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Meeting Date: October 23, 2001

Subject/Title: California Orchard Affordable Housing Program Update

Submitted by: Mitch Oshinsky, Community Development Director
Winston Rhodes, Senior Planner

Approved by: Jon Elam, City Manager

No action is required.

In June 2001, the Council approved the affordable housing guidelines for KB Homes 
California Orchard subdivision (TSM 8199)

The affordability guidelines provided the policy direction to implement the requirement for the provision of twenty affordable housing units in conjunction with the California Orchard subdivision. The guidelines established the affordable housing eligibility requirements, affordability criteria, the housing model, and set the initial sales price of the affordable units. Marketing materials have been distributed to households who initially contacted the City about the program. KB Home sent program-marketing materials to the school districts and fire district. KB Home has been marketing the program and performing initial eligibility screening since September. Approximately fifty program information packets have been provided to interested members of the public as of October 12. Approximately ten completed applications have been submitted and are under review. In order to provide more time to market the program, the application deadline was extended to October 30, 2001

The level of interest in the program has been lower than anticipated. This may be attributed to several factors: the high degree of uncertainty and fiscal caution resulting from the recent terrorism events, the current economic downturn, the need for more aggressive program marketing, the 10 percent required down payment, and/or the $200,000 sales price. Staff and KB Home are currently working together to identify which factor(s) is responsible for the low level of program interest. Once we identify these factors, we will look into the needed program adjustments and seek Council authorization if any action involves modification of the program guidelines.


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