1 Attachment D – Proposed Tenant Preferences Program Framework
TENANT PREFERENCES PROGRAM FRAMEWORK
Webpage https://www.sanjoseca.gov/your-government/departments-offices/housing/resourcelibrary/housing-policy-plans-and-reports/tenant-preferences Applicability:
Set-Aside
35% of all restricted affordable apartments otherwise available to the general public in a subject property:
• No more than 15% of apartments set aside for applicants living in the same neighborhood as the property, and
• 20% of apartment set aside for applicants living in high displacement tracts.
Set-aside of apartments will be a commensurate mix of all apartments for the general public (number of bedrooms and affordability levels).
Eligibility for the
Tenant
Preferences
Program
Lower-income San José residents (≤80% AMI) are eligible for the Program if they:
• Live in definitive and probable displacement tracts, as defined by the U.C. Berkeley Urban Displacement Project, and/or
• Are at-risk of displacement as they currently rent a home in the same Council District as a subject development.
Applicability:
Which Properties
• City-funded affordable developments, including those for seniors, • Developments negotiated through Development Agreements, • Existing affordable housing properties when documents are modified (on a deal-by-deal basis),
• Any affordable housing in San José on which public agencies want to apply preference, even if no City funding, and
• State-funded developments that meet the above criteria (pending approval by the state’s Department of Housing and Community Development).
Applicability:
Phase-In
All new and renegotiated City-funded affordable housing developments in the pipeline and early in construction at the designated effective date of the San José resolution.
Implementation:
Housing
Department
Roles and
Responsibilities
• Integrate preferences into the City of San José’s Affordable Housing online tenant application portal (Doorway): https://housing.sanjoseca.gov/listings; o Ensure Doorway identifies applicants eligible for one or both tenant preferences based on current address;
• Create program implementation manual for property managers; • Develop administrative program guidelines for tenant preferences with public feedback; • Integrate tenant preference administration language into loan documents; • Approve lease-up plan and tenant selection plan prior to advertising; • Ensure compliance annually with tenant preference administration; Implementation:
Property
Manager Roles
• Ensure property profile set up on Doorway portal;
• Advertise that alternative documentation for undocumented residents is accepted; 2 and
Responsibilities
• Identify units for tenant preference that are a commensurate share of unit mix; • Receive list(s) of applicants, including those eligible for one or both tenant preferences, through Doorway;
• Review applicants’ qualifications and supporting documentation; o Verify current address with two forms of evidence;
▪ Alternative documentation for undocumented applicants must be accepted;
o Confirm address is eligible for tenant preferences;
o Determine income and all other eligibility criteria are met; • Maintain waitlist of adequate size; and
• Supply evidence as requested for City annual compliance.
Housing
Department
Engagement and
Education
• Create webpage with materials - Ordinance, guidance, sample language, disparate impact analysis;
• Educate transaction teams on tenant preferences to address any questions or concerns; • Hold general information sessions with property managers following the passage of the Tenant Preferences Program;
• Meet with property management company on each transaction; • Support property managers’ need for marketing assistance, if any; • Conduct community presentations at or near new affordable developments; and • Create and distribute educational materials for the public to community partners, public sites (i.e., libraries, City buildings), and affordable housing sites.
Annual
Compliance
Process
Non-Compliance
Penalties
• For properties subject to tenant preferences, property managers will need to demonstrate annually:
o Commensurate unit mix is met as indicated on rent rolls; o Set-aside for applicants in the same neighborhood never exceeded 15% of units otherwise available to the general public
o Waitlist procedures adhere to program guidelines;
o Tenant selection plan describes tenant preference procedures ; o Acceptance of alternative documents has been advertised; and o Property listing is active in Doorway tenant portal and online digital application is being used for initial lease-up (if appropriate), waitlist openings, and for units that become vacant.
• First Violation:
o Meeting to re-educate property management staff; and
o 6-month follow-up with City and property managers.
3 • Second Violation:
o City issues formal letter of non-compliance to owner and property manager. • Third Violation:
o City issues formal letter of non-compliance to owner, property manager, lenders, and other funders; and
The City reserves the right to pursue any of its remedies under loan documents in the event of continued non-compliance.