Report 02-392 Attachment 12

Report 02-392 Attachment 12

CITY OF SUNNYVALE
HOUSING AND HUMAN SERVICES COMMISSION
UNAPPROVED MINUTES
Wednesday,
September 25, 2002
7:00PM

City Hall - West Conference Room Sunnyvale City Hall

ROLL CALL

PRESENT:

Chair Nelson; Comms. Iannotti, Joshi, Lee, Richards, Rowan, Silveira and Sassano

EXCUSED ABSENCE:

Comms. Kitson

STAFF:

Trudi Ryan, Planning Officer, Fred Bell, Principal Planner, Christine Cannizzo, Project Planner and Annabelle Alderette, Recording Secretary

PRESENT MEMBERS OF THE PUBLIC:

Chrisand Giles, Executive Director of Homebuilders Association and Dee Tocher, owner of an industrial building

CALL TO ORDER

Meeting called to order by Chair Nelson at 7:00 p.m.

APPROVAL OF DRAFT MINUTES

Item continued to 10/23/02

PUBLIC HEARING ITEMS

RTC 2002-0071 – City of Sunnyvale Study Issue Review the Below Market Rate Housing Program.

Ms. Cannizzo presented the following overview regarding staff’s revised recommendations from the staff report:

Increasing the required percentage of BMR units from 10% to 15%;
Lowering the exempt units from 9 or fewer to 6 or fewer;
Adding condominium conversions to the types of residential development required to dedicate units;
Extending the deed restriction for purchase units from 20 years to 55 years;
Extending the deed restriction for rental units from 20 years to "in perpetuity";
Revising the priority categories for future program participants;
Lowering the income limits that qualify for rental units from 80% of median income or less to 70% of median income or less and for purchase units from 80% - 130% to 70% - 100%;
Instituting an indexing method to annually adjust the sales price of new purchase units and to maintain the resale affordability of purchase units already in the Program; and;
Revising the rental increase method from the percentage increase in median income to the percentage increase in market rent or 5%, whichever is less.

Ms. Ryan noted that the Planning Commission had reviewed the RTC and made different recommendations on three of the items.

Ms. Cannizzo presented the following on the three items that the Planning Commission recommended:

Require that the percentage of BMR units be 12.5% vs. staff’s recommended 15%;
Require that the number of exempt units not be less then 10 vs. staff’s recommendation of 7;
Lowering the purchase unit median income limits to 70% - 120% vs. staff’s recommendation of 70% - 100% of median income.

Chair Nelson asked if any commissioners had questions or comments.

Comm. Richards voiced that the median income is too high and the program should assist families with lesser median income, that are in greater need of affordable housing. Voiced to recommend the increase of the required Below Market Rate units to a minimum of 10 units, expressed that increasing to 12.5% is too high and would impact developers.

Ms. Ryan noted that the median income limits being proposed are broader income ranges and therefore, would assist with providing more families in need of affordable housing.

Comm. Iannotti asked staff if they knew why Planning Commission recommended 12.5% for the required percentage of BMR units instead of staff’s recommended 15%.

Ms. Ryan responded that the Planning Commission felt 12.5% was a reasonable percentage.

Comm. Lee asked Chair Nelson if she had any additional comments to add for the commissioners to think about when making their recommendations.

Chair Nelson responded by stating the following:

Benefit of units vs. the impact on developers;
Economics vs. material;
If 3 out of 60 units are affordable the impact for developer would not be significant;
Purchase price computation/calculation needs to be reviewed further.

Comm. Joshi asked staff how do you determine the percentage of required units using the half percent (referred to the 12.5% being recommended by Planning Commission).

Ms. Ryan responded that the number of units are rounded. Her example included a 10% BMR requirement for a 35 unit complex being built would equal 4 affordable housing units and if a 34 unit complex was being built would equal 3 affordable housing units.

Chair Nelson opened the Public Hearing at 7:20 p.m.

Crisand Giles, Executive Director of Homebuilders Association voiced that the recommendations being made for the new BMR Ordinance would have a severe impact on developers to assist in building affordable housing in Sunnyvale, and may choose the option to pay the in lieu fees.

Ms. Giles presented the following:

40 unit complex being built;
6 BMR units required to meet the proposed 15% requirement;
A family between the 80%-130% median income = $300,000-$4000,000 buying power;
The BMR program will benefit families who are at a higher income range rather than a lower income range.

Comm. Joshi asked what percentage are other cities using.

Ms. Giles responded 80% of median income.

Ms. Ryan noted that staff’s report includes modifying the purchase price.

Dee Tocher, owner of an industrial building located on Tasman and North Fairoaks. Ms. Tocher voiced that the BMR program is a great program and would like to participate in it. The high demand for affordable housing units is critical but, if the proposed changes are approved the impact on developers would be severe.

Chair Nelson closed the Public Hearing at 7:40 p.m.

First Motion:

Comm. Iannotti made a motion to approve revision of the BMR Housing Program and adopt the changes in the Affordable Housing Ordinance for Alternative 2a (Increase the required percentage of BMR units to 15%) of the RTC 2002-0071 – City of Sunnyvale Study Issue Review the Below Market Rate Housing Program, and Chair Nelson seconded. Comm. Richards opposed and Comm. Sassano abstained. Motion carried 6-1-1.

Second Motion:

Comm. Richards made a motion to approve increasing the required Below Market Rate units to a minimum of 10 units. Motion died due to lack of second.

Third Motion:

Comm. Nelson made a motion to approve revision of the BMR Housing Program and adopt the changes in the Affordable Housing Ordinance of Alternative 2b (Lower the exempt units to 6 or fewer) of the RTC 2002-0071 – City of Sunnyvale Study Issue Review the Below Market Rate Housing Program, and Comm. Iannotti seconded. Comm. Richards opposed. Motion carried 7-1.

Fourth Motion:

Comm. Lee made a motion to adopt all of staff’s recommendations for Alternative 1a – 1b and Alternative 2a – 2i (the introduction of an ordinance) of the RTC 2002-0071 – City of Sunnyvale Study Issue Review the Below Market Rate Housing Program, and Comm. Silveira seconded. Motion carried 8-0.

Annual Review of Draft Consolidated Annual Performance Evaluation Report for Program Year 2001-2002. (CAPER)

Chair Nelson voiced that staff’s changes were the addition of the narrative portion of the CAPER; HHSC had received the 1^st draft at the August meeting.

Comm. Rowan voiced that the report was comprehensive and wanted to let staff know that they did a good job on it.

First Motion:

Comm. Rowan made a motion to approve the Draft Consolidated Annual Performance Evaluation Report for Program Year 2001-2002, Comm. Silveira seconded. Motion carried 8-0.

COMMISSION OLD BUSINESS

Discussion of Revised HHSC 2002 Work Plan as follows:

MEETING DATE	AGENDA ITEM/ISSUE
January 23, 2002	Commission reviews and discusses the Outside Groups who submitted applications for funding. Approval of Work Plan for 2002. Outreach Discussion.
February 27, 2002	Commission discusses proposals and instructs staff as to need for additional information. Presentation by agencies submitting proposals (televised). Discussions with agencies with performance issues (maybe held earlier in February).
March 27, 2002	Commission votes on funding recommendations for 02-03. Discussion of Housing Condition Survey.
April 24, 2002	Commission reviews draft RTC and Action Plan.
May 22, 2002	Discuss Analysis of Impediments for Fair Housing.
June 26,2002	Election of Officers for 2002/2003. Discussion of Revision of BMR Ordinance.
July 24, 2002	RTC 2001-0074 - City of Sunnyvale Study Issue Codifying & Indexing the Housing Mitigation Policy. Revised HHSC 2002 Work Plan Discussion of Housing Condition Survey.
August 28, 2002	Annual Review of City Code of Ethics Annual Review of 1^st Draft Consolidated Annual Performance Evaluation Report for Program Year 2001-2002. (CAPER) Revised HHSC 2002 Work Plan Update regarding RTC 2001-0074 – City of Sunnyvale Study Issue Codifying & Indexing the Housing Mitigation Policy. Discussion of Fair Housing in Santa Clara County – Assessment of Conditions 2000-2002, and Analysis of Impediments to Fair Housing.
September 5, 2002	*HHSC & Planning Commission Joint Study Session re. Below Market Rate (BMR) Program from 7:00-8:30 pm, West Conference Room*
September 25, 2002	Consideration of study issues & budget items for City Council Workshop (Continued to October 23^rd meeting) Discussion of Revision of BMR Ordinance. Annual Review of Consolidated Annual Performance Evaluation Report for Program Year 01-02 (CAPER).
October 23, 2002	Discuss Outside Group Funding process for 2003-04. Consideration of study issues and budget items for City Council Workshop. Review of Analysis of Impediments. Presentation by Jenny Shain (Office of the City Manager) re. Study issue item, "Evaluation of Subsidized Taxi Program for Seniors."
November 20,2002
December 18, 2002

COMMISSION NEW BUSINESS

Consideration of study issues & budget items for City Council Workshop (Continued to October 23^rd meeting)

HOUSING OFFICER’S REPORT

No Items.

OPEN FORUM

No Items.

REPORT ON COUNCIL MEETINGS

Comm. Joshi reported the following from the September 17, 2002 City Council meeting:

Discussion of Orchard Heritage Park Master Plan.

Voiced that there were no other items relating to HHSC.

Chair Nelson reported the following from the September 24, 2002 City Council meeting:

Funding Request for Acquisition of 183 Acalanes Drive by Emergency Housing Consortium, TEFRA Hearing, and Budget Modification.

Ms. Ryan noted the following on the submitted applications, at the 9/24/02 Council meeting, regarding the 4-acre site located at 1002 W. Washington Avenue (Mary Manor Shopping Center):

General Plan Amendment to Change from Neighborhood Shopping to Low-Medium Density Residential.

Rezoning From C-1 (Neighborhood Commercial) to C-1/PD (Neighborhood Commercial/Planned Development) and R-1.7/PD (Low-Medium Density Residential).

Special Development Permit to Allow 31 Single-Family Homes and a Commercial Building.

Tentative Map to Subdivide the Property Into 31 Single-Family Home Lots, One Common Lot and One Commercial Lot.

Chair Nelson indicated she spoke to the City Council on this item, expressing concern that the R-1.7 zoning with large units, would establish a bad precedent.

ORAL COMMUNICATION

Housing & Human Services Comm.

Status from Sub-Committee regarding Analysis of Impediments to Fair Housing.

Comm. Lee presented the following overview regarding the actions and strategies the City will pursue and will be included in its 2002 Analysis of Impediments

Educate and increase awareness of fair housing issues

Increase public awareness re. Fair housing rights and responsibilities;

Work with Tri-County Apartment Association;

Work with advocacy groups to increase public awareness of accessibility requirements and encourage the use of universal design features;

Educate the public on predatory lending practices and assess extent of such activity in Sunnyvale;

Work with local real estate brokers and agents to increase their awareness of fair housing laws and discriminatory practices;

Publicize special local ordinances involving fair housing, such as the Anti-discrimination Against Families with Minor Children in Housing Ordinance and the Prohibition Against Discrimination Based on Acquired Immune Deficiency Syndrome (AIDS) Ordinance;

Provide fair housing informational materials to households on the waiting list for BMR units.

Research and measure the extent of housing discrimination in Sunnyvale

Encourage development of a systematic, randomized testing program in Santa Clara County and/or Sunnyvale;

Assess compliance of mobile home parks with fair housing laws;

Assess lending patterns of Sunnyvale banks based on Home Mortgage Disclosure Act (HMDA) data;

Audit participation in the City’s BMR program;

Consider funding a random survey of Sunnyvale residents to assess perceptions of housing discrimination (similar to the County survey conducted in August 2000).

Coordinate with other organizations to address fair housing issues

Actively participate in countywide Fair Housing Collaborative Task Force;

Encourage the formation of a local fair housing citizens group to support and participate in the City’s fair housing activities and work with other local organizations.

Review and monitor the City’s contracts for fair housing activities

Reassess City’s contracts for delivery of fair housing services, including the possibility of a competitive bidding process and consolidation and revision of services provided;

Encourage Project Sentinel/Mid-Peninsula Citizens for Fair Housing to take more direct action regarding fair housing issues, including public outreach and monitoring.

Chair Nelson voiced that she attended a meeting with Mayor Fowler, Vice Mayor Miller and Boards and Commissions Chairs and/or Vice Chairs regarding discussion of issues that Boards and Commissions are encountering. She voiced that the current workload is big for HHSC and that a couple of years ago, Public Notices in the Sun were always late and therefore ineffective; she stressed that new staff has really had an impact in making changes and thanked staff for their hard work.

Comm. Lee voiced that Chair Nelson is a good leader and thanked her for her leadership on the HHSC.

Staff

Discussion of correspondence received from First United Methodist Church (Sr. Nutrition Program) regarding request for additional funding as follows:

Ms. Alderette indicated that First United Methodist Church was requesting additional funds in the amount of $3,000 for the use of providing transportation to and from the Senior Nutrition Program site. Voiced that because there were disencumbered funds from FY02-03, staff is proposing to reallocate the funding to meet the additional request. Voiced that this would also allow us to meet performance goals set by HUD because we would be spending CDBG funds in a timely manner; therefore, staff is granting the amount of $4,000. Staff will be working on the Report to Council to recommend that the additional funding be approved.

First Motion:

Comm. Joshi made a motion to approve the requested funding from First United Methodist Church (Sr. Nutrition Program), for the use of providing transportation to and from the program site, Comm. Iannotti seconded. Motion carried 8-0.

ADJOURNMENT

Chair Nelson adjourned the meeting at 8:40 p.m.

Return to RTC# 02-392