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CC 10-09-84 'f" - , " , t þ þ ,¡ ..~~;:~~"'.; cc-656A ern 01 cuPIR'IIIO. S'fA'l'Z 01 CALIPORIU 10300 Torre A"cue. ()apert;1no, CA 9501_ Telepbone. (_08) 252-4505 IuØU'IßS OF TIIB A:DJOURIIBD REGULAR MBBTIIG or TBB cur COUNCIL, RBLD 011 OCTOBER 9, 198Jt IR TIIB COUIICIL CHAMBER, cnr IWJ., CUPBRTIRO, CALIFORIIIA Mayor Jollnaon called the _ting to order at 7.00 p... in the C0U:n01:' Chamber. ROLL CALL Couno. Preseat: Gatto, Plungy, JOIlnaOll Rogers, Sparks (7:115 p...), Mayor Statt Present: City MlDager Quinlan Ci t, Clerk Cornelius Direotor ot P11IIID1ng and Develo )lSODt Sisk Assistant to the City Manager Browr. Assistant P11IIID1ng Direotor Cowan City Atton1ey 1l11an Rental Housina ec-1ttee Report; Janet wright, Chairperson ot the Rental Hous1ng CoIBittee, reviewed the Co~1ttee's report and reo~dation vitb Counoil. Sbe stated that the coaa1ttee had been Ull8nllllous regarding the reo-mation tor the lIediation process. Jill Rivera addressed Counoil and stated that he had lived at the Lake Blltliore Apartments, and in a 1~tb period rents IIOre than doubled. He stated be has IIOVed tro. Cupert;ino because he can't attord to live here any IIOre. Jack Paulson, Director ot the Tri-county A~t Association aDd the San Jose Real Estate Board, told Council that the A~t Association supports the ooncept ot a lIediation process. He expressed &OM ooncems regarding oertain aspeots ot the recOllaendation. He stated that the San Jose Real Estate Board teels the same way. He told Counoil that there is a need in the area tor IIOre housing but that the type ot housing needed has ohanged. He said that Cupertino wants to house obiets but not Indians. He support;ed a 60-day notice tor rent inoreases and a onoe a ye3r increase. A concern he expressed was that some tenants pre reI' small, more rrequent inoreases. He also inquired about state lall pre8llpt1011 regarding length ot time tor notice. City Attorney Kilian stated that a "moving out" notioe and rent increase notice were different, He also stated that the City could have all apartment owners sign an agreement with the City regarding mediation, notice, etc. _1_ , f , I þ þ ,.7;'''.''fP·:·_....''',·;:;:':~ '""~;.J~.""'~~.~~f@'-r~~,,..,.- "." IUlUßS OF 1'BI OCTOBBR 9, 1984 <cc-656J) Mr. Paulsen atated that be haa _t 1d.th a nuoleus ot OIIIIe..a 1D Cupertino. Mrs. Blaok, a dupl.x 0IIII..., stated opposition to idea ot an inorease 01111 .V81'1 t_lv. IIOntba. Sbe .tated that she baa onl, been 1Dorea.iIIS be.. rent flYery two y...... In re¡ard to the 6o-day notice, she said that tenants only give landlOl'll. 30 da)'s wilen they .... l..viDg. 101a Hend..iosen, CUpertino, stated that tbere are people with special n..ds such as senio..s on l1a1ted inOClH. Sbe read an exoerpt rro. an artiole 1D tbe Peninsula TiMs Tribune quotillS stat18tios re¡ardiDg tha nlabe.. ot senio..s 11v1118 in the CUpertino a..... She stated that Palo Alto land banka to.. housillS. She .lso stated that senio..s need houslng such as Lytton Ga..den "here h..vy work 115 done to.. th... Florence Tyndall, a resident ot CUpe..tino to.. 12 yea..s, told Counoil that she lives With he,' 91 year old mother and two daughters. In 1974 rent was $250 a IIOI1th. She had to JDOve traa tbe oOllplex "hen rent vent to .650 a IIODth. (City Clerk's note: Couno. Sparks arrived at 7:45 p.m.) She 18 ourrently rentillS a two bedJ'OOll, one bath apartment at $600 a aonth. In F.bruary she was told the rent Will be golng up .,25 a month. She expressed tbe opiniOll that rent amounts shCIIIII greed, not a tail' protit. Roberta Holliman, La Palou Drive, CUpertino, League cr WOII8D Vot...s, expressed sU',>port tor equal opportunitl houslng. Sbe urged the City to seek a vay ror attordabl. houslng. Jill Morley, Villa Serra Apartilent OIIIIer, stated that apartment owners do not ask good tenants to leave and expressed oOllcern regarding a "just cause" notioe tor vacation. He said that in Mountain n.... and Santa Clara, voluntary mediation haa worked _11. Judy Fowler ot the Shared Housing projeot stated that single parents are also a speoial need population in this community and that shared housing has been a suocessful alternative. J. R. Rodine representing Westwood Apartment on Blaney Avenue, spoke in support ot vOluntary mediation as well as support tor a density bonus, He stated that a 60- day notice would be all right regarding inoreases but did oppose the limitation ot one rent increase per year, He also opposed "eviction with just caus~," _2_ MIK\mS C1I m OC'tO!D 9, '96~ (cc-6S61) 'VY"1ee ee."'.e e!We" .",.,.,.. '. ''''':' '~..,,, J/~-,~-' " "t - " . Max Suuler, Lake Blltlllore Apart_ta. stated that ~ years ago be _ved to th" Lake Blltlllore ooaplex and stated a rent ot $308 a month. The rent 18 now $525 and be ball rece1ved not1o. 1t will go u;> to $810 as the sen10r d1scount ball run out. Be stated that 1I!IproV8IIOIIta ads ban oJeea supert1c1al and not en the w1de ot the aP6rt.ents. Al Sbappel, Lake Biltmore, Pres1dent ot the Res1dents Aaa001at1en, rev10ved tile h1story ot the Lake Biltmore ~t ovnera. Be lltated that coe ot the probl_ 111 the need tor a botel in CUpertino as IUD)' apartments are rented by oorporatiens, and corporat1ons do DOt care how much rent they are paying. He stated tbat Council may wish to lobby tor a change ot the pollcy that corporations pay aployees' rent tor six IIOnths. He stated that the Lake íIlltlllore ovners and operators have hoDored the oontract they s1gned as a result ot mediation. Upon Council's request, he stated that be would try to get tbe t1gures ahov1ng tbe nUllber ot apartaenta used in place ot hotelll and send tn81l to the Ass1stant to the City Manager. . Robert Wagner, Lake Bl1 tmore Apart;lIeDt owners' representat1ve and _bel' ot the R'1Intal !lousing Colllll1ttee, stated that rents do go 11? when there 1s a shortage ot units. He lI~ted he vas in agreement with oertain it_ ot tbe reo~tion including s;HlO1al groups, extended not1ce prov1a1Oh and med1at1en r .'OOssa. He 1ntonaed Council tbat Prometheus Develo", ,t will be br1ng1ng a Proposal ror apartments to the Council. This would be a development ot apþ>"Ox1llately 105 units with 20S set aside tor lIOderate inCClle or seniors. Ann Anger asked who was caus1ng the problem, the big owners or small ovners. She stated that attordable hou5ing relates to land values, Tony Intantolino, Villa De ADza Apartment, told Counoil that he had IMIved trom Nell York thirteen years ago and at that time paid $:.20 a month rent. He stated that at Glenbrcok a two bedroom, two bath apartment costs $1,050 ~ month. At Villa Serra it costs $920 a month, . Louise Levy, Wilkinson Avenue, Cupertino, also a Committee members, discussed the Council subpoena powers and public hearings as discussed in the report, She stated that mediation oould not OCCIl ' ir one of the parties does not show up. The ¡.oint or a publio hðaring was that so that the public could be aware ir someone vas being uncooperative, She stated that senior housing needs the same type or l~oat1ons as handicapped hou!ling for ~onvenience, -3- .'-"~' ~:o::::. . 0 ·':<'·>'o~'" ". -..~.."_...~,-",y,....-~....~-,.,.....,,. .. . ..' ., ".;:~:;~:;;f: '0' M1I'IJ1U (fI "HI OC'fOiD C), ,~ (ec-~Sf.l} þ Jack PaulaeD stated that he bas beeD a aecl1ator tor CUpertiDo since 1981. R. teels that s1D81.s, ..iors aDd others.... _titled to live in e~ta in tile biUs &It aucb &It tbe ricb are. 811 aaid tbere is laDS tor a~ta. Be urged Council to aUow SNDD1 UD1te, _11 unite aDd n.~1Sels. 811 also suuested _11 aatbaoka aDd no yards. Al Sbappel. Lak~ Biltaore APar~tll, stated that tile attaobMDt to tbe report vb1cb be VI'Ota would pronde pel'Øl8l1eDtly attorda~l. housiug in CUpertino. It waa _yed by COuno. Gatto. seconded by Couno. Jobnaon and pasaecl UDaft1llously to olose the publio hearing. (;ouno1l reyiewd the report troll the eo.1ttee and yia Lntol'lllll 'IO\1ug proc.ss took the tollowing lIO\1on. Part One: Conflict Resolution l'CMro!IIc.noø Section I.... i~ 1 and 2. approved unan1lllously. The tenant/laDdlorcl handbook shall be a POliCY stateaent. þ Section I.B. Approy. aaount of inorease specified CD yearly basis tNt _y not be increased an at 0118 tlme but worked out in an qre_t between the tenant aDd landlord, This is to be done in compliance with state law. Section I.C., d1ssentin¡. it8111 1, approYed with COunc. Spa~ks Item 2, approved unanimously. Removed with COuncilmeaabers Johnson and Plungy dissentinS. MEDIATION Item I , approved unanimously, information. COuncil requested cost Item 2, approved with Counc. Sparks dissenting. TheC1ty Attorney pointed out that seotion 2 would need rewriting. Item 3, approved with COunc. Sparks dissenting, Item 4, approved with COunc. Sparks dissenting. This shall be reviewed by Counoil after twelve months. þ _4_ ., -. -"~1'~";,.'c,,,:.,-:,." ·_,c_~~, .,".....-.:;-~,.. '-:':"¡"'.: HIJIUTBS OF till OCTOBIR 9, 19A (Cc-656j) Part Two. Ino.-sinS IIDtal Suppl,. , Section n...., 1tea 1, CouDoU UDallWoualJ' approyed thi. ooacept and requested atatt look at lepl1ty ot "tlmd1D&." Itea 2, .....yed bJ ~"'U" It.. 3. l'eIIOYed by ooaaenaws. Itea 4, CouDoU requeated, with Couno. Gatto c1tllleDtinS, that staff 1DY8st1&ate. It.. 5, supported UDaDiIIoUal)'. Section II.B., itea 1, C0uD0ll approYe(\, IteII 2. direoted tile vorj "!'tIquire" be obanged to "enoourage." It.. 3, l'eIIOyed UDaD1aoual)'. Item 4 - C0\m01l d1reoteð that "all I8\Ilti taU," be deleted aDd "rental/aeD101" oitizen" be substituted. Itell 5 - Counoll direoted 11;,. 5 to be rellOved. Item 6 - approv", Item 7 - removed. It.. 8 - directed to be beld 1D aDeyence. It.. 9 - approved. PART THRElh Housebolds witb special needs. Item 1 - approved. Item 2 - requested deletion atter "built tor ~~iors." Item 3 - removed. It.. 4 - The City Attorney was directed to check the use or publio tunds tor private purposes. He shall also ex.1II1ne whether or not the City can work through an eXisting agenc7 . Item 5 - approved, PART FOUR: Permanently affordable housing, Item 1 - approved. Item 2 - approved. Item 3 - removed. -5- I . . "<~4'< i' ....,q.',¡ ~·.c .. 'q, . .' ,.~"'?"~" :", MIIUTBS OF TBB OCTOBII 9, 19811 (cc-656a) PAR'l' nns <lenerel Seotioa V.A. - approved. B. - .pproved. Couno. Sparks IDOved tbat de..lo )II8Dts ot tOUl' IID1te or 1_. be ex.-pt. i'be IDOtioa died tor- l"ok ot . second. Counoil reterred the report .. _ded to statt tor review and . report back. Staft report should inolude...... ot cost and tundinp aUOIMCI tor SUbsidy. Also to be inOluded 18 . liat ot what ite. need to be reterred to the Pl·....i... o~sa1oø. Council d1reoted the 1Ødiatioa peer group be put into place ~iatelY and directed that eaob oounoiJ.aeat..r shall eaII:e ODe appointamt to an ad boO o~tt.. vtûoh Will COM back with a rec....ndatioa tor. lladiatioø board. Counoil d1reoted tbat an liB procedure be established. Statt vas directed to report back II1th what involv_t the City 11111 have. !nterill ZOni n.. OrdiDaDoe The Direotor ot Pl.....tn. and Developaent requested the Counoil conduct an adJOUl'Ded _tinl to oonaider the extension or the interill zoninl or-d1nance - 6soo p..., Ootober 30, 1984. At 10.20 p.... Council adjourned to 6.00 p..., Ootoher 15 in the eonrerence ROOII. (City Clerk's Notes A oopy ot the Bental Housin¡ ec-ittee Report 18 attaohed.) -6- .. " '":"7~' ",-:-., "','"",e' -'-;-,",:'''r ""~>T'.-~.-1Jt~ . :1'" .'co '.~~.l:~~.. -.1"':-'- . ">}'f.,;:.}~;,,¡ ~:.;';_~;::~,. . , C:III'ERTI:lO RENTAl. HOU:HNG comnTl'EE R~rort to Cupertino City Council . . for our city to remain a balanced oue, which includes a variety of economical levela and age~, we must take special steps. If our children move away when they leave our hoaes because they cannot afford housing of thelr own here, and we or our parents must also leave upon retirement because of the cost of rental housing, our community has a severe problem. Thi~ committee presents the following recommendations to .itigate the problems of renting in this area. The following presentatio~ will generally follow the form of the study plan presented to the City Council on February 6, 1984. PART ONE. Conflict Resolution COMMUNICATION A. We recommend that a handbook be developed and distributed explaining l~n~lord-tenant rights, responsibilities, and applicable law, including sl1>:¡;ested forms for use by landlords and tenant3. These forms should include. . I. A sug~ested maintenance request form which would include at le~st the following. a) form title (i.e., "Maintenance Request") b) d"te c) description of problem d) signature spaces for both the tenant a..d the owner or manager. 2. A "Nove- in, Hove-out" cond It ion report form, to inc lude space for signatures of both tenant and owner or manager. :;oth forms should be in duplicate, with one copy for the tenant. The city shall provide the means for ascertaining that landlords and ten~nts receive copies of this booklet. B. With regard to rent increase', WI! recommend that after the first il1crease to a ten~nt, subs~quent increases cannot take place more often tt1an once every twelve months, with notice of sixty days to be given prior to any rent incre~se. Tlw City Council should encourage landlords to notify ten",!!.ts 3S early ~s possible of any intended change in ownership O~ financing ...tructurc that li1ight have 2n impact uron the rent or other conditions f tC'f"13ncy. (COlnmunicatio'1 of this encour,]gcment could be in the form of " written notice to lardlords to accompany the annual ren~wal application for ~ business license.) " '''''''_'-::~~_.,.m'''r·'~", ..~.,.,..-"'~.~~~. ., ',.. ...., ¡¿" .. ,.,,:, ",,"';,' ~., ' .~".~'" . " "-,,0;-. " "," . "':.,..:~~. ,'_:' '~.' .....:' ..-.'- ., ."" c. ' 1. Residents' associations from rental properties in Cupertino .hOUld be Invited to register with a list of officers and statemene of urpose at City Hall. If city officers deem it necessary, they 88Y assess a filing fee. At the point such tenants' organization becOBes resi.tared vith the city, the .... inforaltion .hould be .ent to this Orlafti..tioø a~ we are recommending be ..nt to landlord.. 2. A Cupertino rental housing owner. peer group, .uch as the Mountain View Housing Council, .hould be e.tablished to .upplement the mediation process. D. Tenants must be given a written rea.on for eviction, but it would not be intended a. ~ nec...ary legal justification. I1EDIATroN We recommend that the City Council .et up a mediation board with trained volunteer mediators, the precise structure of vhich to be determined by an ad hoc committee. We specifical~y r.commend that the structure include: . I. an information and referral servic,; 2. a provision for disputes over rent increases not resolved by the first mediation process to go to pu&lic mediation with .ubpoena pover; J. A requirement for signed agreements by the parties, or a vritten report by mediater if no agreement reached; 4. A requirement for written statistics to be kept and used for the purpose of evaluating the effectiveness of the proc.... This entire process should be reviewed for effectiveness dt 12 months. as per part B of the general section. PART TWO: Increasing Rental Supply A. The City should encourage maximum utilization of existing housing through: . 1. encouraging, promoting, and funding expansion of "Project ~Iatch" and "Shared Housing"; 2. relieving restrictions on shared cooperative living on non-related persons, including room rentals in single family d'..e 11 i nJl5; ... J. encnuraging 2nd and 3rd units, including elimination"of the requirement for ovner-occupancy; 4. preventing occupancy limitation of rental units to fever than one person per bedroom, plus one (¡ .e., one bedroom, at least two people permitled; two bedroom5, at least three people); 5, continuing to encourage mixed-use zoning for housing and commercial ~uildings. -,.. ~""'----" ;';"~'''~é-' T," ~~~~""~"'_"'''''fìJ",~~~~~.l''<,;..;~,~j'',~.''·'~'_' ,__ · · ,."~ ".'~. . ""'; , ,~'..,~ ."., 4. To encourage new units of rental housinl, the City should. 1. foster financing prolram~ for multi-fa.ily rental unit. which would Include some low and moderate Inc... units throaah a) tax exempt bonds b) special arrang...nts with lending inltitutions c) block grants. 2. require developaent of re..ining vac.nt land at the highest allowable density compatible with exi.tinl zoninl; 3. estabUeh an "apart_nt only" zoning; 4. Expedite or "fast-track" all IlUlt1-fnUy residential applications throulh the planning process fro. application to issuance.of pe~its; S. encourage hilher denlity residential developaent for surplus school litel; 6. approve lot .plits that re.ult in no less than 6,000 sq. ft. where land condition. make it environmentally eound (i.e., not hillside.); 7. consider unincorporated land to be annexed for suitability as a rental-only zone; 8. require developers of large commercial or industrial developments to contribute, according to their impact on the job/housing balance, to a city fund which will be ueed to construct low ~nd moderate income residential units; or they can ,ro· vide residential unit. to be sold to the City at cost of conÞr.ruction and finance, excluding land costs añd profit. These unit. would be sold or rented to low or moderate incOMe households in accordance with the City's Below Market Rate Program; 9. ini~ial and support state legislation that would allow the city to purchase surplus government lands at beloll market rate for low and moderate rental housing. PART THREE: Households With Special Needs ~ This committee agreed that we wish to retain our senior citizens in Cupertino and that we want to find some way to provide relief for tho"e whose rental increases are creating severe hardships. We recommend that the city: · I. encourage "Project Match" as stated in "Increased utiliza- tion of housing"; 2. work actively and determinedly to have residential centers bUllt for Seniors, whIch would provide shared "ervices similar to Lytton Gardens in Palo Alto, and dona~e land for these centers:; J. consider surplus school sitc~ as "apartment only" Z,,"CS for senior citizens and handlc~ppcdt when the sites are close to transportation, shoppinn, etc.; 4. subsidize relit increases in excess of the annua.l Soèt.al Security increases for Seniors who are currently in rental units in this community, and for whom increases can be demon- ~trated to be a hardship, until Senior lIousing can be provided; 5. encourage the use DC the "Feverse Annuity" programs. -J- " 'T' """¡!~_,,,,'~'J'J:>'0'>" ': ',(~~7:':;;1.{~:.¡.~;_~,~,~:f~~:~:~.~/ ' 'PART FOUR. Permanently Affordable Housing Þ The Committee supports the concept of pe~nently affordable hOl1sing. We recoøaend I 1, the City Council to in.truct the staff to study the feasibility of developing permanently .ffordable hou.ing including, but not limited by the point. in Mr. Chappell'. document (appended); 2. Though not endorsed in its entirety by the committee, we are appending Mr, Chappel'. documents for a feasibility study; 3. if lott~ries become feasible in this state, the City Council should look favorably toward using this means of' providing rent subsidies or permanently affordable housing units. '. PART FIVE: Gener31 A. We ask the City to amend the General Plan to adopt enabling legislation to reflect ~he committee's recommendations as appropriate. . B. We rC1uest that the. City Council extend this committee ye~r. with two semi-annual meetings, to monitor the effect of Council actions in relationship to our proposals, and provide committee with semi-annual progre.. reports, for one City this Thereafter, a five member permanent Housing Committee will monitor progress toward meeting the goals of our recommendations. ..... . PERMANENTLY AFFORDABLE HOUSING _ WHAT IS IT7 A. Affordable to the ReSident - It costs not more than twentY-five percent (25%) of the Resident household's gross Income, B. Affordable to an appropriate mix of households at various income 'evels when the program Is Considered as a whole, City Council specifies what percentage of hOUSing at each affordabi 'ity lever, (very low,. low. moderate, or just below market-mInimum twenty-fIve percent (25%» should be Included in the program. C. Owned and/or cooperatively owned by the resident(s) pride of Ownership are, in fact, crItical elements' In succe~s of any program of this nature. O. Limi ted as to equi ty for resIdents _ this. imItation, tYPiC~"y to CPI rates or to the rate Set by the State of California for Limited Equity HoUsing Cooperatives, aSSures Continued affordabi Ilty. E. Permanently affordable by law - each unit/group of unIts are legally prohibited from being returned, in any manner, to the market for at least sixty (60) years, F. S~1f financing - creation of unit wi" require std. t-up loans, but all capitol wi" be returned to the program over time. This is Possible because Permanently Afforiable units 'ncrease in Cost much slower than units on the market and can therefore be "Taxes" to return seed money without becoming Unaffordable. G. Prospective Participant/Residents shall be Considered on a POints system, as out 1 ined in exhibi t "A".. ~ ... ..,' - ,', :"." -,-~ .' '\ ." ,~,- "" . "". _,'.i., . . " ,,: ~! ~'J ~,; :;.1' ,,,,,..~""< """,,';, ,,~, ....~,_, ,..t'" ,,:',' "~ Rltfng , .11 't:~f , f'~IfM~NflY AFF!f.OABLE KOUSrllG. A??UCATION rO~11 ,_ of app1fcant: H ~ess r~ne.1/ 49!i . NUlrÓer years Cuper ti no Relf dint ? 4-6 months '" ~ 10.12 month. '"1y,. Total income fr()lll all sources, If the total income f ..., $ $S/).Ooo.oo $40.000.00 $35.000.00 $30.000.00 $25.000.00 $20.000.00 $17.500.00 $15.000.00 $12.500.00 $10.000.00 $ 9.500.00 $ 6.000.00 . Nurmer of Persons In hausehol d 7 '. Age of Head of household 7 yr, (defined by nearest Birthclete) ~,U"";~ of years Over 62 y~ars 7 (defined by nearest Birthclete) Verified by; Title !late Iluarter 95 For For pp1fcant Of~ice use u e ys_wonths 122 per yr. 1 point Enter or wore enter only or mor e " 2 " ON~ H. or more " 3 " or more II 5 " or more II 15 II: or IIIOre II 17 II' or more " 19 II or more " 2; II. or mor, " 23 " or wore' II 25 " or wore " 27 " or wor e ,I 30 " x XI./. , Yo X ) enter I pt each i ne. sa1 f. xx ~x, x XX xx XXX) wonths. Enter 1 pol nt per 1 year Y.:~:f .. . 't. .,... yr s rronths Enter 1 point per I year Total number of Points --..- X~:':lX XXXXXXX:O: xu' í'plicatl~ns recefved ~y City CI~~s Cfflce; any time. P.evi~.ed & rated; Quarterly. act, Quarter shall be Ichntifled by Alphabetical tetter (i.e. 1st quarter "" A ". ) ach A app1icant receiving a rating of (95) ni~ety five plus, shall be eligible f~r lousing prior to B list being considered. (this shall continue throughout the alphabet.) peclal note: Each App1icant agr~s to verify as appropriate any & or a11 answers on :~is form, as requ~sted. Verific1tlon shall ),e in accord with Federal passport rules. i.nature of Applicant; date œte 19 19 19 ate~ by; ecelved; Office of the City Cleric, Cupertino California 95014 date title '. "hib; t A. , '. 2. eA. . . . \ SECURITY DEPOSITS ^II Security Oeposits**, shall be placed in a public trust fund. .The fund shall reside In a fully liq~ld, Federally insured, interest bearing account at a Bank/Savings Loan institution within the City limit of Cupertino, California. Ai! Interest earned from this money wi II be returned to tnls fund. . B. A reasonable per~entage of this fund should remain on deposit at all times and will constitute a reserve from which deposits will be returned* to the Resident once notice is r~ceived that the Resident/Tenant i~tends to vacate their rental unit. (*Paragreph E and F) C. The security deposit monies, while on deposit, are to be used for the singular purpose of Financing-; Permanently Affordable Housing. Generally this fund would create working capi~o' for down payment funding on eJther new or previously owned units. D. At the time when agreement is reached between Landlord and prospective Tenant, to rent a unit, the Landlord/Represer.tative will advise Tenant that a sum of moncy equal to the first months rent will be collected, appropriate receipt shall be given and this sum shall be forwarded to the City Clerk within five (5) business days. If the security deposit Is not received within the stated time, an additional amount of ten percent ¡IO\) per each increment of thirty days shall be due and payable to the Trust Fund. The added cost may not be passed throu9h to the Tenant(s). The term thirty days shall mean calendar days and/or any portion thereof. E. At a time the Resident tenders appropriate notice to vacate the Rental unit, the written notice shall be tendered in triplicatL, with the following distribution; Original to Landlord 1st copy with Landlord's sig~ature and date of receipt delivered by Tenant to t~ffice of the City Clerk, 2nd copy Tenant's o.'n record. Upon receipt of 1st copy by City Clerk pro~erly dated, the Clerk will cause appropriate refund to be forwarded to the proper Ter.ant in no less than ten (10) days, nor more than fifteen (15) days after notice of termi nat i on. F. notwithstanding prOVISIons of Paragraph E if for good cause the Landlord/Representarivenotifies the City Clerk in writing within five (5) business days that a portion/whole of monies is to be held and ad¿itionally notifies the Ten~nt by copy of that notice, then the Clerk shall not prepare a refund of the amount in contest. The contested amount shall be held by the Clerk subject to due process as rec09nized by the City as of the date of notice of termination. Any and all balances not in contest shall be forwarded to the Tenant per Paragraph E. Any and all monies not properly claimed shall remain in the Trust hnd. .. ·Or by "hatever the money has been known by, shall be intended to mean the sum or monies demanded/collect~d over and above the amount co!lected by/for the property Owner(s) in payment of actual rent of premises for R~~i~~ntial u~~~r. -:'"~;!"í :~""~'7_ -'.")~::~~,"'7~.,:,. ""7!'~~:~:" .'..p~~t-~~,~. .~;~~~~~.(~ ""'i \~ , !; 1.1': r-,;~.'-' o¡.á -'1";,_ ,'" . . .. G. Any interest earned by the fund shall be considered as operating expense of the fund and no claim may be e~tertaln9d by the Tenant/Landlord for the whole and/or any portion thereof. A VIABLE METHOD TO INCREASE THE RENTAL STOCK PERMANENTLY AFFOROABLE HOUSING FUND A. Recognition of P.A.H. principles B. Adoption of the city-wide Security Deposit fund principle. C. A flat fee of $8.34 per unit per month would be paid by in a lump sum of one hundred dollars (SI00) eath year. would be to cover an annual Registration fee. Landlords the fee o. Each resident that is eligible in accord with the points system proce.s will deposit the sum of five thousand dollars ($5,000) into the P.A.H. Resident particIpation program. It shall be c0~sidered a singular down payment share. Any resident considered to be on a "fixed income" and therefore unable to contribute the share money in full may arrange to pay on a monthly basis as an addition to normal rent during the maximum loan time of ninety-six (96) months, which shall include five percent (5~) interest on the tota I loaned amount. '. E. Permanent Affordable Housing Fund. A fund for the creation of Permanently Affordable would be established using the funds from Security Deposits (less the revolving reserve amount), Rental unit registration fees and the earned interest. The City of Cupertino wi II be reimbursed for out of pocket costs from interest accrual. Additionally, funds from the Resident participation program become a part of this fund. F. The City would appoint an intermediary, who would agree to charge only time and actual costs for Escrow services. The intermediary Nould assemble professionals as appropriate in the field of public interest real estate acquisition and related subject matter. G. ^ not for profit community housing or~anization, which meets with City a~proval, would be created within 90 days to receive prQ~erties (rom the intermediary. Th~ Ci ty (ounci I wOL;ld pass an urgency ordinance declaring thðt in th~ be~t interests of the citizenry as a whole, rents would be stabi lized as of June I, 198~ and that no increase can take place unt ¡'such time that the Rental Housing stock in the Ci ty has increased by one hundred and seventy-five units (175) (using the ~:~_¥~,,·,-:t7~, "';~'-- ~~.-',:",! .--"~-,,,~-..:-, :-i-::-~·-',;r-:~:,._-.Y"-,.., ..,,-:" . .':, "'!"'c4l(~i, _," ,,-~ " " ',..". '.C""",;·,, .: ""j[ r,;,..L ~~,. .-"'.:0 . ',' <'i".,~";,.',, . \ '. . þ appropriate count as of June 1, 1984) under the Permanent Affordable Hou~in9 ~Ian. at the time that the (lIS) number. is reached and the units are avai lable for occupancy by persons selected by the point system plan, the City Coun~il will rescind the stabilization ordinance and adopt a resolution against the Imposition of any type of rent cei ling at any time during the current term of office of the counti Imembers with the longest terms. All landlords doing business In the Ci.ty of Cupertino would agree to actively discourage any legal challenges aimed at undermining this P.A.H. program and/or any of Its several components. þ , .. þ , ~'.'.:.~~~~m>~, ~. ~"t~rJttl'!'r '. - ;-" -,'"..::' -</",/1: """,/.-' ., . Þ AJgyst 24, 1984 TO THE HONORABLE MAYOR AND HEHBERS OF THE CITY COUNCIL, I am addressing you as a concerned citizen on the matter of affordable rentals for the elderly. In "The Times Tribune", which I read, report3 covering the Planning Commission's decisions to be presented to the City Council are causing me grave anxiety. I find no mention of zoning con- siáeration or funding, etc. for a residential complex for the 65 and over age group in Cupertino, Palo Alto and Sunnyvale both have housina areas for the elderly where a person's income determines the rent one pays. These areas are the Lytton Gardens of Palo Alto and the Life Gardens of Sunnyv.11e. As an apartment renter who has rented the same apartment for twenty-one y~ars, 1 do not think 1 could be classified as a transient Senior Citizen in Cupertino. This town is home. Forced eviction because of unaffordable rent is traumatic to even think about. As an over seventy-five female senior, I also have another special need. Because of the ~everity of chronic aging physical problems, I must live where the heavy labor of daily living is provided. This includes IÞSUCh things as cleaning floors arod windows, vacuuming, and heavy laundry. 'Iany of us in this age group are searching ror these answers and they arc to be found in the above mentioned facilities in Palo Alto and Sunnyvale. This type of facility is the stepping stone before the dreaded end of the li~e or point of no return - The Convalescent Homes. Bas~d on 1980 statistics which I gathered from Lori, a staff person in th.. Council on Aging, Cupertino Census 1980 - ages over 60, of Santa Clara County, I found the following: Age group over 85 248 people Age group over 75 784 people Age group &5-74 1082 people Total over 60 1866 people Living alone - over 65 301 people Heads of Households over 65 861 pi:ople .... (of this group, 321 are renters) . ~re now four years down the road so these st~tistics are probably i,i(hcr now. ~tv pIca to you, a Government Body, who make vit,,1 decisions deter- mining types of structures and land use for the good of the community, '~V-""~~~"'''''''!'''.'''~''':'''.'''",7'''''''''f:'''''.'''''';''''t'~",.",!",''~'''''':,~~.l:¡" . . . ...J ¥'.. ~'. . . . :f:fv"" and Ke.~.n of the Clty Council t\Ul~1JŠt 24, 1984 Page 2 . is to please consider a space like the Lytton Gardens ty~e housing for the elderly in the "special n..ds" age group. Many of us are tryinl to let on the waiting lists of existing facilities in nearby towns and find waiting lists of over tvo years. Cupertino has one, Sunnyvew West, and they also have a long waitinl list. It's disheartening. I nave faith that the. city will take pride in taking care of its ovn as it did for the Wheel Chair-Handicapped persons whose needs were met in a specially designed housing structure. We who are retired and wish to live here have special persona! reasons for doing so, namely family. We would like to re~in here and help keep a balanced community of all ages, cultures and income levels. r'm presently serving on the aental Stabilization Commission of the City of Cupertino. I find it a learning experience rerresenting our Senior faction of rente~s. But I reiterate, I'm speaking for myself only, not as a representative of the Rental Stabilization Committee. Because of my age, I feel a great sense of urgency to speak out in order to expedite this matter of affordable housing for the senior .itiz~ns of special needs. This is a bit wordy, but did you ever hear f a woman that wasn1t? Sincerely, 101a L. Hendricsen , .. .