Score: +3
(3/11/0)
Santa Clara County Grand Jury
• 2017-2018
• Agency Response
Response to:
City of Milpitas
City of Milpitas*
Published: September 18, 2018
8 pages
⚠️ Translation Notice: This content has been automatically translated. The original English text is the official version. Translation may contain errors.
⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings and Recommendations 3 findings
F6
Page 6
In-lieu fees, when offered as an option, are too low to produce the needed number of BMR units and delay their creation. Response: The City of Milpitas agrees with Finding 6. Generally, the cost of in-lieu fees are lower than the cost to produce affordable housing in the Bay Area. The land value in the region is one of the highest in the nation, and the cost to produce one BMR unit has been quoted by City Lab at $700,000, and rising. Thus for a 100%, 100 units, affordable housing project, the project can cost up to $70,000,000 -- which requires several layers of fund leveraging and months of funding applications. For many for-profit developers, their choice often gravitates to in-lieu fees.
Related Recommendations (1)
R6
Page 6
Cities with an in-lieu option should raise the fee to at least 30% higher than the inclusionary BMR equivalent where supported by fees studies, Response: The Recommendation requires further analysis. CITY OF MILPITAS 453 EAST CALAVERAS BOULEVARD, MILEITAS, CALIFORNIA 95035-5479 * B'WW.CLIMILPITAS.CA.GOW The City will analyze any existing fee studies to determine if this is supportable. If not, the City will need to determine what will be required to justify an in-lieu fee at that level and whether this makes sense in the context of the City's inclusionary housing ordinance.
F7
Page 7
NIMBY (Not in My Backyard) opposition adversely affects the supply of BMR housing units. Response: The City of Milpitas generally agrees with Finding 7 as opposition can have partial impact on BMR production. However, the City of Milpitas has a record of approval and support of affordable housing projects. Recently, the City Council approved a 100% affordable housing project at 355 Sango Court for 102 units
Related Recommendations (1)
R7
Page 7
A task force to communicate the value and importance of each city meeting its RHNA objectives for BMR housing should be created and funded by the County and all 15 cities, by June 30, 2019. Response: The Recommendation requires further analysis. The City is potentially open to the idea. The City would be open to discussion and would evaluate based on the goals and objectives of the established task force and will assess based on those impacts. In addition, State legislation has reinforced each City's responsibility in meeting its RHNA numbers.
F8
Page 7
It is unnecessarily difficult to confirm how many BMR units are constructed in particular year or RHNA cycle because cities and the County only report permitted units. Response: The City of Milpitas generally agrees with Finding 8. However, all BMR units constructed must be permitted before construction. In addition, all BMR units for ownership have been administered by the City and all rental developments for BMR have been properly managed by a qualified property management company.
Related Recommendations (1)
R8
Page 7
All 15 cities and the County should annually publish the number of constructed BMR units, starting in April 2019. Response: The Recommendation has been implemented, with a summary regarding the implemented action below. The City of Milpitas' Building Department keeps a list of building permits issued for all residential units, including BMR units. In addition, the City of Milpitas reports all constructed units as opposed to permitted units, to the State's Department of Housing and Community Development (HCD). The report is due to HCD every April. This information is available on the HCD website, 7 2 1 CITY OF MILPITAS 455 EAST CALAVERAS BOULEVARD, MILPITAS, CALIFORNIA 95035-5479 * www.cimilpitas.ca.gov http://www.hcd.ca.gov/community-development/housing-element/index.shtml, found under the report, "5th Cycle Annual Progress Report Permit Summary." The above is the City of Milpitas' response. Thank you. Sincerely, Rich Tran Mayor City of Milpitas c: Vice Mayor Marsha Grilli, Councilmembers Garry Barbadillo, Bob Nuñez and Anthony Phan . . . . 8 . . .
Agency Responses 3
Government agencies' official responses to this report's findings and recommendations. Click on a response to see the structured breakdown.
▶
2017 Update from the City of Milpitas
April 18, 2017
•
4 pages
• 5 responses
View Details ▾
5 responses to findings and recommendations
R2a
The County should form a task force with the cities to establish housing impact fees for employer to subside BMR housing, by June 30, 2019. Response: The Recommendation requires further analysis. CITY OF MILPITAS 455 East Calaveras Boulevario, Milpitas, California 95035-5470 * symmelmilpitas.ca.gov The City of Milpitas is in the process of conducting outreach to determine fees. It will undergo its own process to address impact fees for residential and non-residential (commercial) developments as...
Response: Unknown
Score: 0
R2b
Every city in the County should enact housing impact fees for employers to create a fund that subsidizes BMR housing, by June 30, 2020. Response: The Recommendation requires further analysis. The City of Milpitas is undergoing its own process to address impact fees for non-residential (commercial) developments as allowed by the adopted Nexus Study. A regional, fixed approach of fees may not benefit all cities. As for impact fees for employers, the City will defer to the County and work with the ...
Response: Unknown
Score: 0
Recommendation 2B was fully implemented.
R5
Inclusionary BMR percentage requirements should be increased to at least 15% in Gilroy, Los Altos, Milpitas, Morgan Hill, Palo Alto and Sunnyvale, Response: The Recommendation has been implemented, with a summary regarding the implemented action below. The City of Milpitas adopted an Affordable Housing Ordinance on June 12, 2018 that became effective July 20, 2018, that requires new development of 10 or more units to designate 15% of the total units to very-low and low income households for rent...
Response: Unknown
Score: 0
The City continues to fund the full Annual Required Contribution (ARC) every year. The City of Milpitas' unfunded liability had increased from $29.7 million as of June 2011 to $36.0 million as of the last valuation (June 2015). This increase is due to the increased number of retirees, increased life expectancy, and rising healthcare costs.
F7
NIMBY (Not in My Backyard) opposition adversely affects the supply of BMR housing units. Response: The City of Milpitas generally agrees with Finding 7 as opposition can have partial impact on BMR production. However, the City of Milpitas has a record of approval and support of affordable housing projects. Recently, the City Council approved a 100% affordable housing project at 355 Sango Court for 102 units
Response: Unknown
Score: 0
This recommendation still needs further exploration to determine feasibility and the ability to continue to attract quality employees for key positions. However, even if the City were to determine that a transition to a defined contribution model is feasible, adopting a defined contribution pension plan for future employees is statutorily prohibited for entities participating in CalPERS even though it is well-settled law that governmental entities may provide any pension benefit they deem appropriate for future employees subject to compliance with other requirements under federal law such as t...
R7
A task force to communicate the value and importance of each city meeting its RHNA objectives for BMR housing should be created and funded by the County and all 15 cities, by June 30, 2019. Response: The Recommendation requires further analysis. The City is potentially open to the idea. The City would be open to discussion and would evaluate based on the goals and objectives of the established task force and will assess based on those impacts. In addition, State legislation has reinforced each C...
Response: Unknown
Score: 0
This recommendation still needs further exploration to determine feasibility and the ability to continue to attract quality employees for key positions. However, even if the City were to determine that a transition to a defined contribution model is feasible, adopting a defined contribution pension plan for future employees is statutorily prohibited for entities participating in CalPERS even though it is well-settled law that governmental entities may provide any pension benefit they deem appropriate for future employees subject to compliance with other requirements under federal law such as t...
▶
2017 Update from the City of Milpitas
April 18, 2017
•
4 pages
• 5 responses
View Details ▾
5 responses to findings and recommendations
R2a
The County should form a task force with the cities to establish housing impact fees for employer to subside BMR housing, by June 30, 2019. Response: The Recommendation requires further analysis. CITY OF MILPITAS 455 East Calaveras Boulevario, Milpitas, California 95035-5470 * symmelmilpitas.ca.gov The City of Milpitas is in the process of conducting outreach to determine fees. It will undergo its own process to address impact fees for residential and non-residential (commercial) developments as...
Response: Unknown
Score: 0
R2b
Every city in the County should enact housing impact fees for employers to create a fund that subsidizes BMR housing, by June 30, 2020. Response: The Recommendation requires further analysis. The City of Milpitas is undergoing its own process to address impact fees for non-residential (commercial) developments as allowed by the adopted Nexus Study. A regional, fixed approach of fees may not benefit all cities. As for impact fees for employers, the City will defer to the County and work with the ...
Response: Unknown
Score: 0
Recommendation 2B was fully implemented.
R5
Inclusionary BMR percentage requirements should be increased to at least 15% in Gilroy, Los Altos, Milpitas, Morgan Hill, Palo Alto and Sunnyvale, Response: The Recommendation has been implemented, with a summary regarding the implemented action below. The City of Milpitas adopted an Affordable Housing Ordinance on June 12, 2018 that became effective July 20, 2018, that requires new development of 10 or more units to designate 15% of the total units to very-low and low income households for rent...
Response: Unknown
Score: 0
The City continues to fund the full Annual Required Contribution (ARC) every year. The City of Milpitas' unfunded liability had increased from $29.7 million as of June 2011 to $36.0 million as of the last valuation (June 2015). This increase is due to the increased number of retirees, increased life expectancy, and rising healthcare costs.
F7
NIMBY (Not in My Backyard) opposition adversely affects the supply of BMR housing units. Response: The City of Milpitas generally agrees with Finding 7 as opposition can have partial impact on BMR production. However, the City of Milpitas has a record of approval and support of affordable housing projects. Recently, the City Council approved a 100% affordable housing project at 355 Sango Court for 102 units
Response: Unknown
Score: 0
This recommendation still needs further exploration to determine feasibility and the ability to continue to attract quality employees for key positions. However, even if the City were to determine that a transition to a defined contribution model is feasible, adopting a defined contribution pension plan for future employees is statutorily prohibited for entities participating in CalPERS even though it is well-settled law that governmental entities may provide any pension benefit they deem appropriate for future employees subject to compliance with other requirements under federal law such as t...
R7
A task force to communicate the value and importance of each city meeting its RHNA objectives for BMR housing should be created and funded by the County and all 15 cities, by June 30, 2019. Response: The Recommendation requires further analysis. The City is potentially open to the idea. The City would be open to discussion and would evaluate based on the goals and objectives of the established task force and will assess based on those impacts. In addition, State legislation has reinforced each C...
Response: Unknown
Score: 0
This recommendation still needs further exploration to determine feasibility and the ability to continue to attract quality employees for key positions. However, even if the City were to determine that a transition to a defined contribution model is feasible, adopting a defined contribution pension plan for future employees is statutorily prohibited for entities participating in CalPERS even though it is well-settled law that governmental entities may provide any pension benefit they deem appropriate for future employees subject to compliance with other requirements under federal law such as t...
▶
City of Milpitas
September 18, 2018
•
8 pages
• 15 responses
•
Score: +3
(+3, 11, 0)
View Details ▾
15 responses to findings and recommendations
R1a
To improve jobs-to-housing imbalances, the cities of Palo Alto, Santa Clara, Milpitas, Mountain View and Sunnyvale should identify, by June 30, 2019, parcels where housing densities will be increased. The identification should include where projects are expected to be permitted and the number of BMR units anticipated for each parcel. CITY OF MILPITAS 455 EAST CALAVERAS BOULEVARD, MULLITAS. CALIFORNIA 95035-5479 • WWW.CLIDELDIAS.CA.gov Response: Part of the Recommendation has been implemented; pa...
Response: Implemented
Score: 0
Part of the Recommendation has been implemented; part of the Recommendation requires further analysis. The City of Milpitas' Housing Element has identified parcels that collectively can provide at least 1,400 units in the Midtown Specific Plan and over 2,400 units in the Transit Area Specific Plan (TASP) - areas with very high-density with a Transit Oriented Development overlay, which allows up to 80 units per acre and with the maximum density bonus of 35% up to 100 units per acre. The total number of potential units can exceed the overall percentage of unit production of the 2015-2023 Regiona...
R1b
Cities should identify parcels within one-half mile of transit hub that will help them meet their LI and moderate-income BMR objectivities in the current RHNA cycle, Response: The Recommendation has been implemented, with a summary regarding the implemented action below. The City of Milpitas has already identified parcels within one-half mile of the future BART station and has developed the Transit Area Specific Plan that has parcels zoned for very high density. Those parcels or opportunity site...
Response: Implemented
Score: 0
The Recommendation has been implemented, with a summary regarding the implemented action below. The City of Milpitas has already identified parcels within one-half mile of the future BART station and has developed the Transit Area Specific Plan that has parcels zoned for very high density. Those parcels or opportunity sites have been listed in the Housing Element. Although, the parcels are not designated for a particular income category, the City has designated two sites for affordable housing development for very-low to low income households at 1432-1446 S. Main Street owned by the Housing Au...
R1c
Cities should revise their density bonus ordinances to provide bonuses for LI and moderate-income BMR units that exceed the minimum bonuses required by State law for parcels within one- half mile of transit hub, Response: The Recommendation has been implemented, with a summary regarding the implemented action below. The City's density bonus ordinance aligns with State law. Therefore, instead of revising the density bonus ordinance, the City of Milpitas has adopted an Affordable Housing Ordinance...
Response: Implemented
Score: 0
The Recommendation has been implemented, with a summary regarding the implemented action below. The City's density bonus ordinance aligns with State law. Therefore, instead of revising the density bonus ordinance, the City of Milpitas has adopted an Affordable Housing Ordinance that goes beyond State law for density bonus incentives. If a developer chooses to build above 20% of the total units for affordable housing, the developer can elect two additional waivers that increase the feasibility of the project under the discretion of the Director of Planning. In addition to the State's incentives...
R2a
The County should form a task force with the cities to establish housing impact fees for employer to subside BMR housing, by June 30, 2019. Response: The Recommendation requires further analysis. CITY OF MILPITAS 455 East Calaveras Boulevario, Milpitas, California 95035-5470 * symmelmilpitas.ca.gov The City of Milpitas is in the process of conducting outreach to determine fees. It will undergo its own process to address impact fees for residential and non-residential (commercial) developments as...
Response: Requires Analysis
Score: 0
The Recommendation requires further analysis.
455 East Calaveras Boulevario, Milpitas, California 95035-5470 * symmelmilpitas.ca.gov The City of Milpitas is in the process of conducting outreach to determine fees. It will undergo its own process to address impact fees for residential and non-residential (commercial) developments as allowed by the adopted Nexus Study. Currently, there is not a countywide effort to establish BMR housing impact fees for employers, but the City will defer to the County on a potential task force and a timeframe for implementation.
R2b
Every city in the County should enact housing impact fees for employers to create a fund that subsidizes BMR housing, by June 30, 2020. Response: The Recommendation requires further analysis. The City of Milpitas is undergoing its own process to address impact fees for non-residential (commercial) developments as allowed by the adopted Nexus Study. A regional, fixed approach of fees may not benefit all cities. As for impact fees for employers, the City will defer to the County and work with the ...
Response: Requires Analysis
Score: 0
The Recommendation requires further analysis. The City of Milpitas is undergoing its own process to address impact fees for non-residential (commercial) developments as allowed by the adopted Nexus Study. A regional, fixed approach of fees may not benefit all cities. As for impact fees for employers, the City will defer to the County and work with the County and other cities to analyze potential impact fees on a regional basis.
R3a
Every city in the County should identify at least one potential RHNA sub-region they would be willing to help form and join, and report how the sub-region(s) will increase BMR housing, Response: The Recommendation requires further analysis. . OF MILPITAS 455 East Calaveras Boulevard, Milpitas, California 95035-5479 • www.climilpitas.ca.gov The City of Milpitas is open to exploring this opportunity and is undergoing preliminary discussion with the Cities Association of Santa Clara County as it is...
Response: Requires Analysis
Score: 0
The Recommendation requires further analysis. .
OF MILPITAS 455 East Calaveras Boulevard, Milpitas, California 95035-5479 • www.climilpitas.ca.gov The City of Milpitas is open to exploring this opportunity and is undergoing preliminary discussion with the Cities Association of Santa Clara County as it is a Board priority. However, the potential of a RHNA sub-region will not be implemented until the next RHNA cycle (2023-2031). In the fall, the City Council will be presented with a consideration to join the sub-region.
R3b
A RHNA sub-region should be formed including one or more low-cost cities with one or more high-cost cities, Response: The Recommendation requires further analysis. The City of Milpitas is currently exploring this idea and opportunity with the Cities Association of Santa Clara County but the current RHNA sub-region will not be implemented until the next RHNA cycle. It should be noted that it is State law to have both high-cost and low-cost cities to produce their fair share of required BMR units ...
Response: Requires Analysis
Score: 0
The Recommendation requires further analysis. The City of Milpitas is currently exploring this idea and opportunity with the Cities Association of Santa Clara County but the current RHNA sub-region will not be implemented until the next RHNA cycle. It should be noted that it is State law to have both high-cost and low-cost cities to produce their fair share of required BMR units to meet their RHNA objectives. It is each city's responsibility to frame their land use policy and zoning to align with State law.
R4
Campbell, Milpitas, Los Gatos, Los Altos and San Jose should enact commercial linkage fees to promote additional BMR housing, by June 2019. Response: The Recommendation has been partially implemented and will be completed by June 2019. The City of Milpitas adopted an Affordable Housing Ordinance on June 12, 2018 that became effective July 20, 2018, that requires non-residential (commercial) developments with new developments or new additions over 5,000 square feet to pay an impact fee. This fee ...
Response: Unknown
Score: 0
The Recommendation has been partially implemented and will be completed by June 2019. The City of Milpitas adopted an Affordable Housing Ordinance on June 12, 2018 that became effective July 20, 2018, that requires non-residential (commercial) developments with new developments or new additions over 5,000 square feet to pay an impact fee. This fee will be added to the Affordable Housing Ordinance fund and will be conditioned and used only for future very-low and low income
445 East Calaveras Boulevard, Mileitas California 95035-3479 * www.cl.milpitas.ca.gov affordable housing. The City is und...
R5
Inclusionary BMR percentage requirements should be increased to at least 15% in Gilroy, Los Altos, Milpitas, Morgan Hill, Palo Alto and Sunnyvale, Response: The Recommendation has been implemented, with a summary regarding the implemented action below. The City of Milpitas adopted an Affordable Housing Ordinance on June 12, 2018 that became effective July 20, 2018, that requires new development of 10 or more units to designate 15% of the total units to very-low and low income households for rent...
Response: Requires Analysis
Score: 0
The Recommendation requires further analysis.
455 East Calaveras Boulevario, Milpitas, California 95035-5470 * symmelmilpitas.ca.gov The City of Milpitas is in the process of conducting outreach to determine fees. It will undergo its own process to address impact fees for residential and non-residential (commercial) developments as allowed by the adopted Nexus Study. Currently, there is not a countywide effort to establish BMR housing impact fees for employers, but the City will defer to the County on a potential task force and a timeframe for implementation.
F6
In-lieu fees, when offered as an option, are too low to produce the needed number of BMR units and delay their creation. Response: The City of Milpitas agrees with Finding 6. Generally, the cost of in-lieu fees are lower than the cost to produce affordable housing in the Bay Area. The land value in the region is one of the highest in the nation, and the cost to produce one BMR unit has been quoted by City Lab at $700,000, and rising. Thus for a 100%, 100 units, affordable housing project, the pr...
Response: Agree
Score: +1
The City of Milpitas agrees with Finding 6.
R6
Cities with an in-lieu option should raise the fee to at least 30% higher than the inclusionary BMR equivalent where supported by fees studies, Response: The Recommendation requires further analysis. CITY OF MILPITAS 453 EAST CALAVERAS BOULEVARD, MILEITAS, CALIFORNIA 95035-5479 * B'WW.CLIMILPITAS.CA.GOW The City will analyze any existing fee studies to determine if this is supportable. If not, the City will need to determine what will be required to justify an in-lieu fee at that level and wheth...
Response: Requires Analysis
Score: 0
The Recommendation requires further analysis.
453 EAST CALAVERAS BOULEVARD, MILEITAS, CALIFORNIA 95035-5479 * B'WW.CLIMILPITAS.CA.GOW The City will analyze any existing fee studies to determine if this is supportable. If not, the City will need to determine what will be required to justify an in-lieu fee at that level and whether this makes sense in the context of the City's inclusionary housing ordinance.
F7
NIMBY (Not in My Backyard) opposition adversely affects the supply of BMR housing units. Response: The City of Milpitas generally agrees with Finding 7 as opposition can have partial impact on BMR production. However, the City of Milpitas has a record of approval and support of affordable housing projects. Recently, the City Council approved a 100% affordable housing project at 355 Sango Court for 102 units
Response: Agree
Score: +1
The City of Milpitas generally agrees with Finding 7 as opposition can have partial impact on BMR production.
R7
A task force to communicate the value and importance of each city meeting its RHNA objectives for BMR housing should be created and funded by the County and all 15 cities, by June 30, 2019. Response: The Recommendation requires further analysis. The City is potentially open to the idea. The City would be open to discussion and would evaluate based on the goals and objectives of the established task force and will assess based on those impacts. In addition, State legislation has reinforced each C...
Response: Requires Analysis
Score: 0
The Recommendation requires further analysis. The City is potentially open to the idea. The City would be open to discussion and would evaluate based on the goals and objectives of the established task force and will assess based on those impacts. In addition, State legislation has reinforced each City's responsibility in meeting its RHNA numbers.
F8
It is unnecessarily difficult to confirm how many BMR units are constructed in particular year or RHNA cycle because cities and the County only report permitted units. Response: The City of Milpitas generally agrees with Finding 8. However, all BMR units constructed must be permitted before construction. In addition, all BMR units for ownership have been administered by the City and all rental developments for BMR have been properly managed by a qualified property management company.
Response: Agree
Score: +1
The City of Milpitas generally agrees with Finding 8.
R8
All 15 cities and the County should annually publish the number of constructed BMR units, starting in April 2019. Response: The Recommendation has been implemented, with a summary regarding the implemented action below. The City of Milpitas' Building Department keeps a list of building permits issued for all residential units, including BMR units. In addition, the City of Milpitas reports all constructed units as opposed to permitted units, to the State's Department of Housing and Community Deve...
Response: Implemented
Score: 0
The Recommendation has been implemented, with a summary regarding the implemented action below. The City of Milpitas' Building Department keeps a list of building permits issued for all residential units, including BMR units. In addition, the City of Milpitas reports all constructed units as opposed to permitted units, to the State's Department of Housing and Community Development (HCD). The report is due to HCD every April. This information is available on the HCD website,
455 EAST CALAVERAS BOULEVARD, MILPITAS, CALIFORNIA 95035-5479 * www.cimilpitas.ca.gov http://www.hcd.ca.gov/community-de...
* This report's PDF did not contain easily extractable text and required Optical Character Recognition (OCR) for analysis. There may be minor errors in the extracted findings and recommendations due to OCR limitations with scanned documents.