...Title
"Yes, in my Backyard" (YIMBY) Affordable Housing Program. (Mayor, Carrasco, Arenas, Foley)
...Recommendations
As part of the Moderate-Income Strategy coming to Council in June, direct the City Manager to develop a “Yes, In My Backyard” affordable housing program with key partners, such as the Housing Trust Silicon Valley (Housing Trust), to waive fees and provide forgivable loans for homeowners in San José who build an accessory dwelling unit (ADU) or convert a garage into a housing unit and agree to restrict rents to a level of affordability that enables the tenancy of a low-to moderate-income household for at least five years. The elements of this program would
include:
1. Partner with the Housing Trust to administer the program, including initial loan set up, outreach and compliance.
2. Waive all City impact fees associated with developing an ADU or converting a garage for homeowners who participate in the program if the loan applicant agrees to restrict the rent of the unit for the designated duration to ensure affordability.
3. The forgivable loan program should include the following terms:
a. Homeowners who agree to a deed of trust to rent their ADU to low-to moderate income households will be provided with loans they can use to pay permit fees and construction costs;
b. Such loans will be forgiven on an annual basis as homeowners establish that they have complied with the deed of trust;
c. The restricted rent must be affordable for low-to moderate-income households;
d. The per-unit loan will not exceed a maximum amount, such as $20,000 or other reasonable amount recommended by Staff and approved by Council, that will ensure that city processing fees will not add to the cost of ADU development;
e. The loan would be in default if the homeowner attempts to list the ADU via AirBnB or other similar short-term rental service within the loan duration.
4. To fund this loan program,
a. Evaluate the allocation of up to $5 million from the City’s Low-Moderate I...
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