CC Resolution 11970RESOLUTION NO. 11970
BEING A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CAMPBELL DENYING ELIGIBILITY FOR A BELOW MARKET RATE
HOME IN THE CITY OF CAMPBELL
The City Council finds as follows with regard to the application for determination of
eligibility for a Below Market Rate (BMR) home in the City of Campbell:
1. The applicant's 4-person household consists of Phong Le, Bich Thu Thi Nguyen, and
their two children.
2. The applicant is currently renting a home in the City of Campbell and owns ahome-
based business in the City of Campbell.
3. The applicant's total household income after deducing $40,014 in business
deductions (e.g., rent, utilities, insurance, auto allowance, etc.) is $103,406.
4. The lack of affordable housing in Campbell forces many residents to pay a very high
percentage of their income for housing.
5. The "affordable ownership cost" fora 4-person moderate income household is $3,410
(1/12 of 35% of 110% of AMI). This includes an assumed monthly mortgage of
$2,255 plus $1,155 in monthly housing costs (property taxes, utilities, property
insurance, mortgage insurance, maintenance, and HOA fees).
6. The household's total cash assets are $284,322. In addition to the applicant's
personal cash assets, the applicant has indicated that they have access to $200,000
in gift funding. Thus the total amount of cash available to the applicant is
approximately $484,000.
7. Moderate-income households with significant cash assets are generally in a better
position to purchase amarket-rate home than moderate-income households without
significant cash assets.
8. The City's General Plan implements the established policy of the State of California
that each community should foster an adequate supply of housing for persons at all
economic levels.
Based upon the foregoing findings of fact, the City Council further finds and concludes:
9. The applicant can afford a market rate home at an affordable ownership cost based
on the annual income this household generates and the amount of cash assets
available for a down payment.
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City Council Resolution
Denying Eligibility for a BMR Home
Page 2 of 2
THEREFORE, BE IT RESOLVED that the City Council denies the application for a
Below Market Rate unit because the applicant is ineligible for the City's BMR Program.
PASSED AND ADOPTED this 19th day of April, 2016, by the following roll call vote:
AYES: COUNCILMEMBERS
NOES: COUNCILMEMBERS
ABSENT: COUNCILMEMBERS
ABSTAIN: COUNCILMEMBERS
A
Kotowski, Resnikoff, Cristina, Gibbons, Baker
None
None
None
PPROVED:
J son T. Baker, Mayor
ATTEST: ~,
Wend ood, City Clerk