AgdaPkt 2008-08-11 Clsd and Reg - Laserfiche WebLink

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8A Page 2 On July 1, 2008, the Planning Commission approved the Planned Development Permit for the Canada College faculty/staff rental housing project subject to City Council approval of the following affordable housing-related conditions: 1. A minimum of 15% (9 units) of the 60 housing units shall be affordable as follows: five of the nine units shall be affordable for households eaming 100% of median income and four shall be affordable to households earning 80% of median income per San Mateo County Department of Housing 2008 (and as annually amended) Income limits (as defined by HUD and the State of California). 2. The San Mateo County Community College District shall enter into "Declaration of Affordability Covenant" deed restriction agreement with the City of Redwood City to ensure that at least 15% of the housing units remain affordable for at least 55 years and that this affordability run with the land or any future land transfers. The agreement shall be approved by the City Council and shall be recorded prior to Building Permit issuance. The purpose of the proposed Affordable Unit Covenant Deed Restriction is to ensure that the Redevelopment Agency can count one-half of the units towards the Redevelopment Agency's housing obligation2 and to ensure (provide a safeguard guarantee) that at least 15% of the units remain affordable to low and median income households for at least 55 years in the advent of a future land transfer/sale. While most of the College District employees are in the low to moderate income categories (earning 80 to 120 percent of median income), because the College District wants to enable their employees to save towards the purchase of future homes, the District intend to rent all of the units to faculty and staff at rent levels affordable to lower income households (see Attachment 2). The Canada College housing project is an innovative approach to addressing the Bay Area's affordable housing crisis that will assist the College District in attracting and retaining qualified employees. The proposed housing offers College faculty/staff a first step towards. home ownership in San Mateo County, which is one of the costliest housing markets in the country. Faculty/staff will be allowed to live in the apartment units for a limited period of time (up to five years) and will be encouraged, through voluntary savings plans, to save for a down payment on a home. The District and a number of cities currently offer first-time homebuyer second loan programs that the College District employees can access when they have accumulated a down payment and are qualified for a first mortgage. The College District is able to offer rents significantly below market rates because it: 1) owns the land; 2) has access to tax-exempt financing; and 3) does not have a profit motive. 2 The Redevelopment Agency receives credit for affordable units built outside of the Redevelopment Area, but can only count one-half of the units towards this obligation and the units must be maintained as affordable pursuant to a covenant or other legal means.