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CC 07-02-85 CITY OF CUPERTIMO, STATE or CALIPOIUlIA 10300 Torre Avenue, Cupertino, CA 95014 Telephone: (408) 252-4505 MIlCUTE OF THE ADJOURICED REGULAR HEETDlO OF THE CITY COUNCIL HELD ON JOLY 2, 1985 IN THE COUNCIL CHAMBER, CITY HALL, CUPERTINO, CALIFORNIA CC-67~ At 8:05 p.m., Mayor Johnson called the meeting to order in the Council Chamber. ROLL CALL Counc. Present: Gatto, Plungy, Sparks, Mayor Jomison Counc. Absent: Rogers Staff Present: City Manager Quinlan City Clerk Cornelius Director of Planning and Development Cowan ¡'lanner I Binnendyk Co_unity Affairs Officer Blackburn BMR Committee Members present: Nick Szabo 37. Policy stipulating BMR housing requirement tor senior citizen housing project. (a) Resolution No. 6595: "A Resolution of the City Council ot the City ot Cupertino Adopting a Policy Which States the Below Market Rate Housing Requirements for Retirement Facilities." 38. City ot Cupertino, JDOd1tication of procedural manual tor the Below Market Rate Housing Prograa to pel'lÛt r~sidential developers to pay fees in lieu ot providing units priced at below~ket sales prices. Rec~ded for approval. 42. Review ot proposed revision ot BMR housing Program. 43. Request to pay tee in lieu ot providing six BMa units- Woodsprings. Hr. Szabo stated that the BMR Program should concentrate mostly on the tirst tr.e buyer. Planner I Binnendyk said tLat $30,000 to $35,000 was the average qualifying householQ income ot those buying recent BMR units. -1- Ml\lImS OF onm JUl.! 2, ,gBS crn COU\llCll. MEE'fl\lQ lce-6,"1) John Vidovich, developer, stated that he was in favor at cheaper housing. He said that the multiple hOusin& developers are payina the biggest tax in the City by havin& to provide BMR housing. He said it is a good cause but is discourage housina tram going in and is not helpina the truly needy. Although he does plan to build more offices, he feels it would be more equitable if those buildina ottices had to pay a tee. Sally Brennan said she did not choose between seniors on fixed buyers for the BMR program. She are tew seniors in Cupertino that do are truly needy. feel that Council had to income and first time heme said that although there do need help, those who Iola Hendricsen said that ccmpared to some seniors those in Cupertino are atfluent, but are trying not to be reduced to the poverty le\el. She said that seniors neqd the type of living as provided in retirement hoæes where they can remain ambulatory and receive one good, nutritious meal a day. She said that in Mountain View and Sunnyvale there are two or three year waiting lists for senior housing. lCancy Hertert told a story ot a senior woman who sold her house and was then taced with escalating ~·nts. Stan Howard, employee tor a developer, stated that the tirm tor which he works had built for BMR units. One was sold to a pe"son whose parents paid cash; one unit was purchased by people who are not citizens; one unit was sold to people who had Just sold a previous home, bought a BMR unit and kept the excess trom sale of their previous home; one unit was sold to people in their early 20s who were Just out ot school who sold that unit a year later and bought in Los 11 tos. They had made more on the BMR unit than they would have on a regular -unit. He stated that Council needs to focus on where the need really is. Perhaps it is those on fixed incomes. He suggested that Council look at subsidizing their rents rather than home ownership. Howard Finn, Villa Serl'a Apartments, said that he represents the person who needs aSbistance. With $30,eOO a year or Just under, he came to Cupertino in 1973. He is currently findina it ditticult to make ends meet and rent increases every year. He said that he nöJ developed a retirement income, but was on a fixed amount of money. He would lil~e to stay in Cupertino as it is a beautiful town. He said that he did apply foro a BMR unit but could not attord it. -2- MIICUTES OF THE JULY 2, 1985 CITY COUNICIL MEETIICG (cc-674A) Sally Brennan said that he is not typical of the seniors t~t, she has seen. Those that she usually runs into have less ~~ey - $10-20,000. Council dis~ussed the various alternatives proposed by the Subcommittee. Concern was expressed regarding the concept of a rent subsidy. In regard to recoaaendation A, Council requested that the Committee develop their ideas in further detail. In regard to recOlDendation B, Council suggested a set tee and a method to make the money available to those who would benefit. It was moved by Counc. Plungy, seconded by Counc. Gatto and passed unanimously to close the public hearing. It was moved by Counc. Plungy, seconded by Counc. Gatto and passed unanimously to adopt Resolution No. 6573 with Exhibit A revised to delete items B.1, B.3, B.4 and amend B.5 to read, "The fees collected shall be placed in the General tund and shall be used to promote aftordable ownership housing." It was moved by Counc. Plungy, seconded :'y Counc. Gatto and passed unanimously to adopt Resolution No. 6576 approving payment of $50,000 per unit in lieu of providing six below market rate units for Woodsprings Development. Council continued the oonsideration of the retirement t~~ilities and senior citizen housing to the meetlng ot August 19, 1985 and directed the City Clerk to readvertise this item. At 9:15 p.m., Council adJourned. ~p- Ci y Clerk -3- Public hearin closed Res. 6573 adopted Res. 6576 adopted Retirement facilities an senior housing continued