Comcast Channel 27 and AT&T Channel 99:

STREAMED LIVE every 1st and 3rd Monday of the month
City Council meetings ondemand:
https://www.fostercity.org/agendasandminutes

3 CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
FOSTER CITY COUNCIL CHAMBERS
620 FOSTER CITY BOULEVARD
FOSTER CITY, CALIFORNIA
MEMBERS OF THE PUBLIC THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY JOINING THE ZOOM MEETING HTTPS://FOSTERCITY ORG.ZOOM.US/J/82592136594 PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND VIA ZOOM MEETING. ANY EMAILS SENT TO [email protected] WILL BE PROVIDED TO THE CITY COUNCIL PRIOR TO THE MEETING.

To Attend the Meeting in Person:

Location: 620 Foster City Blvd, Foster City, California, 94404 To Provide Public Comment in Person:

To Observe the Meeting via Teleconference/Video Conference:

Written public comments will be posted to the City’s website for review prior to the meeting.

AGENDA
Monday, December 18, 2023 6:30 PM
REGULAR MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL
Councilmembers/ex officio EMID Directors Jon Froomin, Sam Hindi, Stacy Jimenez, Art Kiesel, and Mayor/President Patrick Sullivan

4. SPECIAL PRESENTATIONS

4.1. Presentation of Certificate to Grayson T. as Part of the 2024 HIP Housing Foster City Calendar Contest

5. PUBLIC
Government Code Section 54954.2 E (3) precludes the City Council from discussing or acting upon any topic initially presented during the “Public” portion of the agenda.

6.1. City/EMID Regular Meeting Minutes of November 20, 2023

6.2. City/EMID Regular Meeting Minutes of December 4, 2023

6.14. Update on Progress on Amending the Business License Tax Ordinance and Potential Business License Tax Ballot Measure
a) Staff Report
b) By Minute Order, Receive and Accept the Report

7. PUBLIC HEARINGS

8. REPORTS

8.1. Recreation Center Rebuild Project (CIP 301678) – Design Development Project Update
a) Staff Report
b) Action – By Minute Order, Receive and Accept Report

9. RESOLUTIONS FOR ADOPTION

10. OLD BUSINESS

10.1. Consideration of 2024 State Legislative Platform and Policy a) Staff Report
b) Action – By Minute Order, Provide Policy Direction

11. COMMUNICATIONS

12.1. Request to Place an Item on a Future Agenda by Councilmember Sam Hindi Regarding Resolution for Ceasefire in Gaza and Release of Hostages

13. ADJOURNMENT
The public is invited to attend.

City Council meetings on FCTV on Comcast Channel 27 and AT&T Channel 99:

STREAMED LIVE every 1st and 3rd Monday of the month
City Council meetings ondemand:
https://www.fostercity.org/agendasandminutes

4 CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
FOSTER CITY COUNCIL CHAMBERS
620 FOSTER CITY BOULEVARD
FOSTER CITY, CALIFORNIA
MEMBERS OF THE PUBLIC THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY JOINING THE ZOOM MEETING HTTPS://FOSTERCITY ORG.ZOOM.US/J/82592136594 PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND VIA ZOOM MEETING. ANY EMAILS SENT TO [email protected] WILL BE PROVIDED TO THE CITY COUNCIL PRIOR TO THE MEETING.

To Attend the Meeting in Person:

Location: 620 Foster City Blvd, Foster City, California, 94404 To Provide Public Comment in Person:

To Observe the Meeting via Teleconference/Video Conference:

Written public comments will be posted to the City’s website for review prior to the meeting.

AGENDA
Monday, December 18, 2023 6:30 PM
REGULAR MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL
Councilmembers/ex officio EMID Directors Jon Froomin, Sam Hindi, Stacy Jimenez, Art Kiesel, and Mayor/President Patrick Sullivan

4. SPECIAL PRESENTATIONS

4.1. Presentation of Certificate to Grayson T. as Part of the 2024 HIP Housing Foster City Calendar Contest

5. PUBLIC
Government Code Section 54954.2 E (3) precludes the City Council from discussing or acting upon any topic initially presented during the “Public” portion of the agenda.

6.1. City/EMID Regular Meeting Minutes of November 20, 2023

6.2. City/EMID Regular Meeting Minutes of December 4, 2023

6.14. Update on Progress on Amending the Business License Tax Ordinance and Potential Business License Tax Ballot Measure
a) Staff Report
b) By Minute Order, Receive and Accept the Report

7. PUBLIC HEARINGS

8. REPORTS

8.1. Recreation Center Rebuild Project (CIP 301678) – Design Development Project Update
a) Staff Report
b) Action – By Minute Order, Receive and Accept Report

9. RESOLUTIONS FOR ADOPTION

10. OLD BUSINESS

10.1. Consideration of 2024 State Legislative Platform and Policy a) Staff Report
b) Action – By Minute Order, Provide Policy Direction

11. COMMUNICATIONS

12.1. Request to Place an Item on a Future Agenda by Councilmember Sam Hindi Regarding Resolution for Ceasefire in Gaza and Release of Hostages

13. ADJOURNMENT
The public is invited to attend.

City Council meetings on FCTV on Comcast Channel 27 and AT&T Channel 99:

STREAMED LIVE every 1st and 3rd Monday of the month
City Council meetings ondemand:
https://www.fostercity.org/agendasandminutes

5 CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
FOSTER CITY COUNCIL CHAMBERS
620 FOSTER CITY BOULEVARD
FOSTER CITY, CALIFORNIA
MEMBERS OF THE PUBLIC THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY JOINING THE ZOOM MEETING HTTPS://FOSTERCITY ORG.ZOOM.US/J/82592136594 PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND VIA ZOOM MEETING. ANY EMAILS SENT TO [email protected] WILL BE PROVIDED TO THE CITY COUNCIL PRIOR TO THE MEETING.

To Attend the Meeting in Person:

Location: 620 Foster City Blvd, Foster City, California, 94404 To Provide Public Comment in Person:

To Observe the Meeting via Teleconference/Video Conference:

Written public comments will be posted to the City’s website for review prior to the meeting.

AGENDA
Monday, December 18, 2023 6:30 PM
REGULAR MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL
Councilmembers/ex officio EMID Directors Jon Froomin, Sam Hindi, Stacy Jimenez, Art Kiesel, and Mayor/President Patrick Sullivan

4. SPECIAL PRESENTATIONS

4.1. Presentation of Certificate to Grayson T. as Part of the 2024 HIP Housing Foster City Calendar Contest

5. PUBLIC
Government Code Section 54954.2 E (3) precludes the City Council from discussing or acting upon any topic initially presented during the “Public” portion of the agenda.

6.1. City/EMID Regular Meeting Minutes of November 20, 2023

6.2. City/EMID Regular Meeting Minutes of December 4, 2023

6.14. Update on Progress on Amending the Business License Tax Ordinance and Potential Business License Tax Ballot Measure
a) Staff Report
b) By Minute Order, Receive and Accept the Report

7. PUBLIC HEARINGS

8. REPORTS

8.1. Recreation Center Rebuild Project (CIP 301678) – Design Development Project Update
a) Staff Report
b) Action – By Minute Order, Receive and Accept Report

9. RESOLUTIONS FOR ADOPTION

10. OLD BUSINESS

10.1. Consideration of 2024 State Legislative Platform and Policy a) Staff Report
b) Action – By Minute Order, Provide Policy Direction

11. COMMUNICATIONS

12.1. Request to Place an Item on a Future Agenda by Councilmember Sam Hindi Regarding Resolution for Ceasefire in Gaza and Release of Hostages

13. ADJOURNMENT
The public is invited to attend.

City Council meetings on FCTV on Comcast Channel 27 and AT&T Channel 99:

STREAMED LIVE every 1st and 3rd Monday of the month
City Council meetings ondemand:
https://www.fostercity.org/agendasandminutes

6 CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
FOSTER CITY COUNCIL CHAMBERS
620 FOSTER CITY BOULEVARD
FOSTER CITY, CALIFORNIA
MEMBERS OF THE PUBLIC THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY JOINING THE ZOOM MEETING HTTPS://FOSTERCITY ORG.ZOOM.US/J/82592136594 PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND VIA ZOOM MEETING. ANY EMAILS SENT TO [email protected] WILL BE PROVIDED TO THE CITY COUNCIL PRIOR TO THE MEETING.

To Attend the Meeting in Person:

Location: 620 Foster City Blvd, Foster City, California, 94404 To Provide Public Comment in Person:

To Observe the Meeting via Teleconference/Video Conference:

Written public comments will be posted to the City’s website for review prior to the meeting.

AGENDA
Monday, December 18, 2023 6:30 PM
REGULAR MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL
Councilmembers/ex officio EMID Directors Jon Froomin, Sam Hindi, Stacy Jimenez, Art Kiesel, and Mayor/President Patrick Sullivan

4. SPECIAL PRESENTATIONS

4.1. Presentation of Certificate to Grayson T. as Part of the 2024 HIP Housing Foster City Calendar Contest

5. PUBLIC
Government Code Section 54954.2 E (3) precludes the City Council from discussing or acting upon any topic initially presented during the “Public” portion of the agenda.

6.1. City/EMID Regular Meeting Minutes of November 20, 2023

6.2. City/EMID Regular Meeting Minutes of December 4, 2023

6.14. Update on Progress on Amending the Business License Tax Ordinance and Potential Business License Tax Ballot Measure
a) Staff Report
b) By Minute Order, Receive and Accept the Report

7. PUBLIC HEARINGS

8. REPORTS

8.1. Recreation Center Rebuild Project (CIP 301678) – Design Development Project Update
a) Staff Report
b) Action – By Minute Order, Receive and Accept Report

9. RESOLUTIONS FOR ADOPTION

10. OLD BUSINESS

10.1. Consideration of 2024 State Legislative Platform and Policy a) Staff Report
b) Action – By Minute Order, Provide Policy Direction

11. COMMUNICATIONS

12.1. Request to Place an Item on a Future Agenda by Councilmember Sam Hindi Regarding Resolution for Ceasefire in Gaza and Release of Hostages

13. ADJOURNMENT
The public is invited to attend.

City Council meetings on FCTV on Comcast Channel 27 and AT&T Channel 99:

STREAMED LIVE every 1st and 3rd Monday of the month
City Council meetings ondemand:
https://www.fostercity.org/agendasandminutes

7 CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
FOSTER CITY COUNCIL CHAMBERS
620 FOSTER CITY BOULEVARD
FOSTER CITY, CALIFORNIA
MEMBERS OF THE PUBLIC THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY JOINING THE ZOOM MEETING HTTPS://FOSTERCITY ORG.ZOOM.US/J/82592136594 PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND VIA ZOOM MEETING. ANY EMAILS SENT TO [email protected] WILL BE PROVIDED TO THE CITY COUNCIL PRIOR TO THE MEETING.

To Attend the Meeting in Person:

Location: 620 Foster City Blvd, Foster City, California, 94404 To Provide Public Comment in Person:

To Observe the Meeting via Teleconference/Video Conference:

Written public comments will be posted to the City’s website for review prior to the meeting.

AGENDA
Monday, December 18, 2023 6:30 PM
REGULAR MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL
Councilmembers/ex officio EMID Directors Jon Froomin, Sam Hindi, Stacy Jimenez, Art Kiesel, and Mayor/President Patrick Sullivan

4. SPECIAL PRESENTATIONS

4.1. Presentation of Certificate to Grayson T. as Part of the 2024 HIP Housing Foster City Calendar Contest

5. PUBLIC
Government Code Section 54954.2 E (3) precludes the City Council from discussing or acting upon any topic initially presented during the “Public” portion of the agenda.

6.1. City/EMID Regular Meeting Minutes of November 20, 2023

6.2. City/EMID Regular Meeting Minutes of December 4, 2023

6.14. Update on Progress on Amending the Business License Tax Ordinance and Potential Business License Tax Ballot Measure
a) Staff Report
b) By Minute Order, Receive and Accept the Report

7. PUBLIC HEARINGS

8. REPORTS

8.1. Recreation Center Rebuild Project (CIP 301678) – Design Development Project Update
a) Staff Report
b) Action – By Minute Order, Receive and Accept Report

9. RESOLUTIONS FOR ADOPTION

10. OLD BUSINESS

10.1. Consideration of 2024 State Legislative Platform and Policy a) Staff Report
b) Action – By Minute Order, Provide Policy Direction

11. COMMUNICATIONS

12.1. Request to Place an Item on a Future Agenda by Councilmember Sam Hindi Regarding Resolution for Ceasefire in Gaza and Release of Hostages

13. ADJOURNMENT
The public is invited to attend.

City Council meetings on FCTV on Comcast Channel 27 and AT&T Channel 99:

STREAMED LIVE every 1st and 3rd Monday of the month
City Council meetings ondemand:
https://www.fostercity.org/agendasandminutes

8 4.1
HIP 2024 Calender Certificate

9 CITY OF FOSTER CITY/

ESTERO MUNICIPAL IMPROVEMENT DISTRICT

REGULAR MEETING OF November 20, 2023

MINUTES

CALL TO ORDER OF CITY COUNCIL/EMID BOARD OF DIRECTORS

The Regular Meeting of November 20, 2023 of the City Council of the City of Foster City, sitting as said Council and as ex officio the Board of Directors of the Estero Municipal Improvement District (EMID), was called to order at 6:30 p.m. by Mayor/President Froomin.

This meeting was held as a hybrid meeting.

ROLL CALL

The Communications Director/City Clerk/Recording Secretary called the roll:

PRESENT:

Councilmembers/ex officio Directors Stacy Jimenez, Art Kiesel, Patrick Sullivan, and Mayor/President Jon Froomin.

ABSENT: Councilmember/ex officio Director Sam Hindi.

STAFF PRESENT: Marlene Subhashini, Acting City/District Manager; Benjamin Stock, City Attorney/District Legal Counsel ; Sofia Mangalam, Community Development Director; Edmund Suen , Finance Director; Andrew Brozyna, Public Works Director; Tracy Avelar , Police Chief ; Rob Lasky, IT Manager; Laura Galli, Engineering Manager; Thai -Chau Le, Planning Manager; ‘Andra Lorenz, Senior Management Analyst; Nori Jabba, Housing Coordinator; Katherine Mendoza, Deputy City Clerk; Shuli Chen, Video Technician; and Communications Director/City Clerk, Priscilla Schaus.

PUBLIC

Kal Hirmana addressed the City Council via email regarding the Recreation Center Rebuild Project.

CONSENT CALENDAR

Motion by Vice Mayor/Vice President Sullivan, seconded by Councilmember/Director Jimenez, and carried 4-0-0, Councilmember/Director Hindi absent, approving the following items on the City/District Consent Calendar:

City/EMID Consent Calendar

6.1 6.1 Minutes

10 1. City/EMID Regular Meeting Minutes of November 6, 2023;

2. City Resolution No. 2023- 111, “ A Resolution of the City Council of the City of Foster City Authorizing the Mayor to Execute a Master Services Agreement with Flock Safety to Retain an Existing Annual Fee Through FY 27- 28 for All Existing Automated License Plate Reader Equipment and Services;” and

3. City Resolution No. 2023- 112, “ A Resolution of the City Council of the City of Foster City Authorizing the Police Department to Purchase a One- Year Maintenance Renewal from Intrado to Maintain the Existing Dispatch Customer Premise Equipment (CPE); and Authorizing Appropriation of $18,714.75 from the General Fund to Account 001-0630-421-4246.”

PUBLIC HEARINGS

COLLECTION RATE INCREASES FOR SOLID WASTE , RECYCLABLES, AND ORGANIC MATERIALS FOR CALENDAR YEARS 2024 THROUGH 2028 AND FINDING THAT THE CITY’S FRANCHISE FEES INCLUDED IN THE SOLID WASTE RATES ARE JUSTIFIED. CITY RESOLUTION NO. 2023-113.

Principal Management Analyst Lorenz presented the staff report.

Mayor Froomin opened a public hearing to hear and consider comments regarding Collection Rate Increases for Solid Waste, Recyclables, and Organic Materials for Calendar Years 2024 Through 2028 and finding that the City’s Franchise Fees Included in the Solid Waste Rates are Justified.

Akhila Aiyer addressed the City Council via email.

Without objection from the City Council, Mayor Froomin closed the public hearing.

Discussion ensued.

Motion by Vice Mayor Sullivan, seconded by Councilmember Jimenez, and carried by roll call vote , 4-0-0, Councilmember Hindi absent, to introduce the ordinance by title and waive further reading, and pass to a second reading “An Uncodified Ordinance of the City of Foster City Approving Solid Waste Rates for a Four -year Period of Calendar Years 2025 Through 2028, Increasing the Monthly Residential Collection Rates by No More Than $4.74 in Rate Year 2025, $4.98 in Rate Year 2026, $4.19 in Rate Year 2027, and $4.35 in Rate Year 2028 and Increasing Fees for Unscheduled Services Up to 6.0% Per Year From Rate Years 2025 Through 2028.”

Motion by Mayor Froomin, seconded by Vice Mayor Sullivan, and carried 4-0-0, Councilmember Hindi absent, adopting City Resolution No. 2023- 113, “A Resolution of the City Council of the City of Foster City Finding that the City’s Franchise Fees Included in the Solid Waste Rates are Justified and Approving Increases to the 2023 Monthly Residential Solid Waste Collection Rates by No More Than $5.40 Per Account in Rate

6.1 6.1 Minutes

11 Year 2024 and Approving Increases to 2024 Charges for Unscheduled Services by

5.465% Over 2023.”

AMENDMENTS TO TITLE 17, “ZONING” CHAPTER 17.90 BELOW MARKET RATE

INCLUSIONARY HOUSING PROGRAM AND FINDING THE AMENDMENTS EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO CEQA GUIDELINE SECTION 15061 (B)(3).

Housing Coordinator Jabba presented the staff report.

Mayor Froomin opened a public hearing to hear and consider comments regarding Amendments to Title 17, “Zoning” Chapter 17.90 Below Market Rate Inclusionary Housing Program.

No public testimony was received.

Without objection from the City Council, Mayor Froomin closed the public hearing.

Discussion ensued.

Motion by Councilmember Kiesel , seconded by Mayor Froomin , and carried by roll call vote 4-0-0, Councilmember Hindi absent, to introduce the ordinance by title and waive further reading, and pass to second reading “An Ordinance of the City of Foster City Making Text Amendments to Title 17, “Zoning” of the Foster City Municipal Code Chapter

17.90, “Below Market Inclusionary Housing Program” and Finding the Amendments Exempt from the California Environmental Quality Ac t Pursuant to CEQA Guideline Section 15061(B)(3) – RZ2023-0008.”

NEW BUSINESS

APPOINTMENTS OF THREE MEMBERS TO NEW FULL TERMS FROM JANUARY 1, 2024 THROUGH DECEMBER 31, 202 6 ON THE PARKS AND RECREATION COMMITTEE. MINUTE ORDER NO. 1948.

Communications Director/City Clerk Schaus presented the staff report.

Phoebe Venkat and Evan Adams addressed the City Council via email.

Discussion ensued.

Motion by Mayor Froomin, seconded by Vice Mayor Sullivan , and carried 4-0-0, Councilmember Hindi absent, adopting Minute Order No. 194 8, and appointing Sirish Bindal, Eric Corpuz, and Lisa Fong to new full terms from January 1, 2024 through December 31, 2026 on the Parks and Recreation Committee.

6.1 6.1 Minutes

12 ESTABLISHING LOCAL CAMPAIGN CONTRIBUTION LIMITS AND VOLUNTARY CAMPAIGN EXPENDITURE LIMITS. MINUTE ORDER NO. 1949.

Communications Director/City Clerk Schaus presented the staff report.

Evan Adams and Shankar Kenkre addressed the City Council in person.

Discussion ensued.

By consensus of the City Council, and carried 4-0-0, Councilmember Hindi absent, Minute Order No. 1949 was adopted, directing staff as follows:

1. Create a draft Local Campaign Contribution Limit ordinance that includes a detailed enforcement policy to be presented at a future Council meeting;

2. Establish the same contribution limit for individuals and organizations/businesses, and exact numbers will be agreed upon once the draft ordinance is brought forth;

3. Look into varying contribution limits for Foster City residents and non-residents and City Based businesses and Non-City Based Businesses; and

4. Proceed without establishing voluntary expenditure limits.

REPORTS

WASTEWATER TREATMENT PLANT MASTER PLAN IMPROVEMENTS PROJECT (CIP 455-652)- CLEAN WATER PROGRAM – THIRD QUARTER PROGRESS UPDATE.

MINUTE ORDER NO. 1950.

Public Works Director Brozyna and Senior Engineer, Steve Tarantino, representing EKI Environment and Water, Inc., presented the staff report.

Discussion ensued.

Motion by President Froomin, seconded by Director Kiesel, and carried 4 -0-0, Director Hindi absent, adopting Minute Order No. 1950, to receive and accept the report on the Wastewater Treatment Plant (WWTP) Master Plan Improvements Project (CIP 455-652) - Clean Water Program (CWP) – Update for July – September 2023.

REPORT ON FISCAL YEAR 2023 -24 1 st QUARTER FINANCIAL UPDATE. MINUTE ORDER NO. 1951.

Finance Director Suen presented the staff report.

Discussion ensued.

Motion by Vice Mayor Sullivan, seconded by Councilmember Kiesel , and carried 4-0-0, Councilmember Hindi absent, adopting Minute Order No. 1951, to receive and accept the report on the 1st Quarter Fiscal Year 2023-24 Financial Update.

6.1 6.1 Minutes

13 RESOLUTIONS FOR ADOPTION

AGREEMENT WITH PENINSULA CLEAN ENERGY TO PARTICIPATE IN THEIR PUBLIC EV FLEETS (“GOV EV”) PROGRAM AND AUTHORIZING THE CITY

MANAGER TO EXECUTE THE CUSTOMER PARTICIPATION AGREEMENT WITH

PENINSULA CLEAN ENERGY AND FINDING THE APPROVAL OF THE AGREEMENT

EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO CEQA GUIDELINES SECTION 15061 (B)(3). CITY RESOLUTION NO. 2023-114.

Public Works Director Brozyna presented the staff report.

Discussion ensued.

Motion by Councilmember Kiesel , seconded by Vice Mayor Sullivan, and carried 4-0-0, Councilmember Hindi absent, adopting City Resolution No. 2023 -144, “A Resolution of the City Council of the City of Foster City Approving an Agreement with Peninsula Clean Energy to Participate in Their Public EV Fleets (“Gov EV”) Program and Authorizing the City Manager to Execute the Customer Participation Agreement with Peninsula Clean Energy and Finding the Approval of the Agreement Exempt from the California Environmental Quality Act (CEQA) Pursuant to CEQA Guidelines Section 15061(B)(3).”

COMMUNICATIONS

CITY/DISTRICT WARRANT OF DEMANDS. NO ACTION TAKEN.

City/District Warrants of Demands were Processed and Issued on October 31, 2023, and November 3, 2023, and ACH were processed on November 3, 2023.

CITY/DISTRICT MANAGER REPORTS, COUNCIL/BOARD STATEMENTS AND

REQUESTS, AND COUNCIL LIAISON REPORTS

Acting City/District Manager Subhashini wished the F oster City community a safe and happy holiday season.

Councilmember/Director Kiesel stated that he was impressed with the number of applicants for the Parks and Recreation Committee and was glad to see resident s’ eagerness to get involved with the community.

Councilmember/Director Jimenez wished everyone a safe holiday weekend. She stated that City staff is working hard to prepare for the upcoming rainy season. She thanked all the applicants to the Parks and Recreation Committee and encouraged them to continue to be involved with the community.

Vice Mayor/Vice President Sullivan expressed appreciation for all the Parks and Recreation Committee applicants. He stated he attended the San Mateo County Library

6.1 6.1 Minutes

14 Joint Powers Authority Governing Board meeting on November 13. On November 16, he attended the Planning Commission and Audit Committee meetings. On November 17, he attended the Council of Cities meeting held at the San Francisco Airport Aviation Museum and Library.

Mayor/President Froomin thanked those who applied for the Parks and Recreation Committee. On November 12, he was invited to Atria at Foster Square for their Veterans Recognition Event. On November 13, he spoke with the children of Cub Scout Pack 447.

On November 16, he attended the South Bayside Waste Management Authority board meeting, where they announced they closed escrow on their new administrative office in San Carlos . On November 16, he attended the Council of Cities meeting at the San Francisco Airport Aviation Museum and Library. He wished the public and City s taff a happy Thanksgiving.

CLOSED SESSION

Mayor/President Froomin recessed the meeting into Closed Session for:

1. Conference With Legal Counsel — Existing Litigation (Paragraph (1) of subdivision (d) of Section 54956.9) Name of case: (Foster City Marina, LLC v. City of Foster City et al. San Mateo Superior Court Case No. 22-CIV-03526); and

2. Report out from Closed Session.

Meeting recessed into Closed Session at 9:31 p.m. and reconvened at 9:52 p.m.

City Attorney/District Legal Counsel Benjamin Stock reported that no action was taken in Closed Session.

ADJOURNMENT

Hearing no objection from the City Council/EMID Board, Mayor/President Froomin adjourned the meeting. Meeting adjourned at 9:52 p.m.

6.1 6.1 Minutes

15 CITY OF FOSTER CITY/

ESTERO MUNICIPAL IMPROVEMENT DISTRICT
REGULAR MEETING OF December 4, 2023

MINUTES

CALL TO ORDER OF CITY COUNCIL/EMID BOARD OF DIRECTORS
The Regular Meeting of December 4, 2023 of the City Council of the City of Foster City, sitting as said Council and as ex officio the Board of Directors of the Estero Municipal Improvement District (EMID), was called to order at 6:30 p.m. by Mayor/President Froomin.

This meeting was held as a hybrid meeting.

ROLL CALL
The Communications Director/City Clerk/Recording Secretary called the roll:

PRESENT: Councilmembers/ex officio Directors Sam Hindi, Stacy Jimenez, Art Kiesel, Patrick Sullivan, and Mayor/President Jon Froomin.

ABSENT: None.

STAFF PRESENT: Marlene Subhashini, Acting City/District Manager; Benjamin Stock, City Attorney/District Legal Counsel; Sofia Mangalam, Community Development Director; Edmund Suen, Finance Director; Tracy Avelar, Police Chief; Cory Call, Police Captain; Waqas Hassan, Assistant Finance Director; Rob Lasky, IT Manager; Katherine Mendoza, Deputy City Clerk; Daniella Falkowski, Social Media and Communications Assistant; Joronica Vinluan, Social Media and Communications Assistant; Sandy Loi, Office Assistant; Shuli Chen, Video Technician; and Communications Director/City Clerk, Priscilla Schaus.

PUBLIC
Marianne Wallace addressed the City Council via teleconference regarding safety concerns around school zones.

NEW BUSINESS

REORGANIZATION OF THE CITY COUNCIL/EMID BOARD OF DIRECTORS

NOMINATIONS AND ELECTION OF MAYOR/PRESIDENT

6.2 6.2 Minutes

16 Mayor/President Froomin opened the floor for nominations for the office of Mayor/President.

Councilmember/Director Hindi nominated Patrick Sullivan.

Hearing no further nominations, Mayor/President Froomin closed nominations and called for a vote for the election of Patrick Sullivan to the office of Mayor/President. Motion carried unanimously, 5-0-0.

Mayor/President Froomin exchanged seats with incoming Mayor/President Sullivan.

NOMINATIONS AND ELECTION OF VICE MAYOR/VICE PRESIDENT
Mayor/President Sullivan opened the floor for nominations for the office of Vice Mayor/Vice President.

Councilmember/Director Froomin nominated Stacy Jimenez.

Hearing no further nominations, the Mayor/President Sullivan closed nominations, and called for a vote for the election of Stacy Jimenez to the office of Vice Mayor/Vice President. Motion carried unanimously, 5-0-0.

Vice Mayor/Vice President Jimenez exchanged seats with Councilmember/Director Froomin and was seated to the right of Mayor/President Sullivan.

The remainder of the Councilmembers/Directors were seated in alphabetical order by last name from left to right: Councilmember/Director Froomin, Vice Mayor/Vice President Jimenez, Mayor/President Sullivan, Councilmember/Director Hindi, and Councilmember/Director Kiesel.

OATHS OF OFFICE TO MAYOR AND VICE MAYOR
City Clerk Schaus gave the Oath of Office to Mayor Sullivan.

Vice Mayor Jimenez’s husband and daughter gave the Oath of Office to Vice Mayor Jimenez.

SPECIAL PRESENTATION TO OUTGOING MAYOR/PRESIDENT FROOMIN On behalf of the City Council, Mayor Sullivan presented a plaque to outgoing Mayor Froomin for his service as Mayor for the past year and a bouquet of flowers was presented to outgoing Mayor Froomin’s wife.

6.2 6.2 Minutes

17 Mayor/President Sullivan gave a statement thanking outgoing Mayor Froomin for his work this past year and stated his commitment as Mayor to protecting the safety and well-being of the community.

Outgoing Mayor/President Froomin gave a statement reflecting upon this year’s accomplishments, and acknowledged the results were due to the City Council’s collaboration and execution by City staff.

Vice Mayor/Vice President Jimenez gave a statement thanking the community and her family for their support and stated she looks forward to working with Mayor/President Sullivan in her new role as Vice Mayor/Vice President.

Councilmember/Director Kiesel congratulated Mayor/President Sullivan and Vice Mayor/Vice President Jimenez on their new roles and thanked outgoing Mayor Froomin for his leadership.

Councilmember/Director Hindi congratulated Mayor/President Sullivan and Vice Mayor/Vice President Jimenez on their new roles, thanked outgoing Mayor Froomin for his leadership during the challenges of the past year, and and stated he looks forward to continuing to work with his fellow Councilmembers/Directors.

CITY/DISTRICT MANAGER REPORTS, COUNCIL/BOARD STATEMENTS AND

REQUESTS, AND COUNCIL LIAISON REPORTS

Acting City/District Manager Subhashini congratulated Mayor/President Sullivan and Vice Mayor/Vice President Jimenez on their new roles and thanked outgoing Mayor Froomin for his leadership. She stated the Community Annual Report and State of the City address have both been published and are available to view online.

Councilmember/Director Kiesel cautioned residents to avoid wearing dark clothing when walking out at night, especially when it is raining, and to appear more visible to drivers to avoid accidents. He mentioned a coyote was recently spotted in Foster City, and suggested residents keep a close eye on their small pets. He wished everyone happy holidays.

Vice Mayor/Vice President Jimenez wished everyone happy holidays. She reminded residents to slow down when driving near school zones.

ADJOURNMENT
Hearing no objection from the City Council/EMID Board, Mayor/President Sullivan adjourned the meeting. Meeting adjourned at 7:05 p.m.

6.2 6.2 Minutes

18 1
4 7
8 ORDINANCE NO. __________

AN ORDINANCE OF THE CITY OF FOSTER CITY MAKING TEXT AMENDMENTS TO TITLE 17, “ZONING” OF THE FOSTER CITY MUNICIPAL CODE CHAPTER 17.90, “BELOW MARKET INCLUSIONARY HOUSING PROGRAM” AND FINDING THE

AMENDMENTS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO CEQA GUIDELINE SECTION 15061(B)(3) - RZ2023-0008

CITY OF FOSTER CITY
WHEREAS, the Community Development Department (CDD) oversees Affordable Housing programs, including Deed Restricted Ownership Units, Below Market Rate (BMR) program, Existing Unit Purchase Program, HIP Home Sharing Program, and Housing Rehabilitation Loan Program; and
WHEREAS, the BMR program covers all rental and ownership properties subject to an affordable housing deed restriction or agreement that restricts units to extremely low, very low, moderate, or workforce units; and
WHEREAS, on March 21, 2022, the City Council adopted Ordinance 644 establishing Chapter 17.90 Below Market Rate Inclusionary Housing Program to Title 17, Zoning, of the Foster City Municipal Code; and
WHEREAS, Chapter 17.90 Below Market Rate Inclusionary Housing Program focuses on the development of the BMR units, including the required number of BMR units, level of affordability for rental and ownership projects, payment of BMR in-lieu fee, standards for new BMR units, BMR housing plan and agreement, alternatives to BMR requirements; waiver of BMR requirements; affordable housing fund and enforcement; and
WHEREAS, in recent months, the CDD staff reviewed Chapter 17.90 and the related documents, including the BMR Guidelines, and determined that the responsibilities pertaining to overseeing and monitoring of the existing BMR program could be further improved with the proposed revisions to the Chapter 17.90; and WHEREAS, on October 5, 2023, a Planning Commission Study Session was held to discuss the proposed revisions to the Chapter 17.90 Below Market Inclusionary Housing Program and BMR guidelines; and
WHEREAS, the periodic updates to the Municipal Code without a physical change to the environment is exempt under the CEQA Guidelines Section 15061(b)(3), Common Sense Exemption; and
WHEREAS, on October 19, 2023, the Planning Commission conducted a duly and properly noticed public hearing to take public testimony and consider a Resolution

6.3 6.3 City Ordinance- Amendments to BMR Housing

19 1
4 7
8 regarding the amendments to Chapter 17.90, and after conducting the public hearing, adopted Resolution No. P-13-23 with the Planning Commission recommending City Council approval of the amendments to Chapter 17.90; and WHEREAS, on November 08, 2023, a public hearing notice was published posted in three public places, and mailed pursuant to California Code Section 65090 for the City Council public hearing on November 20, 2023; and

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FOSTER CITY DOES ORDAIN AS FOLLOWS:

Section 1. The City Council does hereby find and determine based upon the aforementioned Record as follows:

1. The foregoing Recitals are true and correct and are incorporated herein by this reference; and

2. Components of the proposed amendments have been reviewed for compliance with the provisions of the California Environmental Quality Act (CEQA) and are found to be exempt from review as follows:
a. Amend Chapter 17.90 Below Market Inclusionary Housing Program is exempt pursuant to CEQA Guidelines Section 15061(b)(3); Section 2. Amendment. Chapter 17.90 “Below Market Inclusionary Housing program” within Title 17, “Zoning” of the Foster City Municipal Code are hereby amended and revised to read as set forth in the attached Exhibits A, as listed below and attached hereto and incorporated herein by reference:

Section 3. Severability. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council does hereby declare that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

Section 4. Taking Effect. This Ordinance shall take effect and be in force thirty (30) days from and after its adoption.

Section 5. Posting. Within fifteen (15) days after the adoption of this Ordinance, the City Clerk shall have it posted in three (3) public places designated by the City Council.

6.3 6.3 City Ordinance- Amendments to BMR Housing

20 1
4 7
8 This Ordinance was introduced and read on the 20th day of November, 2023, and passed and adopted on the 18th day of December, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

JON FROOMIN, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK

6.3 6.3 City Ordinance- Amendments to BMR Housing

21 1
4 7
8 EXHIBIT A
Chapter 17.90

BELOW MARKET RATE INCLUSIONARY HOUSING PROGRAM
Sections:

17.90.010 Purpose.

17.90.020 Definitions.

17.90.030 Applicability.

17.90.040 Requirements for inclusion of below market rate dwelling units in development projects.

17.90.050 Payment of below market rate housing in-lieu fee.

17.90.060 Standards for development of below market rate dwelling units.

17.90.070 Alternatives.

17.90.080 Below market rate housing plan and below market rate housing agreement.

17.90.090 Affordable housing fund.

17.90.100 Standards for occupancy, management, and compliance of below market rate dwelling units.

17.90.110 Enforcement.

17.90.120 Expiring covenants.

17.90.010 Purpose.

The purpose of this chapter, to be known as the Below Market Rate Inclusionary Housing Program, is to:

A. Enhance the public welfare by establishing policies and encouraging the development and availability of housing opportunities to a broad range of households with varying income levels within the city as mandated by state law, California Government Code Section 65580 and following; and B. Promote the city’s goals as stated in the housing element of the general plan to increase the supply of below market rate housing to meet the city’s regional share of extremely low, very low, low, and moderate income housing needs and the needs of special groups, including the elderly, disabled, small and large families, and local workers by imposing an inclusionary requirement for residential development projects; and

6.3 6.3 City Ordinance- Amendments to BMR Housing

22 1
4 7
8 C. Reduce vehicle miles traveled (VMT) and greenhouse gas (GHG) emissions by providing people at all income levels more opportunities to live near where they work; and D. Support the local economy by making it easier for employers to attract and retain workers by providing people at all income levels more opportunities to live near where they work; and E. Affirmatively further the policies and purposes of the Fair Housing Act, also known as “Affirmatively Furthering Fair Housing” by reducing segregation and concentration of poverty; and F. Implement the city’s adopted inclusionary policy contained in the housing element of the general plan by creating standards and a mechanism to provide below market rate dwelling units as part of proposed residential development projects, including by providing program management, maintenance, and compliance standards and guidelines for eligibility and occupancy of below market rate units for existing and proposed residential projects; and
G. Provide for the establishment and imposition of a below market rate housing in-lieu fee on residential development projects as an alternative means of mitigating the impact of residential development projects on the need for below market rate dwelling units in the city, as opposed to the development and construction of below market rate dwelling units as part of residential development projects, in certain circumstances. (Ord. 644 § 3, 2022) (Ord. XX, 2023).

17.90.020 Definitions.

A. “Administration and compliance monitoring cost” means the ongoing cost of city services for administration, compliance, and monitoring of new and existing below market rate dwelling units. The city council, by resolution or deed restriction, may establish recurring annual fees for below market rate property owners on a per unit basis for the ongoing annual administration and compliance monitoring costs of the below market rate units.

Fees may be updated from time to time.

B. “Below market rate housing fund” means a separate or segregated fund or account designated by the city to maintain and account for all monies received pursuant to this chapter.

6.3 6.3 City Ordinance- Amendments to BMR Housing

23 1
4 7
8 C. “Below market rate ownership cost” means the sale price for a below market rate dwelling unit, available as a for-sale unit, resulting in a projected average monthly housing expense during the first calendar year of an eligible household’s occupancy, including mortgage principal and interest, mortgage insurance, property taxes, homeowners’ insurance, homeowners’ association dues, if any, and a reasonable allowance for utilities, not exceeding the sales prices specified by Section 50052.5 of the California Health and Safety Code and California Code of Regulations Title 25, Sections 6910 through 6924.

D. “Below market rate rent” means the total monthly housing expenses for a below market rate dwelling unit, available as a rental unit, not exceeding the rents specified by Section 50053 of the California Health and Safety Code and California Code of Regulations Title 25, Sections 6910 through 6924, except that the city may permit alternative criteria, when necessary, to be consistent with pertinent state and federal statutes and regulations governing publicly assisted rental housing, or for workforce housing. As used in this chapter, “below market rate rent” shall include the total of monthly payments by the tenant for all of the following:

1. Use and occupancy of the below market rate dwelling unit and land and all facilities associated with the below market rate dwelling unit, including but not limited to parking (whether unbundled or not), bicycle storage, storage lockers, and use of all common areas;

2. Any additional separately charged fees or service charges assessed by the owner, other than security deposits;

3. An allowance for utilities paid by the tenant as established by the San Mateo County Housing Authority which may be updated from time to time, including garbage collection, sewer, water, electricity, gas, and other heating, cooking, and refrigeration fuel, but not telephone service, cable TV or WiFi/internet and any other fees required to be paid by the tenant for services received;

4. Any other interest, taxes, fees or charges for use of the land or below market rate dwelling unit or associated facilities and assessed by a public or private entity other than the owner and paid by the tenant.

E. “Below market rate dwelling unit” means a dwelling unit in a residential development project that is restricted for sale or rental to and occupancy by an eligible household at a below market rate ownership cost or below market rate rent, as applicable, and as required by this chapter.

6.3 6.3 City Ordinance- Amendments to BMR Housing

24 1
4 7
8 F. “Below market rate housing administrative standards and guidelines” means standards and guidelines adopted by the community development director from time to time to provide a consistent framework for determining household income, below market rate ownership cost, below market rate rent, eligible households, monitoring, reporting, scope of below market rate housing plan, terms of below market rate housing agreement, marketing plan requirements, and any other relevant rules, regulations or provisions necessary for the administration of this chapter.

G. “Below market rate housing agreement” means an agreement that shall specify the number, type, location, size, and phasing of all below market rate dwelling units required in a residential development project, provisions for income certification and screening of potential purchasers or renters of below market rate dwelling units, and resale control mechanisms, including the financing of ongoing administration and compliance monitoring costs , consistent with the approved below market rate housing plan, as determined by the community development director.

H. “Below market rate housing in-lieu fee” means the fee imposed on each dwelling unit of a residential development project, established by resolution of the city council, and updated from time to time, not to exceed the cost of mitigating the impact of residential development projects on the need for below market rate dwelling units in the city. For purposes of this Chapter, such an in-lieu fee is only for residential development projects, or residential components of mixed-use projects.

I. “Below market rate housing plan” means a plan prepared by the developer of a residential development project that describes how the proposed dwelling units conform to the requirements of this chapter, and city and state density bonus law requirements, as applicable, and shall include, at a minimum, procedures and requirements for determining eligible households for rental of rental units or purchasers of for-sale units, occupancy requirements, initial and ongoing marketing policies, application process, waitlist management, income verification requirements, annual recertification, if applicable, rejection of ineligible housing applicants and eligibility termination, ongoing compliance monitoring costs, and such other provisions as the community development director may prescribe from time to time pursuant to below market rate housing administrative guidelines.

J. “Building permit” includes full structural building permits as well as partial permits such as foundation-only permits and demolition permits.

6.3 6.3 City Ordinance- Amendments to BMR Housing

25 1
4 7
8 K. “Density bonus” means entitlement to build additional residential units above the maximum number of units permitted pursuant to the existing general plan, applicable specific plan and/or zoning designation, and as further specified in Chapter 17.86 and California Government Code Section 65915 (“State Density Bonus Law”).

L. “Developer” means the person(s) or legal entity(ies), including the property owner, or successor, seeking a planning permit or building permit for a residential development project.

M. “Development applicant” means the developer seeking a planning permit or building permit for a residential development project.

N. “Director” means the director of the city’s community development department, or designee.

O. “Dwelling unit” means a dwelling designed for occupancy by one household; the foregoing notwithstanding, dwelling unit shall not include an accessory dwelling unit as defined in Section 17.78.040.

P. “Eligible household” means those households whose maximum income does not exceed levels published annually for extremely low income households, very low income households, low (or lower) income households, and moderate income households, adjusted for household size and appropriate for the below market rate dwelling unit.

Q. “Extremely low income households” means households with incomes no greater than the maximum income for extremely low income households, as published annually by the California Department of Housing and Community Development (HCD) as the Official State Income Limits pursuant to Health and Safety Code Section 50093 for San Mateo County, adjusted for household size, except that the city may permit alternative criteria, when necessary, to be consistent with pertinent state and federal statutes and regulations governing publicly assisted housing.

R. “For-sale unit” means a dwelling unit that may be sold individually in conformance with the Subdivision Map Act. For-sale units also include dwelling units that are converted from rental units to for-sale units.

S. “Household” means one (1) person living alone or two (2) or more persons sharing residency whose income is considered for housing payments, and all minor children.

6.3 6.3 City Ordinance- Amendments to BMR Housing

26 1
4 7
8 T. “Housing applicant” means an individual or household who has submitted or will submit an application to rent a below market rate dwelling unit.

U. “Low income households” means households with incomes no greater than the maximum income for low or lower income households, as published annually by the California Department of Housing and Community Development (HCD) as the Official State Income Limits pursuant to Health and Safety Code Section 50093 for San Mateo County, adjusted for household size, except that the city may permit alternative criteria, when necessary, to be consistent with pertinent state and federal statutes and regulations governing publicly assisted housing. “Market rate unit” means a dwelling unit in a residential development project that is not a below market rate dwelling unit.

V. “Moderate income households” means households with incomes no greater than the maximum income for moderate income households, as published annually by the California Department of Housing and Community Development (HCD) as the Official State Income Limits pursuant to Health and Safety Code Section 50093 for San Mateo County, adjusted for household size, except that the city may permit alternative criteria, when necessary, to be consistent with pertinent state and federal statutes and regulations governing publicly assisted housing.

W. “One location” includes all adjacent parcels of land under common ownership or control, the property lines of which are contiguous at any point, or the property lines of which are separated only by a public or private street, road, or other public or private right-of-way, or separated only by the lands owned or controlled by the developer.

X. “Planning permit” means any discretionary approval of a residential development project, including, without limitation, a general or specific plan adoption or amendment, rezoning, tentative map, parcel map, conditional use permit, variances, or architectural review.

Y. “Property owner” means the developer or successor owner or authorized agent of below market rate development.

Z. “Rental unit” means a dwelling unit that is intended to be offered for rent or lease and that cannot be sold individually in conformance with the Subdivision Map Act.

6.3 6.3 City Ordinance- Amendments to BMR Housing

27 1
4 7
8 AA. “Residential development project” means an application for a planning permit or building permit at one location to create one or more dwelling units, redevelop an existing residential development project to remove and replace dwelling units and/or create one or more additional dwelling units, convert nonresidential uses to dwelling units, subdivide a parcel to create one or more separately transferable parcels intended for development of dwelling units, or implement a condominium conversion, including development of dwelling units constructed at one location and in phases.

BB. “Review authority” means the city staff person or body authorized to approve or deny an application for a planning permit or building permit for a residential development project.

CC. “Very low income households” means households with incomes no greater than the maximum income for very low income households, as published annually by the California Department of Housing and Community Development (HCD) as the Official State Income Limits pursuant to Health and Safety Code Section 50093 for San Mateo County, adjusted for household size, except that the city may permit alternative criteria, when necessary, to be consistent with pertinent state and federal statutes and regulations governing publicly assisted housing.

DD. “Workforce housing” means dwelling units rented at below market rental rates for certain categories of workers pursuant to Section 17.90.100(D). (Ord. 644 § 3, 2022) (Ord. XX, 2023).. \

17.90.030 Applicability.

The requirements of this chapter shall apply to any residential development project as set forth below.

A. Residential Development Projects—Five to Nine Dwelling Units. Residential development projects containing five to nine dwelling units are hereby required, as a condition of issuance of a planning permit or building permit, to either:

1. Pay a below market rate housing in-lieu fee for each dwelling unit upon issuance of a building permit, or

2. Construct below market rate units on the location of the residential development project per Section 17.90.040 (Requirements for inclusion of below market rate dwelling units), make said below market rate dwelling units available for sale or rental to and occupancy by

6.3 6.3 City Ordinance- Amendments to BMR Housing

28 1
4 7
8 eligible households at the applicable household income level and at below market rate ownership cost or below market rate rent, as applicable, and secure said obligation pursuant to a below market rate housing agreement as set forth in Section 17.90.080(E) (Below Market Rate Housing Agreements).

B. Residential Development Projects—Ten Dwelling Units or More. Residential development projects of ten dwelling units or more are hereby required, as a condition of issuance of a planning permit or building permit, to:

1. Construct below market rate units on the location of the residential development project per Section 17.90.040 (Requirements for inclusion of below market rate dwelling units);

2. Make said below market rate dwelling units available for sale or rental to and occupancy by eligible households at the applicable household income level and at below market rate ownership cost or below market rate rent, as applicable; and,

3. Secure said obligation pursuant to a below market rate housing agreement as set forth in Section 17.90.080(E) (Below Market Rate Housing Agreements).

C. Exemptions. The provisions of this chapter shall not apply to developers of residential development projects which fall within one or more of the following categories:

1. Residential development projects containing four or fewer dwelling units;

2. Residential development projects located on property owned by the state of California, the United States of America, or any of its agencies and used exclusively for governmental or educational purposes;

3. Residential development projects involving the repair or replacement of a building that was damaged or destroyed by fire or other calamity, so long as:
(a) The square footage and use of the building remains the same; (b) Construction of the replacement building is conducted in accordance with California Government Code Section 65852.25, which section requires a building permit to be secured within two years of the occurrence of any such event; and, (c) In accordance with California Health and Safety Code Section 18938.6, construction begins within one year from the issuance of a building permit, subject to the issuance of

6.3 6.3 City Ordinance- Amendments to BMR Housing

29 1
4 7
8 one or more extensions, not to exceed one hundred eighty days, upon a showing of justifiable cause by the development applicant to the satisfaction of the building official.

4. Accessory dwelling units (ADUs) or junior accessory dwelling units (JADUs) as defined in Chapter 17.78;

5. Residential development projects which are developed in accordance with the terms of a development agreement adopted by ordinance pursuant to the authority and provisions of California Government Code Section 65864 et seq., and that is executed prior to the effective date of the ordinance codified in this chapter; provided, that such residential development projects shall comply with any below market rate inclusionary housing requirements included in the development agreement or any predecessor ordinance in effect on the date the development agreement was executed;

6. Residential development projects exempted by California Government Code Section 66474.2 or 66498.1 or successor provision; provided, that such residential development projects shall comply with any predecessor ordinance, resolution, or policy governing below market rate inclusionary housing in effect on the date the application for the development was deemed complete;

7. Residential development projects exempted by California Government Code Section 65589.5(o) or successor provision; provided, that such residential development projects shall comply with any predecessor ordinance, resolution, or policy governing below market rate inclusionary housing in effect on the date that a preliminary application for the development containing all of the information required by California Government Code Section 65941.1 was submitted to the city; or

8. Residential development projects for which all applications for city of Foster City discretionary development entitlements required to develop the project have been deemed complete prior to the effective date of the ordinance codified in this chapter; provided, that such residential development projects shall comply with any predecessor ordinance, resolution, or policy governing below market rate inclusionary housing in effect on the date the application for the development was deemed complete. (Ord. 644 § 3, 2022) (Ord. XX, 2023)

6.3 6.3 City Ordinance- Amendments to BMR Housing

30 1
4 7
8 17.90.040 Requirements for inclusion of below market rate dwelling units in development projects A. For the purposes of this section, “total dwelling units” does not include:

1. Dwelling units awarded above the otherwise-allowable maximum density as part of a density bonus in Chapter 17.86 (Density Bonuses), as provided by California Government Code Section 65915(b)(3), or

2. In a residential development project that will require the demolition of dwelling units, the number of dwelling units demolished, provided the residential development project will create at least as many dwelling units as will be demolished and otherwise complies with the requirements of California Government Code Section 66300(d), as applicable to the demolished units.

B. Number of Below Market Rate Dwelling (“BMR”) Units and Level of Affordability. Residential development projects of ten dwelling units or more, or residential projects of five to nine units that opt to construct units, shall construct, or cause to be constructed, the number of below market rate dwelling units as specified below.

1. Rental Projects
(a) Five percent of the proposed total dwelling units in a rental residential development project shall be BMR units occupied by or available for occupancy by moderate income households at or below market rate rents;
(b) Five percent of the proposed total dwelling units shall be below market rate dwelling units occupied by or available for occupancy by low income households at or below market rate rents; and,
(c) Ten percent of the proposed total dwelling units shall be below market rate dwelling units occupied by or available for occupancy by very low income households at or below market rate rents.

2. Ownership Projects.
(a) Twenty percent of the proposed total dwelling units in a for-sale residential development project shall be BMR units sold to and occupied by or available for sale

6.3 6.3 City Ordinance- Amendments to BMR Housing

31 1
4 7
8 to and occupancy by moderate income households at or below market rate ownership cost.

3. Fractional Units. Calculation of units or fees when the number of BMR units is not a whole number shall be as follows:
(a) Any fraction of less than 0.50 shall be satisfied by payment of an amount equal to the below market rate housing in-lieu fee, as adopted by the city council applicable to rental or ownership residential developments, times the applicable fraction, or (b) Any fraction of 0.50 or more shall be satisfied by developing one below market rate dwelling unit available for sale or rental to and occupancy by eligible households at the applicable household income level and at below market rate ownership cost or below market rate rent, as applicable. In either scenario, the development applicant has the option to provide an additional BMR unit instead of the fee.

4. Density Bonus. BMR units that satisfy the requirements of this chapter may be counted toward the number of BMR units required for a density bonus under California Government Code Sections 65915 through 65918 as set forth in Chapter 17.86 (Density Bonuses). (Ord. 644 § 3, 2022) (Ord. XX, 2023).

17.90.050 Payment of below market rate housing in-lieu fee.

A. Amount. The amount of the BMR housing in-lieu fee applicable to rental residential development projects and ownership residential development projects shall be established by resolution of the city council and be calculated based on the type of residential development (rental or ownership). The below market rate housing in-lieu fee established for rental residential development projects and ownership residential development projects shall not exceed the cost of mitigating the impact of rental or ownership residential development projects on the need for below market rate dwelling units in the city.

B. Timing of Payment. Payment of the BMR housing in-lieu fee shall be due prior to the issuance of the first building permit and the applicable fee schedule in effect at the time the building permit is issued for a rental residential development project or ownership residential development project. (Ord. 644 § 3, 2022) (Ord. XX, 2023).

17.90.60 Standards for development of below market rate dwelling units.

6.3 6.3 City Ordinance- Amendments to BMR Housing

32 1
4 7
8 A. Quality of Construction and Number of Bedrooms. All below market rate dwelling units required by this chapter shall be equal to the overall quality of construction to market rate units in the same residential development project as follows:

1. The exterior appearance of the BMR units shall be the same as that of market rate units.

2. Interior finishes and amenities of the BMR units shall not differ from those provided in the base model market rate units.

3. The number of bedrooms in the BMR units shall be equal to the average number of bedrooms in the market rate units, including square footage by unit size, and the below market rate dwelling units shall be dispersed within the residential development project, with the location of below market rate dwelling units comparable to those of the market rate units, subject to review and approval by the director.

4. The BMR units shall have access to the same amenities as the market rate units and shall be included within the below market rate ownership cost or below market rate rent for the below market rate dwelling unit. For example, residents of the below market rate dwelling units shall not be excluded from common open space, parking, storage, and other community facilities or amenities in the residential development project, nor shall households residing in below market rate dwelling units be charged more than a below market rate rent or a below market rate ownership cost as defined in Section 17.90.020 (Definitions) for the use of such facilities and amenities.

B. Availability for Occupancy. Below market rate dwelling units required by this chapter shall be made available for occupancy concurrently with the market rate units. For the purposes of this subsection, “concurrently” means that the city may not issue building permits for more than fifty percent of the market rate units until it has issued building permits for all of the below market rate dwelling units, and the city may not approve any final inspections or certificates of occupancy for more than fifty percent of the market rate units until it has issued final inspections or certificates of occupancy for all of the below market rate dwelling units.

C. Duration of Affordability.

1. Ownership. BMR units available as a for-sale unit are subject to the following:

6.3 6.3 City Ordinance- Amendments to BMR Housing

33 1
4 7
8 (a) Pursuant to the terms of a below market rate housing agreement, BMR units are legally restricted for sale to and occupancy by eligible households within the income levels for which the below market rate dwelling units were designated and at a below market rate ownership cost for a period of at least forty-five years from the date of recordation of each grant deed.
(b) Resale of the BMR unit during the forty-five-year term shall be restricted to eligible households at a below market rate ownership cost as defined herein and set forth in the below market rate housing agreement recorded against the below market rate dwelling unit and the forty-five-year term shall start over with each resale. (c) If a BMR unit has not been sold or resold prior to the expiration of the forty-five-year term, then upon the expiration of the forty-five-year term, the restrictions set forth in the below market rate housing agreement shall terminate, expire and be of no further force or effect and the dwelling unit may then be sold at market rate. (d) The below market rate housing agreement shall be recorded against the property of the applicable residential development project and below market rate dwelling unit(s) in accordance with the provisions of and consistent with the form specified in Section 17.80.070(E).

2. Rental. BMR units available as a rental unit are subject to the following:
(a) Pursuant to the provisions of California Government Code Section 66300(d) BMR units shall, pursuant to the terms of a below market rate housing agreement, be legally restricted to occupancy by eligible households within the income levels for which the below market rate dwelling units were designated and at a below market rate rent for a period of at least ninety-nine years from the date a certificate of occupancy is issued by city for the entire residential development project.
(b) The director, or his or her designee, may accept a shorter period of affordability of no less than fifty-five years, if the applicable residential development project provides substantial evidence that a shorter-term restriction is necessary and required in order to obtain financing for the applicable residential development project. (c) The below market rate housing agreement shall be recorded against the property of the applicable residential development project in accordance with the provisions of and consistent with the form specified in Section 17.90.080(E). (Ord. 644 § 3, 2022) (Ord. XX, 2023).

6.3 6.3 City Ordinance- Amendments to BMR Housing

34 1
4 7
8 17.90.070 Alternatives.

A developer may propose an alternative means of compliance with this chapter subject to the following provisions:

A. Construction of Off-Site Below Market Rate Dwelling Units. If a developer of a residential development project of ten or more dwelling units proposes the construction of off-site below market rate dwelling units in the below market rate housing plan required under Section 17.90.080, the city council may, in its discretion, approve such a proposal if it finds the proposal meets all of the following condition

1. The proposed off-site location is within the city of Foster City, is currently owned by the developer or is under contract for purchase by the developer, is not located in a flood hazard zone and does not contain environmentally sensitive habitat, is not contaminated with or otherwise impaired by the presence of hazardous materials or hazardous substances in the soil, soil vapor or groundwater in, on, or under the off-site location or emanating from lands in proximity thereto, as reflected in a Phase I Environmental Site Assessment, and if necessary, a Phase II Environmental Site Assessment, and development and construction of a residential development project on the proposed off-site location is consistent with the city’s adopted general plan, housing element, and zoning; and

2. The proposed off-site location is suitable for and development of a residential development project thereon is economically and financially feasible as determined by the city, in its sole discretion, pursuant to a feasibility analysis of a proposed residential development project on the proposed off-site location prepared by the city, at the expense of the developer, and approved by the city council; and

3. The proposed off-site location is adequately served by all required utilities and transportation infrastructure, all of which are appropriately sized to accommodate the proposed off-site below market rate units, the off-site residential development project, and all reasonable foreseeable probable future development within the area served by said utilities and transportation infrastructure; and

6.3 6.3 City Ordinance- Amendments to BMR Housing

35 1
4 7
8 4. The proposed off-site below market rate units are in addition to any below market rate dwelling units otherwise required for the off-site residential development project; and

5. The construction of the proposed off-site below market rate dwelling units within the off-site residential development project has not commenced before the approval of the on-site residential development project, the off-site below market rate dwelling units will be available for occupancy prior to or concurrently with the market rate units within the on-site residential development project, and the inclusion of the below market rate dwelling units within the off-site residential development project will not, when combined with the below market rate inclusionary requirement of the off-site residential development project, significantly contribute to residential segregation by income level within the city; and

6. The proposed off-site below market rate dwelling units would be provided in at least the same quantity and affordability levels as would be required for on-site units. The foregoing notwithstanding, any proposal to provide rental off-site below market rate dwelling units to satisfy an inclusionary requirement for an ownership project shall comply with Sections 17.90.040(A)(1) and 17.90.060(C)(2); and

7. The proposed off-site below market rate dwelling units comply with all other requirements of this chapter; and

8. All necessary agreements required to secure the construction of the off-site below market rate dwelling units will be made a part of the affordable housing agreement required for the on-site residential development project; and

9. Financing or a viable financing plan, which may include public funding sources, is in place for the acquisition of land, development and construction of the proposed off-site below market rate dwelling units; and

10. The purposes of this chapter would be better served by implementation of the proposed alternative and that the proposed alternative meets the greatest community needs at that time.

B. Conversion of Off-Site Dwelling Units or Nonresidential Buildings to Off-Site Below Market Rate Dwelling Units. If a developer of a residential development project of ten or more dwelling units proposes the

6.3 6.3 City Ordinance- Amendments to BMR Housing

36 1
4 7
8 conversion of off-site dwelling units or nonresidential buildings to off-site below market rate dwelling units in the below market rate housing plan required under Section 17.90.080, the city council may, in its discretion, approve such a proposal if it finds the proposal meets all of the following conditions:

1. All of the conditions as set forth in subsection A of this section; and

2. The construction of the proposed off-site below market rate dwelling units shall be in addition to any replacement units otherwise required by state law, including but not limited to Government Code Sections 66300(d) and 65915(c)(3).

C. On-Site Clustering of Below Market Rate Dwelling Units. If a developer of a residential development project of ten or more dwelling units proposes the clustering of on-site below market rate dwelling units in the below market rate housing plan required under Section 17.90.080 as an alternative to the provisions of Section 17.90.060(A)(3) requiring the reasonable dispersal of such units within the residential development project, the city council may, in its discretion, approve such a proposal if it finds the proposal meets all of the following conditions:

1. The clustering of on-site below market rate dwelling units is necessary to access and secure sources of financing needed for the residential development project; and

1. Construction of the clustered below market rate dwelling units will occur prior to or concurrently with the construction of the market units in the residential development project; and

3. The clustering of on-site below market rate dwelling units will not, when considered singularly or in connection with other residential development projects in the vicinity of the project, significantly contribute to residential segregation by income level within the city; and

4. The purposes of this chapter would be better served by implementation of the proposed alternative and that the proposed alternative meets the greatest community needs at that time.

D. Alternative to On-Site Construction of Below Market Rate Dwelling Units—Donation of Land. If a developer of a residential development project of ten or more dwelling units proposes the donation of land to the city for

6.3 6.3 City Ordinance- Amendments to BMR Housing

37 1
4 7
8 the construction of below market rate dwelling units in the below market rate housing plan required under Section 17.90.080, the city council may, in its discretion, approve such a proposal if it finds the proposal meets all of the following conditions:

1. The land proposed to be donated to the city is located within the city of Foster City, is currently owned by the developer or is under contract for purchase by the developer, is not located in a flood hazard zone and does not contain environmentally sensitive habitat, and development and construction of a residential development project on the site is consistent with the city’s adopted general plan, housing element, and zoning; and

2. The land proposed to be donated is suitable for and development of a residential development project thereon is economically and financially feasible as determined by the city, in its sole discretion, pursuant to a feasibility analysis of a proposed residential development project on the land proposed to be donated prepared by the city, at the expense of the developer, and approved by the city council; and

3. The land proposed to be donated to the city is adequately served by all required utilities and transportation infrastructure, all of which are appropriately sized to accommodate a residential development project on the site and all reasonable foreseeable probable future development within the area served by said utilities and transportation infrastructure; and

4. The fair market value of the land proposed to be donated equals or exceeds the value of the on-site below market rate dwelling units otherwise required to be provided as part of the residential development project, as shown in an appraisal of the land to be donated and a financial analysis of the proposed residential development project prepared by the city, at the expense of the developer, and approved by the city council; and

5. The land proposed to be donated to the city shall not be contaminated with or otherwise impaired by the presence of hazardous materials or hazardous substances in the soil, soil vapor or groundwater in, on, or under the land to be donated or emanating from lands in proximity thereto, as determined by and to satisfaction of the city, in its sole discretion, pursuant to a Phase I Environmental Site Assessment, and if necessary, a Phase II Environmental Site Assessment, conducted under the direction of the city and at the expense of developer; and

6.3 6.3 City Ordinance- Amendments to BMR Housing

38 1
4 7
8 6. The purposes of this chapter would be better served by implementation of the proposed alternative and that the proposed alternative meets the greatest community needs at that time. (Ord. 644 § 3, 2022) (Ord. XX, 2023)

17.90.080 Below market rate housing plan and below market rate housing agreement.

A. Required. A below market rate housing plan is required for any residential development project that provides below market rate dwelling units, either on site or off site. The below market rate housing plan shall:

1. Describe how the proposed dwelling units conform to the requirements of this chapter and city and state density bonus law requirements, as applicable.

2. Include provisions that demonstrate compliance with California Government Code Sections 65915(c)(3) and 66300(d), requiring replacement units to be restricted to lower- income households to match the percentage of lower-income tenants, as provided in Chapter

17.55, Replacement Units.

3. Include, at a minimum, procedures and requirements for:
(a) determining rental rates
(b) eligibility of households for rental of rental units or purchasers of for-sale unit, (c) income requirements
(d) occupancy standards
(e) Initial and ongoing marketing policies
(f) application process
(g) waitlist management
(h) income verification requirements
(i) annual income recertification requirements
(j) If applicable, rejection of ineligible housing applicants, eligibility termination (k) funding by developer for ongoing administration and compliance monitoring costs following occupancy of below market rate dwelling units (l) and such other provisions as the director may prescribe from time to time pursuant to below market rate housing administrative standards and guidelines.

6.3 6.3 City Ordinance- Amendments to BMR Housing

39 1
4 7
8 4. Below market rate housing plans are not required for residential development projects that are not required to provide for the construction, sale and/or rental of on-site or off-site below market rate dwelling units, in compliance with the provisions of this chapter Submittal and Review. The below market rate housing plan must be submitted prior to the first planning permit application being deemed complete. The below market rate housing plan shall be processed concurrently with all other planning permits required for the residential development project.

C. Approval of On-Site Below Market Rate Dwelling Units. The review authority may approve or conditionally approve a below market rate housing plan that proposes on-site below market rate dwelling units if it makes findings, based on substantial evidence, that:

1. The on-site below market rate dwelling units comply with the applicable standards in this chapter, including, without limitation, the requirement that the below market rate dwelling units be made available for occupancy concurrently with the market rate units.

2. The on-site below market rate dwelling units will mitigate the impact of the market rate units in the residential development project on the need for below market rate dwelling units in the city.

D. Amendments. The approved below market rate housing plan may be amended prior to issuance of any building permit for the residential development project. A request for a minor modification of an approved below market rate housing plan may be granted by the director if the modification is substantially in compliance with the original below market rate housing plan and conditions of approval. Other significant or substantial modifications to the below market rate housing plan, as determined by the director, shall be processed in the same manner as the original below market rate housing plan.

E. Below Market Rate Housing Agreements. As a condition of approval of a residential development project, a below market rate housing agreement acceptable to the director, approved by the city attorney and executed by the city manager, shall:

1. Be recorded against the residential development project prior to approval of any final or parcel map, or issuance of any building permit, whichever occurs first.

6.3 6.3 City Ordinance- Amendments to BMR Housing

40 1
4 7
8 2. Specify the number, type, location, size, and phasing of all below market rate dwelling units, provisions for income certification and screening of potential purchasers or renters of below market rate dwelling units, and resale control mechanisms, and provisions for funding by developer for administration and compliance monitoring costs following occupancy of below market rate dwelling units consistent with the approved below market rate housing plan.

3. Provide for the indemnification and defense of the city, as approved by the city attorney, against any and all claims brought by any and all persons, including eligible households, in connection with the administration and implementation by city of the below market rate housing plan and below market rate housing agreement.

4. A below market rate housing agreement applicable to below market rate dwelling units, available as for-sale units, shall require as a condition of the sale of a below market rate dwelling unit from developer to an eligible household, that the restrictions set forth in the below market rate housing agreement and this chapter be recorded against the below market rate dwelling unit in the form of a resale restriction agreement, performance deed of trust, and/or regulatory agreement, as approved by the city attorney and executed by the city manager, to ensure the continued affordability of the below market rate dwelling units. (Ord. 644 § 3, 2022) (Ord. XX, 2023)

17.90.90 Affordable housing fund.

A. Establishment of the Affordable Housing Fund. The city of Foster City has established an affordable housing fund as set forth in Section 17.88.060. The city reaffirms that the affordable housing fund is created for the purpose of receiving and dispersing certain monies to address the housing needs of extremely low, very low, low and moderate income households. Separate accounts within the affordable housing fund may be created from time to time to avoid commingling of monies, if required by law or as deemed appropriate for the administration of the affordable housing fund
B. Deposits. All below market rate housing in-lieu fees or other funds collected under this chapter shall be deposited into the affordable housing fund.

6.3 6.3 City Ordinance- Amendments to BMR Housing

41 1
4 7
8 C. Use of Funds. In addition to the purposes set forth in Section 17.88.060, the monies in the affordable housing fund, including all interest and earnings from investment of the monies therein, shall be expended exclusively to provide, or assure the continued provision of, below market rate dwelling units to extremely low income, very low income, lower income, and moderate income households in the city, through property acquisition, construction, development assistance, rehabilitation, conversion, financing, rental assistance or other subsidies or methods, consistent with the goals and policies contained in the city’s housing element and the purposes for which the fees were collected, and for administration and compliance monitoring of the below market rate dwelling units established pursuant to this chapter.

D. Guidelines. The city council may, from time to time, adopt guidelines for expenditure of monies in the affordable housing fund. (Ord. 644 § 3, 2022) (Ord. XX, 2023)

17.90.100 Standards for occupancy, management, and compliance of below market rate dwelling units A. Below Market Rate Housing Administrative Standards and Guidelines. The community development director may adopt and revise standards, rules, regulations and guidelines, best practices, and methodologies for determining household income, below market rate housing cost, below market rate rent, determining eligibility of households of for-sale units and rental units, establishing monitoring, reporting, requirements, for residential development projects, marketing plans, and such other provisions and requirements as are relevant to the administration of this chapter.

B. Eligibility. No eligible household may occupy a below market rate dwelling unit available as a rental unit or acquire a below market rate dwelling unit available as a for-sale unit until the director, or his or her designee, has approved a below market rate housing plan prepared by the developer, which plan shall include eligibility requirements specific to the residential development project, and a below market rate housing agreement has been recorded against the residential development project in accordance with Section 17.90.080.

C. Principal Residence. Any eligible household that occupies a below market rate dwelling unit must occupy that dwelling unit as its principal residence, unless otherwise approved in writing for rental to a third party for a limited period of time due to household hardship, as determined and approved by the city in advance and in accordance with below market rate housing administrative standards and guidelines.

6.3 6.3 City Ordinance- Amendments to BMR Housing

42 1
4 7
8 D. Housing Preferences. Subject to applicable state and federal fair housing laws, the city may implement preferences for the sale or rental to and occupancy of below market rate dwelling units at the applicable below market rate ownership cost or below market rate rent, as applicable, to eligible households that live and/or work in the city or any other characteristics the city deems appropriate to further the purposes of this chapter. The city may also, from time to time, adopt preferences applicable to specific residential development projects, as permitted by law. (Ord. 644 § 3, 2022) (Ord. XX, 2023)

17.90.110 Enforcement.

A. Nuisance. Any violation of the provisions of this chapter, or the terms or conditions of a planning permit or building permit issued for a residential development project, or the terms of a below market rate housing plan or below market rate housing agreement approved in accordance with this chapter, or the below market rate standards and guidelines shall constitute a public nuisance. Provision of Below Market Rate Dwelling Units— Payment Obligation. Provision of below market rate dwelling units and/or payment of the below market rate housing in-lieu fee in accordance with the requirements of this chapter is the obligation of the developer of a residential development project. The city may institute any appropriate legal actions or proceedings necessary to ensure compliance herewith, including, but not limited to, actions to revoke, deny, modify or suspend any planning permit or building permit approved by the city.

B. Enforcement. (i) General. The director or designee shall enforce this chapter and all below market rate housing administrative standards and guidelines, agreements, resale restrictions, performance deeds of trust, regulatory agreements, all other covenants or restrictions placed on residential development projects or below market rate dwelling units; and its provisions shall be binding on all agents, successors, and assigns of a development applicant or property owner.

1. If it is determined that a violation of the provisions of this chapter has occurred, the director or designee will do the following:

First letter: A courtesy first letter to the development applicant, for proposed development, or property owner, for approved or built developments, describing the nature of the non- compliance and providing a reasonable opportunity to resolve the issue. If the development applicant or the property owner does not resolve the issue within the timeline specified, the city will issue a second letter.

Second Letter: The second violation letter will request the violation to be resolved and brought into compliance within the time specified by the Director or designee.

6.3 6.3 City Ordinance- Amendments to BMR Housing

43 1
4 7
8 Third Letter: if the development applicant, for proposed development, or property owner, for approved or built developments, does not resolve the issue after the issuance of the second letter, a third and final letter will be sent to the development applicant or owner requesting that the violation be resolved within the timeline specified by the Director or designee.

2. Administrative Appeals: The development applicant, for proposed development, or property owner, for approved or built developments, may appeal a Director’s finding of a violation per the provisions of Section 17.06.150 Appeal procedures.

3. In the event the code compliance has not been achieved, the City Attorney is authorized to enforce the provisions of this chapter, including but not limited to, any and all below market rate housing agreements, resale restrictions, performance deeds of trust, regulatory agreements, and all other covenants or restrictions placed on residential development projects or below market rate dwelling units, as well as any administrative regulations, standards, or guidelines, by civil action and any other proceeding or method permitted by law. The city shall be entitled to recover its costs, expenses and fees, including reasonable attorneys’ fees, incurred in connection with the enforcement of the provisions of this chapter and all below market rate housing administrative regulations, standards, or guidelines, agreements, resale restrictions, performance deeds of trust, regulatory agreements, and all other covenants or restrictions placed on residential development projects or below market rate dwelling units.

C. Developer Responsibility. Failure of any official or agency to enforce the requirements of this chapter shall not excuse any developer or owner from the requirements of this chapter. No planning permit, building permit, license, map, or other approval or entitlement for a residential development project or dwelling unit shall be issued, including without limitation a final inspection or certificate of occupancy, until all applicable requirements of this chapter have been satisfied.

D. Remedies. The remedies provided for in this section shall be cumulative and not exclusive and shall not preclude the city from any other remedy or relief to which it otherwise would be entitled under law or equity. (Ord. 644 § 3, 2022) (Ord. XX, 2023)

17.90.120 Expiring covenants.

Five (5) years prior to expiration of an affordability restriction on a property subject to this Chapter, the Director or designee shall present a report to the City Council informing them about the expiration and will commence discussions with the property owner(s) to determine the feasibility of extending or prolonging affordability restrictions on the property.

6.3 6.3 City Ordinance- Amendments to BMR Housing

44 1
3 9
3 ORDINANCE NO.____________

AN UNCODIFIED ORDINANCE OF THE CITY OF FOSTER CITY APPROVING SOLID WASTE RATES FOR A FOUR-YEAR PERIOD OF CALENDAR YEARS 2025 THROUGH 2028, INCREASING THE MONTHLY RESIDENTIAL COLLECTION RATES BY NO MORE THAN $4.74 IN RATE YEAR 2025, $4.98 IN RATE YEAR 2026, $4.19 IN RATE YEAR 2027, AND $4.35 IN RATE YEAR 2028 AND INCREASING FEES FOR UNSCHEDULED SERVICES UP TO 6.0% PER YEAR FROM RATE YEARS 2025 THROUGH 2028

CITY OF FOSTER CITY
WHEREAS, On October 2, 2023, the City Council considered information related to the solid waste, recyclable, and organic materials collection and processing program relative to rates for the five-year period from 2024 through 2028; and WHEREAS, per Minute Order 1942, the City Council directed staff to proceed with the public notification procedures set forth in Article XIII D, Section 6 of the California Constitution (Proposition 218) to increase residential Solid Waste rates for rate years 2025 through 2028; and
WHEREAS, the Proposition 218 notice provided for the approval of maximum increases of $4.74 in Rate Year 2025, $4.98 in Rate Year 2026, $4.19 in Rate Year 2027 and $4.35 in Rate Year 2028 in order to allow for the planned and orderly implementation of rate adjustments over the five year term; and
WHEREAS, an increase of 5.465% for 2024 over 2023 fees is required for Unscheduled Services, and in years 2025 through 2028, adjustments to Unscheduled Services fees will be based on actual indexed factors, but will not exceed 6.0%; and WHEREAS, the collection rate increases are necessary to meet current and projected future costs for solid waste, recyclable, and organic materials collection services; and
WHEREAS, the City Council’s action is not a project pursuant to CEQA Guidelines section 15378(b) (4) because the City is authorizing maximum rates to be charged to fund on-going solid waste services, and as such, the action involves a funding mechanism or fiscal activity within the meaning of the CEQA Guidelines; and WHEREAS, on October 6, 2023, notices were mailed to 7,295 residential and commercial customers in Foster City, pursuant to Government Code section 53755; and WHEREAS, a public hearing was held in accordance with the requirements of Proposition 218, the City did not receive protests from a majority of the parcels receiving

6.4 6.4 City Ordinance- Solid Waste Rates

45 1
3 9
3 solid waste, recyclable, and organic materials collection services, and per Proposition 218, may proceed with the proposed rate adjustment; and WHEREAS, the City Council has chosen as a matter of policy to follow the procedures set forth in Article XIII D of the California Constitution, nothing in this Resolution shall be interpreted as an admission by the City that the provisions of Article XIII D apply to the actions taken herein; and
WHEREAS, to the extent that this rate authorization results in the imposition of any fees, rates, or charges for services or facilities in connection with the City’s solid waste system, those charges are adopted pursuant to California Health and Safety Code section 5471.

THE CITY COUNCIL OF THE CITY OF FOSTER CITY DOES ORDAIN AS FOLLOWS:

Section 1. The foregoing Recitals are true and correct and are incorporated herein by this reference.

Section 2. The City Council does hereby find and determine based upon the aforementioned Record as follows:
a) The Public Hearing was properly noticed and conducted in accordance with State law and the Foster City Municipal Code; and
b) The adoption of solid waste rates is necessary for the collection of sufficient revenue to provide solid waste services to the Foster City community.

Section 3. That the City of Foster City Solid Waste Rates are hereby approved as presented in the attached Exhibit A.

Section 4. That the City of Foster City Fees for Unscheduled Services are hereby approved as presented in the attached Exhibit B.

Section 5. The rates and fees adopted by this uncodified ordinance may be amended by ordinance or resolution of the City Council.

Section 6. Severability. If any section, subsection, sentence, clause, or phrase of this chapter is held to be invalid or unconstitutional including by any court with jurisdiction, such decision shall not affect the validity of the remaining portions of this article. The City Council declares that it would have passed this article, and each section, subsection, clause, or phrase thereof, irrespective of the fact that any one or more other sections, subsections, clauses, or phrases may be declared invalid or unconstitutional.

Section 7. Taking Effect. This ordinance shall take effect thirty (30) days following its final passage.

6.4 6.4 City Ordinance- Solid Waste Rates

46 1
3 9
3 Section 8. Posting. Within fifteen (15) days after the adoption of this Ordinance, the City Clerk shall have it posted in three (3) public places designated by the City Council.

This ordinance was introduced and read on the 20 th day of November, 2023, and passed and adopted on the 18th day of December, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

JON FROOMIN, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK

6.4 6.4 City Ordinance- Solid Waste Rates

47 5
1 0
DATE: December 18, 2023

TO: Mayor and Member of the City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager

FROM: Nori Jabba, Housing Coordinator
Thai-Chau Le, Planning Manager
Sofia Mangalam, Community Development Director
DEPARTMENT: Community Development
SUBJECT: BELOW MARKET RATE ADMINISTRATIVE PROCEDURES AND

GUIDELINES

RECOMMENDATION
It is recommended that the City Council adopt the resolution approving revisions to the Below Market Rate (BMR) Administrative Procedures and Guidelines “BMR Guidelines” and finding the amendments exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline Section 15061(b)(3).

EXECUTIVE SUMMARY
Chapter 17.90 Below Market Rate Inclusionary Housing Program of the Foster City Municipal Code implements the city’s adopted inclusionary policy contained in the Housing Element of the General Plan by creating standards and a mechanism to provide Below Market Rate (BMR) dwelling units as part of new residential development projects.

The City’s inclusionary policy requires that 20% of all units, excluding bonus units, in residential projects be affordable in order to meet the City’s regional share of very low-, low- and moderate-income housing needs and the needs of special groups, including the elderly, disabled, small and large families, and local workers.

The Below Market Rate Inclusionary Housing Program includes provisions regarding the development of the new BMR units, including the required number of BMR units; level of affordability for rental and ownership projects; payment of BMR in-lieu fee; standards for

6.5 6.5 Staff Report

48 5
1 0
new BMR units; BMR housing plan and agreement; alternatives to BMR requirements; waiver of BMR requirements; affordable housing fund; and enforcement.

In recent months, the Community Development Department (CDD) staff reviewed Chapter 17.90 and related documents, including the City’s BMR Guidelines. Staff determined that Chapter 17.90 mainly focuses on the development of the new BMR units and that the implementation and enforcement of existing BMR programs could be improved with revisions to Chapter 17.90 to clarify certain terms, and a comprehensive update to the BMR Guidelines would provide clarity to landlords, property managers and tenants regarding BMR unit administration practices to better support the City’s anti- displacement policies and further fair housing strategies.

On November 20, 2023, the City Council held a public hearing to review the draft amendments to Chapter 17.90 and BMR guidelines (link to the meeting). At the meeting, staff also sought direction from the Council on four (4) policy issues to be included in the BMR guidelines, including: (1) Occupancy Standards; (2) BMR Rent Increases; (3) Rental Rate Adjustments for Vacant City-Owned Rental Units; and (4) Monitoring and Compliance Fees. The City Council approved the proposed amendments to Chapter

17.90 and passed to the second reading of the Ordinance. The City Council provided directions on the four (4) policy issues and further suggested that some policy issues discussed must be imposed on the existing BMR units (see below for detailed discussion).

Based on the City Council’s direction, staff incorporated the revisions and are requesting approval of the BMR guidelines via Resolution (Attachment 1).

BACKGROUND/ANALYSIS
In order to assist with responsibilities of overseeing and monitoring existing BMR programs, the BMR Guidelines were created in 2010, and minor revisions were made in 2011, 2016, and 2020. As discussed earlier, staff determined that a comprehensive update to the BMR Guidelines would provide clarity to landlords, property managers and tenants regarding BMR unit administration practices to better support the City’s anti- displacement policies and further fair housing strategies.

For effective implementation of the BMR Guidelines, staff divided the existing guidelines into: (i) ownership and (ii) rental property documents due to the differences between the two (2) programs. Additionally, a table of contents, detailed instructions and guidance, more references, and enforcement provisions were added. These enhancements aim to ensure consistent management practices, offer clear guidance, support the Housing Element and anti-displacement strategies, and reduce the risk of non-compliance.

Following is a brief summary of two (2) BMR Guidelines documents, including:
•BMR Rental Guidelines (Attachment 1, Exhibit A): This document includes requirements, standards, procedures, best practices, and recommendations for

6.5 6.5 Staff Report

49 5
1 0
below market rate unit compliance, waitlist management, marketing plans for initial lease-ups, tenant eligibility, occupancy standards, determination of income and rent, annual income recertifications, annual reports, training for property managers, and other critical elements of compliance for below market rate units.

The BMR Guidelines are the primary resource for property managers to implement the terms of the regulatory agreements.
•BMR Ownership Guidelines (Attachment 1, Exhibit B): This document includes requirements, procedures and best practices for City Staff to determine purchaser eligibility for initial sale and rules for sale of the property during and after the deed restriction period. The BMR Ownership Guidelines are an important resource for City staff to ensure compliance of owner-occupied BMR units with regulatory agreements.

BMR Guidelines were presented to the City Council at the November 20, 2023 regular meeting, and based on the direction received, staff included the following provisions in the BMR Rental Guidelines (Attachment 1, Exhibit A) are as follows:

1. Occupancy Standards (Section 17.14.2).

Staff revised Section 17.14.2 of the BMR Guidelines with updated general occupancy standards for future BMR properties as shown below in Table 1. For existing BMR units, minimum and maximum occupancies vary by property according to deed restrictions. BMR Owners can elect but are not required to amend the occupancy standards in their regulatory agreements to comply with these new standards.

Table 1. Foster City General Occupancy Standards for BMR Units Size of Unit Minimum
Occupancy
(Title 25,
Section
8305)
Maximum
Occupancy
Studio 1 2
One-Bedroom 1 3
One-Bedroom + Den 1 4
Two-Bedroom 2 5
Three-Bedroom 4 7
Four-Bedroom 6 9
Five-Bedroom 8 11
In Section 8.1.1 of the BMR Guidelines, staff added California Health and Safety Code Section 50052.5 as the source for adjustment of household size for calculating rents, except that in the event that the property is subject to a tax credit, bond, or other financing program, then the household size adjustment shall be as stated in the tax credit, bond, or financing agreement. For existing BMRs, the standards in the existing affordability agreements, if stated, shall apply. In the event that the regulatory

6.5 6.5 Staff Report

50 5
1 0
agreement does not include occupancy standards, then the City’s General Occupancy Standards shall apply. The one-bedroom-plus den units shall be treated as one-bedroom units for the purpose of household size adjustment for calculating rent. Table 2 shows the state standards for household size adjustments.

Table 2. Standard Multipliers for Adjustment of Household Size for Rent Calculations
Size of Unit State of CA
(HSC § 50052.5)
Studio 1
One-Bedroom 2
Two-Bedroom 3
Three-Bedroom 4
Four-Bedroom 5

2. Anti-Displacement Strategy (Section 8.4.1).

Staff revised Section 8.4.1 of the BMR Guidelines to require maximum rent increase for future BMR units of the lower of maximum chargeable rent or 5%.

3. Rents for City-Owned Rental Properties Housing Rents (new Section 8.5).

Staff included a new Section 8.5 in the BMR Guidelines stating that staff is authorized to adjust rental rates by up to +/- 10% for vacant units (only) for city-owned rental properties, including the 14 BMR and the eight (8) workforce housing units at 501 Pilgrim Drive, on an as-needed basis. This adjustment will be made as needed, allowing staff to respond promptly to market changes to fill vacancies swiftly with rent decreases or enhance city revenues through rent increases.

4. Policy Direction and Addition of New Sections Regarding Fees, Section 10.14, Monitoring Fees and Section 13.3.1, Compliance Fees.

Staff added the sections regarding monitoring and compliance fees to the BMR Guidelines. Staff will study BMR compliance and monitoring fees to be added to the City’s Master Fee for the 2023-2024 fiscal year. Monitoring fees will be a reasonable per unit per year BMR cost to property owners for the term of affordability with reasonable periodic increases for all future affordable housing development agreements and will be due April 1 of each year. Penalties will be levied in the event of non-compliant BMR property owners and managers and will follow the established procedures for code enforcement.

In addition, Council directed staff to add to the guidelines that if an existing property manager/owner wishes to adopt new occupancy standards, they must also comply with BMR unit rent control and BMR monitoring fee as stated in the guidelines. Staff added a new Section to the BMR Rental guidelines to this effect.

It shall be noted that the CDD Director may revise rules, regulations and guidelines as per the provisions outlined in section 17.90.060.F.

6.5 6.5 Staff Report

51 5
1 0
Next Steps
With regard to the establishment of BMR compliance and monitoring fees, Staff will conduct analysis of fees and provide a recommended fee schedule to the City Council for review as part of the master fee and budget approval process for FY 2024-25.

CEQA
The proposed actions would not result in physical changes to the environment and would be exempt pursuant to CEQA Guidelines Section 15061(b)(3).

FISCAL IMPACT
There is no fiscal impact.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Smart Planning, Development, and the Local Economy

ATTACHMENTS
Attachment 1 - Resolution
Exhibit A – BMR Rental Guidelines
Exhibit B – BMR Ownership Guidelines

6.5 6.5 Staff Report

52 RESOLUTION NO. __________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY

RECOMMENDING CITY COUNCIL APPROVING REVISIONS TO BELOW MARKET

RATE (BMR) ADMINISTRATIVE PROCEDURES AND GUIDELINES (BMR

GUIDELINES) AND FINDING THE AMENDMENTS EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO CEQA GUIDELINE SECTION 15061(B)(3) - RZ2023-0008

CITY OF FOSTER CITY
WHEREAS, the Community Development Department (CDD) oversees Affordable Housing programs, including Deed Restricted Ownership Units, Below Market Rate (BMR) program, Existing Unit Purchase Program, HIP Home Sharing Program, and Housing Rehabilitation Loan Program; and
WHEREAS, the BMR program covers all rental and ownership properties subject to an affordable housing deed restriction or agreement that restricts units to extremely low, very low, moderate, or workforce units; and
WHEREAS, in order to assist with responsibilities of overseeing and monitoring existing BMR programs, the BMR Administrative Procedures and Guidelines “BMR Guidelines” were created in 2010, and minor revisions were made in 2011, 2016, and 2020; and
WHEREAS, Chapter 17.90, Below Market Rate Inclusionary Housing Program, to Title 17, Zoning, of the Foster City Municipal Code implements the city’s adopted inclusionary policy; and
WHEREAS, the CDD staff reviewed Chapter 17.90 and the related documents, including the BMR Guidelines, and determined that the implementation and enforcement of existing BMR programs could be improved with revisions to BMR Guidelines to provide clarity to landlords and tenants for BMR unit administration practices and to better support the City’s anti-displacement and further fair housing strategies; and
WHEREAS, for effective implementation of the BMR Guidelines, staff divided the existing guidelines into (i) ownership and (ii) rental property documents due to the differences between the two (2) programs and made further revisions; and WHEREAS, CDD Director may revise rules, regulations and guidelines as per the provisions outlined in section 17.90.060.F; and
WHEREAS, the amendments to the BMR Guidelines are exempt under the CEQA Guidelines Section 15061(b)(3), Common Sense Exemption; and

6.5 Attachment 1 - Resolution

53 NOW THEREFORE, BE IT RESOLVED that the City Council of the Foster City does hereby approve revisions to BMR Guidelines attached as Exhibits A and B.

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the regular meeting held on the 18th day of December, 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

PATRICK SULLIVAN, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK

6.5 Attachment 1 - Resolution

54 4857-4845-0679 v1
2023
December 18, 2023
Below Market Rate
Rental Housing Programs

ADMINISTRATIVE PROCEDURES AND GUIDELINES

6.5 Exhibit A - BMR Rental Guidelines

55 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
1 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf

TABLE OF CONTENTS
1 IMPLEMENTATION AUTHORITY ......................................................................................................5 2 INTRODUCTION ..............................................................................................................................5 3 FAIR HOUSING................................................................................................................................5

3.1 Property Manager Requirements............................................................................................6 4 COVERED PROPERTIES....................................................................................................................6 5 DOCUMENTS REQUIRING CITY APPROVAL PRIOR TO LEASING ........................................................6

5.1 Marketing Plans.......................................................................................................................6

5.2 Affirmative Marketing Plans....................................................................................................7

5.3 Resident Selection Policy.........................................................................................................7

5.4 Applications for Housing..........................................................................................................7

5.5 Submittal and Approval of Marketing Plans, Selection Policy, and Application......................8 6 REQUIREMENTS FOR WAITLISTS .....................................................................................................8

6.1 Requirements for Waitlist Applications...................................................................................8

6.2 Requirements for Formatting a Waitlist..................................................................................9

6.3 Requirements for Temporary and Permanent Closure of a Waitlist .......................................9

6.4 Requirements for Reopening a Waitlist ................................................................................10

6.5 Guidelines for Waitlist Management.....................................................................................10

6.6 Requirements for Notifying Applicants on Waitlist of a Vacancy..........................................10 7 DETERMINING ELIGIBILITY ............................................................................................................11

7.1 Standard Preference Categories and Exceptions...................................................................11

7.2 Preference Requirement at time of Application for Housing ................................................12

7.3 Preference Verification..........................................................................................................12

7.3.1 Verifying Foster City Residence ..........................................................................................12

7.3.2 Verifying Work Location in Foster City ...............................................................................12

7.3.3 Verifying City of Foster City Employment ...........................................................................13

7.3.4 Preference Verification Form..............................................................................................13

7.4 Ownership of Real Estate ......................................................................................................13

7.5 Sole and Primary Residence Requirement ............................................................................13

7.6 Requirements for Income Eligibility ......................................................................................14

7.6.1 Applicability ........................................................................................................................14

7.6.2 Source for Income Limits ....................................................................................................14

7.6.3 Other Governing Income Limits..........................................................................................15

7.6.4 Calculating Non-Standard Income Limits............................................................................16

7.6.5 Third-Party Verification of Income and Assets ...................................................................16

7.6.6 Reductions in Income Limits ...............................................................................................16

7.6.7 Annual Income Recertification Requirement .....................................................................16

7.6.8 Minimum Income Requirement..........................................................................................17

7.6.9 Minimum Income Verification for workforce Units............................................................17

7.6.10 General Guidance on Income Certification Procedures......................................................17

7.7 Annual Recertification of Income ..........................................................................................17

7.7.1 Applicability ........................................................................................................................17

7.7.2 Annual Recertification Date................................................................................................17

7.7.3 Deadline for Forms and Documents Submitted by Tenants ...............................................18

6.5 Exhibit A - BMR Rental Guidelines

56 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
2 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf

7.7.4 Notices to Tenants ..............................................................................................................18

7.7.5 Notification of Non-Compliance .........................................................................................18

7.8 Procedures for Calculating Income........................................................................................19

7.8.1 Applicability ........................................................................................................................19

7.8.2 Multiple or Conflicting Requirements.................................................................................19

7.8.3 Projected Income................................................................................................................19

7.8.4 Household Member Income to Count ................................................................................19

7.8.5 Full Set of Forms Required for all Adult Household Members ...........................................19

7.8.6 Rules on Redacting of Information Provided for Income Certification...............................19

7.8.7 Income Inclusions and Exclusions.......................................................................................19

7.8.8 Three Methods Required to Calculate Income ...................................................................20

7.8.9 Lump Sum Payments ..........................................................................................................22

7.8.10 Tax Returns .........................................................................................................................22

7.8.11 Income of Teachers and Seasonal Workers........................................................................23

7.8.12 Self-Employment Income....................................................................................................23

7.8.13 Unemployment and Disability Income ...............................................................................25

7.8.14 Social Security and Supplemental Social Security Income..................................................25

7.8.15 Dates of verifications ..........................................................................................................25

7.8.16 Ownership of Real Estate or Timeshares ............................................................................25

7.9 Asset Eligibility and Verification ............................................................................................26

7.9.1 Use of California Code of Regulations, Title 25 for Calculating Income from Assets..........26

7.9.2 Ten Per Cent Imputed Income Rule....................................................................................26

7.9.3 Third-Party Verification of Assets .......................................................................................27

7.9.4 Negative or Blank Asset Verifications .................................................................................27

7.9.5 Rules on Redacting Information on Documents Provided..................................................27

7.9.6 Calculating the Cash Value and Income from Financial Assets...........................................27

7.9.7 Computing Income from Real Estate Assets.......................................................................28

7.9.8 Lump Sum Payments ..........................................................................................................28

7.10 Household Income Above or Below the Income Limit at the Time of Recertification ..........28

7.10.1 Over Income Households in City Owned Units ...................................................................28

7.10.2 Over Income Households for All Other BMR Units.............................................................28

7.10.3 Under Income Households .................................................................................................28

7.10.4 Next Available Unit Rule .....................................................................................................29

7.11 Student Status .......................................................................................................................29

7.12 Live-In Aides...........................................................................................................................29

7.13 Documenting Income Certifications and Annual Recertifications.........................................29

7.13.1 Forms ..................................................................................................................................29

7.13.2 Tenant File Organization.....................................................................................................30

7.13.3 Required Forms...................................................................................................................30

7.13.4 Creation of Forms by Property Managers...........................................................................31

7.13.5 Use of California Tax Credit Allocation Committee Tenant Income Certification Form .....31

7.13.6 Signatures on Forms ...........................................................................................................31

7.13.7 Dates on Forms...................................................................................................................31

7.13.8 Mistakes and Corrections on Forms ...................................................................................31

7.13.9 Conflicting, Incomplete, Insufficient, or Unclear Information Provided on Forms.............31

6.5 Exhibit A - BMR Rental Guidelines

57 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
3 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf

7.14 Occupancy Standards ............................................................................................................31

7.14.1 Minimum and Maximum Household Size Requirements ...................................................31

7.14.2 Annual Occupancy Monitoring ...........................................................................................32

7.15 Requesting Additional Information Required for Eligibility...................................................33

7.16 Citizenship/Resident Alien Status Verification ......................................................................33

7.17 Sole Residency Requirement .................................................................................................33 8 DETERMINING RENT .....................................................................................................................33

8.1 Requirements for Determining Rents....................................................................................33

8.1.1 City’s Standard Methodology for Rent Calculations ...........................................................33

8.1.2 Gross Rent...........................................................................................................................34

8.1.3 Maximum Chargeable Rent ................................................................................................34

8.2 Requirements for Determining Utility Allowances................................................................35

8.2.1 Definition of a Reasonable Utility Allowance......................................................................35

8.2.2 Calculating the Utility Allowance ........................................................................................35

8.2.3 Source for Utility Allowance Schedule................................................................................35

8.2.4 Rounding.............................................................................................................................36

8.2.5 Tenant-Paid Utilities Must be Stated in the Lease..............................................................36

8.2.6 Annual Notification of Utility Allowance ............................................................................36

8.2.7 City’s Request of Information .............................................................................................36

8.2.8 Tenant’s Request for Information.......................................................................................36

8.2.9 Implementation of Annual Utility Allowance......................................................................37

8.3 Requirements for Implementing Changes in Rental Rates....................................................37

8.3.1 Timing of Rent Changes ......................................................................................................37

8.3.2 Noticing of Tenants of Rent Changes..................................................................................37

8.4 Annual Rent Increases and Anti-Displacement Strategy .......................................................37

8.4.1 Anti-Displacement Strategy ................................................................................................38

8.5 Rental Rate Adjustments for City-Owned Rental Units .........................................................38 9 REQUIREMENTS FOR LEASES.........................................................................................................38

9.1 General Lease Requirements.................................................................................................38

9.1.1 HUD Model Lease ...............................................................................................................38

9.1.2 Affordable Housing Program Addendum............................................................................38

9.1.3 Utilities................................................................................................................................39

9.1.4 Occupants Named on Lease ...............................................................................................39

9.1.5 Renter’s Insurance ..............................................................................................................39

9.1.6 Lease Term..........................................................................................................................39

9.1.7 Addenda..............................................................................................................................39

9.1.8 Resident Selection Policy ....................................................................................................39

9.1.9 AB 1482...............................................................................................................................39

9.2 Requirements for Termination of BMR or Workforce Tenancy.............................................39 10 REQUIREMENTS FOR PROGRAM MONITORING AND ADMINISTRATION .......................................40

10.1 Annual Monitoring Fees ........................................................................................................40

10.2 Use of Housing Compliance Software ...................................................................................40

10.3 Annual submission of Waitlist to City....................................................................................40

10.4 Submission of Utility Allowance Worksheets to City.............................................................40

10.5 Digital Signatures on Leases and Income Certifications ........................................................40

6.5 Exhibit A - BMR Rental Guidelines

58 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
4 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf

10.6 Submission of Lease Documents to City................................................................................40

10.7 Retention of Records .............................................................................................................40

10.7.1 Storage Time Requirement.................................................................................................40

10.7.2 Tenant Files.........................................................................................................................41

10.7.3 Electronic Files ....................................................................................................................41

10.7.4 Disposal of Records.............................................................................................................41

10.8 City Audits and Monitoring....................................................................................................41

10.9 Changes in Management or Ownership ................................................................................41

10.10 Expiration of Program Restrictions – Tenant Notification.....................................................41

10.11 Duty to Disclose Complaints or Legal Action Taken by a Tenant...........................................41

10.12 Tenant Access to Files............................................................................................................41

10.13 Best Practices for Property Management .............................................................................42

10.14 Additional Requirements.......................................................................................................42 11 USE OF HUD GUIDELINES FOR ITEMS NOT COVERED IN THESE GUIDELINES...................................42

11.1 Use of HUD Guidelines for BMR and Workforce Properties..................................................42

11.1.1 Use of HUD Guidelines for Properties Covered by One or More HUD-Funded Programs..42

11.2 Use of HUD for Properties not Covered by HUD-Funded Programs......................................43

11.3 Use of HUD’s Fair Housing Policies........................................................................................43 12 TRAINING REQUIREMENTS FOR PROPERTY MANAGERS................................................................43

12.1 Fair Housing Training .............................................................................................................43

12.2 Compliance Training ..............................................................................................................43

12.3 Technical Assistance ..............................................................................................................44

12.3.1 Technical Assistance to Non-Profits....................................................................................44

12.3.2 Technical Assistance to Property Managers .......................................................................44

12.4 Additional Recommended Training .......................................................................................44 13 NON-COMPLIANCE AND ENFORCEMENT.......................................................................................44

13.1 Procedure for Enforcement of Non-Compliance...................................................................44

13.1.1 Appeal Process....................................................................................................................44

13.1.2 Continued or Repeated Non-Compliance...........................................................................45

13.1.3 Fair Housing Issues..............................................................................................................45

13.1.4 Americans with Disabilities Act...........................................................................................45

13.2 Tenant Inquires and Dispute Resolution ...............................................................................45

13.3 REMEDIES ..............................................................................................................................45 14 CONFLICT WITH HOUSING ELEMENT OR OTHER REGULATORY INSTRUMENT(S)............................46 15 LIST OF SAMPLES AND TEMPLATES AVAILABLE .............................................................................46

6.5 Exhibit A - BMR Rental Guidelines

59 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
5 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf 1 IMPLEMENTATION AUTHORITY
Authority for implementation of these Below Market Rate and Workforce Rental Housing Administrative Procedures and Guidelines (“BMR Guidelines”) is provided by the City of Foster City Municipal Code, Chapter 17.90.020 (E).

This document replaces the BMR Administrative Procedures and Guidelines, last updated on March 19, 2020.

2 INTRODUCTION
This document provides administrative procedures and guidelines to implement the City of Foster City’s (“City”) Below Market Rate (“BMR”) Rental Housing Program, and the Workforce Housing Program (“Workforce”). These Administrative Procedures and Guidelines may be amended and updated from time to time by the Community Development Department Director.

The purpose of these BMR Guidelines is to provide clear and consistent guidance, procedures, and best practices to implement Chapter 17.90 of the Foster City Municipal Code https://www.codepublishing.com/CA/FosterCity/ and affordability restrictions, and regulatory agreements, as well as to promote the goals of the City's Housing Element 2023-2031, as adopted on May 22, 2023, specifically fair housing and anti-discrimination priorities as stipulated in the Fair Housing Action Plan in Chapter 3, Affirmatively Furthering Fair Housing. https://engagefostercity.org/housing-element. 3 FAIR HOUSING
The priorities of the City’s Fair Housing Action Plan in the 2023-2031 Housing Element include:

1. Address disproportionate impacts by increasing the supply of affordable housing and providing more housing choices throughout the City.

2. Protect Tenants from displacement through an anti-displacement strategy.

3. Address housing discrimination through fair housing information and training.

4. Address housing discrimination by providing additional support and opportunities for housing to meet special needs.

The BMR and Workforce Programs must comply with AB 686 ( https://www.hcd.ca.gov/community- development/housing-element/housing-element-
memos/docs/ab686_summaryhousingelementfinal_04222020.pdf), which requires all public agencies to administer programs and activities related to housing and community development in a manner that affirmatively furthers fair housing.

6.5 Exhibit A - BMR Rental Guidelines

60 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
6 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf

3.1 PROPERTY MANAGER REQUIREMENTS
BMR and Workforce Property Managers and all property management and maintenance staff must comply with Fair Housing laws and regulations and complete Fair Housing training (see Section 12, Training Requirements). In addition, Property Managers are required to notify all BMR and Workforce Tenants of annual City-provided informational sessions on Fair Housing and work in partnership with City Staff to help provide reasonable accommodation to those with disabilities who need assistance in attending the annual informational session.

4 COVERED PROPERTIES
These BMR Guidelines apply to all rental properties in the City that are subject to an affordability restriction. Owner-occupied BMR properties are covered by separate guidelines.

Chapter 17.90 of the Foster City Municipal Code defines “below market rate dwelling unit” as “a dwelling unit in a residential development project that is restricted for sale or rental to and occupancy by an eligible household at a below market rate ownership cost or below market rate rent.” Workforce Housing is designed to make it possible for public servants (including first responders, public employees, and teachers) to live near where they work, and falls within the definition of “below market rate dwelling unit.” Different requirements apply to Workforce Housing compared to other BMR Housing. For example, Workforce Housing is deed-restricted for rental rates but not incomes. For clarity, these BMR Guidelines distinguish between the Below Market Rate Housing Program and the Workforce Housing Program as needed.
5 DOCUMENTS REQUIRING CITY APPROVAL PRIOR TO LEASING

5.1 MARKETING PLANS
Owners or their authorized agents must submit a marketing plan to the City in advance of initial leasing up a property and prior to reopening a closed Waitlist. For properties with extremely low- income and/or accessible or adaptable units and/or units that are designated as supportive housing are also subject to Section 5.2 below. Marketing plans shall include, at a minimum:

1. Procedures and requirements for determining eligible households for rental of rental units.

2. Minimum and maximum occupancy requirements as provided in the affordability restriction on the property, if applicable.

3. Initial and ongoing marketing, advertising, outreach policies, and a list of target agencies and organizations, including the City of Foster City website and the Foster City Islander newspaper.

4. A statement explaining the application process, including accommodations for those who need assistance in applying.

5. Preference requirements.

6.5 Exhibit A - BMR Rental Guidelines

61 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
7 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf

6. Waitlist management procedures.

7. Income verification requirements.

8. Annual recertification requirements.

9. The process for rejection of ineligible applicants and eligibility termination.

10. A statement on fair housing that complies with the current laws and regulations.

11. Such other provisions as the Community Development Director may prescribe from time to time according to these BMR Guidelines.

The marketing plan may be updated from time to time or as required by the City. Any changes to a City-approved marketing plan shall require City approval.

5.2 AFFIRMATIVE MARKETING PLANS
This section has been added to comply with the City of Foster City Housing Element (https://engagefosterCity.org/housing-element) and AB 686 (https://www.hcd.ca.gov/community- development/housing-element/housing-element-
memos/docs/ab686_summaryhousingelementfinal_04222020.pdf), which require all public agencies to administer programs and activities related to housing and community development in a manner that affirmatively furthers fair housing.

For all BMR properties with extremely low-income or accessible or adaptable units or designated as supportive housing, the Property Manager shall prepare and submit an Affirmative Marketing Plan for special needs groups to the City for approval, including a process for encouraging qualified households to apply. The Affirmative Marketing Plan shall be used prior to notice of the availability of the units at the initial lease-up and for any future vacancies. The Affirmative Marketing Plan may be included as a section of the Marketing Plan or may be a separate document.

5.3 RESIDENT SELECTION POLICY
Property Managers shall submit a Resident Selection Policy for approval by the City in advance of marketing a property. The Resident Selection Policy shall include a statement of fair housing and non-discrimination, preferences and a statement that the preference must be in effect at the time of Application, the minimum and maximum occupancy standards for each unit size, credit and background check requirements, the application fee amount and acceptable methods of payment, application requirements, documents required along with the Application, including identification and proof of income, the requirements for income eligibility, including minimum income, income limits, and income certification and annual recertification requirements, and an initial lease term of 12 months. The Resident Selection Policy must be signed and dated by all adult household members and must be kept in the file.

5.4 APPLICATIONS FOR HOUSING
The Property Manager shall submit the Application draft to the City for approval prior to the initial leasing of the property. The Application must include a statement of fair housing and include space for names, birthdates, social security numbers or tax identification numbers, if applicable, employment information, and past residency information for all household members. The Application must be signed by all adult household members and kept in the file.

6.5 Exhibit A - BMR Rental Guidelines

62 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
8 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf

5.5 SUBMITTAL AND APPROVAL OF MARKETING PLANS, SELECTION POLICY, AND APPLICATION These items shall be submitted to the City for approval in advance of the initial lease-up, and one or more may be required by the City to be re-submitted to the City in advance of the availability of multiple BMR and Workforce units or reopening of a closed Waitlist. The City will respond within ten days of submittal. In the event that the City does not respond, a lack of response indicates approval of the submitted document. Available units shall be marketed in accordance with the approved Marketing Plan.
6 REQUIREMENTS FOR WAITLISTS

6.1 REQUIREMENTS FOR WAITLIST APPLICATIONS
a)Information to be Included in the Waitlist Application. At a minimum, the application shall include at least the information needed to determine initial estimate of gross household income, preference category, household size, and contact information. The application must also include a statement of Fair Housing that complies with current laws. The required data items are contained in the sample format for the Waitlist and sample applications. b)Additional Information in Application. The application may include additional information to conduct an initial eligibility screening. The application shall include a statement that it is the applicant’s responsibility to inform the Property Manager of any changes in address, phone number or email.
c)Required Statement of Truth and Accuracy. The application shall include a statement that if the applicant provides false or misleading information, they may be considered ineligible. d)Accommodation for those with Disabilities. The application must be available in multiple formats to accommodate those with disabilities.
e)Preliminary Application. The Property Manager may have a preliminary application that contains only the basic information required to apply to the Waitlist or they may have a more detailed application if they want to conduct a more thorough screening at the time of application to the Waitlist.
f)Changes and Updates to Applications. The burden shall be on the applicant to inform the Property Manager of any changes in status, such as household size, residence, or employment location, contact information or other information. The Property Manager shall adjust the preference category if the applicant provides the appropriate documentation. A statement to this effect must be included in the Waitlist application. g)Use of Third-Party Waitlist Management Providers. Property Managers may elect to use a third-party provider to manage their applications and Waitlists. The costs associated with third-party contracts shall be incurred by the Property Manager and/or Owner.

6.5 Exhibit A - BMR Rental Guidelines

63 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
9 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf h)Use of County’s Doorways Portal. Property Managers are required to use the County’s Doorways portal for available properties for any vacancies or open Waitlists unless the City grants an exception. https://smc.housingbayarea.org/get-assistance. i)Use of Other Online Portals for Waitlists. The City strongly recommends against the use of online portals, other than the County of San Mateo’s Doorways Program, to make additions to the Waitlist unless the portal can flag or eliminate duplicate entries.

6.2 REQUIREMENTS FOR FORMATTING A WAITLIST
a)Waitlist Format. The Waitlist shall be kept in this format in an electronic spreadsheet and include the information that will be necessary in order to sort the Waitlist by Preference Category. The sorting feature can be utilized to create a custom order list by Preference Categories. If the Waitlist is managed by a third party contracted by the property management, the Waitlist shall be kept in a manner that enables sorting by preference category, lottery number, and application date.
b)Use of Filters. A filter may be applied for viewing the list or finding a specific applicant. A filter can be applied to hide the inactive applicants, while retaining their information in the event they later question why they were changed to inactive status. An electronic version of the Waitlist in spreadsheet format is available from the Community Development Department.

Property Managers may add columns for additional data items for any special program requirements or other uses if they wish.
c)Notes and Updates Added to Waitlist. Notes shall be kept in the Waitlist spreadsheet to document all contacts and communications with the applicants, including the complete date and initials of the staff member. It is important to maintain these notes in order to verify and document appropriate use of the Waitlist to fill vacancies and changes to an applicant’s status.
d)Sorting the Waitlist. The Waitlist shall be sorted by: (1) Preference category; (2) Lottery number (if applicable); (3) Application date.
e)Move-ins. Those applicants who have moved into the unit shall remain on the Waitlist in inactive status with a note that they have moved in and the move-in date. f)New Applicants. New applicants to the Waitlist shall be placed at the end of the list in the appropriate preference category by their date of application.

6.3 REQUIREMENTS FOR TEMPORARY AND PERMANENT CLOSURE OF A WAITLIST a)Temporary Closure. Closure of a Waitlist is at the Property Manager’s discretion. The City recommends that Waitlists remain open if there are fewer than 50 applicants for new lease- ups or properties with three or more vacancies. The Property Manager shall notify City staff of closure of a Waitlist to new applicants. Waitlists may be open for some categories and closed for others, in sequential order of preferences, upon approval by the City’s Housing Coordinator.

6.5 Exhibit A - BMR Rental Guidelines

64 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
10 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf b)Notification of City Staff. The Property Manager shall discuss with City staff any plan to reopen a closed Waitlist and obtain City staff approval for an updated marketing plan. c)Permanent Closure. The Property Manager shall submit a Waitlist closure plan to the City for approval. The plan shall include procedures and a schedule for notifying households on the Waitlist of the closure and whether they will automatically be transferred to a new list or must apply.

6.4 REQUIREMENTS FOR REOPENING A WAITLIST
a)Reopening a Waitlist. Temporarily closed Waitlists may be reopened at the discretion of the Property Manager. Before re-opening a Waitlist, the Property Manager shall submit an updated Marketing Plan and/or Affirmative Marketing Plan to the City for approval pursuant to Section 5.
b)Workforce Housing Waitlist. For Workforce housing units, the City may require that the Waitlist be open for a period of time or indefinitely for one or more of the highest preference categories.

6.5 GUIDELINES FOR WAITLIST MANAGEMENT
Annually, the Property Manager is encouraged to send a Waitlist Information Update Letter, or purge letter, to ascertain whether the people on the Waitlist want to remain on the list. The letter shall state that no response will result in removal from the list. Applicants shall be given a minimum of two weeks to respond. If email is used as a substitute for a mailed letter, a copy of the email shall be kept. If someone notifies the Property Manager via telephone that they wish to be removed from the Waitlist, a follow-up letter shall be mailed to the applicant confirming their decision to be removed from the Waitlist.

6.6 REQUIREMENTS FOR NOTIFYING APPLICANTS ON WAITLIST OF A VACANCY a)Notification Timeline Rules. When a unit becomes available, except as noted in item 6.6(b), the Property Manager shall notify the first person on the Waitlist and allow them not less than five (5) business days to submit an application for housing after they have responded with interest in submitting an application per Section 6.5.
b)Expediting Waitlist Processing. To expedite processing of applicants, the batching of up to ten (10) names on the Waitlist within the first preference category may be invited simultaneously to respond. Respondents shall be given a minimum of five (5) business days to submit an application. Applications will be processed in waitlist order. Application fees for any unprocessed applications shall be returned to respondents. If there are no qualified applicants from the first batch, the Property Manager moves on to the next batch of up to ten names within the preference category. Once the preference category is exhausted, the Property Manager may move on to the next batch of up to ten (10) names in the next preference category.
c)Handling Applicants Who Decline. The Property Manager may establish a policy to make an

6.5 Exhibit A - BMR Rental Guidelines

65 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
11 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf applicant inactive if they decline the offer of a unit three times. Any such policy shall be applied equally to all applicants and be in writing. The applicant must be informed of the policy in advance.
d)Notification Rules for a New Vacancy. The notification of applicants shall restart at the top of the list when a new vacancy occurs, except for applicants that have been notified within the past 30 days.
7 DETERMINING ELIGIBILITY
Preference and other eligibility standards must be included in the Resident Selection Policy for each property. Income eligibility for BMR and Workforce housing for initial move-ins and annual recertifications is based on HUD and California Tax Allocation Committee (CTCAC) standards, with exceptions as noted below. Eligibility requires initial income certification and annual recertification of income performed in a manner pursuant to these BMR Guidelines, unless superseded by the affordability restrictions or other regulatory document in effect.

7.1 STANDARD PREFERENCE CATEGORIES AND EXCEPTIONS
Except as noted below or by the affordability restrictions or regulatory document in effect, properties covered by these BMR Guidelines shall maintain preference categories for eligibility established by the City Council in Resolution 2020-24 or a subsequent amendment to prioritize applicants as follows:

City of Foster City Standard Preference Categories for BMR Housing Preference Description
1a Persons who are currently living in a Below Market Rate deed restricted unit in Foster City and have been so for at least twelve (12) months, whose unit is subject to termination of affordability restrictions within three (3) years.
1 Persons who live and work in Foster City.
2 Persons who live in Foster City.
3 Employees of the City of Foster City.
4 Classroom teachers who are employees of the San Mateo-Foster City School District, the San Mateo Union High School District, or the San Mateo County Community College District.
5 Persons who work in Foster City.
6 All others who are income qualified.

6.5 Exhibit A - BMR Rental Guidelines

66 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
12 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf City of Foster City Standard Preference Categories for Workforce Housing* Preference Description
1a Persons with mobility-related disabilities
1 Persons who are employed by the City of Foster City in First Responder Departments
2 Other employees of the City of Foster City
3 Classroom teachers in the Foster City School District, Foster City-San Mateo Union High School District, or the San Mateo County Community Colleges District
4 Persons who live and work in Foster City
5 Persons who live in Foster City
6 Persons who work in Foster City
7 All others who are income-qualified**
*These preferences also apply to the BMR units within the workforce housing development, except for Preference 1a and 1. The first preference category for the BMR units in the workforce housing development is for all city employees.
**Workforce housing applicants must only meet minimum income requirements.

7.2 PREFERENCE REQUIREMENT AT TIME OF APPLICATION FOR HOUSING The preference category of the applicant shall be confirmed as the preference category in effect at the time of the Application for housing, not the date of the Application to the Waitlist.

7.3 PREFERENCE VERIFICATION
The preference category shall be verified for all initial move-ins based on the date of application for housing. Preference category verification is not required for annual recertification.

7.3.1 Verifying Foster City Residence
Property Managers are supplied with a map of Foster City that shows the City limits. Note that parts of the 94404 zip code are within the City of San Mateo. Property Managers should contact the Community Development Department with any questions about whether a property is within Foster City.

In order to be assigned a Preference Category as a resident of Foster City, at least one member of the household must be currently living in Foster City. There is no requirement for the duration of residence except that persons claiming Preference Category 1a which requires a minimum 12 months. Residency shall be verified through submittal of two current utility bills from at least one of the following utility providers: Pacific Gas & Electric Company, water, telephone, television service, or garbage. If the applicant has recently moved and does not yet have utility bills, a lease agreement will be accepted. If the applicant cannot provide items listed above, then an Affidavit of Residence is required.

7.3.2 Verifying Work Location in Foster City
Property Managers are supplied with a map of Foster City that shows the City limits. Note that parts of the 94404 zip code are within the City of San Mateo. Property Managers should contact

6.5 Exhibit A - BMR Rental Guidelines

67 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
13 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf the Community Development Department with any questions about whether a property is within Foster City.

At least one half of one household member’s income shall be from employment within Foster City in order to qualify for the “works in Foster City” Preference Category and that paid employment shall be at least 16 hours per week. If the employment is a home occupation, the home address shall be a Foster City residence and the household member must also have a Foster City business license.

Employment in Foster City must be based at a fixed address, not an itinerant type of occupation or temporary work assignment.

7.3.3 Verifying City of Foster City Employment
If an applicant states that they are an employee of the City of Foster City, the Property Manager shall contact the Community Development Department for verification.

7.3.4 Preference Verification Form
The Property Manager shall complete a preference verification form or statement for each Tenant file that indicates the preference category verified for the household and the method used for verification. A sample of this form is available from the City.

7.4 OWNERSHIP OF REAL ESTATE
The City does not permit any household member of rental BMR or Workforce housing to own domestic or foreign residential real estate for income or leisure purposes, including short-or-long term rentals, second homes, vacation homes, or timeshare units. Existing residents with residential property used for income or leisure purpose that occupied the BMR or Workforce residence prior to the effective date of these BMR Guidelines, may remain in their unit. Property Managers should follow the procedures outlined in Section 7.8.16 to calculate income from the real estate asset.

Tenants who acquire residential real estate for income or leisure purposes after the date they moved into the BMR or Workforce unit, or after the effective date of these BMR Guidelines, whichever is later, are no longer eligible for the BMR or Workforce program and must vacate the BMR or Workforce unit or pay market rate rent. The only exception is when a household member acquires residential property through divorce, inheritance, or other legal transfer not initiated by the household member, after moving into the BMR or Workforce unit.

7.5 SOLE AND PRIMARY RESIDENCE REQUIREMENT
The BMR or Workforce unit must be the full-time, sole, and primary residence of all household members, with the exception of students who may live near their educational institution during some of the year but still claim the BMR or Workforce unit as their primary residence, military leave, institutional stays, or child-custody arrangements. With the exceptions as noted in this section and as noted in Section 7.4, tenants who claim the BMR or Workforce unit as their sole and primary residence to meet program requirements, but are found to have an alternate primary residence, will be deemed ineligible for the BMR or Workforce program and required to vacate

6.5 Exhibit A - BMR Rental Guidelines

68 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
14 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf the BMR or Workforce unit or pay market rate rent. Household members shall not be named on a lease of any other unit, pay rent for any other unit for themselves or another household member, or reside in any other unit or units for more than sixty (60) days (consecutive or non- consecutive) in any 12-month period, with exceptions as noted in this section.

7.6 REQUIREMENTS FOR INCOME ELIGIBILITY

7.6.1 Applicability
For LIHTC properties, this section is superseded by the California Tax Credit Allocation Committee (CTCAC) Compliance Online Reference Manual and all applicable CTCAC rules and regulations. See https://www.treasurer.ca.gov/ctcac/compliance.asp. For bond programs and specific HUD programs, please refer to the Property Bond Agreement, affordability restrictions, and other property-specific governing documents. For all other BMR and Workforce housing properties, this Section applies.

7.6.2 Source for Income Limits
Per the City of Foster City Municipal Code, Chapter 17.90, the City uses the income limits as established by the California Department of Housing and Community Development (HCD), as amended or any successor statute thereto, except as noted below or by affordability restrictions.

These income limits are issued in the spring of each year, with the actual issuance date varying from approximately February to June.

Foster City Municipal Code, Chapter 17.90.020, Definitions defines Extremely Low, Very Low, Low (or Lower), and Moderate income as follows:
“Extremely low income households” means households with incomes no greater than the maximum income for extremely low income households, as published annually by the California Department of Housing and Community Development (HCD) as the Official State Income Limits pursuant to Health and Safety Code Section 50093 for San Mateo County, adjusted for household size, except that the city may permit alternative criteria, when necessary, to be consistent with pertinent state and federal statutes and regulations governing publicly assisted housing.”
Section 50093 refers to Section 50106, which states that Extremely Low Income is less than 30% of Area Median Income.
“Very low income households” means households with incomes no greater than the maximum income for very low income households, as published annually by the California Department of Housing and Community Development (HCD) as the Official State Income Limits pursuant to Health and Safety Code Section 50093 for San Mateo County, adjusted for household size, except that the city may permit alternative criteria, when necessary, to be consistent with pertinent state and federal statutes and regulations governing publicly assisted housing. (Ord. 644 § 3, 2022)

6.5 Exhibit A - BMR Rental Guidelines

69 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
15 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf Section 50093 refers to Section 50105, which states that Very Low Income is less than 50% of Area Median Income.
“Low income households” means households with incomes no greater than the maximum income for low income households, as published annually by the California Department of Housing and Community Development (HCD) as the Official State Income Limits pursuant to Health and Safety Code Section 50093 for San Mateo County, adjusted for household size, except that the city may permit alternative criteria, when necessary, to be consistent with pertinent state and federal statutes and regulations governing publicly assisted housing.

Section 50093 refers to Section 50079.5, which states that Lower Income is less than 80% of Area Median Income.
“Moderate income households” means households with incomes no greater than the maximum income for moderate income households, as published annually by the California Department of Housing and Community Development (HCD) as the Official State Income Limits pursuant to Health and Safety Code Section 50093 for San Mateo County, adjusted for household size, except that the city may permit alternative criteria, when necessary, to be consistent with pertinent state and federal statutes and regulations governing publicly assisted housing.

Section 50093 states that moderate income is less than 120% of Area Median Income.

Property Managers are responsible for determining and applying the income limits for their property each year in accordance with the affordability restrictions for their property and submitting a copy of their income and rent limits to the City annually for review and confirmation of correctness. The City issues confirmation of income limits annually for each property. The annual calculations of income and rent limits are due to the City within 30 days following the annual issue of HCD limits. The income limits apply to the following affordability categories:

Extremely Low-Income, Very Low-Income, Low-Income, and Moderate-Income. The income limits, and an explanation of the methodology used to develop them, are available at:
https://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-income-limits.shtml (see the “Official State Income Limits”).

7.6.3 Other Governing Income Limits
The HCD income limits may be different than the income limits required by other programs that may affect a property, such as tax credits or bonds. The coordination of these requirements shall be as established by mutual agreement for each affected development and the City. For the Marlin Cove and Miramar developments, the City and the Owners have agreed that: initial occupancy shall be governed by the HCD income limits and recertifications shall utilize the HUD HERA income and limits. The HUD HERA income limits are available on the California Tax Allocation Committee website: https://www.treasurer.ca.gov/ctcac/compliance.asp.

6.5 Exhibit A - BMR Rental Guidelines

70 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
16 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf

7.6.4 Calculating Non-Standard Income Limits
To calculate income limits or rents using income limits other than the published percentages of very low (50% of AMI), low or lower income (80% of AMI), and moderate (120% of AMI), the City uses the HUD standards for calculations in which all affordability levels less than the Area Median Income (100%) are based on the Very Low Income Level of 50% of AMI, and all affordability levels over the Area Median Income are based on the median income (100% of AMI). For more details on the methodology, see: https://www.hcd.ca.gov/sites/default/files/docs/grants-and- funding/income-limits-2023.pdf. Use the following table to calculate non-standard income limits for determining rents or income limits, where K is the 50% of AMI income limit and M is the median income limit, 100% of AMI.

Multipliers for Calculating Income Limits, where K= 50% of AMI and M = 100% of AMI 5% = K * .1 30% = K * .6 55% = K * 1.1 80% = K * 1.6 110% = M * 1.1 10% = K * .2 35% = K * .7 60% = K * 1.2 85% = K * 1.7 120% = M * 1.2 15% = K * .3 40% = K * .8 65% = K * 1.3 90% = K * 1.8 130% = M * 1.3 20% = K * .4 45% = K * .9 70% = K * 1.4 95% = K * 1.9
25% = K * .5 50% = K 75% = K * 1.5 100% = M
Example: if the Area Median Income is $175,000 (the 2023 HCD Area Median Income for a family of four) and 50% of AMI is $93,200, then 60% of AMI is 93,200 x 1.2 = $111,840 (rounded down to nearest 100, or $111,800), 80% of AMI = 93,200 x 1.6 = $149,120 (rounded down to nearest hundred, $149,100), 110% AMI is 175,000 x 1.1 = $192,500, and 120% of AMI is 175,000 x 1.2 = $210,000.

7.6.5 Third-Party Verification of Income and Assets
The City of Foster City requires third-party verification of employment income and assets for initial certifications only. For recertifications, the City recommends third-party verification if information provided by the household member is incomplete, confusing, conflicting, or inaccurate, or if income is periodic or sporadic. Third-party verification may also be required by bond agreements or tax credit programs or by the Property Manager. Property Managers’ verification policies must comply with current fair housing regulations and the current HUD Handbook, Chapter 5, Section 3, Verifications.

7.6.6 Reductions in Income Limits
In cases where the income limit established by HCD is lower than the prior year, and the Tenant’s income would continue to qualify under the prior year's income limit, the Tenant will be deemed to comply with the income requirements.

7.6.7 Annual Income Recertification Requirement
The Property Manager shall annually re-certify each household for continued eligibility in the BMR program no later than the Tenant’s recertification deadline (generally the first day of the anniversary of the month the Tenant moved in), with the exception of the Workforce housing units (see Section 7.6.9). Methods used to calculate annual income shall follow the methodology as set forth in these BMR Guidelines unless superseded by another program due to funding, grant, affordability restrictions, or other regulation or Agreement.

6.5 Exhibit A - BMR Rental Guidelines

71 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
17 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf In the event that the income certification cannot be completed due to non-cooperation from the tenant, incomplete, or inaccurate information, or the inability to verify information, the tenant shall be deemed non-compliant. Absent procedures in the property’s covenant, the tenant shall be in-eligible for the BMR program and rent will be increased to market rent with a sixty-day (60) written notice.

7.6.8 Minimum Income Requirement
Property Managers shall determine the minimum income required for each BMR and Workforce unit. The City recommends but does not require a minimum income to rent ratio of 2.5 (minimum income is rent multiplied by 2.5 multiplied by 12) for BMR and Workforce units. The minimum income requirement shall be included in the Resident Selection Policy (see Section 5.3). For applicants with Housing Choice Vouchers or other rent subsidy, the minimum gross income shall be based on the applicant’s share of rent rather than the full rental rate.

7.6.9 Minimum Income Verification for workforce Units
Minimum income shall be verified for initial eligibility for the household to occupy the unit.

Minimum household income shall be verified using three months of paystubs, a copy of the most recent federal taxes, and other documentation as needed to ensure the household meets the minimum income for the unit. Annual income recertification is not required for the workforce housing units in the workforce housing program.

7.6.10 General Guidance on Income Certification Procedures Income certification methods not covered in these BMR Guidelines or by the affordability restrictions or a Bond/Financing Agreement for the property shall follow the U.S. Code of Federal Regulations and provided on the website of the U.S. Department of Housing and Urban Development at: https://www.hud.gov/sites/documents/43503HSGH.PDF. In the event of multiple requirements or conflicting methodology due to requirements of bond or tax credit financing or the affordability restrictions for the property, the strictest rule shall apply in calculation of income. It is imperative that all bond/tax credit properties follow directives as stipulated in the agreements. If a Property Manager is unclear on which methodology to follow or seeks clarification of these BMR Guidelines, the City shall provide guidance regarding and interpretation, if requested by the Property Manager.

7.7 ANNUAL RECERTIFICATION OF INCOME

7.7.1 Applicability
For LIHTC properties, this section is superseded by the California Tax Credit Allocation Committee (CTCAC) Compliance Online Reference Manual and all applicable CTCAC rules and regulations. See https://www.treasurer.ca.gov/ctcac/compliance.asp. For bond programs and specific HUD programs, please refer to the Property Bond Agreement, affordability restrictions, and other property-specific governing documents. For all other BMR and Workforce housing properties, this Section applies.

7.7.2 Annual Recertification Date
The annual recertification date for each Tenant shall be the first day of the month the Tenant

6.5 Exhibit A - BMR Rental Guidelines

72 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
18 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf moved in. For example, if the Tenant moved in on May 15, 2023, then the recertification date shall be May 1, 2024. If Property Managers prefer to have all Tenants on the same schedule, they must recertify the household twice in one year to put the new household on the annual schedule.

The mass certification deadline must be at least 30 days prior to the deadline for the annual Property Status Report (PSR) for the property.

7.7.3 Deadline for Forms and Documents Submitted by Tenants The City follows Chapter 7 of the HUD Handbook on this issue. The final deadline for submission of all completed forms and documents shall be the 10 th day of the month prior to their annual recertification deadline. For example, if the recertification deadline is January 1 st, then the deadline to complete forms and submit documents is December 10.

7.7.4 Notices to Tenants
Property managers should follow HUD Handbook 4350.3 Rev-1 (“HUD Handbook”), Chapter 7 for recertification notices, with the exceptions on noticing timelines as noted below. Tenants who respond to notice(s) but do not submit all required completed forms or documents by the deadline(s) stated in reminder notice(s), shall be notified in writing of non-compliance status following the final notice deadline and informed that their rent will change in rent to market rate, in accordance with current notice laws and regulations. Please note that the City’s notice requirements for recertification deviate from the HUD Handbook on notice of recertifications as follows:

1. First notice: the first notice of annual recertification shall be sent at least ninety (90) days prior to the recertification deadline.

2. Second notice: if the Tenant does not respond to the first notice or has not completed submittal of all required documents and forms, the second reminder notice shall be sent at least sixty (60) days prior to the recertification deadline.

3. Third and final notice: if the Tenant does not respond to the second reminder notice or has not completed submittal of all required documents and forms, a third and final reminder notice of recertification shall be sent at least thirty (30) days prior to the recertification deadline.

4. Notice of non-compliance: if the Tenant has not responded to the three notices or has not submitted required documentation or forms, a notice of non- compliance shall be sent on the day of or after the recertification deadline.

Each reminder notice must list the recertification deadline, the deadline for submitting all completed forms and documents, the forms and documents required, how to submit forms and documents, and Property Manager contact information, including email, telephone number, and office hours of the Property Manager. It is highly recommended that the Property Manager schedule an in-person appointment with the household members to collect forms and documentation and provide the Tenant with the opportunity to reschedule the appointment to another day and time during business hours.

7.7.5 Notification of Non-Compliance
The Property Manager shall copy the City on any notice of non-compliance related to

6.5 Exhibit A - BMR Rental Guidelines

73 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
19 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf recertifications.

7.8 PROCEDURES FOR CALCULATING INCOME

7.8.1 Applicability
For LIHTC properties, this section is superseded the California Tax Credit Allocation Committee (CTCAC) Compliance Online Reference Manual and all applicable CTCAC rules and regulations. See https://www.treasurer.ca.gov/ctcac/compliance.asp. For bond programs and specific HUD programs, please refer to the Property Bond Agreement, affordability restrictions as , and other property-specific governing documents. For all other BMR and Workforce housing properties, this Section applies.

The purpose of this methodology is to ensure consistency in calculating income for all Foster City BMR units and to ensure compliance with Fair Housing laws. The methodology is based on the HUD standards as stipulated in the HUD Handbook 4350.3
(https://www.hud.gov/sites/documents/43503HSGH.PDF) and uses HUD forms and some California Tax Credit Allocation Committee forms.

7.8.2 Multiple or Conflicting Requirements
In the event of multiple requirements or conflicting methodology required by the affordability restrictions for the property, the strictest rule shall apply in calculation of income.

7.8.3 Projected Income
Income is projected for the next 12 months using documentation provided by the household.

7.8.4 Household Member Income to Count
Any adult household member aged 18 or over and residing in the unit 14 days or more per year (consecutive or non-consecutive days) shall be counted for income calculation purposes and included in the household size. This includes college students living away from home for some of the year. However, do not include incomes of live-in aides. See the HUD Handbook for guidance on live-in aides.

7.8.5 Full Set of Forms Required for all Adult Household Members A full set of forms and associated documents is required for each adult household member, including a Tenant Income Questionnaire. A Forms Schedule is available from the City.

7.8.6 Rules on Redacting of Information Provided for Income Certification Tenants are not permitted to redact information, other than Social Security Numbers, that are provided on documents submitted for the income certification process.

7.8.7 Income Inclusions and Exclusions
The City of Foster City follows the HUD Manual regarding income inclusions and exclusions, with the following clarifications. See https://www.hud.gov/sites/documents/DOC_35699.PDF.

However, if the affordability restrictions for the property reference California Code of Regulations, Title 25, Section 6914 for determining income, then CCR Title 25, Section 6914 shall supersede

6.5 Exhibit A - BMR Rental Guidelines

74 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
20 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf this section.

For temporary, non-recurring, or sporadic income (including gifts), non-recurring is defined as income that appears only one time in any calendar year. For example, sporadic income from the same source that results in multiple deposits to a checking or savings account, even if differing amounts, in a given calendar year, is considered recurring income and must be counted. Assets in foreign or offshore accounts shall be included in the asset section of the certification.

Rent subsidies provided by government programs, such as Section 8, COVID relief, and other sources, are excluded from income. Rent subsidies from any source should be excluded from income if the subsidy is tied to the income of the Tenant, even if it is recurring and not a lump sum single payment and/or temporary in nature. If the subsidy is recurring, not temporary, and is a set amount that is not dependent on the amount of income of the Tenant, the subsidy should be counted as income. The exclusion rule, while not explicitly stipulated in the HUD list of exclusions, is based on the definition of determinable income as stated in the Housing Act of 1937 (https://www.hud.gov/sites/documents/DOC_10010.PDF). For example, Section 8 subsidies paid by the Housing Authority of San Mateo County and temporary emergency rent relief subsidies paid by any source should always be excluded from income.

7.8.8 Three Methods Required to Calculate Income
Property Managers should use three methods to calculate income from employment and take the highest of the three incomes for use in the income certification or recertifications, except as noted below, or if superseded by the property’s affordability restrictions or other regulatory agreement in effect.

The three methods include: 1) gross income paystub averaging for three months of paystubs using the gross pay; 2) annualized year-to-date income calculation, and 3) pay rate calculation, including overtime. Exceptions: (1) If the Property Manager obtains third-party employment verification, the information provided in the verification shall supersede information from paystubs or other methods of calculation. However, paystubs should still be included in the file even if employment verification is received; (2) for self-employment, see Section 7.7.11.

The City requires three months of paystubs to be submitted by employed adult household members. Employment verification may be substituted for paystubs only if paystubs are not available. For those who have been employed less than three months or are about to start a new position, a letter of employment serves as acceptable verification of employment.

Method 1: Paystub Averaging
For each type of payment schedule, take the sum of the gross pay for each pay stub and divide and multiply as directed below.
•If paid weekly, 12 paystubs are required. Divide the total sum of payments by 12, then multiply by 52.
•If paid monthly, three paystubs are required. Divide the total sum of payments by three, then multiply by 12.

6.5 Exhibit A - BMR Rental Guidelines

75 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
21 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf •If paid bi-weekly (every other week): seven paystubs are required. Divide the total sum of payments by seven, then multiply by 26.
•If paid semi-monthly (twice a month on the same days each month): six paystubs are required. Divide the total sum of payments by six then multiply by 24. •For teachers who are paid ten months out of the year, take the total sum of three months and divide by ten then multiply by ten.

Method 2: Year-to-Date Annualization
Take the gross year to date amount and the pay period end date from the paystub. Determine how many days or weeks the end date is in the year. Use either the weeks calculator method or the days calculator method and use one or the other consistently in your calculations for each property.

Calculating annualized YTD income using weeks calculation: If using the weeks method, be sure to use a decimal for partial weeks: one day=.143, two days =.286, three days=.429, four days=.571, five days=.714, six days= .857). Use an online calculator program such as https://planetcalc.com/7741/. Divide the YTD amount on the paystub by the number of weeks and then multiply by 52 weeks.

Calculating annualized YTD income using days calculation: If using the days method, divide the paystub amount by the number of days between January 1 and the end date of the pay period to get an average daily rate and then multiply by 365. The Excel DAYS formula can be used to find the number of days.

Note that the pay period end date includes the last date, but the calculators do not, they count the first date, and all dates up to the last date but not the last date, so for accuracy you must add one day when using a weeks or days calculator. For example, If a pay period end date is January 15, that is 15 days or two weeks and one day of pay, but if you use the days or weeks calculator, it is 14 days or two weeks and zero days. Therefore, you must add a day to capture the pay period end date.

In the event that the household member started a job after January 1 of the given year, use the start date as the first date to annualize rather than January 1.

Examples:

Assumptions: YTD pay period end date: June 15, 2023. Pay YTD: $45,500 Example for Weeks Method:

Using PlanetCalc or another online calculator to determine the weeks between 01/01/2023 and 06/16/2023 (remember to add a day), the answer provided is 23 weeks, 5 days. Note: Excel does not provide decimal points and rounds up, so the Excel weeks formula is not recommended to determine the weeks.

Convert the days to a decimal. 5 days divided by 7 is .714, so the number of weeks is 23.714.

Divide $45,500 by 23.714 to get a weekly average pay. $45,500/23.714 = $1918.70 Multiply that result by 52 to annualize: 1918.70 x 52 = $99,772.40

6.5 Exhibit A - BMR Rental Guidelines

76 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
22 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf Example for Days Method using Excel:

Enter the formula as follows into a spreadsheet using the DAYS formula:
=DAYS(“16-JUN-2023, “1-JAN-2023”) = 166 days (remember to add a day) Divide $45,500 by 166 to get the average daily rate: 45,500/166 = 274.10 Multiply by 365 to annualize: $274.10 x 365 = $100,046.50 Due to rounding, the final values are slightly different. Therefore, the City recommends that the Property Manager use either the weeks method or the days method consistently for all BMR income calculations.

Method 3: Pay Rate Calculation
This method uses the hourly rate or salaried amount that the household member earns and annualizes it. If the household member works overtime, overtime rates should be averaged an annualized as well. For full-time work, use 2,080 hours or 40 hours a week.

Example 1. Full-time work, $47.50 per hour. The household member works an average of five hours of overtime per pay period and is paid bi-weekly.

Regular pay 47.50 x 2080 = $98,800 or 47.50 x 40 x 52 = $98,800 Overtime: rate is 1.5 x pay rate or $71.25. The average of two hours OT per pay period and 26 payments per year (paid bi-weekly) equates to 52 OT hours per year. $71.25 x 26 = $1,852.50 additional earnings per year.

Total income from this method is: $100,652.50.

Reviewing the methods, and, for the purposes of this example, the Property Manager uses the Days method for calculating YTD, and the paystub averaging method resulted in an annual income of $101,222.22, the amount that should be used for the income certification is the highest of the three, or $101,222.22.

7.8.9 Lump Sum Payments
See the HUD Manual Income Inclusions and Exclusions for more information on lump sum payments and when to count them as income or assets. In general, single payment lump sums are not counted as income for certifications. See:
https://www.hud.gov/sites/documents/DOC_35699.PDF. However, if the property’s affordability restrictions reference California Code of Regulations, Title 25, Section 6914 for determining income, then CCR Title 25, Section 6914 shall supersede this section.

7.8.10 Tax Returns
The prior year’s tax return assists the property manager with income verification as a reference point for reasonableness. Taxes and tax transcripts must be signed and dated by the taxpayer.

The 120-day HUD and CTCAC rule for dating documents does not apply.

Since income is projected forward, taxes are not used for calculating income, except for self- employment income in some cases. See Section 7.8.12 for details on Self-Employment Income. If a household member does not have their most recent tax returns, they must submit Form 4506- T to the IRS to obtain a statement of non-tax filing. If the household member does not file taxes,

6.5 Exhibit A - BMR Rental Guidelines

77 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
23 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf the household member must complete a non-tax filer affidavit and submit Form 4506-T to the IRS to obtain a statement of non-tax filing.

Transcripts and statements of non-tax filing may be requested by mail, telephone or online. If the household member cannot produce a transcript or statement using the mail, phone or online methods, the City recommends that the Property Manager witness the request by having the tenant call, mail, or go online from the Property Management office. The person signing the form is responsible for completing the IRS form accurately, submitting it to the IRS, and providing the report from the IRS to the Property Manager.
•Use www.IRS.gov or the IRS2Go app to access Get Transcript by Mail; transcript will be delivered within 10 days to the tax filer's address of record, or •Submit Form 4506-T or 4506T-EZ to have a transcript mailed to the tax filer at the tax filer's address of record with the IRS. Complete and print the form at https://www.irs.gov/forms-pubs/about-form-4506-t
•Call 800-908-9946 for an automated Get Transcript by Mail feature.

In the event that the household member is still unable to produce a transcript or taxes, and the Property Manager can attest to witnessing the transcript request, an affidavit of non-tax filer status will suffice in the file, along with a clarification of verification.

7.8.11 Income of Teachers and Seasonal Workers
While third-party employment verification is not required by the City for recertifications, the City recommends that the Property Manager obtain third-party employment verification for teachers and seasonal workers to obtain clarification on annual pay due to varying payment schedules. A letter or email from the employer or the Employment Verification form will suffice as third-party verification.

7.8.12 Self-Employment Income
Self-employment in Foster City, including home-based businesses, independent contractors, door-to-door sales, and peddling, requires a valid Foster City Business License. See https://www.fostercity.org/finance/page/tax for more information.

For self-employment, which includes sole proprietorships with or without employees, single entity LLCs, contract work, “gig” work, and work paid in cash with no paystub, the household member shall complete a Self-Employment Affidavit. The Self-Employment Affidavit shall be used to document projected net self-employment business income for the following 12 months and must be confirmed through tax returns and other documentation, such as business bank statements that may be requested by the Property Manager to clarify income. Net business income is all anticipated revenue for the next 12 months less business expenses. Self-employment income cannot be zero for income certification unless the prior year’s income taxes show a loss, and the Tenant anticipates a continued loss for the next 12 months.

Those who are self-employed must provide their most recent taxes for verification. In the event that the Tenant does not file taxes, the Tenant must complete a Non-Tax Filer Affidavit, a Form

6.5 Exhibit A - BMR Rental Guidelines

78 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
24 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf 4506-T, and provide evidence of the business, such as deposits, receipts, or business bank account statements for verification.

For businesses in which the business owner pays themselves a regular salary, the amount they pay themselves should be included in the business expenses and should not be listed separately as income. For a business owner that pays other household members, the income amount should be included as part of that household member’s income. Self-employment should not be third- party verified other than through taxes.

The Self-Employment Affidavit shall include a statement that providing false or misleading information may result in disqualification and be subject to prosecution. The City does not require that the form be notarized, but this may be required by other funding programs. The Property Manager may create a Self-Employment Affidavit for their property based on one of the samples provided, which may be submitted to the City for review, or use the form provided by the City.

The business Owner must submit business documentation as needed and the most recent federal tax return. Use the amount on the affidavit and collect last year’s federal tax return to verify the business and the business income.

Example 1: Uber Driver
•Tenant anticipates $35,000 in gross revenue in the next 12 months. •Business expenses (car washes, gas, insurance, etc.): $10,000. •Net Business Income: $25,000.
•Use $25,000 as the projected income for the next 12 months for the income certification. •Have the Tenant complete the Under Income Affidavit form if there are no other sources of income sufficient to pay the rent.
•Screenshots of payments from Uber are not required.

Example 2: Sole Proprietorship with a Loss
•Tenant anticipates $0 for the next 12 months due to higher expenses than revenues. •Revenues are anticipated at $25,000.
•Expenses are anticipated at $30,000 due to recently starting the business. •Last year’s taxes showed a loss.
•Use $0 as the projected income for the income certification. •Note: if the prior year’s tax return did not show a loss, and the Tenant is claiming $0 for the next 12 months, use the amount from the prior year’s taxes for the income certification.

Example 3: Occasional Cash-Paid Service Worker
(e.g., babysitting in which the employer does not claim the worker as an employee) •Tenant anticipates $3,500 in revenue for the next 12 months. •Expenses are anticipated at $0.
•Use $3,500 as the projected income for the income certification. •Verify evidence of past payments through deposits to checking account(s), if possible. •Have the Tenant complete the Under Income Affidavit form if there are no other sources

6.5 Exhibit A - BMR Rental Guidelines

79 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
25 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf of income sufficient to pay the rent.

7.8.13 Unemployment and Disability Income
Unemployment and disability benefits shall be annualized unless the household member provides documentation that benefits will cease in the next 12 months.

7.8.14 Social Security and Supplemental Social Security Income For Social Security Income or Supplemental Security Income (SSI), a benefit verification letter with a date no earlier than 120 days prior to the effective date of certification or recertification is required. Refer to the Social Security website on how to obtain this letter. See https://www.ssa.gov/manage-benefits/get-benefit-letter. Count the total income before any deductions. If the Benefit Verification Letter is for the prior year and lists payment amounts prior to December of the prior year, you must multiply the benefit amount by the cost-of-living adjustment (COLA) to project benefits for the following year. The current year COLA adjustment can be found here: https://www.ssa.gov/oact/cola/latestCOLA.html. Note that if a Tenant’s sole source of income is from Social Security, the Tenant should also complete a Non-Employment Affidavit. For lump sum social security payments, refer to the HUD Manual, Chapter 5.

7.8.15 Dates of verifications
All verifications received, including the dated social security benefit letter received should be dated within 120 days prior to the annual recertification deadline. Written clarifications shall be included in the Tenant file for any exception to rules or any calculation that needs explanation.

7.8.16 Ownership of Real Estate or Timeshares
As stated in Section 7.4, effective the date the Tenant moves into the BMR or Workforce unit, the City does not permit any household member of BMR or Workforce housing to own residential real estate for income purposes, second homes, vacation homes, or timeshares, including short-term and long-term rentals.

Existing residents with residential property used for income purposes, vacation, or second homes or who own timeshares that occupied the BMR or Workforce residence prior to the effective date of these BMR Guidelines may remain in their unit as long as the BMR or Workforce unit is the sole residence of all household members, with the exception of students who live near their educational institution some of the year but still claim the BMR or Workforce unit as their primary residence.

Tenants who acquire real estate for income purposes or second homes after the date they moved into the BMR or Workforce unit, or after the effective date of these BMR Guidelines, whichever is later, are no longer eligible for the BMR or Workforce Housing program and must vacate the BMR or Workforce unit or pay market rate rent in which they reside, pursuant to the affordability restrictions on their property for tenants who are no longer eligible. The Notice to Vacate shall be issued to the tenant with at least 60 days’ notice, or more, if required by law.

BMR or Workforce tenants who own residential real estate for income purposes or second homes prior to the effective date of these BMR Guidelines, or who receive income from ownership of commercial real estate, must include the rental income in the income section of the certification

6.5 Exhibit A - BMR Rental Guidelines

80 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
26 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf and the cash value of the asset in the asset section of the certification. •To determine the income for the income section, subtract the annual property expenses from annual property revenue based on a Real Estate Income Affidavit form (available from the City) indicating anticipated expenses for the following year. Expenses cannot be lower than the prior year’s expenses as shown on Schedule C of the Tenant’s federal taxes. This income is similar to self-employment income.
•Use documentation on the purchase of the property, a current lease, or most recent federal taxes to confirm net property income.
•See Section 7.9.7 to determine the cash value of the property, obtain a value of the property from three sources, such as a recent appraisal that is 120 days old or less and on-line resources such as www.realtor.com, www.zillow.com, and www.redfin.com. Take the average of the three values and subtract 6% for average sales costs and subtract any remaining mortgage on the property. To verify the remaining mortgage, obtain a recent mortgage payment statement or use an online source to verify the outstanding balance. The cash value of the asset goes in the asset section of the Tenant Income Certification (TIC). Imputed income will also be added to the income from assets since the cash value of the real estate, combined with other financial assets, will likely trigger the imputed income rule.

7.9 ASSET ELIGIBILITY AND VERIFICATION

7.9.1 Use of California Code of Regulations, Title 25 for Calculating Income from Assets For all properties, unless noted in the property’s affordability restrictions or Affordable Housing Agreement, Property Managers should calculate income from assets in accordance with the requirements set forth in California Code of Regulations, Title 25, Section 6914 and as directed in these BMR Guidelines. View Document - California Code of Regulations (westlaw.com)

7.9.2 Ten Per Cent Imputed Income Rule
The California Code of Regulations, Title 25, Section 6914 states: “Where a family has net family assets in excess of $5,000, income shall include the actual amount of income, if any, derived from all of the net family assets or 10 percent of the value of all such assets, whichever is greater. For purposes of this section, net family assets is defined as the value of equity in real property other than the household's full-time residence, savings, stocks, bonds, and other forms of capital investment. The value of necessary items such as furniture and automobiles shall be excluded.” The City of Foster City uses this rule in calculating household income. Notably, this is different than the imputed income rate of 0.06% used by the California Tax Credit Allocation Committee on Tenant Income Certification forms.

Property Managers must use the 10% imputed income rate instead of the 0.06% rate when calculating household income, unless LIHTC funding or the terms of other bonds require the City to use a different method of calculating income. In the event that a property’s affordability restrictions or Regulatory Agreement for a particular property does not refer to Section 6914, this Section applies unless a different methodology is referenced or stated in the property’s

6.5 Exhibit A - BMR Rental Guidelines

81 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
27 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf affordability restrictions or governing Regulatory Agreement.

7.9.3 Third-Party Verification of Assets
The City of Foster City does not require third-party verification of assets for annual recertification of income for BMR housing. However, third-party verification may be required by bond agreements or tax credit programs or by the Property Management. Furthermore, the City recommends third-party asset verification if the forms and documents provided by the household member is confusing, conflicting, incomplete, or varies from assets disclosed in the last three years of income recertifications. Third-party verifications must comply with current fair housing regulations and the current HUD Handbook, Chapter 5, Section 3, Verifications.

7.9.4 Negative or Blank Asset Verifications
Negative or blank asset verifications, in which the Property Manager seeks to determine if an account is held at a financial institution and for which there is no disclosure of the asset on the TICQ, are not permitted unless the asset had been disclosed in the prior three years, or if there is documented evidence of existence of the asset or documented suspected fraud. The Property Manager must inform the Tenant of the reason for the blanket or negative verification. The Property Manager must also have a written policy in place that clearly documents the scenarios for which a blanket or negative verification is justified and must provide a copy of the policy to the Tenant, if requested. The names of financial institutions must be stated on the verification form prior to obtaining Tenant signatures. The Property Manager has an obligation to inform the City of any suspected fraud.

7.9.5 Rules on Redacting Information on Documents Provided The City does not allow redacted information, other than social security numbers, on any documents submitted for the income certification process. Tenants that redact information other than social security numbers will be deemed non-compliant. The City recommends including this information in the annual recertification notice to tenants.

7.9.6 Calculating the Cash Value and Income from Financial Assets Six months of bank statements are required for checking and savings accounts and the latest quarterly statement for investment and retirement accounts. For checking accounts, the cash value of the asset is the average of the ending balance for six months. For savings accounts, the cash value is the ending balance on the most recent statement. For investment accounts, the cash value is the ending balance on the current statement, less any penalty for early withdrawal (usually 10%), if applicable. Substantial, frequent, or regular deposits of $100 or more require explanation from the household member, if not included on the TICQ. See Sample Forms. For income from financial assets, most checking accounts are 0% interest; most savings accounts are .01%. The bank statements generally state the percentage rate for interest. If no interest rate can be determined, it is acceptable to use 0% for checking and .01% for savings accounts. For retirement and investment accounts, use the interest earned to date on the most current bank statement and annualize the amount. For negative returns, use zero. Alternatively, you can use actual dividends earned to date and annualize them.

6.5 Exhibit A - BMR Rental Guidelines

82 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
28 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf

7.9.7 Computing Income from Real Estate Assets
For real estate assets, in accordance with Section 7.4, Property Managers should verify the cash value of the asset through three online sources (examples include Zillow, Redfin, and Realtor.com) or a recent appraisal that is not more than 120 days old. Take the average of the three values and subtract 6% for average sales costs (or current industry standard if not 6%) and subtract any remaining mortgage on the property. To verify the remaining mortgage, obtain a recent mortgage payment statement or use an online source to verify the outstanding balance. The cash value of the asset goes in the asset section of the Tenant Income Certification (TIC). Imputed income will also be added to the income from assets since the cash value of the real estate, combined with other financial assets, will likely trigger the imputed income rule.

7.9.8 Lump Sum Payments
Single lump sums for the following items should be counted as assets rather than income:
inheritance, capital gains, lottery winnings made in one payment, cash from sale of assets, insurance settlements, workers compensation, and personal property losses; any other amounts that are received in one-time lump sum payments. Two or more payments of these items shall be counted as income, rather than assets. See HUD Inclusions and Exclusions to Income for more details. See https://www.hud.gov/sites/documents/DOC_35699.PDF.

7.10 HOUSEHOLD INCOME ABOVE OR BELOW THE INCOME LIMIT AT THE TIME OF RECERTIFICATION

7.10.1 Over Income Households in City Owned Units
For the City-owned units, other than Workforce Housing, or as provided by regulatory agreement, Tenants who have an income that exceeds the highest affordability designation in the BMR housing program will be given a 60-day notice to vacate, or if market rate units are provided at the property, the rental rate shall graduate to market rate. At the discretion of the City, an additional thirty (30) day extension may be granted. For very low- and low-income units, if a Tenant’s income exceeds the income limit, they will be “graduated” to the next higher affordability level provided on the property for which they are qualified. The next available similarly sized unit will be utilized to bring the development back into compliance with the required number and affordability level of units. For Workforce Housing, there is no income limit.

7.10.2 Over Income Households for All Other BMR Units
For all other BMR units, refer to the current regulatory agreement regarding Tenants who are over income at the time of annual income recertification. In general, the Tenant shall graduate to the next level of the program or, if they are over-income for the highest level of affordability in the program, to market rate, if market rate units are provided at the property. The next available unit rule applies. For moderate-income BMR households, to the extent allowed by applicable law, including Section 42 of the Internal Revenue Code, if a Tenant’s income exceeds the Moderate- Income limit, they will be “graduated” from the BMR program and charged market rent. The next available similarly sized unit will be utilized to bring the development back into compliance with the required number and affordability level of units. For LIHTC units, follow CTCAC rules.

7.10.3 Under Income Households
Property Managers shall not evict a Tenant for being under the income minimum for the income

6.5 Exhibit A - BMR Rental Guidelines

83 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
29 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf range of their household size provided that they continue to pay rent per their Lease Agreement.

However, if the income is below the minimum income range for the household size and affordability and/or below the minimum required income for the unit as specified in by the Property Management in the Resident Selection Policy, the Property Management is required to have the Tenant submit an Under Minimum Income Affidavit. This Affidavit provides the Tenant’s statement of how they will pay their rent and the sources of income. This form must be submitted by the Tenant prior to final certification of income to allow additional time for submission of additional documentation and forms and the recalculation of income, if needed. The income certification deadline should be extended by thirty (30) days if additional documentation, verification, and recalculation of income is necessary. The Under Minimum Income Affidavit form is available from the City.

7.10.4 Next Available Unit Rule
If a Tenant’s income falls below the income limit for a lower affordability category, they may go on the Waitlist in the appropriate preference category and application date for a unit of a lower affordability level, if permitted by property’s affordability restrictions or Regulatory Agreement.

When a unit is available, the Tenant’s unit may be reclassified for the lower affordability level and the next available unit may be classified with the higher affordability level so that the tenant does not need to move units.

7.11 STUDENT STATUS
The City’s BMR and Workforce Housing programs are not intended as student housing.

Accordingly, a household in which all occupants, including those in grades K-12, are full-time students, is not eligible for BMR or Workforce Housing. An exception is made for single parents with dependent children and certain other conditions. See https://www.hud.gov/sites/documents/43503HSGH.PDF for exceptions. Children ages 0-5 are not considered full-time students. See income inclusions and exclusion rules that apply to full- time students when calculating income:
https://www.hud.gov/sites/documents/DOC_35699.PDF. For LIHTC properties, refer to CTCAC compliance rules on this issue.

7.12 LIVE-IN AIDES
The City does not count income from live-in aides as defined by HUD. See HUD Handbook Chapter 3 and Chapter 5: https://www.hud.gov/sites/documents/43503c3HSGH.PDF and https://www.hud.gov/sites/documents/43503c5HSGH.PDF for more information. For LIHTC properties, refer to CTCAC compliance rules on this issue.

7.13 DOCUMENTING INCOME CERTIFICATIONS AND ANNUAL RECERTIFICATIONS

7.13.1 Forms
Property Managers shall use the most current forms available from the California Tax Credit Allocation Committee (CTCAC) or the City, as provided below, or substantially similar forms created by the Owner or Property Manager or third-party software provider, as noted below:

CTCAC forms are available on the CTCAC website at
https://www.treasurer.ca.gov/ctcac/compliance.asp. Sample City forms are available from the

6.5 Exhibit A - BMR Rental Guidelines

84 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
30 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf City. In addition, Property Managers shall include a calculation worksheet for each household showing how income was calculated for each household member.

7.13.2 Tenant File Organization
Income Certifications for Tenant files shall be organized in the following order unless required otherwise for LIHTC, bond, or other programs.

1. Tenant Income Certification Form

2. Income calculation worksheet(s), income and rent limits, and Utility Allowance Schedule for the household.

The following Items shall be in order by household member with the head of household first.

1. Tenant Income Questionnaire

2. Income forms and documents

3. Asset forms and documents

4. Child support forms and documents

5. Student status forms and documents

7.13.3 Required Forms
Forms required by the City of Foster City for Initial Income Certifications and Recertifications are listed below. Unless otherwise noted, one form is required for each adult household member.

Forms listed as “Sample” are provided by the City. Forms marked by an asterisk are available on the CTCAC website at https://www.treasurer.ca.gov/ctcac/compliance.asp. The City recommends checking the CTCAC website regularly to check for CTCAC form updates.

1. Sample Affidavit of Residence Form (required for Foster City residents for new move-ins)

2. Sample Annual Household Composition Form (one per household; required annually)

3. Tenant Income Certification (TIC) Form*(one per household)

4. Sample Income Calculation Worksheet

5. Tenant Income Questionnaire (TICQ)*

6. Sample Self-Employment Affidavit (SEA), if applicable

7. Family Contribution Affidavit, if applicable*

8. Non-Employment Form, if applicable*

9. Zero Income Certification Form, if applicable*

10. Sample Non-Tax Filer Affidavit, if applicable

11. IRS Form 4506-T, if applicable https://www.irs.gov/forms-pubs/about-form-4506-t

12. Under $5,000 in Asset Certification Form, required if value of assets is < $5000*

13. Sample Substantial Deposits form, (required if bank statements show multiple deposits over $100 that are not disclosed on TICQ)

14. Child or Spousal Support Affidavit*

15. Sample Student Status Affidavit, (required for all students, full or part-time)

16. Live-In Aide Verification Form, if applicable*

17. Sample Under Minimum Income Affidavit, (required if income is under the minimum income for the affordability range and/or under the minimum required income for the unit)

6.5 Exhibit A - BMR Rental Guidelines

85 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
31 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf

18. Sample Clarification Form, if applicable

19. Sample Asset Verification Clarification Form, if applicable

20. Other forms, as required for LIHTC, Section 8 or other HUD programs, or Bond programs.

7.13.4 Creation of Forms by Property Managers
Property managers may elect to use their own forms for all non-TCAC forms (TCAC forms are marked with an asterisk above), provided they are substantially similar to the sample forms provided by the City. Property Managers that use compliance software that produces non-TCAC TIC forms for non-tax credit properties may use the non-TCAC TIC forms (e.g. Yardi or On-Site).

7.13.5 Use of California Tax Credit Allocation Committee Tenant Income Certification Form The City requires use of the California Tax Credit Allocation Committee tenant income certification form, with the exception noted in Section 7.13.4, but acknowledges that the form is designed for tax credit properties. As described in Section 7.9.2, Property Managers must use the imputed income rate required for the property per the property’s affordability restrictions (e.g., 10% instead of .06%) and enter the income limit required for their property on the LIHTC income and rent limits lines if different from the LIHTC limits.

7.13.6 Signatures on Forms
The Tenant Income Certification form must be signed by all adult household members and the Property Manager. All forms must be signed as indicated on the form. Taxes included in the file must be signed by the Tenant.

7.13.7 Dates on Forms
Forms prepared and/or signed after the effective date of recertification shall be signed with the current date and include the following statement “True and Correct as of (insert effective date).

The statement must be initialed by the Tenant(s). Backdating of forms is not permitted.

7.13.8 Mistakes and Corrections on Forms
Forms and documents submitted for recertification may not be amended or corrected unless authorized by the Property Manager and initialed by the household member. Errors should be crossed out and initialed. Blacking or whiting out of errors is not permitted.

7.13.9 Conflicting, Incomplete, Insufficient, or Unclear Information Provided on Forms If the Property Manager determines they have received conflicting, unclear, or insufficient forms or documentation, they have the right to request additional information from the household member pursuant to HUD Guidelines.

7.14 OCCUPANCY STANDARDS

7.14.1 Minimum and Maximum Household Size Requirements
The minimum and maximum household size for occupancy of various size units varies based on the requirements of the applicable affordable housing restrictions for each property. If occupancy standards are not addressed in the property’s affordability agreement or covenant, the following general occupancy standards of a minimum of one person per bedroom for a studio and one

6.5 Exhibit A - BMR Rental Guidelines

86 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
32 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf bedroom, two people for a two-bedroom, four people for a three-bedroom, six people for a four bedroom, and eight people for a five-bedroom unit per Title 25, Section 8305, shall apply, and a maximum of two people per bedroom, plus one person per unit, shall apply, except that the maximum occupancy for a one-bedroom plus den unit shall be four people. Note that if the tenant has a live-in aide, the live-in aide counts in determining the household size for occupancy standards, but the aid is not counted in the household for income purposes, nor is the aide’s income counted in the household income.

General Occupancy Standards
Unit Size Minimum Occupancy Maximum Occupancy
Studio 1 person 2 people
One-Bedroom 1 person 3 people
One-Bedroom Plus Den 1 person 4 people
Two-Bedroom 2 people 5 people
Three-Bedroom 4 people 7 people
Four-Bedroom 6 people 9 people
Five-Bedroom 8 people 11 people

7.14.2 Annual Occupancy Monitoring
Households must complete a Household Composition Form annually for recertification and all two- and three-bedroom households must complete an Under-Occupancy Agreement form at move-in. A change in the number of occupants in the household may change the size of the unit for which the household is qualified. If the household no longer qualifies for the size unit they are renting, they shall be given at least a 60-day notice at the time of recertification that when an appropriate sized unit becomes available, they will be given a 30-day notice to move into such appropriate sized unit. Until an appropriately sized unit becomes available, they may stay in their current unit. If the development does not offer the appropriately sized unit for the household size, the Tenant shall be given a ninety (90)-day notice to vacate unless City determines that allowing additional time to comply is warranted. For example, if a family of six lives in a two- bedroom unit in a development in which there are no three-bedroom units, the family will receive a notice to vacate.

In the event that the property manager is unable to verify occupancy of one or more household members due to lack of tenant cooperation, or incomplete or inaccurate documentation, the tenant’s household size will be certified only for the verified occupants. The tenant may be required to move to an appropriately sized unit if the tenant is under the minimum occupancy requirement for the unit. The tenant shall be offered the next available appropriately sized unit and shall be provided with a thirty (30)-day notice. If occupancy of all tenants cannot be verified, the tenant will no longer be eligible for the BMR unit, and the rent shall be increased to market rate with a 60-day notice (ninety (90) days if the tenant is on a month-to-month lease). The next available unit shall be designated as a BMR unit at the same affordability level to maintain the required number of BMR units.

6.5 Exhibit A - BMR Rental Guidelines

87 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
33 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf

7.15 REQUESTING ADDITIONAL INFORMATION REQUIRED FOR ELIGIBILITY Additional information and documentation may be required to review a Tenant’s eligibility to rent a unit in accordance with the HUD Handbook. Property Managers shall have policies and guidelines in effect at the time they request additional information and documentation to ensure compliance with Fair Housing laws and regulations. All policies and guidelines should be submitted to the City.

7.16 CITIZENSHIP/RESIDENT ALIEN STATUS VERIFICATION
The City does not require verification of citizenship or resident alien status unless required by law.

7.17 SOLE RESIDENCY REQUIREMENT
The BMR or Workforce housing unit must be the household’s sole and primary residence.

Exceptions include students who reside elsewhere to attend school and reside in the BMR or Workforce unit 14 or more (consecutive or non-consecutive days per year), children under a shared custody agreement, estranged or separated spouses, and household members in temporary or permanent supportive housing.
8 DETERMINING RENT

8.1 REQUIREMENTS FOR DETERMINING RENTS
Property Managers are required to submit an Annual Rent and Income Limit Summary and a Utility Allowance Schedule to the City within 30 days of issuance of HCD Income Limits. The City issues a confirmation of rent limits for each property annually within 30 days of submission.

Requirements for determining the Maximum Chargeable Rent pursuant to affordability designations are in each property’s affordability restrictions. See Section 7.6.4 for calculating non- standard income limits to be used in calculating rents.

8.1.1 City’s Standard Methodology for Rent Calculations Unless stated otherwise in the property’s affordability restrictions or other regulatory agreement in effect, the City of Foster City calculates rent by determining the gross rent and deducting a reasonable utility allowance to determine the maximum chargeable rent for each size of unit.

The City of Foster City Municipal Code, Chapter 17.90 (C) defines below market rate rent as follows:
“Below market rate rent” means the total monthly housing expenses for a below market rate dwelling unit, available as a rental unit, not exceeding the rents specified by Section 50053 of the California Health and Safety Code and California Code of Regulations Title 25, Sections 6910 through 6924, except that the city may permit alternative criteria, when necessary, to be consistent with pertinent state and federal statutes and regulations governing publicly assisted rental housing. Adjustment for household size shall be as stated in Section 50052.5 of the California Health and Safety Code, except that in the event that

6.5 Exhibit A - BMR Rental Guidelines

88 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
34 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf the property is subject to a tax credit, bond, or other financing program, then the household size adjustment shall be as stated in the tax credit, bond, or financing agreement.

As used in this chapter, “below market rate rent” shall include the total of monthly payments by the tenant for all of the following:

2. Any additional separately charged fees or service charges assessed by the owner, other than security deposits;

8.1.2 Gross Rent
Gross Rent, defined as the affordable cost of housing and includes rent and utilities. Gross rent is generally calculated as 30% of the income limit for the applicable income category as established by California’s Housing and Community Development Department (HCD) for the household size or as stipulated in the property’s affordability restrictions, Regulatory Agreement, or Bond Agreement.

The affordability restriction may require use of different income limits to be used for income recertification than for calculating rent. For example, moderate income may be specified as 120% of AMI for determining income but refer to California Health and Safety Code Section 50053 for determining rent. The moderate income rent in Section 50053 is currently set at 110% of AMI.

Therefore, the Property Manager must use 120% of AMI to calculate the household income for recertification purposes and 110% of AMI for the maximum rent calculation. Refer to the property’s affordability restrictions to confirm affordability levels for determining rent. Section

7.6.4 provides multiplier factors for determining non-standard percentages of Area Median Income.

8.1.3 Maximum Chargeable Rent
Maximum Chargeable Rent, or net rent, is defined as the maximum amount a Property Manager can charge the Tenant for their rent. Maximum Chargeable Rent is calculated by deducting a standard utility allowance, comprised of average costs for utilities and mandatory fees paid by the Tenant in order to live in their unit, from the Gross Rent. In general, and if not specified in the affordability restriction recorded on the property, the following household sizes shall be assumed:
for a one-bedroom unit, a household size of two shall be assumed; for a two-bedroom unit, a household size of three shall be assumed, and for a three-bedroom unit, a household size of four shall be assumed. See Section 8.2 below for how to calculate the Utility Allowance.

6.5 Exhibit A - BMR Rental Guidelines

89 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
35 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf a) Maximum Chargeable Rent is always rounded down to the nearest dollar, if rounding is used, regardless of the fractional dollar amount. For example, if the Maximum Chargeable Rent is $2,500.75, the rent must be rounded down to $2,500. Charging $2,501 would be greater than the Maximum Chargeable Rent.
b) For properties with multiple regulatory agreements setting forth different methods to calculate maximum allowable rent, the lowest rent of the applicable calculation methods shall be used as the Maximum Chargeable Rent.
c) Property Managers may charge less than the Maximum Chargeable Rent.

8.2 REQUIREMENTS FOR DETERMINING UTILITY ALLOWANCES
The Utility Allowance is the sum total of typical or average costs of certain utilities as listed on the Utility Allowance Schedule issued by the County of San Mateo, with exceptions as noted below, and that are paid for by the Tenant. The amount is determined annually for each size of unit in each BMR and Workforce housing development. Utilities paid for by the Tenant include those paid directly to the landlord, a third-party service, or to the utility company. The allowance also includes any mandatory fees charged to the Tenant. The Utility Allowance for each size of unit is deducted from the maximum gross rent for the unit to determine the maximum chargeable rent.

8.2.1 Definition of a Reasonable Utility Allowance
A reasonable utility allowance is defined as the sum total of all values for utilities that are paid for by tenants in addition to their rent as listed on the Utility Allowance Schedule issued annually by the County of San Mateo at https://www.smcgov.org/housing/utility-allowance-schedules, including sewer charges and other non-optional mandatory fees, as specified in the Foster City Municipal Code, Chapter 17.90.020 (C).

8.2.2 Calculating the Utility Allowance
Utility Allowances should be calculated consistently from year to year unless there is a change in how utilities are paid or charged to Tenants. An explanation of any change from one year to the next must be documented by the Property Manager and submitted to the City.

8.2.3 Source for Utility Allowance Schedule
Utility Allowances shall be as established by HUD for San Mateo County, as amended annually.

The appropriate Utility Allowance shall be deducted from maximum rent to determine maximum chargeable rent for Tenants for each unit type at each property, unless stated otherwise in the property’s affordability restrictions. HUD provides for the costs allocated to each type of utility for San Mateo County and the rates are listed on the following County of San Mateo website and issued annually: https://www.smcgov.org/housing/utility-allowance-schedules. The following additional items must be included on the Utility Allowance Schedule if they are charged to the Tenant, regardless of the method of billing.
a)Renter’s Insurance. If renter’s insurance is required to be purchased by the Tenant, then an appropriate allowance for this shall be provided. The Property Manager shall determine the

6.5 Exhibit A - BMR Rental Guidelines

90 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
36 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf appropriate allowance amount and the source for calculating the allowance shall be included in the annual Utility Allowance Schedule. In addition, the requirement for insurance must be included in the lease and the Property Manager must collect the evidence of coverage from the Tenant as part of the lease renewal process.
b)Sewer Charges. If sewer costs for the property are charged to Tenants, the methodology for calculations shall be the average of the actual monthly sewer charges for the property for the last 12 months, prorated by unit size, number of units of that size in the property, and the household size per unit using the household size used in determining rent (example: 2 people in a one-bedroom unit, 3 people for a 2-bedroom unit, 4 people for a 3-bedroom unit). The bill shall be prorated and allocated as a flat rate for each size of unit. Calculations should be submitted with the Utility Allowance Schedule to the City annually. c)Additional Mandatory Fees. Any other mandatory fees charged to the Tenants must be included in the Utility Allowance. Examples parking fees, utility billing service fees, required use of a computer application to pay rent, monthly or quarterly pest control charges, etc. The allowances for these additional fees must be calculated using actual costs and the methodology must be provided to the City along with the annual Utility Allowance Schedule.

8.2.4 Rounding
Utility Allowances must always be rounded up to the nearest dollar if rounding is used, regardless of the fractional dollar amount. For example, if the Utility Allowance total is $75.45, the Utility Allowance amount must be rounded up to the nearest dollar, or $76.00 if rounding is used, to ensure that the allowance is not charged below the amount. Rounding is optional. It is acceptable to charge $75.45.

8.2.5 Tenant-Paid Utilities Must be Stated in the Lease The types of utilities paid for by Tenants to determine the Utility Allowance must be stated in the body of the lease or as a Utility Addendum, and included regardless of the entity to which the Tenant pays the utility bill. The Lease must also include the formula for calculating or prorating the utility payments, if applicable. In the event of conflicting information, the lease shall prevail in determining which utilities to include in the Utility Allowance. The Lease should also clearly state which utilities are paid for and not charged to the Tenant.

8.2.6 Annual Notification of Utility Allowance
Property Managers must submit a copy to the City of the annual Utility Allowance Schedule for each type of unit within 30 days of issuance by the County of San Mateo. See https://www.smcgov.org/housing/utility-allowance-schedules for current rates to be used in calculations.

8.2.7 City’s Request of Information
The City has the right to request documentation regarding the Utility Allowance schedules prepared by Property Managers.

6.5 Exhibit A - BMR Rental Guidelines

91 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
37 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf

8.2.8 Tenant’s Request for Information
Property Managers shall provide Tenants with the Utility Allowance Schedule and calculations for the Tenant’s premises upon request. The City recommends providing the tenants with a copy of the Utility Allowance Schedule each year.

8.2.9 Implementation of Annual Utility Allowance
There are no restrictions in the California Housing regulations on the timing of adjustments to utilities allowances. Property Managers therefore have the following options to implement new allowances when they are issued: (1) begin using the new allowances and recalculate rents immediately, (2) make adjustments as Tenants are recertified and leases are renewed, or (3) make adjustments later in the year when the new HCD income limits are published, and rents are reset.

8.3 REQUIREMENTS FOR IMPLEMENTING CHANGES IN RENTAL RATES

8.3.1 Timing of Rent Changes
Any changes in rent shall take effect upon recertification at the time the Tenant’s lease is renewed or January 1, at the discretion of the Property Manager, or another date mutually agreed upon by the Property Manager and the City.

8.3.2 Noticing of Tenants of Rent Changes
All rent changes must be noticed to Tenants pursuant to current State of California notice laws and regulations. In the event of conflicting notice rules as stipulated by HUD, financing entities, property’s affordability restrictions, or local regulation, the longest notice rule shall apply.

8.4 ANNUAL RENT INCREASES AND ANTI-DISPLACEMENT STRATEGY For BMR properties built after the effective date of these BMR Guidelines, rent increases for BMR units are limited as defined in Section 8.4.1. For BMR properties built prior to the effective date of these BMR Guidelines, Property Managers are permitted to raise BMR and Workforce rents to no more than the Maximum Chargeable Rent (See Section 8.1) per the property’s affordability restrictions, or as provided by local, state, or federal law, with a recommended best practice as defined in Section 8.4.1.

However, due to the following reasons, BMR and Workforce Tenants often face financial hardship due to substantial rent increases, as many Property Managers increase rents to the maximum allowed annually, regardless of the percentage increase or Tenant hardship:
•HCD income limits often experience substantial increases from year to year, and due to the direct relationship between rent limits and income limits, the rent limits are often substantially greater than the prior year and often increase more than 10%. •Property Managers often set initial rents at rates substantially lower than the Maximum Chargeable Rent due to prevailing market conditions, thereby creating a significant gap between the current rental rate and the maximum chargeable rental rate.

The practice of raising annual rents close to or at the maximum chargeable rent limit can also result

6.5 Exhibit A - BMR Rental Guidelines

92 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
38 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf in an overcharging of rent if it is determined that the Utility Allowance was incorrectly calculated.

Therefore, and to support the City of Foster City’s Fair Housing Action Plan priorities as outlined in the Housing Element 2023-2031 (https://engagefosterCity.org/housing-element), a key element of the City’s Anti-Displacement Strategy for BMR and Workforce Housing is as noted below in Section

8.4.1. 8.4.1 Anti-Displacement Strategy
For BMR properties built before the effective date of these BMR Guidelines, the City strongly recommends as a best practice that annual rent increases for BMR units be limited to the lower of the Maximum Chargeable Rent or 5%, unless otherwise limited by statute at the local, state, or federal level or as required by the financing entity or bond program for a property or as stated in the property’s regulatory agreement.

For BMR properties built after the effective date of these BMR Guidelines, annual rent increases for BMR units are limited to the lower of the Maximum Chargeable Rent or 5%, unless otherwise limited by statute at the local, state, or federal level or as required by the financing entity or bond program for a property.

8.5 RENTAL RATE ADJUSTMENTS FOR CITY-OWNED RENTAL UNITS Staff has authority to adjust rental rates for vacant city-owned rental units by +/- ten percent (10%) due to current market conditions. Any increase or decrease greater than ten percent (10%) requires the approval of City Council.
9 REQUIREMENTS FOR LEASES

9.1 GENERAL LEASE REQUIREMENTS

9.1.1 HUD Model Lease
BMR and Workforce Leases should follow the applicable terms of the HUD model lease, including all required California Addenda. All leases are subject to current local, state, and federal regulations.

9.1.2 Affordable Housing Program Addendum
BMR and Workforce Leases must include an Affordable Housing Program Addendum signed by all adult household members and the agent for the Property that explains the requirements of the BMR or Workforce Housing program, including:
a) The affordability designation for the unit for income and rent and the sources used for income and rent limits and the Utility Allowance determinations. b) Annual recertification of income requirements, if applicable. c) The Tenant’s annual recertification deadline and deadline for submitting completed forms and documents each year, if applicable.
d) Requirements for each adult household member, including documents required for annual

6.5 Exhibit A - BMR Rental Guidelines

93 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
39 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf recertification, if applicable.
e) A statement that Tenant cooperation is required for continued participation in the program, if applicable.
f) A statement explaining what happens if the Tenant’s income is over the limit for their unit, the Tenant does not submit all requested and complete recertification forms documents by the deadline, does not provide accurate information, provides false or misleading documentation or information, or withholds information. g) Annual rent increase rules and policies.

Properties with HUD-financing must comply with the HUD Handbook, Chapter 6, Requirements and Leasing Activities.

9.1.3 Utilities
BMR and Workforce Leases must include information about which utilities the Tenant pays for, any utilities charged to the Tenant through a ratio utility billing system (RUBS), if payments are made to a third-party service, how charges are calculated, any utilities paid for by the landlord, and any mandatory fees, including required renter’s insurance. This information must be included in the lease document or a Utility Addendum. See Section 8.2 for details on calculating the Utility Allowance.

9.1.4 Occupants Named on Lease
Any person residing at the BMR or Workforce residence fourteen (14) or more consecutive or non-consecutive days per year, regardless of age, must be on the lease. Those who no longer reside in the household must complete a Release from Lease form. Refer to the HUD Handbook for live-in aides.

9.1.5 Renter’s Insurance
If renter’s insurance is required by the Property Manager, a copy of the Tenant’s policy must be included in the lease and updated annually.

9.1.6 Lease Term
Initial leases must be offered to the Tenant for at least 12 months. Renewals may be month to month or annual or as required by the property’s affordability restrictions, or local, state, or federal regulation.

9.1.7 Addenda
Leases shall include all addenda required by local, state, or federal, or financing entity law, regulation, or policy.

9.1.8 Resident Selection Policy
The resident selection policy must be included in the tenant’s file, completed as part of the application for housing, and must be signed by all adult household members.

9.1.9 AB 1482
BMR and Workforce Leases are exempt from AB 1482, the California Tenant Protection Act of 2019.

6.5 Exhibit A - BMR Rental Guidelines

94 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
40 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf

9.2 REQUIREMENTS FOR TERMINATION OF BMR OR WORKFORCE TENANCY Please refer to HUD Handbook HUD Handbook 4350.3 REV-1, Chapter 8 for guidelines regarding terminations. Any terminations of tenancy comply with local, state, and federal laws. Note that a Tenant’s income falling below the minimum income required is not a valid reason for lease termination. The Property Manager shall notify the City and provide a copy of the eviction proceedings.
10 REQUIREMENTS FOR PROGRAM MONITORING AND

ADMINISTRATION

10.1 ANNUAL MONITORING FEES
The City charges annual monitoring fees for annual monitoring compliance of BMR units built after the effective date of these BMR Guidelines. Annual monitoring fees are due April 1 each year. Fees are included in the City’s Master Fees and Service Charges Schedule.

10.2 USE OF HOUSING COMPLIANCE SOFTWARE
Property Managers shall use the Housing Compliance software to file their annual Property Status Report (PSR) with the City. The annual deadline for report submission is April 1 of each year unless specified otherwise in the property’s affordability restrictions or Affordable Agreement.

Instructions for Housing Compliance software: https://www.housingcompliance.org/faq-help/.

10.3 ANNUAL SUBMISSION OF WAITLIST TO CITY
At the same time as the Property Manager submits a report to the City, an up-to-date version of the Waitlist shall also be submitted by email in an electronic spreadsheet format.

10.4 SUBMISSION OF UTILITY ALLOWANCE WORKSHEETS TO CITY The Property Manager shall submit, a current Utility Allowance Schedule To the City concurrent with the Annual Report and within thirty (30) days of issuance of the schedule by the County of San Mateo.

10.5 DIGITAL SIGNATURES ON LEASES AND INCOME CERTIFICATIONS The City allows electronic signatures on documents and follows the California Tax Credit Allocation Committee rules on digital signatures. See:
https://www.treasurer.ca.gov/ctcac/compliance/memos/compliance-monitoring-2022.pdf.

10.6 SUBMISSION OF LEASE DOCUMENTS TO CITY
For City-owned units, Property Managers must submit a copy of each BMR or Workforce Lease, including all addenda, to the City within seven (7) days of execution.

6.5 Exhibit A - BMR Rental Guidelines

95 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
41 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf

10.7 RETENTION OF RECORDS

10.7.1 Storage Time Requirement
Property Managers must maintain records for at least seven (7) years that document the compliance of their BMR or Workforce rental properties with the City’s requirements. These records must also support the accuracy of the reports that Property Managers submit to the City.

Required records include documentation related to Tenant income certifications, unit rents, applications, selection policies, and leases, and policies, procedures, marketing plans.

This requirement may be superseded by property’s affordability restrictions or state or federal rules or regulations governing the properties, including those in LIHTC or bond programs.

10.7.2 Tenant Files
Tenant files must be in locked cabinets or locked storage rooms. Documents and file contents must be affixed to the file and in date order. Lease and certification files may be separated into separate files if preferred. File contents should be date ordered.

10.7.3 Electronic Files
Files may be kept electronically or in hard copy. Electronic files must be protected. The City requires all electronic files to comply with California Tax Credit Allocation Committee rules on electronic files. See: https://www.treasurer.ca.gov/ctcac/compliance/memos/electronic- storage.pdf.

10.7.4 Disposal of Records
Records must be disposed of in a manner that protects the privacy of Tenants. Unneeded documents and Tenant files containing personal and confidential information must be shredded onsite or using a third-party shredding service. Tenant files with sensitive information should never be put in the trash or recycling.

10.8 CITY AUDITS AND MONITORING
The City may, at any time, request to review the records to verify compliance with program requirements and/or inspect the property or records associated with Tenant files or the BMR or Workforce program. City audits may be conducted at the property if requested by the City.

10.9 CHANGES IN MANAGEMENT OR OWNERSHIP
The City shall be notified of any changes in management or Ownership. These BMR Guidelines shall be provided to any new management staff.

10.10 EXPIRATION OF PROGRAM RESTRICTIONS – TENANT NOTIFICATION At least two years prior to the expiration of program restrictions, the Property Manager shall begin a discussion with the City regarding procedures for Tenant notification.

10.11 DUTY TO DISCLOSE COMPLAINTS OR LEGAL ACTION TAKEN BY A TENANT

6.5 Exhibit A - BMR Rental Guidelines

96 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
42 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf Property Managers shall notify the City of any legal action pursued by a Tenant regarding Fair Housing, discrimination, landlord-Tenant disputes, or compliance with the affordability restriction for the property or these BMR Guidelines.

10.12 TENANT ACCESS TO FILES
Tenants shall be given the opportunity to review their physical file upon request and be given access within a reasonable amount of time. Tenants shall have access to all contents of their file, including, but not limited to information regarding income limits, calculations of rent and utility allowances, initial and recertifications, any policies related to certification or recertification, resident selection policies, and leases.

10.13 BEST PRACTICES FOR PROPERTY MANAGEMENT
The City recommends that the Property Manager follow the CALIFORNIA TENANT’S GUIDE, A GUIDE TO RESIDENTIAL TENANTS’ AND LANDLORDS’ RIGHTS AND RESPONSIBILITIES and make this guide available to the applicant/Tenant at the time of their initial lease.

Https://www.courts.ca.gov/documents/California-Tenants-Guide.pdf.

10.14 ADDITIONAL REQUIREMENTS
The property’s affordability restrictions, local, state, or federal regulation may require additional records management and reporting requirements, or supersede requirements as stipulated in this Section 10.
11 USE OF HUD GUIDELINES FOR ITEMS NOT COVERED IN THESE

GUIDELINES

11.1 USE OF HUD GUIDELINES FOR BMR AND WORKFORCE PROPERTIES For items not covered in these BMR Guidelines, the HUD Handbook 4350.3 REV-1 shall be considered a reasonable best practice. The handbook is provided on the website of the U.S.

Department of Housing and Urban Development at:
http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbook s/hsgh/4350.3
Note that the City does not use or require use of the Enterprise Income Verification (EIV) system referenced in the HUD Manual, unless required by the property’s affordability restrictions or Bond Financing. In addition, the Below Market Interest Rate (BMIR) referenced in the HUD Manual is not the same as the City of Foster City’s BMR Program. Specific requirements for HUD-based programs, such as Section 8, only apply if the property is a Project-Based Section 8 property or a Tenant has a Section 8 (now called Moving to Work) voucher. In the event that guidance is not provided by the HUD Manual referenced above or is not clear, the City shall provide guidance regarding the methods used for income certification and interpretation of the HUD Manual and property’s affordability restrictions or other regulatory agreements that relate to income certification, at the request of the Property Manager.

6.5 Exhibit A - BMR Rental Guidelines

97 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
43 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf

11.1.1 Use of HUD Guidelines for Properties Covered by One or More HUD-Funded Programs For properties covered by one or more HUD-funded Programs, if there is conflicting information in the HUD Handbook, the property’s affordability restrictions, or these BMR Guidelines, then the strictest policy shall apply. An overview of HUD Programs can be found at https://www.hud.gov/sites/dfiles/Main/documents/HUDPrograms2023.pdf.

11.2 USE OF HUD FOR PROPERTIES NOT COVERED BY HUD-FUNDED PROGRAMS For properties that are not financed by HUD-funded Programs, The HUD Handbook does not supersede the affordability restrictions in place for a property or these BMR Guidelines but supplements these documents by providing best practices. For example, a BMR or Workforce property that is not subject to Section 8 and has no Tenants with Section 8 vouchers, is not subject to the Section 8 rent calculation, minimum rent, or other rules specific to Section 8. An overview of HUD Programs can be found at:
https://www.hud.gov/sites/dfiles/Main/documents/HUDPrograms2023.pdf.

11.3 USE OF HUD’S FAIR HOUSING POLICIES
Please note that HUD’s policies on Fair Housing are applicable to all BMR and Workforce properties. See:
https://www.hud.gov/program_offices/fair_housing_equal_opp/fair_housing_act_overview#_T he_Fair_Housing. In addition, the following temporary HUD Programs may apply to the BMR or Workforce property if the Owner received federal financial assistance through one of the following programs:
•The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (Public Law 116-136, approved March 27, 2020)
https://www.congress.gov/bill/116th-congress/house-bill/748/text •American Rescue Plan Act of 2021 (Public Law 117-2, approved March 11, 2021) https://www.congress.gov/bill/116th-congress/house-bill/748/text Please note that the State of California Fair Housing laws also apply to all properties. More information about California Fair Housing can be found here:
https://calcivilrights.ca.gov/LegalRecords/.
12 TRAINING REQUIREMENTS FOR PROPERTY MANAGERS

12.1 FAIR HOUSING TRAINING
The City requires that all Property Managers interacting with Tenants in leasing and/or income certifications complete Fair Housing Training at least once every other year. Property Managers must submit their training certificates to the City upon request. Additional information about Fair Housing is available here:
https://calcivilrights.ca.gov/california-fair-housing-regulations-webinar-pdfs/.

12.2 COMPLIANCE TRAINING

6.5 Exhibit A - BMR Rental Guidelines

98 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
44 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf The City requires federal, state, or local income certification training at least once every three years for all property management staff involved in conducting income certifications and initial training within six months for any new hires. Workshop schedules for the California Tax Credit Allocation Committee are available here: https://www.treasurer.ca.gov/ctcac/compliance.asp.

HUD training is available at https://www.hudexchange.info/trainings/. Please note that TCAC has a stricter set of rules for compliance than HUD and these BMR Guidelines. Therefore, not all TCAC training is applicable.

12.3 TECHNICAL ASSISTANCE

12.3.1 Technical Assistance to Non-Profits
The City will provide technical assistance, such as information on applicable regulations and policies and how to coordinate various programs, to nonprofit groups organized to encourage provision of affordable housing and sponsors of affordable housing projects and programs.

12.3.2 Technical Assistance to Property Managers
The City will facilitate provision of housing by providing technical assistance in a liaison role with non-profit housing groups and managers of affordable housing units in the City. The City may also provide training on these BMR Guidelines from time to time or upon request.

12.4 ADDITIONAL RECOMMENDED TRAINING
The City recommends that Property Managers complete training on topics such as AB 1482, the Tenant Protection Act, Service and Assistive Animals, and other topics relevant to property management to stay apprised of current laws and industry best practices. The City may from time- to-time share training opportunities with Property Managers. Property Managers should also consult their property’s affordability restrictions, and, for City-owned properties, the Property Management Agreement, regarding any additional training requirements. 13 NON-COMPLIANCE AND ENFORCEMENT
In the event that the City determines that BMR management practices are not in compliance with the provisions of the property’s affordability restrictions, or other regulatory document in effect the City has enforcement authority pursuant to City of Foster City Municipal Code, Chapter 17.90.110 (E). https://www.codepublishing.com/CA/FosterCity/.

13.1 PROCEDURE FOR ENFORCEMENT OF NON-COMPLIANCE
In the event that the City determines that BMR management practices are not in compliance with the provisions of the property’s affordability restrictions, or other regulatory document in effect, City staff shall notify the Property Manager with a Notice of Non-Compliance, and remedies, per Section 13.2, and deadlines for correcting non-compliance issues.

6.5 Exhibit A - BMR Rental Guidelines

99 City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
45 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf

13.1.1 Appeal Process
Property Managers/Owners who wish to appeal a notice of non-compliance must submit a request for appeal in writing to the City within ten (10) business days of receipt of the Notice of Non-Compliance. Appeals must provide evidence that demonstrates that the property complies with the property’s affordability restrictions or other governing regulatory document in effect, as applicable. The City will respond to the appeal within thirty (30) days. Appeals are denied or approved by the Community Development Director in coordination with the City Attorney. In the event of a denial the Property Manager/Owner shall have 30 (thirty) days from the date of the denial, to remedy the non-compliance.

13.1.2 Continued or Repeated Non-Compliance
Property Managers/Owners that remain in a state of non-compliance for more than ninety (90) days after the date of a Notice of Non-Compliance or Denial of an Appeal of Non-Compliance or are notified by the City of non-compliance may be subject to fines, as established by Resolution, or legal action by the City pursuant to City of Foster City Municipal Code, Chapter 17.90.110 (E) and the City’s Master Fees and Service Charges Schedule.

13.1.3 Fair Housing Issues
The City refers any member of the public alleging a violation of Fair Housing laws to the California Civil Rights Department. See https://calcivilrights.ca.gov/complaintprocess/. Property Managers shall notify the City of any complaint filed by a BMR or Workforce Tenant. If the City suspects a fair housing violation due to findings of an audit of BMR or Workforce files, the City has an obligation to inform the Property Manager in writing of the potential violation and request immediate action to demonstrate the City’s commitment to Affirmatively Furthering Fair Housing as provided in the Housing Element, Chapter 3 (https://engagefosterCity.org/housing-element).

13.1.4 Americans with Disabilities Act
The City refers any member of the public alleging a violation of the Americans with Disabilities Act to the California Civil Rights Department. Property Managers shall notify the City of any complaint filed by a BMR or Workforce Tenant.

13.2 TENANT INQUIRES AND DISPUTE RESOLUTION
The City has an obligation to respond to BMR and Workforce Tenants that contact the City to inquire about compliance issues regarding their BMR or Workforce property. The City investigates compliance inquiries and complaints and responds to Tenants generally within thirty (30) days.

The City facilitates dispute resolution in accordance with the affordability restriction on the property, financing entity rules and regulations, these BMR Guidelines, the Housing Element 2023- 2031, and Fair Housing and Anti-Discrimination Regulations. Disputes are handled on a case-by- case basis and, if necessary, are referred to the State of California Civil Rights Department’s Community Conflict Resolution Unit (https://calcivilrights.ca.gov/disputeresolution/#conflictBody) or the Peninsula Conflict Resolution Center (https://www.pcrcweb.org).

13.3 REMEDIES
City staff may elect to seek one or more remedies as necessary to enforce the provisions of the property’s affordability restrictions or other Regulatory Agreement in effect. The City will provide

6.5 Exhibit A - BMR Rental Guidelines

100

City of Foster City
Below Market Rate Rental Housing Program
Administrative Procedures and Guidelines
December 18, 2023
46 File name: Below Market Rate Rental Housing Program Administrative Procedures and Guidelines_12.18.2023.pdf a reasonable period of time to cure violations. Remedies shall be consistent with the applicable affordability restrictions or other Regulatory Agreement, as well as Foster City Municipal Code Chapter 17.90, as amended from time to time.
14 REVISIONS TO EXISTING REGULATORY AGREEMENTS
If an existing BMR property manager wishes to adopt new occupancy standards included in Section

17.14.1, they must also comply with BMR unit rent control (section 8.4.1) and BMR monitoring fee (section

10.1). The proposed revisions to the regulatory agreement shall be reviewed and approved by the City Attorney.
15 CONFLICT WITH HOUSING ELEMENT OR OTHER

REGULATORY INSTRUMENT(S)
These BMR Guidelines serve as an implementation tool for the Housing Element and property affordability restrictions, affordable housing agreements, amendments, or other regulatory instruments that are in effect for all properties covered by these BMR Guidelines. In the event that these BMR Guidelines conflict with the Housing Element, the deed restriction recorded for the property, affordability restrictions, affordable housing agreement, or amendment to a covenant or agreement or other local, state, or federal regulation covering the property, the regulatory instrument(s) in effect for the property shall supersede these BMR Guidelines.
16 LIST OF SAMPLES AND TEMPLATES AVAILABLE
The following samples, forms, and templates are available from City Staff upon request. •Sample Marketing Plan
•Sample Flyer for Waitlist Opening
•List of Organizations for Outreach
•Waitlist Template
•Waitlist Application Template
•Purge Letter Template
•Income Certification Forms Checklist
•Income Certification Forms Packet
•Rent Calculation Spreadsheet Template
•Calculation Worksheet Template
Other templates and samples may be added to this list from time to time.

6.5 Exhibit A - BMR Rental Guidelines

101

4881-3610-1501v1

2023
December 18, 2023
Below Market Rate
Ownership Housing
Program

ADMINISTRATIVE PROCEDURES AND GUIDELINES

6.5 Exhibit B - BMR Ownership Guidelines

102

City of Foster City
Below Market Rate Ownership Housing Program
Administrative Procedures and Guidelines
December 18, 2023

1 File name: BMR Ownership Housing Program Administrative Procedures and Guidelines 12.18.2023

TABLE OF CONTENTS

1 IMPLEMENTATION AUTHORITY ................................ ................................ ................................ ....3 2 INTRODUCTION ................................ ................................ ................................ ........................... 3 3 FAIR HOUSING ................................ ................................ ................................ ............................. 3 4 COVERED PROPERTIES................................ ................................ ................................ ..................4 5 deed restrictions ................................ ................................ ................................ .......................... 4

5.1 General Provisions of Deed Restrictions.................................................................................. 4

5.2 Names of Owners .................................................................................................................... 5 6 Income Restrictions ................................ ................................ ................................ .....................5

6.1 Source for Income Limits ......................................................................................................... 5

6.2 Procedures for Calculating Income .......................................................................................... 5

6.2.1 Applicability ........................................................................................................................... 5

6.2.2 Multiple or Conflicting Requirements ................................................................................... 5

6.2.3 Household Member Income to Count .................................................................................. 5

6.2.4 Full Set of Forms Required for all Adult Household Members ............................................. 5

6.2.5 Rules on Redacting of Information Provided for Income Certification ................................. 5

6.2.6 Income Inclusions and Exclusions ......................................................................................... 6

6.2.7 Three Methods Required to Calculate Income ..................................................................... 6

6.2.8 Lump Sum Payments ............................................................................................................. 8

6.2.9 Tax Returns ........................................................................................................................... 8

6.2.10 Self-Employment Income ...................................................................................................... 9

6.2.11 Unemployment and Disability Income................................................................................ 10

6.2.12 Social Security and Supplemental Social Security Income .................................................. 10

6.2.13 Dates of verifications .......................................................................................................... 11

6.3 Asset Eligibility and Verification............................................................................................. 11

6.3.1 Use of California Code of Regulations, Title 25 for Calculating Income from Assets ......... 11

6.3.2 Third-Party Verification of Assets ....................................................................................... 11

6.3.3 Negative or Blank Asset Verifications ................................................................................. 11

6.3.4 Rules on Redacting Information on Documents Provided .................................................. 11

6.3.5 Calculating Income from Assets .......................................................................................... 11

6.3.6 Computing Income from Real Estate Assets ...................................................................... 11

6.3.7 Lump Sum Payments ........................................................................................................... 12

6.4 Live-In Aides ........................................................................................................................... 12

6.5 Documenting Purchaser Income Certifications ..................................................................... 12

6.5.1 Forms .................................................................................................................................. 12

6.5.2 Owner Income Certification File Organization .................................................................... 12

6.5.3 Required Forms ................................................................................................................... 13

6.5.4 Signatures on Forms ........................................................................................................... 13

6.5.5 Dates on Forms ................................................................................................................... 13

6.5.6 Mistakes and Corrections on Forms ................................................................................... 13

6.5.7 Conflicting, Incomplete, Insufficient, or Unclear Information Provided on Forms............. 13

6.6 Requesting Additional Information Required for Eligibility ................................................... 14

6.7 Citizenship/Resident Alien Status Verification ...................................................................... 14

6.5 Exhibit B - BMR Ownership Guidelines

103

City of Foster City
Below Market Rate Ownership Housing Program
Administrative Procedures and Guidelines
December 18, 2023

2 File name: BMR Ownership Housing Program Administrative Procedures and Guidelines 12.18.2023

6.8 Sole Residency Requirement ................................................................................................. 14 7 DETERMINING PURCHASE PRICE ................................ ................................ ................................ . 14

7.1 Eligibility ................................................................................................................................. 14

7.2 Initial Purchase Price .............................................................................................................. 14 8 RESALE PRICE RESTRICTION ................................ ................................ ................................ ........ 15

8.1 Term of Restrictions ............................................................................................................... 15

8.2 Definition of Transfer ............................................................................................................. 15

8.3 Resale Procedures .................................................................................................................. 15

8.4 Resale Price ............................................................................................................................ 16

8.4.1 Calculation of Resale Price During the Deed Restriction Period ......................................... 16

8.4.2 Adjustments to Resale Price ............................................................................................... 16

8.4.3 Establishment of Resale Price ............................................................................................. 17

8.4.4 Value of Capital Improvements .......................................................................................... 17 9 SHARE OF PROCEEDS TO AGENCY ................................ ................................ ............................... 17 10 REQUIREMENTS FOR PROGRAM MONITORING AND ADMINISTRATION................................ ....... 18

10.1 Retention of Records ............................................................................................................. 18

10.1.1 Storage Time Requirement ................................................................................................. 18

10.1.2 Electronic Files .................................................................................................................... 18

10.1.3 Additional Requirements .................................................................................................... 18

10.2 Monitoring ............................................................................................................................. 18 11 USE OF HUD GUIDELINES FOR ITEMS NOT COVERED IN THESE GUIDELINES ................................ .. 19

11.1 Use of HUD Guidelines for BMR Properties ........................................................................... 19

11.2 Use of HUD’s Fair Housing Policies ........................................................................................ 19 12 NON-COMPLIANCE and remedies ................................ ................................ .............................. 19

12.1 Procedure for Non-Compliance ............................................................................................. 19

12.1.1 Appeal Process .................................................................................................................... 20

12.1.2 Continued or Repeated Non-Compliance ........................................................................... 20

12.2 Remedies ............................................................................................................................... 20

12.2.1 Unauthorized Sale, Lease or Transfer of Property .............................................................. 20

12.2.2 Violation of Deed Restrictions or Other Regulatory Documents ........................................ 20 13 CONFLICT WITH HOUSING ELEMENT OR OTHER REGULATORY INSTRUMENT(S) ........................... 20

6.5 Exhibit B - BMR Ownership Guidelines

104

City of Foster City
Below Market Rate Ownership Housing Program
Administrative Procedures and Guidelines
December 18, 2023

3 File name: BMR Ownership Housing Program Administrative Procedures and Guidelines 12.18.2023

1 IMPLEMENTATION AUTHORITY

Authority for implementation of these Below Market Rate Ownership Housing Administrative Procedures and Guidelines (“Guidelines”) is provided by the City of Foster City Municipal Code, Chapter 17.90.020 (E)

Furthermore, Chapter 17.90.110 (E) provides for enforcement of all below market rate housing administrative procedures and guidelines, agreements, resale restrictions, performance deeds of trust, regulatory agreements, and all other covenants or restrictions placed on residential development projects or below market rate dwelling units, by civil action and any other proceeding or method permitted by law.

This document replaces the BMR Administrative Procedures and Guidelines, last updated on March 19, 2020.

2 INTRODUCTION

This document provides procedures and guidelines to implement the Below Market Rate (“BMR”) Ownership Program of the City of Foster City ("City"). These Administrative Procedures and Guidelines, and other relevant information, including income limits and attachments to these BMR Guidelines, may be amended and updated from time to time by the Community Development Department Director.

The purpose of these BMR Ownership Guidelines is to provide clear and consistent guidance, procedures, and best practices to implement Chapter 17.90 of the Foster City Municipal Code https://www.codepublishing.com/CA/FosterCity/ and property covenants and regulatory agreements, as well as to promote the goals of the City's Housing Element 2023-2031, as adopted on May 22, 2023 , specifically fair housing and anti -discrimination priorities as stipulated in the Fair Housing Action Plan in Chapter 3, Affirmatively Furthering Fair Housing. https://engagefostercity.org/housing-element.

3 FAIR HOUSING

The priorities of the City’s Fair Housing Action Plan in the 2023-2031 Housing Element include:

1. Address disproportionate impacts by increasing the supply of affordable housing and providing more housing choices throughout the City.

2. Protect Purchasers from displacement through an anti-displacement strategy.

3. Address housing discrimination through fair housing information and training.

4. Address housing discrimination by providing additional support and opportunities for housing to meet special needs.

6.5 Exhibit B - BMR Ownership Guidelines

105

City of Foster City
Below Market Rate Ownership Housing Program
Administrative Procedures and Guidelines
December 18, 2023

4 File name: BMR Ownership Housing Program Administrative Procedures and Guidelines 12.18.2023

The BMR Ownership Housing Program must comply with AB 686 (https://www.hcd.ca.gov/community-development/housing-element/housing-element- memos/docs/ab686_summaryhousingelementfinal_04222020.pdf), which requires all public agencies to administer programs and activities related to housing and community development in a manner that affirmatively furthers fair housing.

4 COVERED PROPERTIES

Foster City Municipal Code section 17.90.040(A) requires residential development projects of 10 units or more to provide BMR units, for both for-sale and rental projects. These Guidelines apply to all for-sale BMR properties (“BMR Ownership Units”).

5 DEED RESTRICTIONS

5.1 GENERAL PROVISIONS OF DEED RESTRICTIONS
Generally, the City’s deed restrictions for ownership BMR units shall include, but are not limited to, the following key provisions:

1. Property may only be sold to persons and families of very low-income for a 45-year period, or another period of time as required by state law.

2. Non-occupying co-signers are not allowed.

3. Resale price shall be restricted during the deed restriction period.

4. The City shall be entitled to receive a portion of the “net proceeds” from the first sale of the Property or any refinancing following the termination of the restricted period.

5. An owner of a BMR Ownership Unit shall notify the City prior to any Transfer of all or part of the property at least ten (10) days prior to any occurrence of any of the following conditions:
a. The owner lists or otherwise advertises the BMR Ownership Unit for sale. b. The owner enters into an agreement for sale or Transfer of the Property. c. The owner ceases to occupy the BMR Ownership Unit as the owner’s primary and sole residence.
d. A notice of default under the Purchase Money Note is recorded against the BMR Ownership Unit.

6. Owners of BMR Ownership Units or prospective owners are not permitted to own additional residential real estate.

7. Each purchaser of a BMR Ownership Unit shall occupy the property as the principal residence for the duration of its ownership unless the purchaser has obtained the prior written approval of the City. Upon request by the City, the owner of the BMR Ownership Unit shall submit an affidavit to the City certifying that the BMR Ownership Unit is the principal residence.

6.5 Exhibit B - BMR Ownership Guidelines

106

City of Foster City
Below Market Rate Ownership Housing Program
Administrative Procedures and Guidelines
December 18, 2023

5 File name: BMR Ownership Housing Program Administrative Procedures and Guidelines 12.18.2023

5.2 NAMES OF OWNERS
Names of all Owners and Co -Owners shall be listed on the Deed Restrictio n, Affordability Restriction, Resale Restriction Agreement, and any other agreements for the Property. 6 INCOME RESTRICTIONS

6.1 SOURCE FOR INCOME LIMITS
The City uses the income limits as established by the California Department of Housing and Community Development (HCD), except as noted below or specified by the deed restriction. These income limits are issued in the spring of each year, with the actual issuance date varying from approximately February to June. The income limits are available at:
https://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-income-limits.shtml (see the “Official State Income Limits”).

6.2 PROCEDURES FOR CALCULATING INCOME

6.2.1 Applicability
The purpose of this methodology is to ensure consistency in calculating income for all Foster City BMR Ownership Units and to ensure compliance with Fair Housing laws. The methodology is based on the HUD standards as stipulated in the HUD Handbook 4350.3 (https://www.hud.gov/sites/documents/43503HSGH.PDF) and uses HUD form s and some California Tax Credit Allocation Committee forms.

6.2.2 Multiple or Conflicting Requirements
In the event of multiple requirements or conflicting methodology required by the deed restriction on the BMR Ownership Unit , the strictest rule for calculating income as stated in the deed restriction shall apply.

6.2.3 Household Member Income to Count
Any adult household member aged 18 or over and residing in the household 14 days or more per calendar year (consecutive or non-consecutive days), other than live-in aides shall be counted for income calculation purposes and included in the household size for purchase of the property. See the HUD Handbook for guidance.

6.2.4 Full Set of Forms Required for all Adult Household Members A full set of forms and associated documents is required for each adult household member , including an Income Questionnaire. Forms Schedule is available from the City.

6.2.5 Rules on Redacting of Information Provided for Income Certification Buyers are not permitted to r edact information, other than Social Security Numbers, that are provided on documents submitted for the income certification process.

6.5 Exhibit B - BMR Ownership Guidelines

107

City of Foster City
Below Market Rate Ownership Housing Program
Administrative Procedures and Guidelines
December 18, 2023

6 File name: BMR Ownership Housing Program Administrative Procedures and Guidelines 12.18.2023

6.2.6 Income Inclusions and Exclusions
The City of Foster City follows the HUD Manual regarding income inclusions and exclusions, with the following clarifications. See https://www.hud.gov/sites/documents/DOC_35699.PDF.

However, if the deed restriction references California Code of Regulations, Title 25, Section 6914 for determining income, then CCR Title 25, Section 6914 shall supersede this section.

For t emporary, non-recurring, or sporadic income (including gifts) , non-recurring is defined as income that appears only one time in any calendar year. For example, sporadic income from the same source that results in multiple deposits to a checking or savings account, even if differing amounts, in a given calendar year, is considered recurring income and must be counted. Assets in foreign or offshore accounts shall be included in the asset section of the certification.

Rent subsidies provided by government programs, such as Section 8, COVID relief, and other sources, are excluded from income. Rent subsidies from any source should be excluded from income if the subsidy is tied to the income of the purchaser, even if it is recurring and not a lump sum single payment and/or temporary in nature. If the subsidy is recurring, not temporary, and is a set amount that is not dependent on the amount of income of the purchaser, the subsidy should be counted as income . The exclusion rule, while not explicitly stipulated in the HUD list of exclusions, is based on the definition of determinable income as stated in the Housing Act of 1937 (https://www.hud.gov/sites/documents/DOC_10010.PDF). For example, Section 8 subsidies paid by the Housing Authority of San Mateo County and temporary emergency rent relief subsidies paid by any source should always be excluded from income.

6.2.7 Three Methods Required to Calculate Income
City staff should use three methods to calculate purchaser’s income from employment and take the highest of the three incomes for use in the income certification, except as noted below.

The three methods include: 1) gross income paystub averaging for six months of paystubs using the gross pay; 2) annualized year-to-date income calculation, and 3) pay rate calculation, including overtime. Exceptions: (1) If Staff obtains third -party employment verification, the information provided in the verification shall supersede information from paystubs or other methods of calculation. However, paystubs must still be included in the file even if employment verification is received; (2) for self-employment, see Section 6.2.11.

The City requires six months of paystubs to be submitted by employed adult household members.

Employment verification may be substituted for paystubs only if paystubs are not available. For those who have been employed less than three months or are about to start a new position, a letter of employment serves as acceptable verification of employment.

Method 1: Paystub Averaging
For each type of payment schedule, take the sum of the gross pay for each pay stub and divide and multiply as directed below.

• If paid weekly , 26 paystubs are required. Divide the total sum of payments by 26, then multiply by 52.

6.5 Exhibit B - BMR Ownership Guidelines

108

City of Foster City
Below Market Rate Ownership Housing Program
Administrative Procedures and Guidelines
December 18, 2023

7 File name: BMR Ownership Housing Program Administrative Procedures and Guidelines 12.18.2023

• If paid monthly, six paystubs are required. Divide the total sum of payments by six, then multiply by 12.
• If paid bi -weekly (every other week): 13 paystubs are required. Divide the total sum of payments by 13, then multiply by 26.
• If paid semi -monthly (twice a month on the same days each month): 12 paystubs are required. Divide the total sum of payments by 12 then multiply by 24. • For teachers who are paid ten months out of the year, take the total sum of six months and divide by six then multiply by ten.

Calculating annualized YTD income using weeks calculation: If using the weeks method, be sure to use a decimal for partial weeks: one day=.143, two days =.286, three days=.429, four days=.571, five days=.714, six days= .8 57). Use an online calculator program such as https://planetcalc.com/7741/. Divide the YTD amount on the paystub by the number of weeks and then multiply by 52 weeks.

In the event that the household member started a job after January 1 of the given year, use the start date as the first date to annualize rather than January 1.

Examples:

Assumptions: YTD pay period end date: June 15, 2023. Pay YTD: $45,500

Example for Weeks Method:

Using PlanetCalc or another online calculator to determine the weeks between 01/01/2023 and 06/16/2023 (remember to add a day), the answer provided is 23 weeks, 5 days. Note: Excel does not provide decimal point s and rounds up, so the Excel weeks formula is not recommended to determine the weeks.

6.5 Exhibit B - BMR Ownership Guidelines

109

City of Foster City
Below Market Rate Ownership Housing Program
Administrative Procedures and Guidelines
December 18, 2023

8 File name: BMR Ownership Housing Program Administrative Procedures and Guidelines 12.18.2023

Convert the days to a decimal. 5 days divided by 7 is .714, so the number of weeks is 23.714.

Divide $45,500 by 23.714 to get a weekly average pay. $45,500/23.714 = $1918.70 Multiply that result by 52 to annualize: 1918.70 x 52 = $99,772.40

Example for Days Method using Excel:

Due to rounding, the final values are slightly different. Therefore, the City recommends that Staff use either the weeks method or the days method consistently for all BMR income calculations.

Example 1. Full -time work, $ 47.50 per hour. The household member works an average of five hours of overtime per pay period and is paid bi-weekly.

Regular pay 47.50 x 2080 = $98,800 or 47.50 x 40 x 52 = $98,800 Overtime: rate is 1.5 x pay rate or $ 71.25. The average of two hours OT per pay period and 26 payments per year (paid bi-weekly) equates to 52 OT hours per year. $71.25 x 26 = $1,852.50 additional earnings per year.

Total income from this method is: $100,652.50.

Reviewing the methods, and, for the purposes of this example, Staff uses the Days method for calculating YTD, and the paystub averaging method resulted in an annual income of $101,222.22, the amount that should be used for the income certification is the highest of the three, or $101,222.22.

6.2.8 Lump Sum Payments
See Item See the HUD Manual Income Inclusions and Exclusions for more information on lump sum payments and when to count them as income or assets. In general, single payment lump sums are not counted as income for certifications. See:
https://www.hud.gov/sites/documents/DOC_35699.PDF. However, if the Property Covenant references California Code of Regulations, Title 25, Section 6914 for determining income, then CCR Title 25, Section 6914 shall supersede this section.

6.2.9 Tax Returns
The City requires t he prior year’s tax return from each adult household member to assist with income verification as a reference point for reasonableness. Tax returns and tax transcripts must be signed and dated by the taxpayer. The 120-day rule for dating documents does not apply.

Since income is projected forward, taxes are not used for calculating income , except for self - employment income in some cases. See Section 6.2.11 for self -employment income. If the household member does not file taxes , the household member must c omplete a non-tax filer

6.5 Exhibit B - BMR Ownership Guidelines

110

City of Foster City
Below Market Rate Ownership Housing Program
Administrative Procedures and Guidelines
December 18, 2023

9 File name: BMR Ownership Housing Program Administrative Procedures and Guidelines 12.18.2023

affidavit and Form 4506-T to obtain a transcript or statement of non-tax filing.

Transcripts may be requested by mail, telephone or online. If the household member cannot produce a transcript or statement using the mail, phone or online methods, the City recommends that Staff witness the request by having the Purchaser call, mail, or go online from the Property Management office.

• Use www.IRS.gov or the IRS2Go app to access Get Transcript by Mail ; transcript will be delivered within 10 days to the tax filer's address of record, or • Submit Form 4506 -T or 4506T -EZ to have a transcript mailed to the tax filer at the tax filer's address of record with the IRS. Complete and print the form at https://www.irs.gov/forms-pubs/about-form-4506-t
• Call 800-908-9946 for an automated Get Transcript by Mail feature.

In the event that the household member is still unable to produce a transcript or taxes, and Staff can attest to witnessing the transcript request, an affidavit of non -tax filer status will suffice in the file, along with a clarification of verification.

6.2.10 Self-Employment Income
For self -employment, which includes sole proprietorships with or without employees , single entity LLCs, contract work, “gig” work, and work paid in cash with no paystub, the household member shall complete a Self-Employment Affidavit. The Self-Employment Affidavit shall be used to document projected net self-employment business income for the following 12 months and should be confirmed through tax returns and other documentation, such as business bank statements that may be requested by Staff to clarify income. Net business income is all anticipated revenue for the next 12 months less business expenses. Self-employment income cannot be zero for income certification unless the prior year’s income taxes show a loss, and the Purchaser anticipates a continued loss for the next 12 months.

Those who are self-employed must provide their most recent taxes for verification. In the event that the Purchaser does not file taxes, the Purchaser must complete a Non -Tax Filer Affidavit, a Form 4506-T, and provide evidence of the business, such as deposits, receipts, or business bank account statements for verification.

For businesses in which the business owner pays themselves a regular salary, the amount they pay themselves should be included in the business expenses and should not be listed separately as income. For a business owner that pays other household members, the income amount should be included as part of that household member’s income. Self -employment should not be third - party verified other than through taxes.

The business Owner must submit business documentation as needed and the most recent federal

6.5 Exhibit B - BMR Ownership Guidelines

111

City of Foster City
Below Market Rate Ownership Housing Program
Administrative Procedures and Guidelines
December 18, 2023

10 File name: BMR Ownership Housing Program Administrative Procedures and Guidelines 12.18.2023

tax return. Use the amount on the affidavit and collect last year’s federal tax return to verify the business and the business income.

Example 1: Uber Driver
• Purchaser anticipates $35,000 in gross revenue in the next 12 months. • Business expenses (car washes, gas, insurance, etc.): $10,000. • Net Business Income: $25,000.
• Use $25,000 as the projected income for the next 12 months for the income certification. • Have the Purchaser complete the Under Income Affidavit form if there are no other sources of income sufficient to pay the rent.
• Screenshots of payments from Uber are not required.

Example 2: Sole Proprietorship with a Loss
• Purchaser anticipates $0 for the next 12 months due to higher expenses than revenues. • Revenues are anticipated at $25,000.
• Expenses are anticipated at $30,000 due to recently starting the business. • Last year’s taxes showed a loss.
• Use $0 as the projected income for the income certification. • Note: if the last year’s taxes did not show a loss, and the Purchaser is claiming $0 for the next 12 months, use the amount from the prior year’s taxes for the income certification.

Example 3: Occasional Cash-Paid Service Worker
(e.g., babysitting in which the employer does not claim the worker as an employee) • Purchaser anticipates $3,500 in revenue for the next 12 months. • Expenses are anticipated at $0.
• Use $3,500 as the projected income for the income certification. • Verify evidence of past payments through deposits to checking account(s), if possible. • Have the Purchaser complete the Under Income Affidavit form if there are no other sources of income sufficient to pay the rent.

6.2.11 Unemployment and Disability Income
Unemployment and disability benefits shall be annualized unless the household member provides documentation that benefits will cease in the next 12 months.

6.2.12 Social Security and Supplemental Social Security Income For Social Security Income or Supplemental Security Income (SSI), a benefit verification letter with a date no earlier than 120 days prior to the effective date of certification is required. Refer to the Social Security website on how to obtain this letter. See https://www.ssa.gov/manage- benefits/get-benefit-letter. Count the total income before any deductions. If the Benefit Verification Letter is for the prior year and lists payment amounts prior to December of the prior year, you must multiply the benefit amount by the cost -of-living adjustment (COLA) to project benefits for the following year. The current year COLA adjustment can be found here:
https://www.ssa.gov/oact/cola/latestCOLA.html. Note that if a Purchaser’s sole source of income is from Social Security, the Purchaser should also complete a Non-Employment Affidavit. For lump sum social security payments, refer to the HUD Manual, Chapter 5.

6.5 Exhibit B - BMR Ownership Guidelines

112

City of Foster City
Below Market Rate Ownership Housing Program
Administrative Procedures and Guidelines
December 18, 2023

11 File name: BMR Ownership Housing Program Administrative Procedures and Guidelines 12.18.2023

6.2.13 Dates of verifications
All verifications received, including the dated social security benefit letter received should be dated within 120 days prior close of escrow . Written clarifications shall be included in the Purchaser file for any exception to rules or any calculation that needs explanation.

6.3 ASSET ELIGIBILITY AND VERIFICATION

6.3.1 Use of California Code of Regulations, Title 25 for Calculating Income from Assets For all properties, unless noted in the deed restriction, staff should calculate income from assets in accordance with the requirements set forth in California Code of Regulations, Title 25, Housing and Communication Development, Division 1, Housing and Community Development, Chapter 6.5 Program Operations, § 6914 and as directed in these BMR Guidelines. View Document - California Code of Regulations (westlaw.com), with the exception that the current HUD passbook savings rate for determining income from assets shall apply. See HUD Handbook 4350.3 REV-1.

6.3.2 Third-Party Verification of Assets
The City of Foster City requires third-party verification of assets for purchasers of BMR property.

Third-party verifications must comply with current fair housing regulations and the current HUD Handbook, Chapter 5, Section 3, Verifications.

6.3.3 Negative or Blank Asset Verifications
Negative or blank asset verifications, in which City Staff seek to determine if an account is held at a financial institution and for which there is no disclosure of the asset on the TICQ, are not permitted.

6.3.4 Rules on Redacting Information on Documents Provided The City does not allow r edacted information, other than social security numbers, on any documents submitted for the income certification process.

6.3.5 Calculating Income from Assets
Twelve months of bank statements are required for checking and savings accounts and the latest quarterly statement for investment and retirement accounts. For checking accounts, the cash value of the asset is the average of the ending balance for 12 months. For savings accounts, the cash value is the ending balance on the most recent statement. For investment accounts, the cash value is the ending balance on the current statement, less any penalty for early withdrawal (usually 10%), if applicable. Substantial, frequent, or regular deposits of $100 or more require explanation from the household member, if not included on the Purchaser Income Questionnaire.

6.3.6 Computing Income from Real Estate Assets
Purchasers of BMR ownership units are not permitted to own residential real estate. For commercial real estate assets, in accordance with Section 7.4, Staff should verify the cash value of the asset through three online sources or a recent appraisal that is not more than 120 days old.

Take the average of the three values and subtract 6% for average sales costs (or current industry

6.5 Exhibit B - BMR Ownership Guidelines

113

City of Foster City
Below Market Rate Ownership Housing Program
Administrative Procedures and Guidelines
December 18, 2023

12 File name: BMR Ownership Housing Program Administrative Procedures and Guidelines 12.18.2023

standard if not 6%) and subtract any remaining mortgage on the property. To verify the remaining mortgage, obtain a recent mortgage payment statement or use an online source to verify the outstanding balance. The cash value of the asset goes in the asset section of the Purchaser Income Certification. Imputed income will also be added to the income from assets since the cash value of the real estate, combined with other financial assets, will likely trigger the imputed income rule.

6.3.7 Lump Sum Payments
Single l ump sums for the following items should be counted as assets rather than income:
inheritance, capital gains, lottery winnings made in one payment, cash from sale of assets, insurance settlements, workers compensation, and personal property losses; any other amounts that are received in one -time lump sum payments. Two or more payments of these items shall be counted as income, rather than assets. See HUD Inclusions and Exclusions to Income for more details. See https://www.hud.gov/sites/documents/DOC_35699.PDF.

6.4 LIVE-IN AIDES
The City does not count income from live-in aides as defined by HUD. See HUD Handbook Chapter 3 and Chapter 5: https://www.hud.gov/sites/documents/43503c3HSGH.PDF and https://www.hud.gov/sites/documents/43503c5HSGH.PDF for more information. For LIHTC properties, refer to CTCAC compliance rules on this issue.

6.5 DOCUMENTING PURCHASER INCOME CERTIFICATIONS

6.5.1 Forms
City Staff shall use the most current forms available from the California Tax Credit Allocation Committee (CTCAC), as provided below, or substantially similar forms created by the City Staff:

CTCAC forms are available on the CTCAC website at
https://www.treasurer.ca.gov/ctcac/compliance.asp. In addition, City Staff shall include a calculation worksheet for each household showing how income was calculated for each household member.

6.5.2 Owner Income Certification File Organization
Income Certifications for Purchaser files shall be organized in the following order.

1. Purchaser Income Certification Form

2. Income calculation worksheet(s), income and rent limits, and Utility Allowance Schedule for the household.

The following Items shall be in order by household member with the head of household first.

1. Purchaser Income Questionnaire

2. Income forms and documents

3. Asset forms and documents

4. Child support forms and documents

6.5 Exhibit B - BMR Ownership Guidelines

114

City of Foster City
Below Market Rate Ownership Housing Program
Administrative Procedures and Guidelines
December 18, 2023

13 File name: BMR Ownership Housing Program Administrative Procedures and Guidelines 12.18.2023

6.5.3 Required Forms
Forms required for Income Certification of purchasers are listed below. Unless otherwise noted, one form is required for each adult household member. Forms marked by an asterisk are available on the CTCAC website at https://www.treasurer.ca.gov/ctcac/ compliance.asp.

1. Affidavit of Residence Form (required for Foster City residents for new move-ins)

2. Purchaser Income Certification Form (one per household)

3. Income Calculation Worksheet

4. Purchaser Income Questionnaire

5. Self-Employment Affidavit (SEA), if applicable

6. Family Contribution Affidavit, if applicable*

7. Non-Employment Form, if applicable*

8. Zero Income Certification Form, if applicable*

9. Non-Tax Filer Affidavit, if applicable

10. IRS Form 4506-T, if applicable https://www.irs.gov/forms-pubs/about-form-4506-t

11. Under $5,000 in Asset Certification Form, required if value of assets is < $5000*

12. Substantial Deposits form, (required if bank statements show multiple deposits over $100 that are not disclosed on Income Questionnaire)

13. Child or Spousal Support Affidavit*

14. Live-In Aide Verification Form, if applicable*

15. Clarification Form, if applicable

16. Asset Verification Clarification Form, if applicable

6.5.4 Signatures on Forms
The Purchaser’s Income Certification form must be signed by all adult household members and Staff. All forms must be signed as indicated on the form. Taxes included in the file must be signed by the Purchaser.

6.5.5 Dates on Forms
Forms prepared and/or signed after the effective date of certification shall be signed with the current date and include the following statement “True and Correct as of (insert effective date).

The statement must be initialed by the Purchaser(s). Backdating of forms is not permitted.

6.5.6 Mistakes and Corrections on Forms
Forms and documents submitted for certification may not be amended or corrected unless authorized by Staff and initialed by the household member. Errors should be crossed out and initialed. Blacking or whiting out of errors is not permitted.

6.5.7 Conflicting, Incomplete, Insufficient, or Unclear Information Provided on Forms If Staff determines they have received conflicting, unclear, or insufficient forms or documentation, they have the right to request additional information from the household member pursuant to HUD Guidelines.

6.5 Exhibit B - BMR Ownership Guidelines

115

City of Foster City
Below Market Rate Ownership Housing Program
Administrative Procedures and Guidelines
December 18, 2023

14 File name: BMR Ownership Housing Program Administrative Procedures and Guidelines 12.18.2023

6.6 REQUESTING ADDITIONAL INFORMATION REQUIRED FOR ELIGIBILITY Additional information and documentation not listed in these Guidelines may be required to review an Owner’s eligibility to purchase a unit.

6.7 CITIZENSHIP/RESIDENT ALIEN STATUS VERIFICATION
The City does not currently require verification of citizenship or resident alien status unless required by law.

6.8 SOLE RESIDENCY REQUIREMENT
The BMR Ownership Unit must be the household’s sole and primary residence. Exceptions include students who reside elsewhere to attend school and reside in the BMR property 14 or more (consecutive or non -consecutive days per year) , children under a shared custody agreement , estranged or separated spouses, and household members in temporary or permanent supportive housing.

7 DETERMINING PURCHASE PRICE

7.1 ELIGIBILITY
Purchase price of the property shall be determined pursuant to the regulatory documents governing the Property as pursuant to California Health and Safety Code Section 50052.5 as follows. Persons and families of very low-income means persons and families whose income does not exceed limits set forth in Section 50105 of the Health and Safety Code or any successor statute thereto. Persons and families of low - or moderate-income means persons and families whose income does not exceed the limits set forth in Section 50093 of the Health and Safety Code or any successor statute thereto. Income shall be calculated as set forth in Section 6 .0 of these BMR Ownership Guidelines.

7.2 INITIAL PURCHASE PRICE
The Initial Purchase Price, also called the A ffordable Housing Cost, is defined in Section 50052.5 of the Health and Safety Code or any successor statute thereto . Section 50052.5 defines Affordable Housing Cost as:

(a) For extremely low-income households the product of 30 times 30 percent of the area median income adjusted for family size appropriate for the unit. (b) For very Low -Income Households the product of 30 percent times 50 percent of the area median income adjusted for family size appropriate to the unit. (c) For lower Income Household s whose gross incomes exceed the maximum income for very low-income households and do not exceed 70 percent of the area median income adjusted for family size, the product of 30 times 70 percent of the area median income adjusted for family size appropriate for the unit as defined in Section 50052.5 (h).

6.5 Exhibit B - BMR Ownership Guidelines

116

City of Foster City
Below Market Rate Ownership Housing Program
Administrative Procedures and Guidelines
December 18, 2023

15 File name: BMR Ownership Housing Program Administrative Procedures and Guidelines 12.18.2023

Adjustment for household size is as defined in Section 50052.5 (h) and means two people for a one-bedroom unit, three people for a two-bedroom unit, four people for a three-bedroom unit, and five people for a four-bedroom unit. Section 50052.5 (h) does not include five-bedroom units, but it is assumed that six people shall be used for household size for a five-bedroom unit.

In the event that Section 50052.5 is updated, the most current version of the Code shall apply.

8 RESALE PRICE RESTRICTION

8.1 TERM OF RESTRICTIONS
Owners of BMR Properties are required to sell or transfer their property to households of low and very low income during the deed restriction period pursuant to the deed restriction , other documents governing the property, and the provisions of this section.

8.2 DEFINITION OF TRANSFER
Transfer shall mean any transfer of title to, or rental or sale, of the Property, or judicial sale on execution or other legal process of foreclosure or trustee’s sale of the P roperty (regardless of whether initiated by the lender); provided, however that “Transfer” does not include any of the following: (a) transfer by gift, devise or inheritance to the spouse, issue or adopted child of the Owner of the Property; or (b) a transfer resulting from the death of an Owner where the transfer is to a co-Owner or joint tenant; or (c) a transfer by an Owner to any person who becomes a co- Owner of the Property provided Owner retains at least a thirty-three percent (33%) interest in the Property and the co-Owner agrees to become a Co-Owner under the Resale Agreement; or (d) a transfer resulting from a divorce, a decree of dissolution of marriage or legal separation or from a property settlement agreement incidental to such a decree in which one of the Owners becomes the sole Owner of the Property; or € a transfer between co -Owners; or (f) a transfer by Owner into an inter vivos trust in which Owner is a beneficiary a nd Owner continues to occupy the Property; or (g) acquisition of title to the Property or interest therein in conjunction with marriage.

Owners must notify the City in writing within ten (10) days of offering their house for sale. Owners must disclose deed restrictions to potential buyers. Incomes of potential purchasers must be certified by City Staff prior to execution of a Purchase and Sale Agreement. The resale purchase price must be calculated by the City and provided.

8.3 RESALE PROCEDURES
The Owner shall notify the City prior to any Transfer of all or part of the Property. This notification shall occur prior to the occurrence of any of the following conditions.

(a) The Owner lists or otherwise advertises the Property for sale. (b) Owner enters into an agreement for sale or Transfer of the Property. (c) The Owner ceases to occupy the Property as the Owner’s sole residence. (d) A notice of default under the Purchase Money Note is recorded against the Property.

6.5 Exhibit B - BMR Ownership Guidelines

117

City of Foster City
Below Market Rate Ownership Housing Program
Administrative Procedures and Guidelines
December 18, 2023

16 File name: BMR Ownership Housing Program Administrative Procedures and Guidelines 12.18.2023

The Owner shall have an affirmative obligation to inform the City in writing a minimum of ten (10) days prior to the occurrence of any condition stated above.

8.4 RESALE PRICE

8.4.1 Calculation of Resale Price During the Deed Restriction Period During the deed restriction period, the City shall determine the Resale Price according to the following method to calculate a price not to exceed the lowest of:

(a) Median Household Income – the original purchase price plus an amount, if any, equal to the original price multiplied by the percentage increase, from the time of the initial conveyance from the Developer to the Owner until the time of sale, in the median household income for San Mateo County, as published periodically by the United States Department of Housing and Urban Development and the State Department of Housing and Community Development :
https://www.hcd.ca.gov/grants-and-funding/income-limits. The original purchase price shall be increased by that percentage; provided, however, that the adjusted price in no event shall be lower than the purchase price paid by the Owner when the Owner purchased the Property.

This adjusted price shall be increased by the value of any Capital Improvements.

(b) Consumer Price Index – the original purchase price plus an amount, if any, equal to the original purchase price multiplied by the percentage increase in the housing component of the Consumer Price Index for the San Francisco/Oakland/San Jose Area, Housing Compo nent Index for All Urban Consumers, as published by the United States Department of Labor and Statistics: https://www.bls.gov/cpi/. For that purpose, the Consumer price Ind ex prevailing on the date of the purchase by the Owner of said Property shall be compared with the latest Consumer Price Index available on the date of receipt by Agency of notice of intent to sell.

The original purchase price shall be increased by that percentage; provided, however, that the adjusted price in no event shall be lower than the purchase price paid by the Owner when the Owner purchased the property. This adjusted price shall be increased by the Value of any Capital Improvements.

(c) Appraisal – The Owner shall have an appraisal made by a neutral professional appraiser of the Owner’s choice and expense to establish the market value. The City or its designee may elect to have an appraisal made by a neutral professional appraiser of its choice , at the City’s expense, in the event that the City is not satisfied with the Owner’s appraisal. the average of the two appraisals shall be deemed to be the market value.

8.4.2 Adjustments to Resale Price
Any resale price determined through the use of method described in 8.4 (a) or (b) shall be adjusted by decreasing the Resale Price by an amount to compensate for deferred maintenance costs, which amount shall be determined as follows: upon receipt of notice of Owner’s intent to sell, the City or its designee shall have an opportunity t o determine whether any violations of applicable building, plumbing, electric, fire or housing codes exist or any other provisions of Municipal Code.

In the event deficiencies are noted, the City shall obtain estimates to cure the observed

6.5 Exhibit B - BMR Ownership Guidelines

118

City of Foster City
Below Market Rate Ownership Housing Program
Administrative Procedures and Guidelines
December 18, 2023

17 File name: BMR Ownership Housing Program Administrative Procedures and Guidelines 12.18.2023

deficiencies. The Owner shall cure the deficiencies in a reasonable manner acceptable to the Agency or its designee within sixty (60) days of being notified of the results of the inspection, but in no event later than the close of escrow. Should Owner fail to cure such deficiencies prior to the scheduled date of close of escrow, at the option of the City, its designee or assignee, escrow may be closed, title passed and money paid to the Owner subject to the condition that such funds as are necessary to pay for curing such deficiencies (based upon written estimates obtained by the City) shall be withhold from the money due to the Owner and held by the escrow holder for the purpose of curing such deficiencies. The City, its designee or assignee shall cause such deficiencies to be cured an upon certification of completion of work, escrow holder shall utilize such funds to pay for said work. Any remaining funds shall be paid to the Owner. No other payment shall be due to the Owner.

8.4.3 Establishment of Resale Price
The City shall notify the Owner of the Resale Price within ten (10) days of the Owner’s notification subject to the determination of those factors establishing price, such as completion of appraisals of the property if necessary; inspection of the property; and determination of the value of capital improvements.

8.4.4 Value of Capital Improvements
The value of capital improvements to the property, if any, shall be determined in accordance with the following provisions:

(a) Within sixty (60) days of completion of any capital improvements, the Owner shall notify the City in writing of the completion of the capital improvements and shall submit proof of cost, copies of all applicable permits and plans and an estimate of the increase in value of the Property by reason of the improvements (not to exceed actual cost of construction).

(b) If, within thirty (30) days of receipt of the notice to the City of the capital improvements, the City questions the claimed increase in value of the Property by reason of the Capital Improvement, the City and Owner may, by mutual agreement, establish the value of the Capital Improvement or Owner may require an appraisal of the Property, at the Owner’s expense. If the City requires an appraisal to determine the value of the Property, if any, by reason of Capital Improvements, two (2) neutral professional appraisers shall be selected; one chosen by City and one chosen by the Owner. If the appraisals are preformed, the increase in value resulting from the Capital Improvement shall be the average increase determined by the two appraisals. The cost of the appraisals shall be divided between the parties.

9 SHARE OF PROCEEDS TO AGENCY

To reimburse the City for the use of its money, the City shall be entitled to receive a portion of the net proceeds from the first sale of the Property or any refinancing following the termination of the deed restriction period. If the Property is owned by persons and families of low to moderate income, the City shall receive twenty percent (20%) of net proceeds, and if the property is owned

6.5 Exhibit B - BMR Ownership Guidelines

119

City of Foster City
Below Market Rate Ownership Housing Program
Administrative Procedures and Guidelines
December 18, 2023

18 File name: BMR Ownership Housing Program Administrative Procedures and Guidelines 12.18.2023

by persons and families of very low income, the City shall receive forty percent (40%) of net proceeds.

Net proceeds shall be determined by the gross receipts from the sale or refinance of the Property less customary and reasonable closing costs, including reasonable and customary brokerage commissions, and repayment of the outstanding principal balance of any first mortgage loan on the Property. The escrow agent or title company handling the closing of the property shall be directed to transfer twenty percent (20%) or forty percent (40%), as applicable, of the net proceeds to the City upon close of escrow.

In order to protect the right of the City to receive the net proceeds, no loan secured by a first deed of trust or mortgage against the Property shall have a loan to value ratio in excess of ninety -five percent (95%), with the value calculated as the most recent Affordable Housing Cost. This restriction on the amount of the loan will remain in effect until the City has received its twenty percent (20%) or forty percent (40%), as applicable, share of o the net proceeds.

10 REQUIREMENTS FOR PROGRAM MONITORING AND

ADMINISTRATION

10.1 RETENTION OF RECORDS

10.1.1 Storage Time Requirement
Owners must maintain records for at least seven (7) years after transfer of the property.

10.1.2 Electronic Files
Files may be kept electronically or in hard copy. Electronic files must be protected . The City requires all electronic files to comply with California Tax Credit Allocation Committee rules on electronic files. See: https://www.treasurer.ca.gov/ctcac/compliance/memos/electronic- storage.pdf.

10.1.3 Additional Requirements
Covenants, local, state, or federal regulation may require additional records management and reporting requirements, or supersede requirements as stipulated in this Section.

10.2 MONITORING
Upon request by the Agency, the owner of the Property shall submit an affidavit to the Agency certifying that the Property is the owners occupy the property as their principal residence or other provisions of the deed restrictions, Affordability and Resale Restrictions, or other Agreements or regulatory documents governing the property to ensure compliance.

6.5 Exhibit B - BMR Ownership Guidelines

120

City of Foster City
Below Market Rate Ownership Housing Program
Administrative Procedures and Guidelines
December 18, 2023

19 File name: BMR Ownership Housing Program Administrative Procedures and Guidelines 12.18.2023

11 USE OF HUD GUIDELINES FOR ITEMS NOT COVERED IN THESE

GUIDELINES

11.1 USE OF HUD GUIDELINES FOR BMR PROPERTIES
For items not covered in these BMR Guidelines , the HUD Handbook 4350.3 REV -1 shall be considered a reasonable best practice. The handbook is provided on the website of the U.S.

Department of Housing and Urban Development at:
http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbook s/hsgh/4350.3

Use of HUD Guidelines for Properties Covered by One or More HUD-Funded Programs For properties covered by one or more HUD-funded Programs, if there is conflicting information in the HUD Handbook, the Covenant in place for a property, or these BMR Guidelines, then the strictest policy shall apply. An overview of HUD Programs can be found at https://www.hud.gov/sites/dfiles/Main/documents/HUDPrograms2023.pdf.

11.2 USE OF HUD’S FAIR HOUSING POLICIES
Please note that HUD’s policies on Fair Housing are applicable to all BMR Ownership properties.

See:
https://www.hud.gov/program_offices/fair_housing_equal_opp/fair_housing_act_overview#_T he_Fair_Housing. In addition, the following t emporary HUD Programs may apply to the BMR Ownership property if the Owner received federal financial assistance through one of the following programs:
• The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (Public Law 116 -136, approved March 27, 2020)
https://www.congress.gov/bill/116th-congress/house-bill/748/text • American Rescue Plan Act of 2021 (Public Law 117-2, approved March 11, 2021) https://www.congress.gov/bill/116th-congress/house-bill/748/text

Please note that t he State of California Fair Housing laws also apply to all properties. More information about California Fair Housing can be found here:
https://calcivilrights.ca.gov/LegalRecords/.

12 NON-COMPLIANCE AND REMEDIES

In the event that the City determines that an unauthorized transfer has occurred, or the property is not the primary residence of the owner, Staff will enforce any and all regulatory requirements.

The City has enforcement authority pursuant to City of Foster City Municipal Code, Chapter

17.90.110 (E). https://www.codepublishing.com/CA/FosterCity/.

12.1 PROCEDURE FOR NON-COMPLIANCE

6.5 Exhibit B - BMR Ownership Guidelines

121

City of Foster City
Below Market Rate Ownership Housing Program
Administrative Procedures and Guidelines
December 18, 2023

20 File name: BMR Ownership Housing Program Administrative Procedures and Guidelines 12.18.2023

City staff may notify the owner with a Notice of Non-Compliance, and remedies and deadlines for correcting non-compliance issues.

12.1.1 Appeal Process
Owners who wish to appeal a notice of non-compliance must submit a request for appeal in writing to the City within ten (10) business days of receipt of the Notice of Non -Compliance.

Appeals will be considered by the Community Development Director, in coordination with the City Attorney. In the event of a denial the Owner shall have the time specified in the decision to remedy the non-compliance specific to the circumstance.

12.1.2 Continued or Repeated Non-Compliance
Owners that remain in a state of non-compliance for more than ninety (90) days after the date of a Notice of Non-Compliance or Denial of an Appeal of Non-Compliance or are notified by the City of non-compliance may be subject to fines or legal action by the Cit y pursuant to City of Foster City Municipal Code, Chapter 17.90.110 (E).

12.2 REMEDIES

12.2.1 Unauthorized Sale, Lease or Transfer of Property In the event that a sale, lease , refinancing, or other transfer of the property occurs without certification by the City that the purchaser/transferee is an eligible household and that the property is being transferred at an affordable housing cost, the sale, lease, or other transfer of the Property in violation of the Deed Restriction, Resale Agreement, or other Regulatory Agreement, the sale, lease or other transfer shall be void and the City may elect to force a sale of the property and exercise right of first refusal.

12.2.2 Violation of Deed Restrictions or Other Regulatory Documents In the event that the City determines, through documented evidence, that the owner maintains another residence, owns other residential property, committed fraud relating to certification of income, or violates any other restriction of the Deed Restriction, Affordability Restriction, Resale Restriction, or other Regulatory Document pertaining to the Property, the City may require the Owner to provide evidence of curing the violation and/or the City elect to force a sale of the property and exercise right of first refusal.

13 CONFLICT WITH HOUSING ELEMENT OR OTHER

REGULATORY INSTRUMENT(S)

These BMR Ownership Guidelines serve as an implementation tool for the Housing Element and property affordability restrictions , Affordable Housing Agreements, Amendments, or other regulatory instruments that are in effect for all properties covered by these BMR Ownership Guidelines. In the event that these BMR Ownership Guidelines conflict with the Housing Element, the Deed Restriction or other instrument recorded for the Property , or other local, state, or federal regulation covering the property , the regulatory instrument(s) in effect for the property shall supersede these BMR Ownership Guidelines.

6.5 Exhibit B - BMR Ownership Guidelines

122

4 8
6 DATE: December 18, 2023
TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager
FROM: Derek Schweigart, Parks and Recreation Director
Frank Fanara, Parks Manager
SUBJECT: REQUEST FOR PROPOSAL / QUALIFICATIONS FOR THE
DEVELOPMENT OF A PARKS MASTER PLAN (CIP 301-682)

RECOMMENDATION
It is recommended that City Council adopt the attached resolution approving and authorizing the City Manager to issue the attached Request for Proposal / Qualifications (RFP/Q) for professional services for the development of a Parks Master Plan (FNA Park System Master Plan (CIP 301-682)).

EXECUTIVE SUMMARY
The Parks Master Plan (Plan) is a planning and visioning tool that will guide City decision- makers in the planning, development and/or rehabilitation, maintenance, and funding of Foster City’s parks for the next 20-30 years. Foster City’s existing parks infrastructure needs rehabilitation or redesign to better meet current and future recreational needs of its residents and visitors. The selected firm should have experience and knowledge in park and recreation planning, master plan preparation, project management, and effective public involvement process. The consultant will work closely with City staff in preparing the Plan and creating a document for distribution to the public.

The City’s Parks System consists of 24 parks, eight miles of pedway levee (Bay Trail); 68 medians, 49 cul-de-sacs, 14 easements containing ice plants, sound walls, walkways, and bridges (hereto referred to as Parks System). There are 16 playgrounds, and nine park sites with at least one sport court activity, nine synthetic turf sports fields, and 14 park restrooms. The City has maintained and made continuous improvements to the existing parks infrastructure, ensuring that components meet legal and City standards on a regular basis.

6.6 6.6 Staff Report

123

4 8
6 Even so, the City’s parks are over 50 years old, which require attention to the aging infrastructure as well as ensuring that the Parks System remains relevant and continues to meet user needs now and in the future.

The City Council’s authorization of the RFP/Q will allow the process of engaging with a consultant to develop the City’s Parks Master Plan, which was placed on hiatus in 2019 with a shift in City Council’s priorities. In 2021, the City Council validated its intention to resume the Parks Master Plan as a strategic priority but given several management changes and limited capacity, the project was on hold until a new Parks and Recreation Director was hired to lead the initiative.

BACKGROUND
The City's first Parks Master Plan, dating back to 1989, was crafted by city staff under the guidance of the City Manager. The plan encompassed three components:
establishing goals and policies for the Parks and Recreation Department, formulating a practical capital improvement program, and outlining general policies to address the evolving service needs of the community for future enhancements. Collaborating closely with the City Council and the Parks and Recreation Committee, numerous recommendations were crafted, including proposals for capital improvement projects (CIPs).

The plan offered several suggestions, covering both general site enhancements and CIP projects slated for completion in future years. While a substantial number of projects outlined in the plan were successfully executed, adjustments became necessary as project requirements and available funding evolved. The plan was designed to be periodically reevaluated and adjusted to align with the evolving needs of the community and the City's financial capacities.

The overarching goal of the plan was to serve as a roadmap, tracking the progress of the park and recreation system since 1988. It aimed to encapsulate the full spectrum of amenities and services that have been available to the public since the inception and development of the Estero Municipal Improvement District, offering valuable recommendations and guidance for the future.

In 2018, the City Council and staff identified a need to take a fresh approach to the Park System, as Foster City’s parks and their associated infrastructure age, and as a dynamic and diverse community, influences the needs that are addressed through the Park System. The planning effort began in the fall of 2018 when the City hired Placeworks, Inc. to assess the current Parks System and develop a long-term vision and strategy to meet the needs of our increasingly diverse population for the foreseeable future. The initial work of Placeworks resulted in a preliminary assessment of City parks, and a community survey that was distributed to determine any unmet needs. However, the Placeworks contract was terminated in the spring of 2019 before several of the planned public engagement tasks were completed.

6.6 6.6 Staff Report

124

4 8
6 On June 9, 2021, the City Council discussed the benefit of developing a comprehensive plan for the Park System versus identifying key amenities within our Park System to be replaced or improved in the next 10 to 15 years and developing a financing strategy to pay for those improvements over time. City Council directed staff to develop a community engagement strategy and survey tool and solicit comments and suggestions from the Parks and Recreation Committee on the outreach strategy before returning to the City Council for further direction. The City Council directed staff to leverage the work that had already been done and to identify the amenities that were either missing, needing to be replaced or refurbished, or consider new ones to be designed and constructed. This collection of feedback was to be prioritized into a CIP plan, priced, validated by staff, and incorporated into the FY 2022-2023 budget for review and ultimate approval by the City Council.

In 2021, the City worked with ZenCity as part of a broad survey to understand how residents use city parks and the Recreation Center and get residents’ feedback on how to improve them. The survey was conducted between November 23 to December 17, 2021, and received 927 respondents. Respondents were targeted through various media platforms (e.g., social media, apps for Android and Apple, local websites) as well as online survey panels and different city channels. Using data from the Census Bureau, this survey employed quotas to match the distributions of race, ethnicity, age, and gender in Foster City.

The results of the survey were broad and non-specific but provided some insights into park usages patterns, preferences, and suggestions for enhancing parks as well as accessibility and convenience of amenities in the parks. A comprehensive Plan will build on these insights and provide the necessary information to guide future park improvements.

ANALYSIS
It is a standard practice for the City to use consultants for professional engineering services and other specialty professional services for CIP projects and private development projects to support the operations of the City. Consultants assist staff with specific areas of technical and professional expertise necessary to complete the project.

Consultants are solicited through an open and competitive RFP/Q process. The RFP/Q process is used to identify consulting firms with the necessary background and experience to provide services as well as to make certain the cost for services is competitive. Staff coordinated outreach with various local agencies regarding their experience with soliciting services for similar projects, which included recommendations on the process/scope and example documents from which language was incorporated.

The estimated value of the professional services is anticipated to exceed $50,000 and

6.6 6.6 Staff Report

125

4 8
6 therefore, the City Council is being asked to approve the RFP/Q in accordance with the City’s Purchasing Policy. The City will request proposals from qualified firms that have the experience and knowledge in park and recreation planning, master plan preparation, project management, and effective public involvement process. Staff members will review the submitted proposals per a qualification-based selection process and rank the top three firms for interview by an evaluation committee designated by the City Manager.

Staff recommends the composition of the evaluation committee to include representation from the Parks and Recreation Department, Public Works Department and a member of the Parks and Recreation Committee.

The top three scoring design firms will present their proposals to the evaluation committee for consideration. The evaluation committee will deliberate and select the final firm. City staff will negotiate with the selected firm on the final scope and fee amount to recommend to City Council for approval.

The selected firm, at a minimum, will provide an inventory and assessment report for all City parks which includes an evaluation and assessment of park amenities. For each park site, the Consultant shall review relevant documents, and prepare a comprehensive Plan that includes design and construction recommendations. The Consultant shall review and evaluate safety concerns, code compliance, upgrade requirements, and constructability.

Potential improvements or upgrades shall include, but not limited to, access routes, pathways, lighting, irrigation, landscaping, hard scape / paving, playgrounds, play surfaces, turf, picnic areas and shelters, sports fields, fencing, restrooms, site amenities, park buildings and parking areas. The overall scope of services will include the following tasks:

1. Develop proposed Plan vision, goals, and objectives.

2. Conduct an existing conditions assessment and facilities study.

3. Develop and conduct a robust outreach and public participation plan.

4. Conduct a needs assessment including conducting a comparative analysis of neighboring cities, identifying emerging local and regional trends that will inform the Plan.

5. Provide recommendations that include a prioritization matrix that will inform an implementation action plan.

6. Develop an implementation action plan with adequate details on costs and potential funding sources.

The full scope of services and expected deliverables for the RFP/Q are included as Attachment A in the RFP/Q document.

The attached resolution authorizes staff to issue the RFP/Q and initiate the consultant selection process. Staff anticipates the award of the agreement for consultant services to be considered by the City Council by March 2024.

CALIFORNIA ENVIRONMENTAL QUALITY ACT
The action to authorize the City Manager to issue an RFP/Q for professional consultant services in the development of a Parks Master Plan is not subject to review under the

6.6 6.6 Staff Report

126

4 8
6 California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and the CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et. seq.), including without limitation, Public Resources Code section 21065 and California Code of Regulations 15378 as this is not a “project” that may cause a direct, or reasonably foreseeable indirect, physical change in the environment.

FISCAL IMPACT
In FY 2018-2019, the City Council approved $257,500 for the project. To date, project expenditures, namely the agreement with Placeworks, Inc. totaled approximately $117,858. In FY 2021-2022, the City Council approved an additional $227,000 to the project budget for a total of $484,500. The balance remaining for the project is currently $366,641 for the Parks Master Plan (CIP 301-682) which staff anticipate is adequate for the proposed project scope. The cost for the consultant contract will be brought to the City Council along with the contract approval action.

CITY COUNCIL STRATEGIC PRIORITY
Facilities and Infrastructure
Attachments:

Attachment 1 – Resolution
Attachment 2 – RFP/Q for Consultant Services Agreement for preparation of the Citywide Parks Master Plan
Attachment 3 – 2023 Park Amenities Map

6.6 6.6 Staff Report

127

1 5
3 8
RESOLUTION NO.

A RESOLUTION AUTHORIZING THE CITY MANAGER TO ISSUE A REQUEST FOR

PROPOSAL / QUALIFICATIONS FOR THE DEVELOPMENT OF A PARKS MASTER PLAN (CIP 301-682).

CITY OF FOSTER CITY
WHEREAS, a Park Master Plan (Plan) is a planning and visioning tool that will guide City decision-makers in the planning, development and/or rehabilitation, maintenance, and funding of Foster City’s parks for the next 20-30 years; and WHEREAS, development of a Parks Master Plan would benefit from a firm that has experience and knowledge in park and recreation planning, master plan preparation, project management, and effective public involvement process; and WHEREAS, in 2018, City Council and staff identified a need to take a fresh approach to the park system as Foster City’s parks are over 50 years old, and a review of the aging infrastructure would ensure that the parks system remains relevant and continues to meet user needs now and in the future; and WHEREAS, there is currently $366,641 budgeted for the Parks Master Plan (CIP 301-682); and
WHEREAS, The City Council’s authorization of the RFP/Q will allow the process of developing the City’s Parks Master Plan, which was placed on hiatus in 2019.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Foster City does hereby authorize the City Manager to issue a Request for Proposal / Qualifications for the development of a Parks Master Plan (CIP 301-682).

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the regular meeting held on the 18th day of December 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

PATRICK SULLIVAN, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK

6.6 Attachment 1 - Resolution

128

Request for Proposal

Page 1 ends

Foster City City CouncilDecember 18, 2023

Foster City City Council
December 18, 2023