DATE:
March 22, 2022
CATEGORY:
New Business
DEPT.:
Human Resources
TITLE: Council Appointee Request for Housing
Assistance
RECOMMENDATION
Adopt a Resolution of the City Council of the City of Mountain View Approving Housing Assistance for the City Clerk, to be read in title only, further reading waived (Attachment 1 to the Council report).
BACKGROUND
The City Council appointed Heather Glaser as City Clerk on April 19, 2021 and executed an employment agreement with terms and conditions of employment. As acknowledged i n her employment agreement, Council Appointees are eligible for the Mountain View Employee Homebuyer and Relocation Assistance Program (Council Policy D -13), subject to City Council approval and availability of funds at the time of the request.
ANALYSIS
Under the City’s Homebuyer Program, Council Appointees are eligible to request a loan up to the median price in Mountain View or 75 % of the sales price, whic hever is lower, to assist with purchasing a home in Mountain View; or a loan of up to 25% of the sales price, to a maximum of median home price in Mountain View, for a home within a five -mile radius of Mountain View.
For Council Appointee loans, if the pa rticipant secures a second loan on the property, any additional loan is required to be subordinate to the City’s loan , and the employee is required to establish a minimum equity in the property equal to at least 10 % of the total purchase price of the residence.
The City Clerk is in the preliminary stages of searching for a primary residence for purchase within a five-mile radius of Mountain View and is requesting approval for a loan of up to 25% of the sales price, to a maximum of median home price in Moun tain View, with the City’s loan subordinate to an additional loan. This is necessary, as it is extremely difficult, if not impossible, to find a financial institution as a primary lender that would approve a loan that is subordinate to another loan.
Council Appointee Request for Housing Assistance
March 22, 2022
If, for any reason, the City Clerk is unable to purchase a home within the five -mile radius, she is requesting the City Council authorize a loan under the “All Employee” section of the policy, which allows for a loan up to $250,000 to assist with purchasing a home within a 10 -mile radius of Mountain View.
FISCAL IMPACT
There is currently funding available for City Council Policy D -13, Mountain View Employee Homebuyer and Relocation Assistance Program, in the Earned Lease Revenue Reserve, including funds for the City Clerk to receive a loan up to 25 % of the sales price, to a maximum of median home price in Mountain View. However, due to the possible risk from being a subordinated loan, staff recommends the maximum loan amount to be set at $500,000.
ALTERNATIVES
1. Approve the loan for a different amount.
2. Provide other direction.
PUBLIC NOTICING—Agenda posting.
Prepared by:
Sue C. Rush
Human Resources Director
Lindsey Bishop
Senior Human Resources Analyst
Approved by:
Kimbra McCarthy
City Manager
SCR-LB/4/CAM
032-03-22-22CR
201912
Attachment: 1. Resolution—City Clerk Housing Assistance