Resolution 2006-14RESOLUTION NO. 2006 -14
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GILROY APPROVING AHE 05 -04, AN APPLICATION FOR AN
AFFORDABLE HOUSING PROJECT EXEMPTION FROM THE
RESIDENTIAL DEVELOPMENT ORDINANCE, APNS 790 -17-
002,003
WHEREAS, Section 50.62(b)(4) of the City's Residential Development Ordinance
( "RDO ") under defined circumstances allows an affordable residential project sponsored by a
private developer to be exempt from the RDO allocation process, but limits the numbers of units
so exempted to seventy -five (75) units or less; and
WHEREAS, La Gardenia Homes c/o Sal Akhter ( "Applicant ") submitted AHE 05 -04,
requesting a fifty -one (51) -unit Affordable Housing Exemption from the Residential
Development Ordinance ( "RDO ") for a private development proposal on two adjacent parcels
totaling approximately 3.75 acres currently zoned Medium Density Residential District - Planned
Unit Development (R3 -PUD) and Single - Family Residential (RI) located at 9130 and 9160 Kern
Avenue, APNs 790 -17 -002 and -003; and
WHEREAS, the City has determined that the review and approval of an application for
an Affordable Housing Exemption from the RDO does not confer any entitlement for residential
development and therefore is not a "project" for the purposes of review pursuant to the
California Environmental Quality Act; and
WHEREAS, the City Council may grant the requested RDO exemption only if it
determines that the application meets the criteria set forth in Zoning Ordinance section
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Resolution No. 2006 -14
50.62(b)(4), the criteria whereof are set forth and fully discussed in the Staff Report dated
December 19, 2005 ( "Staff Report"); and
WHEREAS, the Planning Commission reviewed application AHE 05 -04 at a duly
noticed public hearing on January 6, 2006, and advised the applicant to revise the project's price
stricture to conform to the City's RDO Affordable Housing Exemption Procedure; and
WHEREAS the Applicant revised the project pricing structure to double the number of
units for the lowest- income home buyers and agreed to provide subsidies of tip to seventy -five
thousand dollars ($75,000) to households in the sixty percent (60 %) of median income category,
and five thousand dollars ($5,000) to households in the seventy percent (70 %) and one - hundred
percent (100°/x) median income categories as set forth in the chart submitted by the Applicant
entitled "La Gardenia Homes Unit Configuration & Pricing: Old vs. New Proposal," attached
hereto as Exhibit A and incorporated herein by this reference; and
WHEREAS, the Planning Commission reviewed the revised project at a duly noticed
public meeting on February 2, 2006, and recommended that the City Council approve the
project; and
WHEREAS, the City Council reviewed application AHE 05 -04, the Staff Report, a
Supplemental Staff Report dated January 24, 2006 ( "Supplemental Staff Report"), a Follow -Up
Report dated January 31, 2006, a City Staff Memorandum dated February 3, 2006 ( "Staff
Memorandum "), and all documents relating thereto and took oral and written testimony at its
duly noticed public hearing of February 6, 2006; and
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Resolution No. 2006 -14
WHEREAS, the location and custodian of the documents or other materials which
constitute the record of proceedings upon which this project approval is based is the office of the
City Clerk.
NOW, THEREFORE, BE IT RESOLVED THAT
A. The City Council hereby finds as follows:
1. The project consists of fewer than seventy -five units, the maximum under RDO
section 50.62(b) (4).
2. The project complies with Zoning Ordinance section 50.62(b)(4) in that it would
substantially benefit the City, and would not create significant negative impacts
to public facilities, to providers of public services in the community, or to the
Gilroy Unified School District. The City Council makes these findings based on
facts as set forth in the record, including those recited in the Staff Report.
B. AHE 05 -04 should be and hereby is approved subject to the new proposal set forth in
Exhibit A and further described in the staff reports, the conditions on page 3 of the
Supplemental Staff Report, attached hereto as Exhibit B, which conditions are
incorporated herein by this reference, and the additional condition in the Staff
Memorandum, set forth as follows:
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7. The $75,000 per unit subsidy provided by the developer to
households in the 60 percent median income category shall
consist of either:
1. A down payment assistance grant applied directly to the
sales prices with no restrictions or
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Resolution No. 2006 -14
I A deferred loan with the following terms:
a. Payments deferred for a minimum of five (5)
years;
b. A 30 -year loan repayment period consisting of a
5 -year deferment period followed by 25 years of
amortized payments; and
C. Seven percent (7 %) maximum per annum simple
interest.
PASSED AND ADOPTED this 27th day of February, 2006, by the following vote:
AYES: COUNCILMEMBERS: ARELLANO, BRACCO, CORREA,
GARTMAN, and VALIQUETTE
NOES: COUNCILMEMBERS: PMEIRO and VELASCO
ABSENT: COUNCILMEMBERS: NONE
ATTES .'
Rhonda Pellin, City Clerk
1GB01684148.1
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M
pro Tempore
Resolution No. 2006 -14
9
La Gardenia Homes
Unit Configuration & Pricing
Old vs. New Proposal
New Proposal Highlights:
■ Number of units in the 60% and 70% of annual median income categories are increased by 100 %.
■ Nearly $1 million in developer subsidies are added as deferred loans toward the purchase of these homes.
■ 20% homes in all affordable categories are reserved for qualifying Gilroy City and School District employees.
■ The debt -to- income ratios are maintained at or below 42% to meet the City's guidelines.
Note: The State of California HUD limits for low income are defined as 80% or less of the annual median income.
Deviating from that guideline, the City of Gilroy lowers that limit to 60% or less of the annual median
income — a far more stringent requirement than that of any other jurisdiction in Santa Clara county.
Income
° of
/AMI
Old
Unit
City
Pig
Old
Old:',
Market
Type
Rang
Count
Units
Req
Beds
Baths
Spaces
Living
Area
Price
Price
Al
$63,360
60%
5
20.4
3
2.5
2
1.328
$339K
$578K
A2
$73,920
70%
5
3
2.5
2
1,392
$389K
$578K
_
$609K
A3
-$8-4,4-80-
80%
104
0
-
1,456
B
$105,600
100%
16
15.3
4
2.5
3
1,684
$546K
$649K
C
$126 720
120%
15
15.3
4
2.5
1 3
2,0 12
$709K r '
- t
M
N/A
-
3
-
4
2.5
3
2,108
m Mkt
x,
New Proposal Highlights:
■ Number of units in the 60% and 70% of annual median income categories are increased by 100 %.
■ Nearly $1 million in developer subsidies are added as deferred loans toward the purchase of these homes.
■ 20% homes in all affordable categories are reserved for qualifying Gilroy City and School District employees.
■ The debt -to- income ratios are maintained at or below 42% to meet the City's guidelines.
Note: The State of California HUD limits for low income are defined as 80% or less of the annual median income.
Deviating from that guideline, the City of Gilroy lowers that limit to 60% or less of the annual median
income — a far more stringent requirement than that of any other jurisdiction in Santa Clara county.
Planning Division (contact Melissa Durkin at 846 -0440)
1. The developer shall sign a contract agreeing to the provisions contained within the "RDO
Affordable Housing Exemption Procedure," prior to approval of an Architectural and Site review
for this site.
2. The Applicant shall obtain approval of a General Plan Amendment, Zone Change, Tentative Map,
Final Map, and PUD Architectural & Site Review.
Time Limits for Approval: If the approvals set forth in condition 2 above have not been obtained
within two (2) years from the date of this AHE approval, then this AHE approval shall be
automatically revoked without further action by the City. Upon application prior to the expiration
of this AHE approval and for good cause shown, the Planning Division Manager may grant an
extension of time not to exceed one year.
Housinp-& Community Development (contact Regina Adams -Brisco at 846 -0290)
4. To ensure that income eligible households with reasonable existing debt levels qualify for these
homes, the applicant shall make available and, if necessary, provide additional financing to
targeted income groups. The applicant shall disclose complaint process in final marketing
materials, listing the City of Gilroy -HCD as the initial contact for complaints regarding the
lending process.
5. Prior to issuance of a grading permit, Applicant shall obtain City approval on the Final Marketing
and Affordable Financing Program.
6. Prior to issuance of a grading permit, Applicant shall obtain approval of all affordable covenants
and deeds restrictions intended for monitoring and securing affordability.
EXHIBIT B
I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certify that the attached
Resolution No. 2006 -14 is an original resolution, or true and correct copy of a city resolution,
duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the
27th day of February, 2006, at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this 7th day of February, 2006.
City Clerk of the City of Gilroy
(Seal)