Regional Housing
Needs Allocation
Unit Production Plan
April 4, 2022
1 Update on
Current
Affordable
Housing
Projects
UPholdings – Park Ave. – 65 Units
• Prepared and Submitted PLHA Plan -$1.3 awarded
• Density Bonus Request Approved
CC915 - 73 S. Rt – 20 Units
• Prepared and Submitted Homekey Application - $4.4
million awarded
UPholdings – V St. Motel – 96 Units
• Prepared and Submitted Homekey Application - $24
million awarded
Visionary Home Builders – Parsons Ave – 108 Units
• Density Bonus Request in Process – Planning commission Recommended
Meta Housing – Devonwood Village – 156 Units
• Tax Credit Application Submitted
• Allocated $1.9 mil in Home Funds
2 Proposed
RHNA
Unit
Production
Require affordable housing units as
part of a market rate project
Discretionary Approvals
• Pre Annexation Development
Agreement (PADA)
• Development Agreement (DA)
• Legislative Action Agreement
Applies to Rental and Ownership
Single Family, Multi Family and
Mixed Use
Affordability Covenants and
Restrictions 55 yrs – rental & 45yrs
ownership
3 Council Discretionary Actions
4 PADA & DA Legislative Action Agreement
PADA – Applies to all new Annexations General Plan Amendment DA’s executed at the request of the private developer Zone Change – Ordinance Amendment Chapter 20.86 of Zoning Code outlines the process Establishment of a Planned Development District (PD) Site Utilization Plan (SUP) and modifications
Recommendations
• Adopt a policy setting 10% of total project
to include Affordable Units
• Units to be distributed across all income
sectors:
• Extremely Low
• Very Low
• Moderate
• Council may consider up to 15%
requirement
• Any policy beyond 15% will require a nexus
study
• RFP to solicit consultant
• Study will present findings for community need
• HCD approval
5 Examples of Other Cities
6 Jurisdiction Inclusionary Percentage Affordability Level In-Lieu Fee Campbell 15% Low and Moderate $13.45
Los Altos 15% Majority Mod and some Low TBD
Santa Clara 15% Average 100% AMI Detached $30 psf, Townhome $25 psf, Condo $20 psf
Cupertino 15% 50% Moderate, 50% Median Detached $17.82 psf Small Lot $19.60 psf
San Jose 15% Moderate Transition to $25 psf
Mountain View 15% general
15 to 20% for townhomes
Median for 15%;
Moderate for 20%
$54.40 psf
Townhome $125 spf
Sunnyvale 12.5% Moderate 7% of sales price
Palo Alto 15% 2/3 Median; 1/3 Moderate $77.62 psf
Condo $51.75
Davis 10-25% Low and Very Low $75,000/unit
Ripon 5-10% Low and Moderate $7,800 - $9,500 per unit
Morgan Hill 10-15% Very Low, Low, and Moderate
4 Cell Res $19.20, Infill $13.20,
Rental $29 psf, Downtown
$14.50,
Yolo 10-25% Very Low to Moderate TBD
Exemptions - Exclusions
• When limited by PADA or DA
• Time extension or Minor Amendment to PADA or DA
• When non-residential projects require PADA, DA, or Legislative Action Agreement
• Permitted, By Right, Site Plan, CUP , and non-discretionary entitlements • Projects by other Governmental Agencies
• Multi Family of less than 36 Units
• Single Family of less than 60 units
• Other projects at the sole discretion of the City Council 7 Affordability
Options
• Land Dedication – within project area,
Council may consider off site locations
policy
• Purchase – Acquisition of Regulatory
Covenants on Existing Housing Units
• Rehabilitation of Existing Housing Units
in Exchange for Regulatory Covenant
• Payment of an In Lieu Fee - requires
Nexus Study (interim solution can be
generated)
• Options may be combined – Council
Discretion co-use with Density Bonus
8 Funds from In-Lieu Fee can be held in a future Trust Fund for Affordable Housing.
City Assistance
• HCD Financial Programs
• Tax Exempt Financing and Bonds
• Community Facilities Districts – infrastructure
• SCIP & BOLD
• Density Bonus
• City Programs
• PFFP Reduction, Waiver, Deferral
• Use of PADA and DA
• Use of HUD funding for qualified projects
• PLHA
• Housing Successor Agency
• In-Lieu Fees
9 City
Council
Action
Adopt policy on Affordable
Housing Resolution – determine
what discretionary percentage
Provide direction on Nexus Study
Provide direction on other
options for supporting
Affordable projects
10