REPORT TO COUNCIL
SUBJECT
Title
Action on an Affordable Housing Agreement with LS-SANTA CLARA, LLC for 1375 El Camino Real
Report
BACKGROUND
On May 22, 2018, the City Council approved land use entitlements for a 54-unit townhome project submitted by Citation Homes for the property located at 1375 El Camino Real. The property and entitlements have been transferred to LS-SANTA CLARA, LLC (Landsea) who will act as developer (the "Developer"). As a condition of the land use entitlements, and per the City's inclusionary housing policy governing at the time of the entitlement, the Developer was required to enter into an Affordable Housing Agreement (AHA) to designate 10 percent of the total units (i.e., 5.4 dwelling units) as Below Market Purchase (BMP) units to be sold to qualified first-time homebuyers at an affordable price based upon Area Median Income (AMI).
DISCUSSION
The proposed AHA follows the City's standard form and will enable and guarantee the delivery of six affordable ownership housing units within Santa Clara. The AHA fulfills an obligation placed upon the Developer through the City's land use entitlement process.
The BMP Policies and Procedures Guidelines adopted by the City Council ("BMP Program") provide that in the case of a fractional obligation of 5.4 units, a developer can either elect to provide six (6) BMP units or five (5) BMP units and pay a BMP in-lieu fee for the fractional units. In this case the Developer is proposing to provide six BMP units. The BMP units will be sold to households whose income range from 80 percent AMI to 120 percent AMI, in total averaging 100 percent AMI. Per the AHA the project will provide two (2) units at the 100 percent AMI level and one (1) unit each at four (4) other affordability levels. The resulting sales prices for the BMP units will be $210,000 (80 percent AMI), $339,000 (90 percent AMI), $390,000 (100 percent AMI) for two units, $441,000 (110 percent AMI), and $492,000 (120 percent AMI). To ...
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