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File #: 20-765    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 KB Homes South Bay, Inc., for Project located at 2780 El Camino Real [Council Pillar: Promote and Enhance Economic, Housing and Transportation Development]
Attachments: 1. Affordable Housing Agreement with KB Homes South Bay, Inc.
REPORT TO COUNCIL
SUBJECT
Title
Action on an Affordable Housing Agreement with KB Homes South Bay, Inc., for Project located at 2780 El Camino Real [Council Pillar: Promote and Enhance Economic, Housing and Transportation Development]

Report
BACKGROUND
KB Homes South Bay, Inc. (the "Developer") is proposing to construct 58 townhouse units on a 2.87-acre site located at 2780 El Camino Real. The project site is in the El Camino Real Focus Area adjacent to the Moonlite shopping center, a local and regional commercial and transportation corridor envisioned for high intensity commercial and residential development in the City's 2010-2030 General Plan. In May 2018, City Council approved General Plan Amendment #85 from Regional Mixed Use to Medium Density Residential; a Rezone from Community Commercial (CC) to Planned Development (PD); and a Vesting Tentative Subdivision Map to allow development of 58 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., 5.8 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 uses the City's standard form (Attachment 1) and will enable and guarantee the delivery of five (5) 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 5.8 units, a developer can either elect to provide six (6) BMP units or five (5) BMP unit and pay a BMP in-lieu fee for the fractional units. In this case the Developer is proposing to provid...

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