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File #: 20-764    Version: 1 Name:
Type: Consent Calendar Status: Agenda Ready
File created: 8/11/2020 In control: Council and Authorities Concurrent Meeting
On agenda: 9/1/2020 Final action: 9/1/2020
Title: Action on an Affordable Housing Agreement with DD Warburton Group LLC, for Project located at 1900 Warburton Avenue [Council Pillar: Promote and Enhance Economic, Housing and Transportation Development]
Attachments: 1. Affordable Housing Agreement with DD Warburton Group LLC
REPORT TO COUNCIL
SUBJECT
Title
Action on an Affordable Housing Agreement with DD Warburton Group LLC, for Project located at 1900 Warburton Avenue [Council Pillar: Promote and Enhance Economic, Housing and Transportation Development]

Report
BACKGROUND
DD Warburton Group LLC (the "Developer") is proposing to construct 12 townhouse units on a 0.55-acre site located at 1900 Warburton Avenue. The project site is on the south side of Warburton Avenue between Scott Boulevard and Civic Center Drive and is currently developed with one commercial building formerly utilized as a florist shop (Fujii's Florist). Residential land uses are located to the north of the site across Warburton Avenue and on adjacent properties to the south and east. Commercial land uses are located to the west of the site.

In July 2018, City Council approved a rezoning from General Office (OG) to Planned Development (PD) and a Tentative Condominium Map (PLN2017-12961 and PLN2018-13234) to allow development of 12 townhouse units.

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) with the City to designate 10 percent of the total units (i.e., 1.2 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 with the Developer (Attachment 1) uses the City's standard form and will enable and guarantee the delivery of one (1) BMP units for sale 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 1.2 units, a developer can either elect to provide two (2) BMP units or one (1) BMP unit and pay a BMP i...

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