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File #: 2087-2019    Version: 1 Name:
Type: Consent Calendar Status: Passed
File created: 10/14/2019 In control: CITY COUNCIL
On agenda: 11/5/2019 Final action: 11/5/2019
Title: Junior Unit Initiative Program
Attachments: 1. ATCH 1 - Resolution
To: Honorable Mayor and Members of City Council

From: Vincent Smith, Community Development Director

Prepared By: Lark Ferrell, Housing Manager

TITLE:
Title
Junior Unit Initiative Program

LABEL
RECOMMENDED ACTION:
Recommendation

Adopt a resolution approving amendments to the Junior Unit Initiative Program.

Body
DISCUSSION:
The City's Junior Unit Initiative Program (the "Program") was launched two years ago. It provides financing and technical assistance to help homeowners create accessory dwelling units (ADUs) in their owner-occupied single family homes. This includes the creation of: (1) a junior accessory dwelling unit (Junior Unit), created by using one or more existing bedrooms to establish a separate unit within the existing home; and, (2) converted accessory dwelling units (Converted ADU), which involve the conversion of existing accessory structures into accessory dwelling units (collectively "ADUs"). Either the ADU or the primary unit must be rented to a low-income tenant at an affordable rent to qualify for the financing.
Since its inception, two units have been completed, three are going through Building Division approval, two are working with an architect on plans, and two others are waiting for Program amendments before proceeding with their units as it is very likely the costs to convert their accessory structures into ADUs would exceed the Program's current loan limit.
Under the Program's current guidelines, the City provides financing in the form of a forgivable loan of up to $50,000. For each year the homeowner provides an affordable rental unit, 5% of the loan is forgiven until after 20 years, the loan is fully forgiven. The Program also provides a grant of up to $5,000 if the homeowner desires to make improvements to the rental unit to make it accessible to persons with disabilities and an architectural grant of up to $2,000 if design services are required.
Based on its experience with the Program, staff is proposing the f...

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