Resolution No. 2020-02 | RDO Affordable Housing Exemption | Adopted 01/16/2020RESOLUTION NO. 2020-02
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
GILROY RECOMMENDING APPROVAL OF M 19 -14, AN EXCEPTION TO
THE CITY'S "RDO AFFORABLE HOUSING EXEMPTION PROCEDURE,"
TO ALLOW RENTAL RATES WITHIN THE GLEN LOMA RANCH TOWN
CENTER APARTMENT PROJECT TO BE AFFORDABLE TO
HOUSEHOLDS EARNING 50% TO 80% OF AREA MEDIAN INCOME
WHEREAS, The Pacific Companies received approval to construct 158 below
market rate apartment units within the Glen Loma Ranch Specific Plan Town Center
Neighborhood ("Apartments"); and
WHEREAS, the Glen Loma Ranch Development Agreement requires 15.1 % of
the units constructed in Glen Loma Ranch to be affordable in accordance with the City
of Gilroy's "RDO Affordable Housing Exemption Procedure"; and
WHEREAS, 156 of the Apartments will be subject to regulatory restrictions that
require affordability in accordance with the City of Gilroy's "RDO Affordable Housing
Exemption Procedure"; and
WHEREAS, the existing percentages defining affordability within the "RDO
Affordable Housing Exemption Procedure" make it difficult for the City to address the
housing needs of Very Low -Income and middle -income households, or meet state
Regional Housing Needs Allocation requirements; and
WHEREAS, the primary funding agency for affordable housing projects in
California is the California Housing Finance Agency (CaIHFA); and
WHEREAS, CaIHFA recognizes that inadequate housing is being produced for
Very Low-income and middle -income households; and
WHEREAS, to bolster housing production targeted to these income groups,
CaIHFA is funding housing in the middle -income range, up to 80% Area Median Income,
in exchange for producing housing in the Very Low -Income range, up to 50% Area
Median Income.
WHEREAS, The Pacific Companies would like to rent Apartment units at rates
consistent with CaIHFA funding; and
WHEREAS, The Pacific Companies proposes to rent 24% of the Apartments to
households earning up to 80% Area Median Income, in exchange for renting 48% of the
units to households earning 50% Area Median Income, consistent with CaIHFA funding;
WHEREAS, The Pacific Companies would need an exception to the "RDO
Affordable Housing Exemption Procedure" to implement this rental structure; and
WHEREAS, the proposed rental structure would help the City meet Regional
Housing Need Allocation requirements for Very Low -Income households, and provide
housing for middle -income households; and
WHEREAS, the Planning Commission held a duly noticed public meeting on
January 16, 2020, at which time the Planning Commission considered the staff report
dated January 16, 2020 ("Staff Report") as well as all evidence received, including
public testimony.
NOW, THEREFORE, BE IT RESOLVED that the Planning Commission of the
City of Gilroy hereby recommends that the City Council direct staff to propose Policy
revisions to ensure compliance with state housing laws and Regional Housing Needs
Allocation requirements.
PASSED AND ADOPTED this 16th day of January, 2020 by the following roll call vote:
AYES: COMMISSIONERS: Rudeen, Kim, Fischer, Doyle, Estorga, Fleming
1►101*3
ABSENT: COMMISSIONERS: Morales
ATTEST:
uli Wyrick, Secre ry