Exhibit CC 09-20-2016 Item No. 11 Amendments to BMR ManualAMENDMENTS TO THE POLICY AND
PROCEDURES MANUAL FOR ADMINISTERING
DEED-RESTRICTED AFFORDABLE HOUSING
UNITS (THE BMR M ANUAL)
SEPTEMBER 20, 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 2.3 on Priority Point Placement System;
2.Section 2.3.1 on Applicant Waiting List;
3.Section 2.3.8 on Eligibility Process to Reapply
on BMR Waitlist;
4.Section 2.4 on Annual Gross Income;
5.Section 2.4.1 on Verification of Source of
Income.
Priority Point Placement System
Current BMR Program:
(1)one point for Cupertino residents;
(2)two points for applicants who work in the City.
(3)Applicants who both live and work in the City
would have the highest priority with three points.
Proposal:
One additional point for all public employees who
work in the City of Cupertino,including income-
eligible police officers,firefighters,teachers,and
others who work for school districts,the City,or any
other public agency located in the City.
Applicant Waiting List
Current Process:
1.BMR Program applicants apply once a
year during the month of October.
2.Individuals already on the waiting list are
required to re-apply to ensure the list
remains current.
3.Waiting list is created after the application
period ends through a random lottery
drawing within each priority category.
Applicant Waiting List
Proposal:
1.Freeze the current waiting list in its presentorder;and
2.Remove the lottery system for those already onthewaitinglist.
3.Each applicant will have to reapply each year toremainonthewaitinglistandmaykeepexistingpositionifstillincomeeligible.
4.New applicants will be added to bottom of thelistthrougharandomlotterytodetermineorder.
5.Applicants who are no longer income eligible,orwhodonotreapply,will be removed from thewaitlisteachyear
Eligibility Process to Reapply on
BMR Waitlist
Proposal:
1.An applicant will maintain current position providedthattheapplicantcontinuestoqualifyforaBMRunitandtheprioritypointsremainunchanged
2.Applicants who are no longer income eligible or whodonotreapplywillberemovedfromthewaitlisteachyear.
3.Priority points are not guaranteed from year to year.
4.The applicant who lost priority point(s)will beaccordingly.A similar process will be followed if anapplicantgainsprioritypoints.
Annual Gross Income
Applicants'household annual gross income
shall be calculated in accordance with the
Technical Guide for Determining Income and
Allowances for the HOME Program
published by the U.S.Department of
Housing and Urban Development and 24
CFR 5.609.
Documentation to Verify Sources of
Income
Proposal:
1.Signed copies of federal tax return for themostrecentyearinsteadofmostrecentthreeyears.
2.Remove W2 form requirement.
3.Bank statements for the last two consecutivemonths.
4.All income determinations are basedprimarilyontheapplicant’s income for thepastyear.
Housing Commission
On August 11, 2016, the Housing
Commission reviewed the proposal and
recommended that the City Council approve
the proposed amendments.
Recommendation
Staff recommends that the City Council Adopt
the draft resolution adopting the proposed
amendments to the Policy and Procedures
Manual for Administering Deed Restricted
Affordable Housing Units.