PLANNING AND BUILDING DEPARTMENT - A. PRADO
1. Approve the Lands of Lee Affordable Housing Plan pursuant to Condition of Approval No.73 of Board of Supervisors Resolution No. 2024-146, adopted November 26, 2024; and
2. Authorize the Chair of the Board of Supervisors to execute the Affordable Housing Agreement on behalf of the County, subject to approval as to form by County Counsel; and
3. Direct staff to take all necessary administrative and recording actions to implement the Affordable Housing Plan and Agreement consistent with Resolution No. 2024-146, Chapter 21.03 of the San Benito County Code, and applicable law.
SBC FILE NUMBER: 790
REGULAR AGENDA
The Lands of Lee project was approved by the Board of Supervisors pursuant to Resolution No. 2024-146 on November 26, 2024. The approval included certification of the Lee Subdivision Project Environmental Impact Report, adoption of mitigation measures and a Mitigation Monitoring and Reporting Program, and the approval of County File PLN200051 consisting of a 39.5-acre rural parcel proposed for development into 141 residential lots. The approved development consists of 121 single-family detached units and 20 duet units, together with 30 Accessory Dwelling Units associated with the affordable housing requirement.
Condition of Approval No. 73 of Resolution No. 2024-146 requires that all development on the property comply with San Benito County Affordable Housing Ordinance Chapter 21.03. The condition further requires the applicant, prior to recordation of the final map and/or issuance of building permits, to enter into an affordable housing agreement. Condition No. 73 specifically requires that the Affordable Housing Plan and Agreement address, as applicable:
- The number of inclusionary units;
- The level of affordability;
- The location and type of inclusionary units;
- The timing of construction of the inclusionary units;
- The amount of any applicable in-lieu fee;
- The rental property manager;
- Rental management and enforcement;
- Deed restrictions for the Junior ADUs; and
- Other provisions necessary to implement the affordable housing condition.
Condition No. 73 specifically directs the applicant to provide thirty (30) one-bedroom attached Junior ADU rental units, deed-restricted to low-income households for fifty-five (55) years. The proposed Affordable Housing Agreement has been prepared to implement these requirements and establish enforceable affordability restrictions on the 30 affordable units.
AFFORDABLE HOUSING AGREEMENT
The proposed Affordable Housing Agreement and Declaration of Restrictive Covenants is between the County of San Benito and William Scott Lee and Michele Marie Lee, as Trustees of the Lee Family Trust, and their successors. The Agreement identifies the Property as 291 Old Ranch Road and it is intended to implement and satisfy the affordable housing agreement requirement established by Condition of Approval No. 73.
The Agreement provides for thirty (30) Rental Inclusionary Units to be established in conjunction with the approved development. The Agreement identifies each Affordable Unit as a one-bedroom Junior Accessory Dwelling Unit with a full bathroom, efficiency kitchen, bedroom, and living room. The Agreement further defines a Junior Accessory Dwelling Unit consistent with County Code Section 25.08.002(F)(2), including a maximum size of 500 square feet, location within the footprint or area of the primary dwelling, a separate entrance, full bathroom, efficiency kitchen, bedroom, and living room.
Affordability Level and Term
The Agreement defines a Qualifying Low-Income Household as a household whose annual income does not exceed 80 percent of Area Median Income (AMI), adjusted for household size.
Each Affordable Unit is a one-bedroom unit, and the Agreement establishes a 55-year affordability term commencing upon issuance of a certificate of occupancy for each Affordable Unit. Following issuance of a certificate of occupancy, a Certificate of Completion is to be recorded identifying the applicable effective date and binding the Affordable Lot Owner to the Agreement. The Agreement is intended to run with the land and bind successors and assigns. The covenants and restrictions are to remain applicable to the Affordable Lots for the applicable affordability term.
RENTAL AND TENANT REQUIREMENTS
The Agreement establishes procedures for determining tenant eligibility and maintaining affordability. Prior to occupancy, a prospective tenant must demonstrate eligibility as a Qualifying Low-Income Household. The Affordable Lot Owner must obtain the required income certification documentation and submit it to the County for review. The County retains authority to approve or deny proposed tenant eligibility based on compliance with the affordability and eligibility requirements. Annual income certification is also required for occupied Affordable Units. Affordable Lot Owners must maintain the required documentation and provide it to the County upon request. The Agreement also establishes procedures for situations in which a tenant's income increases above the qualifying income limit, including procedures for continued occupancy of the tenant consistent with applicable law.
Per Section 2.5 of the agreement, if upon recertification of a Tenant's Gross Annual Household Income pursuant to Subsection 2.4 above, it is determined that such Tenant’s Gross Annual Household Income has increased and exceeds the qualifying income for a Qualifying Low-Income Household, then upon the expiration of such Tenant’s lease and following one hundred twenty (120) days’ notice to both the Tenant and the County, and if so permitted by Applicable Laws, such Tenant shall be required to vacate the unit and Affordable Lot Owner may rent the Affordable Unit to a Qualifying Low-Income Household pursuant to the procedures herein. The County retains the right to review and approve the form of lease used for Affordable Units, including provisions addressing the affordability restrictions.
PROPERTY MANAGEMENT
The Agreement places responsibility for management of the Affordable Units with the Affordable Lot Owner. The owner may manage the units directly or retain a qualified management entity. The Agreement expressly provides that retaining a management entity does not relieve the Affordable Lot Owner of responsibility for proper performance of its management duties.
The County does not assume responsibility for construction, rehabilitation, management, repair, maintenance, or marketing of the Affordable Units.
COUNTY MONITORING AND ENFORCEMENT
The proposed Agreement establishes the County's authority to administer and monitor compliance with the affordability restrictions. The County may designate or contract with a qualified public agency, nonprofit organization, for-profit organization, or other qualified third party to administer or monitor the Agreement. Such entity may review income certifications, tenant eligibility documentation, lease materials, rent compliance information, and other documentation necessary to maintain compliance.
The Affordable Lot Owner is responsible for reasonable and documented County or third-party administrative, monitoring, certification, and enforcement costs, subject to the limitations established in the Agreement. Per Section 5.2 of the Affordable Housing Agreement The Affordable Lot Owner shall be responsible for reasonable and documented costs incurred by the County or its designee in administering, monitoring, certifying, and enforcing compliance with this Agreement, provided, however, that the total amount of such costs and fees per year shall not exceed five percent (5%) of the annual rent received by Affordable Lot Owner with respect to the subject Affordable Unit, except in the event of an enforcement action or other action related to noncompliance with this Agreement against the Affordable Lot Owner or with respect to an Affordable Unit.
RECORDATION
The Developer is required to cause the Affordable Housing Agreement to be fully executed and recorded against the Affordable Lots prior to issuance of any building permit for an Affordable Unit, unless otherwise approved in writing by the County. The Agreement is intended to encumber only the Affordable Lots and not the remaining lots within the project. The Agreement also provides for subsequent assignment of the rights and obligations to purchasers of the Affordable Lots so that the affordability restrictions continue to run with the property.
The proposed action before the Board is to consider whether to approve the Affordable Housing Plan and associated Affordable Housing Agreement implementing an existing condition of approval for the previously approved project. The proposed action does not approve a new development project or authorize physical changes to the previously approved project.
Approval of the Affordable Housing Plan and Agreement is not anticipated to result in a significant direct fiscal impact to the County General Fund. The Agreement provides that the Affordable Lot Owner is responsible for reasonable and documented County or designated third-party costs associated with administration, monitoring, certification, and enforcement, subject to the limitations established in the Agreement.
1. Approve the Lands of Lee Affordable Housing Plan pursuant to Condition of Approval No.73 of Board of Supervisors Resolution No. 2024-146, adopted November 26, 2024; and
2. Authorize the Chair of the Board of Supervisors to execute the Affordable Housing Agreement on behalf of the County, subject to approval as to form by County Counsel; and
3. Direct staff to take all necessary administrative and recording actions to implement the Affordable Housing Plan and Agreement consistent with Resolution No. 2024-146, Chapter 21.03 of the San Benito County Code, and applicable law.