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Current Council Agenda and Past Meeting Information



Meeting Date: May 25, 2004

Subject/Title: Receive the update report on City of Brentwood Affordable Housing Program; direct staff to bring back Implementation Resolution; and direct staff to bring back amendment to Affordable Housing Ordinance upon completion of revision analysis

Prepared by: Ellen Bonneville, Housing Manager

Submitted by: Howard Sword, Director of Economic Development

Receive the update report on City of Brentwood Affordable Housing Program; direct staff to bring back Implementation Resolution; and direct staff to bring back amendment to Affordable Housing Ordinance upon completion of revision analysis.

Ordinance 756 was adopted by the City Council on September 9, 2003 creating the City of Brentwood Affordable Housing Program. Staff was hired in February of 2004 to begin the implementation of the program. The first two Affordable Housing Agreements with Western Pacific Homes and Pulte Homes were included as Informational Items on the May 11, 2004 Council agenda.

The City Council approved Ordinance 756 “An Ordinance of the City Council of the City of Brentwood Approving and Amendment to the Municipal Code Adding Chapter 17.725 that Establishes and Affordable Housing Program” on September 9, 2003. The Ordinance requires that developers of residential projects assist in increasing the supply of very-low and low income housing through creation of ten percent of the units as affordable housing. It further creates an in-lieu housing fee for creation of these units and offers the developers several alternative equivalent methods to provide these affordable units through dedication of units to the City’s rental program, dedication of land, purchase of market units currently for sale and reselling them at affordable costs and other equivalents as negotiated by the City Manager or his designee.

The Housing Manager was hired in February of 2004 and has begun the implementation of the Ordinance. During the past three months much progress has been made as well as discovering several issues and concerns that have arisen as a result of implementing the Ordinance. The following are progress points made during the past three months:

• Created a database for managing the Interest List and Eligibility List
• Interest List is closed with approximately 260 households on list – this is a 3-5 year waiting list at this point
• Lenders class was conducted on April 30th to inform local lenders about the affordable housing program
• First class for eligible households will be conducted on June 1st with first units available for purchase during Summer 2004. Class in Spanish will be held on June 3, 2004.
• Class for Title Companies will be conducted in June
• Sent out RFP for property management services and received response from Matrix Property Management, a division of Shelter, Inc.– will interview and prepare contract for City Council approval
• Published 2004-2005 Income Limits and Maximum Affordable Sales Prices and Rental Rates
• Have finalized negotiations with five residential developers
• In negotiations with another 14 developers
• Identified potential amendments to Ordinance

Attached to the staff report are two items that provide the status of our developer negotiations and the number of units staff anticipates will be available within the next 18 months for both redevelopment agreements and city agreements.

One of the difficulties with implementing the Ordinance during the developer negotiations has been with the “transitional” projects. These are the residential projects that have non-vesting tentative maps with a recorded final map with a condition to comply with the affordable housing Ordinance. Because they may have a recorded final map and have this condition of approval to comply, they are allowed to comply with only 50% of the total number of affordable units but are not eligible to receive the economic benefits the Ordinance offers to offset the costs for this compliance. These benefits include the 9.22% density bonus, allowing smaller split lot sizes and smaller unit designs. The developers are put in a situation where they must go back to the Planning Commission for revisions to their maps and designs in order to allow for duet units on split lots, or smaller single-family units, or four-plexes. These changes add unforeseen costs to the developer.

In addition, the Ordinance provides a preference to school district employees, emergency employees and agricultural workers. Typically, teacher households and emergency personnel households interested in the program are over income and are more interested in a shared equity type of program rather than having a 45 year resale and refinance restriction on their home.

Rather than building units for sale to very low and low income households, many developers show interest in providing the rental units to the City as they are allowed a 2 for 1 credit for this dedication. However, the Ordinance needs to require that these dedicated units be in turn-key condition with completed landscaping, appliances and window coverings provided.

Because of these issues and several others we have met with Libby Seifel of Seifel Consultants who is one of the experts in the Bay Area on inclusionary housing and affordable housing issues. She and her staff are preparing a scope of work to assist staff in preparing amendments to the Ordinance to make it friendlier to both the development community and target households. Seifel Consultants shall prepare and provide the economic and market analyses to guide our discussions and strategies regarding potential amendments to the Ordinance for Council consideration. Since the intent is truly to provide safe, sanitary and decent housing to all segments of our community we will take a look at refining the Ordinance to do so in a more efficient manner. Staff anticipates seeking approval of a contract with Seifel Consultants in June and presenting our recommended amendments to the Ordinance in September or October of 2004.

Prior to consideration of Ordinance amendments, staff shall work with McDonough Holland & Allen’s housing legal counsel to discuss opportunities of immediate revisions to the Ordinance through an implementation resolution, without altering the intent of the Ordinance.

Staff recommends the immediate revisions include:
• Affordable Housing Agreements be placed on the City Council consent calendar for approval.
• A balanced program of in-lieu fees, for-sale housing, and dedicated rental units be continued at the 50% requirement level for all residential projects until such time as staff returns with amendments to the Affordable Housing Ordinance, based on analyses and guidance from Seifel Consultants.
• Residential projects with lots that have an average size of 8500 square feet or more shall be eligible to pay in-lieu fees for very low and low income units.

None at this time. Additional consultant contracts will be brought before the City Council for consideration and approval.

City Affordable Housing Statistics
Project Availability Schedule

Subdivision Total
Units For-Sale
On-Site Conversion of Existing Units Dedicated to
City Rental Dedicated
Land Payment of
In-Lieu Fees
Western Pacific
4 subdivisions 98 2L
Rose Garden 511 6L 2VL 8L 0.653 ac
H4H – 4 VL $478,663
Blackhawk Nunn
Marsh Creek Vineyards 1550 20L*
Land to city for up to 100 units
Private Island
Magnolia 84 1VL
Sterling Pinnacle
319 1VL
1L $889,174 at 50th bldg. permit
Mission Peak Homes
Amber Park 162 4L $39,150
Western Pacific
Balfour & Fairview 116 2VL 1VL
Totals 2840 4 VL

12 units
2 VL units
40 L units
4 VL $1,406,987
Anticipate construction and conversion of 10 units within 18 mos to 2 yrs * may be rental or “for sale” Anticipate cnstrctn of 10 rental units w/in 18mos – 2yrs

Blumen Ranch – 176 units Centex Homes – Apricot Way – 59 units
Seeno - Brighton Station Apricot/Shady Willow – 161 units H. Siino – Fairview Avenue – 9 units
Pinn Bros – Central Blvd. – 579 units Blackhawk Nunn – Balfour/Bypass – 210 Units
Western Pacific – Balfour & Fairview – 130 units Minnesota – Minnesota Avenue – 13 units
Braddock & Logan – Grant Street/RR tracks – 311 units Mark Taylor – Grant St. – 11 units
Kurt Gardner – Grant St. – 30 units Western Pacific – Sunset/Sellers – 124 units
De Nova/Barrington Stolich Property – 493 units Meritage – Grant & O’Hara – 83 units

City Administration
City of Brentwood City Council
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Brentwood, CA 94513
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