(a)
Findings. The city council finds that:
(1)
A shortage of affordable housing is detrimental to the public health,
safety and welfare in the city of Sunnyvale;
(2)
Persons with lower incomes who work or live in the city are experiencing
a shortage of affordable rental housing opportunities and those with
very low incomes are increasingly excluded from living in the city;
(3)
Federal and state housing subsidy programs are not sufficient by
themselves to satisfy the housing needs of lower income households;
(4)
It is a public purpose of the city to ensure that housing is available
for persons with lower incomes, and that such supply of housing remains
affordable to future residents; and
(5)
It is the city's goal and a public policy of the state of California
to ensure there is adequate supply of housing for persons of all economic
segments of the community.
(b)
Purpose. This chapter establishes requirements for existing rental
housing developments subject to below market rate requirements that
were in effect before July 2009, in order to continue to contribute
to the provision of affordable rental housing for lower income households;
to achieve the housing objectives contained in state law and in the
general plan; and to enhance public welfare.
(Ord. 2976-12 § 2)
When used in this chapter, these terms mean the following:
means the median household income of households in Santa
Clara County, adjusted for household size, as determined and published
by the California Housing and Community Development Department (HCD).
means, for the purposes of establishing affordable rents,
a household with a total number of members equal to the number of
bedrooms in the below market rate home, plus one. For example, the
assumed household size for a three-bedroom home is a four-person household.
Household members include all adults and children of any age residing
in the same dwelling unit, and functioning as one financial and housekeeping
unit.
means any project that receives development funding from
any local, state, or federal governmental or non-profit source, which
meets the criteria for below market rate housing.
means rental dwelling units affordable to lower income households
and regulated by this chapter. A "BMR rental unit" means one BMR rental
housing dwelling unit.
means a lower income household which meets the eligibility
requirements of this chapter to rent a BMR rental unit. Tenant eligibility
shall be determined by the property manager prior to occupancy of
a BMR rental unit and annually thereafter, and verified by the director
through annual audits of the property manager's leasing files and
other related records.
means the gross, pre-tax income of all adult occupants of
the applicant household, and as may be further defined in the BMR
Rental Housing Guidelines.
means the sum of monthly rent and utility costs, not including
telecommunications services (telephone, cable television, internet),
charged to tenants for rental of a BMR rental unit.
means a household with a gross annual household income at
or below eighty percent of AMI for Santa Clara County. This definition
corresponds to the definition of lower income households used for
state- and federally-assisted housing programs.
means a dwelling unit that is not subject to the occupancy
or rental restrictions in this chapter or any other affordability
restrictions or covenants.
means a household with a gross annual household income that
does not exceed fifty percent of AMI for Santa Clara County. This
definition corresponds to the definition of very low income household
used for state- and federally-assisted housing programs. Very low
income households are a subset of lower income households.
(Ord. 2976-12 § 2)
(a)
Existing BMR Rental Units. This chapter applies to rental housing
developments subject to a BMR housing agreement recorded before the
enactment of this chapter and for the term specified in the agreement.
(b)
BMR Rental Housing Guidelines. The director shall develop detailed
procedures and guidelines to ensure the orderly and efficient administration
of the requirements of this chapter. These procedures and guidelines
are incorporated into this chapter as the BMR Rental Housing Guidelines.
(Ord. 2976-12 § 2)
The BMR housing requirement for any rental housing development
subject to this chapter is what is specified in the recorded BMR housing
agreement.
(Ord. 2976-12 § 2)
(a)
Term of Restrictions. BMR rental units shall be reserved for rental
to and occupancy by lower income households and shall be subject to
the occupancy and rental restrictions in this chapter for the term
recorded in the applicable BMR housing agreement.
(b)
Maximum Rent. The director shall establish and publish annually the
maximum rent amount for each unit size in the BMR Rental Housing Guidelines.
The maximum rent for BMR rental units shall not exceed a price affordable
to lower income households, and based on a housing cost of thirty
percent of monthly gross household income for the unit's assumed household
size. The percentage of AMI used to establish maximum rents shall
be seventy percent, except that the director may adjust the percentage
within a range of sixty to seventy-five percent of AMI to address
major shifts in prevailing market rate rents for comparable dwellings
or other related economic conditions affecting the demand for BMR
rental housing. Existing leases with rents within the BMR rent limits
in effect when the lease was executed or amended are exempt from this
subsection, until the unit is first vacated and leased to a new tenant
following enactment of this chapter.
(c)
Eligibility to Rent. The eligibility of a prospective tenant shall
be determined and certified by the property manager before the execution
of a lease and occupancy of a BMR rental unit. It is unlawful for
any person to willfully make a false representation or fail to disclose
information for the purpose of qualifying as eligible to rent a BMR
rental unit. Prospective tenants are subject to the following:
(1)
Procedures for Review. The property owner or manager shall review
the assets and income of prospective renters using the forms and procedures
provided by the director before executing a lease to rent a BMR rental
unit. The director shall audit the eligibility review and leasing
files of the property owner or manager annually to determine compliance
with this chapter.
(2)
Income Limits. The prospective tenant's combined household income
and assets shall not exceed the limits for a lower income household,
and as further defined in the BMR Rental Housing Guidelines.
(3)
Conflict of Interest. The following individuals, by virtue of their
position or relationship, are ineligible to rent a BMR rental unit:
(A)
Any city official or employee who administers or has policy-making
authority over city housing programs;
(B)
The developer of the unit; or
(C)
The immediate relative or employee of, and anyone gaining significant
economic benefit from a direct business association with, City employees,
officials, developers, or owners who are not eligible to rent a BMR
rental unit.
(4)
Additional Criteria. The director may establish other reasonable
eligibility criteria to ensure tenants' ability to pay rent when due
and comply with standard lease terms, and to ensure effective operation
of the program.
(Ord. 2976-12 § 2)
In addition to the provisions in Chapter 19.98.140 (Violations),
the following provisions also apply to the enforcement of this chapter:
(a)
Agents, Successors and Assigns. The provisions of this chapter apply
to all agents, successors and assigns of the applicant.
(b)
Penalties and Fines. Any person, firm, or corporation, whether as
principal or agent, violating or causing the violation of this chapter
is guilty of a misdemeanor. Conviction may be punishable for each
offense by a fine of up to five hundred dollars or by imprisonment
in the Santa Clara County jail for a term up to six months, or by
both. Such person, firm, or corporation shall be deemed to be guilty
of a separate offense for each and every day during any portion of
which any violation of this chapter is commenced, continued, or permitted
by such person, firm, or corporation, and may be punishable as provided
in this section.
(c)
Civil Action. Any eligible tenant of a BMR rental unit who has been
charged rents in excess of that allowed by this chapter and has given
written notice to the director, may file a civil action to recover
any excess rents. .
(d)
BMR Rental Fines. If it is determined that rents and utilities in excess of those allowed by the administration of this chapter and the BMR Rental Housing Guidelines have been charged to a tenant of a BMR rental unit, the landlord is liable for a civil penalty. The civil penalty amount shall be as set forth in Chapter 1.04 or 1.05, as amended from time to time, and any excess rent and utilities not recovered by a tenant under subsection (c) of this section. If the city does not otherwise recover its reasonable attorney fees and other legal costs from the landlord, the city shall deduct these costs from the amounts collected under this section and deposit the balance into the BMR housing trust fund.
(e)
Legal Action. The city may institute injunction, mandamus, or any
appropriate legal actions or proceedings necessary for the enforcement
of this chapter, including actions to suspend or revoke any permit,
including a development approval, building permit or certificate of
occupancy; and for injunctive relief or damages.
(Ord. 2976-12 § 2)
The director shall provide an annual report to the city council
on the status of BMR rental units maintained under this chapter. The
report shall include the number, size, type, compliance status, and
general location of each unit, as well as the number of any units
released from the program restrictions by the end of the term specified
in the BMR housing agreement, and the BMR rental vacancy rate.
(Ord. 2976-12 § 2)
If any portion of this chapter is held to be invalid, unconstitutional,
or unenforceable by a court of competent jurisdiction, that decision
will not affect the validity of the remaining portions of this zoning
code. The city council declares that this chapter and each portion
would have been adopted without regard to whether any portion of this
chapter would be later declared invalid, unconstitutional, or unenforceable.
(Ord. 2976-12 § 2)
