Editorial

Town should make sure that promises are kept

Housing has recently become a hot financial and political topic, especially in the Bay Area. Forget mutual funds; homeowners have registered double-digit returns in their equity stake, a truly golden nest egg. But many of those who could not, or did not, take advantage of the opportunity to jump on the gravy train have started to cry foul and the politicians are listening. And, apparently, so are the developers

In Los Gatos, the town mandates that developers of multiple housing units rent or sell a portion of the units at below-market price, which is set by a town program that creates affordable housing by tying the cost to household income.

Another aspect of the development process is a provision that a project provide "community benefit," which essentially means that the developer is willing to go above and beyond the letter of the law, to make the town happy. For example, if a developer is told by the town to provide two below-market-price units, then throws in a third unit, that addition is considered a "community benefit."

The developers aren't dumb; they know that the media is starting to play up the lack of affordable housing, especially for public workers who oftentimes don't make enough to live in the community they serve. Teachers fit in this category, as well they should, and they've become the developers' unwitting accomplice in getting projects green-lighted by the town.

Developer have begun specifying that the below-market-price units they offer for "community benefit" go to teachers. What a noble gesture. A recent proposal to build housing on Farley Road set aside three below-market-price apartments for teachers. Another recent housing proposal, on Terreno de Flores, included one below-market-priced teacher unit. With this "community benefit" component, both plans received the blessing of the planning commission.

But the devil will once again prove to be in the details. The town--and, to a certain extent the school districts that enter into agreements with these developers--must make sure that teachers who satisfy the below-market-price requirements end up in those "teacher'' units.

Ultimately, it will be up to the town to make sure that the developers keep their promises, because its ordinances carry the force of law. According to Los Gatos Director of Community Development Bud Lortz, before building permits are issued, the town will confirm the binding contractual obligation between the developer and school district, "certainly before any occupancy occurs." If a developer reneges on the promise to provide the teacher housing, the town can take legal action.

Hopefully, all concerned will act in good faith and the homes will go to the people who truly need them. But this situation bears watching by all concerned, especially the town, to make sure that the "community benefit" goes to the intended beneficiaries.

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