Vidovich Project at 950 San Antonio Road

LWV Letter re Plans for Mixed-Use Development

LEAGUE OF WOMEN VOTERS
of the Los Altos-Mountain View Area
97 Hillview Avenue, Los Altos, CA 94022

July 6, 2007

Chair Kitty Uhlir and Members of the Planning Commission:

The League of Women Voters of the Los Altos-Mountain View Area supports a balance of housing choices, including retention of rental housing as opposed to conversions to condominiums, and housing that encourages each community to provide its fair share of housing as determined by our regional plan.

With regard to these positions and the 950 San Antonio Road development, we have already written to the Architecture and Site Review Committee expressing our two main concerns. We are making these comments again, because we have not yet seen a new plan from the developer regarding his proposal for below market rate ("BMR") units.

Initially, because of the Los Altos condo conversion ordinance, staff is requesting that the four vacant rental units at Los Altos Gardens, which the developer plans to demolish, be replaced with rental units in the new development. We agree with staff's recommendation.

We also understand that the developer has proposed coming to an agreement with the residents of Los Altos Gardens. The LWV would like to see these tenants' interests protected, and, in particular, very-low and low-income tenants should be protected. Besides the developer's protecting current tenants by agreeing not to raise rents more than the lesser of 5% or CPI, (which we understood to be his proposal) some of the current rentals could be restricted as very-low income rentals. The exact number of these could be based upon the number of current residents who would qualify as very+low income households. These very-low income units must be restricted for 30 years, thereby protecting the current residents and also ensuring that there are affordable units in the long-term future. Depending upon how many current Los Altos Gardens residents qualify as very-low income, BMR restrictions could be placed, in addition, on the new rental units to be built. Again, all BMR rental units should be restricted as very-low income units.

We do not believe that any of the rental units should be restricted as either moderate-income or low-income units. Current rents are actually the same or lower than restricted low-income rents, and significantly less than restricted moderate-income rents. In fact, typically BMR programs do not include moderate-income rentals, because restricted moderate income rents are generally higher than market rents so these units do not add any affordability for the City. Attached is a chart which illustrates this conclusion. A restricted low-income rent for a one-bedroom unit would be $1,592 minus $31 for utility allowance, or $1,561. This is more than what we think current residents are paying. Similarly, restricted moderate-income rent for a one-bedroom would be $2,388 minus $31 or $2,357, far more than what current residents are paying and far more than typical market rate rents in the area. By making some of the current units restricted very-low income units and agreeing not to raise the rents significantly for all the current tenants, we believe all current tenants would be adequately protected.

Our second concern is that the City needs to have long-term BMR units and that the developer should fulfill his FULL BMR responsibility. This means that he should demonstrate that his economic burden in terms of providing BMR units is comparable to that of other developments within the City. We would like to see some of the new units as BMR units. With condos, we believe the appropriate level to target is moderate income. Since the 950 San Antonio Road development borders the mixed use/affordable housing overlay district but does not lie within it, the flexibility of the BMR ordinance allows the City to consider a variety of ways to meet the BMR requirements. There could be a mix of rental and ownership BMR units, as well as a mix of BMR units in the new development and at Los Altos Gardens. For example, 4 moderate-income condos plus 6 very-low income rentals (whether all in Los Altos Gardens or some there and some in the new development) might be a reasonable proposal.

Sincerely,
Susan Russell
Co-Chair, Affordable Housing Committee
League of Women Voters of Los Altos/Mountain View Area
Cc: James Walgren

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