CC Exhibit 08-02-2016 Item No. 24 Amendments to the Policy and Procedures Manual for Administering Deed-Restricted Affordable Housing Units (The BMR Manual)AMENDMENTS TO THE POLICY AND
PROCEDURES MANUAL FOR ADMINISTERING
DEED-RESTRICTED AFFORDABLE HOUSING
UNITS (THE BMR M ANUAL)
AUGUST 2, 2016
Background
Chapter 19.172 of the Cupertino Municipal Code,theBMRProgram,provides affordable housing to abroadrangeofhouseholdswithvaryingincomelevelswithintheCity.
The City administers the BMR Program under theguidelinesincludedinthePolicyandProceduresManualforAdministeringDeedRestrictedAffordableHousingUnits(the "BMR Manual").
The City contracts with West Valley CommunityServices("WVCS")to manage the BMR Program,including the determination of eligibility of potentialhomebuyers.
Proposal
Amendments to the BMR Manual to clarify
and expand procedures and requirements
for:
(1)Section 2.2 on Conflict of Interest;
(2)Section 5.0 on the Appeal Process.
Conflict of Interest
The recommended changes in Section 2.2 would broaden theconflictofinterestpoliciestoexcludefrompurchaseorrentofanyBMRunitanyCityorconsultantemployeesandofficialswho:
1.Have policy-making authority or influence regardingCityhousingprograms;
2.Participate in making decisions regarding City housingprograms,administer City housing programs,or whosesalaryispaidinanypartfromaCityhousingprogram.
If any employee of a consultant is on the waiting list for aparticularBMRunit,all review of the application would be donebytheCity.
All consultants would be required to inform the City of anyemployeewhoisbeingconsideredforpurchaseorrentofaunit.
Appeal Process
The recommended changes would streamline the process and toensurethatanappealcanbeconcludedbeforeaBMRunitissold.
Current Process:
An applicant may appeal the decisions by going through WVCS’current process in the following order:
(1)the Associate Director,
(2)the Executive Director,
(3)the Board of Directors Administration Committee,and
(4)the full Board of Directors.
Additionally,the BMR Manual provides for an appeal within 10daystotheHousingCommission,to be forwarded to the CityCouncilforfinalruling.
Appeal Process
Proposed Changes:
1.Limit the appeal process to 60 days total;
2.Allow an applicant 10 days to send a written appeal to WVCS;
3.Reduce the WVCS appeal process from four tiers to one tier,withtheExecutiveDirectorprovidingadecisionontheappealwithin10daysfromreceiptofthenoticefromtheapplicant;
4.If the applicant is dissatisfied after the WVCS appeal,the applicantthenwouldhaveanadditional10daystosubmitawrittenappealtotheCity;
5.Any appeal to the City would be heard by an outside hearingofficerwithin30daysfromthedateofreceiptofthewrittenappeal.
6.During the appeal period,the sale of the BMR unit could not takeplacependingthefinalresolutionoftheapplicant's appeal.
Housing Commission
On June 23, 2016, the Housing Commission
reviewed the proposal and recommended on
that the City Council approve the proposed
amendments.
Recommendation
Staff recommends that the City Council adopt the
resolution amending the Policy and Procedures
Manual for Administering Deed-Restricted
Affordable Housing Units (Below Market Rate (BMR)
Manual).