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CC 04-19-2022 Item No. 22 PDA Grant Written CommunicationsCC 04-19-2022 Item No. 22 Master Funding Agreement & PDA Planning Grant Written Communications From:Joseph Fruen To:Kirsten Squarcia; City Clerk Cc:Liang Chao; Darcy Paul; Jon Robert Willey; Kitty Moore; Hung Wei; Piu Ghosh (she/her) Subject:[For public comment] Re: Item 22 - Resolution authorizing acceptance of Priority Development Area Planning Grant Funds to update the Heart of the City Specific Plan Date:Tuesday, April 19, 2022 6:44:40 PM Attachments:CFA - Letter re Item 22 4-19-22.pdf CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Madam City Clerk: Please include the attached correspondence on behalf of Cupertino for All with respect to Item 22. Please note that this submission does not constitute a request to pull this item from the consent calendar, but is included for the consideration of council with the specified item. If the item is pulled for discussion, I kindly ask that you note the submission at the time that any other public comments are made. I am not asking you to read the comments aloud. Many thanks, J.R. Fruen Policy Director, Cupertino for All Mayor Paul and Members of the City Council: I write to you today on behalf of Cupertino for All to ask that you support the Draft Resolution at Attachment A to tonight's Staff Report. Cupertino for All is a neighborhood organization dedicated to making Cupertino a more equitable, vibrant, sustainable, and inclusive place through education, advocacy, and volunteerism. Key to our focus is the provision of housing in Cupertino sufficient to meet the needs of members of our community at all income levels. As you are aware, the city is presently in the process of revising its Housing Element to accommodate its 6th Cycle Regional Housing Needs Allocation (RHNA). This process requires Cupertino to plan for the addition of at least 4,588 net new homes across the gamut of housing affordability levels over the next eight-year production period. This Cycle includes new requirements that previous Cycles have not. In particular, AB 686 (2018) requires that our revised Housing Element affirmatively further fair housing principles, and AB 1397 (2017) requires that cities support the likelihood of new housing development on non-vacant sites with substantial evidence. Review of submitted Housing Elements from the Southern California Association of Governments reveals that failure to address affirmatively furthering fair housing standards, and a lack of evidence to support a likelihood of development during the production period were the primary reasons the California Department of Housing and Community Development (HCD) rejected the overwhelming majority of these Housing Elements. Given the legal consequences of lacking a state-certified Housing Element, we would like to help Cupertino avoid a similar HCD rejection. Consistent with that concern, when this item came to the Planning Commission, a number of commenters noted that the Housing Element should be the first priority for planning, rather than other updates to parts of the General Plan. As a result, the Planning Commission recommended acceptance of the grant before you, but that no work should be done on a Heart of the City (HOC) Specific Plan update until after the certification of a new Housing Element. We disagree--the monies from this planning grant and the requirements MTC imposes for accessing them will help the city to achieve an HCD-certified Housing Element. Re: Item 22 (Consent): Resolution authorizing acceptance of Priority Development Area Planning Grant Funds to update the Heart of the City Specific Plan Many of the concerns expressed at the Planning Commission about the timing of a HOC Specific Plan update, however, look to be based on the view that the HOC Specific Plan update will either detract from the Housing Element update process, or occur instead of it. This HOC Specific Plan update, however, need not represent a zero-sum game. Indeed, the staff report specifically noted that the city applied for this grant in anticipation of using it to help plan for the current Housing Element update process.See Staff Report at p. 3 ("Furthermore, in 2019, in anticipation of the Sixth Cycle Housing Element Update, the City issued a Letter of Confirmation for Priority Development Area (PDA) Planning to ABAG/MTC confirming the City’s intent to complete an amendment to the HOC Specific Plan as well as related rezoning and environmental studies by 2025, in response to a call for Letters of Interest from ABAG/MTC"). The two efforts overlap, particularly in their intent, namely to plan for new housing development.See Staff Report at p. 4 (noting that the "purpose of the PDA Planning Grant Program is to provide funding to local jurisdictions to amend specific plans within established PDAs to encourage housing development in the PDA " with a specific emphasis on affordable housing). In recognition of the expressed concern about timely completing the 6th Cycle Housing Element update, recall that the Housing Element must not only be timely submitted, but must also pass muster with HCD. The planning process that the grant before you prescribes increases the likelihood of HCD certification.Its community advisory council requires input and inclusion from the very groups that HCD's guidance memo on AB 686 requires or encourages in order to satisfy affirmatively furthering fair housing standards. Similarly, the technical advisory committee's feedback would assist the city in ensuring the feasibility of projects ultimately submitted in the HOC Specific Plan area, helping the city fulfill the requirement to demonstrate likelihood of development during the production period pursuant to AB 1397. The planning grant before you would help fulfill both requirements for sites within the HOC Specific Plan. Since the HOC planning area contains a disproportionate number of sites deemed suitably sized for affordable housing (between 0.5 and 10 acres in size (Gov't Code § 65583.2, subdiv. (c)), focusing planning efforts here would go a long way toward ensuring a legally compliant Housing Element. Since the HOC also stretches across a broad expanse of the city, new housing within it would help satisfy calls that new housing development be distributed across the city, and be consistent with affirmatively furthering fair housing principles. The overlap between the existing Housing Element effort and an update to the HOC Specific Plan also offers clear opportunities for synergy. The most obvious synergy lies in plain resource allocation. By utilizing this grant, the city may reallocate existing resources to those parts of the Housing Element planning process outside the HOC. In addition, the grant provides additional funding for outreach associated with planning for this key, city-defining piece of Cupertino. To date, the public's engagement level for the Housing Element update falls well behind the city's prior Specific Plan process for Vallco. The Housing Element update is a higher level process that involves many vagaries and is therefore likely to engender less interest, especially early on. By contrast, the Specific Plan process is a more concrete planning exercise and participants may have a stronger sense of what input to provide and when that input is sought. As such, a Specific Plan process for the HOC may help bolster public engagement for the overall Housing Element update with which it overlaps. By definition, it would do so for those Housing Element sites located within the HOC. Based on the prior public comments from members of this Council, Cupertino would benefit from such improved engagement. As such, we believe accepting this planning grant and using it now to help our planning effort for the Housing Element would be in the best interest of the city. Accordingly, we urge you to approve the Draft Resolution at Attachment A to tonight's staff report. . Respectfully submitted, J.R. Fruen Policy Director, Cupertino for All